'Resilient' Economy Is Predicted To Spur 4% Boost in Spending

By Lonnie Harp

Washington

State legislatures will start the new year with the healthiest balances since 1980 and a rosy financial picture overall, according to a survey.

Across the country, state spending in fiscal 1997 is expected to rise by about 4 percent, while tax proceeds drop slightly, the National Governors' Association and the National Association of State Budget Officers reported last week. A "resilient" economy is creating strong but cautious budget forecasts in the states,...