In Tide of Red Ink, Some States Show Surpluses

California, Georgia, Idaho and Utah are among the states that have put themselves on a solid fiscal footing by avoiding deep tax cuts, enacting targeted tax increases, and diverting some surplus money into “rainy day” funds to be tapped in leaner times. By taking those steps, and by forgoing the temptation to rely on a single revenue source, those states are in good financial shape heading into this year’s legislative sessions. Their strategies may be instructive for other states. Another step states can take to avoid a budget crisis is to not cut taxes too deeply even when it appears economic times are good or getting better. Take Georgia, for instance. It has a surplus. That’s partly because Georgia’s economy is growing faster than much of the rest of the nation. But Georgia also resisted cutting taxes in recent years, while modestly projecting revenue and diverting excess amounts into the state’s rainy day fund, said Wesley Tharpe, research director at the progressive Georgia Budget and Policy Institute.