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State, Local Government Finances Humming Again

USA Today (01/02/13) Paul Davidson

State governments overall are starting 2013 in their best financial shape in several years, which could help cushion the blow to the economy from any tax hikes and spending cuts made by the federal government this year. Local governments still face stiff budget challenges, but their overall condition appears less dire. After eliminating 653,000 jobs from 2008 through 2011, state and local governments kept payrolls roughly stable in 2012, and Moody’s expects them to add 220,000 jobs in 2013.