Which states have surpluses

States also could use the money to give stimulus checks to residents. Many states also plan to focus on improving their infrastructure — i. Additionally, an estimated 1. Skip Navigation. Key Points. As of February, 29 states had pulled in as much revenue, if not more, in the previous 12 months as they did in the year leading up to the pandemic.

States that are more reliant on tourism or are natural-resources-dependent have taken more of a hit during the pandemic, and their revenues are still down. Some states with surpluses are providing financial relief to residents through reduced tax rates or cash payments. Continue reading your article with a WSJ membership. Resume Subscription We are delighted that you'd like to resume your subscription.

Please click confirm to resume now. Sponsored Offers. Most Popular News. Most Popular Opinion. In states across the country, legislators who once stared into a terrifying abyss of red ink now face an embarrassment of riches, funded by a booming stock market, rising wages for those at the upper end of the economic stratosphere and what economists say is an unprecedented shift in the way consumers are spending their money.

Budget cycles differ by state, and legislators everywhere are in different stages of arranging their fiscal houses. The catastrophe avoided comes in part from a stock market that has exploded during the pandemic. The Dow Jones Industrial Average is up 76 percent over the same period. Capital gains from those advances have helped make up for lost revenue growth; in states like California, specific initial public offerings from companies such as DoorDash and Airbnb provided their own unique boosts.

State residents also played a role in boosting state revenue. With most service businesses shuttered, consumer spending shifted to goods, especially through e-commerce. A Supreme Court decision forcing online retailers to collect state sales tax, South Dakota v. Wayfair, meant a sustained infusion of cash headed to state coffers.