U.S. state governments are recovering from the recession as tax collections increase, allowing them to spend more on schools and transportation, according to a report.
State revenue is projected to rise 3.9 percent during this budget year over last to surpass the peak hit before the full effects of the 18-month recession that began in December 2007, according to the report, released Thursday by the National Governors Association and the National Association of State Budget Officers. Planned state government spending will climb 2.2 percent over last year, the Washington-based groups said.
