States banking big bucks

States across the U.S. built big budget surpluses as inflation helped drive up their revenues from income and sales taxes. Now the Federal Reserve’s efforts to fight inflation are helping states earn even more.

Many states are earning millions of dollars off their surpluses because of rising interest rates. As state legislatures prepare for their 2023 sessions, some governors and lawmakers are proposing to tap into those surpluses for tax cuts or greater spending on priorities such as infrastructure and education.

Financial experts warn that states ultimately could see tax revenues drop if the Fed’s efforts to slow the economy are successful.

Minnesota is projecting a record $17.6 billion surplus for the next budget.

North Dakota has around $2 billion dollars in the bank.