Reserves, interest help states fill budget holes

Governors and lawmakers are tapping into massive savings and rounding up surplus cash to solve budget problems this year, allowing them to reduce the need for painful tax increases and spending cuts — at least for now.

Thanks to the pandemic-era revenue boom, states now have record sums stashed away and accumulating interest. That cushion has helped state leaders resolve unexpected shortfalls and softened the impact of slowing revenue growth and rising costs.