There's good news and bad news on the state's 2012 budget outlook.
The good news is that the state stands to receive what appears to be a series of one time windfalls in various taxes, enhancing expected revenues by about $350 million.
The bad news is that Democrats who run the legislature have decided to spend every penny of that money, proposing a budget that increases spending by seven percent over last year. The 2011 budget also increased spending by seven percent.
Democrats also have no answer as to how they will cut spending next year, an election year if revenues don't hold, or if there is a substantial decline caused by revenue losses from real estate transfer taxes. Housing prices continue to decline sharply.
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