The state budgets of Arizona, Michigan and Rhode Island suffered the biggest blows as a result of the recession. But this year, all three states may have budget surpluses, according to Stateline.
In fact, budgets in most states have started to show a significant recovery, which is changing lawmakers' minds about their financial futures.
A year ago, many states were considering tax increases and spending cuts. This year, more states are debating restoring services that were cut as a result of the recession as well as cutting taxes. Also in contrast to last year, fewer states seem to be in danger of not finishing their budgets in time for the new fiscal year, Stateline reports.
Not every state is out of the water though. Some states, especially Illinois and California, are faced with budget crises this year similar in scope to ones faced by other states during the recession. Other states have seen their budgets finally improve since the start of the recession, but are still faced with tough decisions regarding health care and federal budget cuts, according to Stateline.