Good News for Maryland's Budget

At the end of August, Maryland Comptroller Peter Franchot announces that state revenues for the 2012 fiscal year, which ended on June 30, exceeded estimates by $230 million.

This is good news for a few reasons. First it shows economic recovery, even weak recovery is recovery. This shows an improvement in household and corporate income. Secondly, this reduces Maryland's revenue shortfall for the upcoming year.

Franchot issued a statement emphasizing the economy isn't great, even though the recovery is adding jobs that recent is moving slower than everyone would like. That being said, as Neil Bergsman notes, "Still, the good revenue news suggests a glimmer of light at the end of the tunnel."

There are still risks to Maryland's budget and to the economy. Congress might enact abrupt federal budget cuts, which would sent the economy into a new recession or Europe's economy could self-destruct which would contribute to the US economy suffering.

That being said Maryland has a balanced budget through June 2013 with $672 million in a rainy day reserve. Maryland has again received a Triple-A credit rating, which is impressive. The budget and economy will remain difficult, but everyone sounds hopeful at the moment.