Salient to Investors:

The National Assn of State Budget Officers said:

  • US states reduced taxes and fees this year by $2.3 billion, the deepest cut since F2001.
  • By the close of 2014 state spending will be 9.4 % above the peaks reached before the full brunt of the recession.
  • Just 12 states, including Florida and New York, increased spending for roads and transportation projects.

The average economist expects the US to grow 2.2% in 2014 versus 2.2% in 2013 and  2.3 % in 2012.

Josh Gonze at Thornburg Investment Mgmt said:

  • The improved outlook has driven demand for state debt, with investors willing to accept lower yields.
  • States are in a good financial condition, with no problems coming in 2015, and anticipated by most of the market making their bonds expensive.

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