"State Budget Shortfalls Vanishing as Bush Policies Succeed" President Bush's tax cuts have worked their magic on the economy, buoying state level tax collections As a result, the Wall Street Journal reports ($link) Just prior to his state of the state address last week, Governor George Pataki announced that New York is looking at a $2 billion surplus this year, or twice what was predicted just three months earlier. Two days later, Governor Arnold Schwarzenegger said California would end the fiscal year with a whopping $5.2 billion in reserves. Arkansas, Florida, Maryland, Oklahoma, Virginia and about three dozen other states are also reporting revenue above forecasts. Ed Lasky   1 11 06(Read Full Post)