WASHINGTON/CHICAGO (Reuters) – Since the financial crisis sapped growth and took a steep toll on tax revenues, Pennsylvania Governor Ed Rendell has laid off workers, slashed spending and fought with legislators over tax hikes.

But when the Democrat leaves office next week, he will have an unexpected laurel to put in his gubernatorial wreath: Pennsylvania is already on track to end its fiscal year in June without a deficit.

WASHINGTON (Reuters) – Federal Reserve Chairman Ben Bernanke on Friday once again said he opposes providing financial aid to the many states still reeling from the economic recession.

Bernanke firmly said “No” after being pressed by Democratic Senators to consider a lifeline from the central bank for states where economic recovery remains elusive.

WASHINGTON (Reuters) – Legislators in U.S. states who are returning to work this month or entering office for the first time expect to spend much of the new year pinching pennies.

According to a survey released on Monday by the National Conference of State Legislatures, most state lawmakers listed balancing the budget at the top of their fiscal agenda.

WASHINGTON, Jan 3 (Reuters) – Legislators in U.S. states
who are returning to work this month or entering office for the
first time expect to spend much of the new year pinching
pennies.

According to a survey released on Monday by the National
Conference of State Legislatures, most state lawmakers listed
balancing the budget at the top of their fiscal agenda.

WASHINGTON (Reuters) – U.S. state and local governments faced the realization on Friday that in just 14 days they will no longer be able to sell taxable Build America Bonds, the federally subsidized debt created in the economic stimulus plan to fund infrastructure projects and create jobs.

Investors, analysts, underwriters and federal policy-makers also confronted a future without taxable BABs, which made up more than a quarter of all new municipal debt sold this year and which have been largely credited with restarting stalled municipal credit markets.

WASHINGTON (Reuters) – Members of Congress are seeking nearly $1 billion in funding for pet transportation projects in a massive government spending bill, maintaining a tradition of bringing home “pork” for road and transit.

A Reuters analysis of transport-related requests posted by the Senate Appropriations Committee found members of the House of Representatives and Senate have asked for more than $900 million for transportation in more than 990 requests, called “earmarks.”

WASHINGTON (Reuters) – The future of President Barack Obama’s healthcare reform has been put in doubt after a judge ruled unconstitutional a key element obliging people to buy health insurance.

The judge in Virginia ruled on Monday said the federal government cannot require someone to buy health insurance. Nearly half the states have filed lawsuits challenging the healthcare reform law and Republican governors and state legislators are working to stall the plan’s implementation.

WASHINGTON, Dec 14 (Reuters) – The future of U.S. President
Barack Obama’s healthcare reform has been put in doubt after a
judge ruled unconstitutional a key element obliging people to
buy health insurance.

The judge in Virginia ruled on Monday said the federal
government cannot require someone to buy health insurance.
Nearly half the states have filed lawsuits challenging the
healthcare reform law and Republican governors and state
legislators are working to stall the plan’s implementation.

WASHINGTON, Dec 13 (Reuters) – A U.S. judge in Virginia on
Monday declared unconstitutional a key part of President Barack
Obama’s landmark healthcare law in the first major setback on
an issue that will likely end up at the Supreme Court.

U.S. District Judge Henry Hudson, appointed to the bench by
President George W. Bush in 2002, backed arguments by the state
of Virginia that Congress exceeded its authority by requiring
that individuals buy health insurance by 2014 or face a fine.

WASHINGTON (Reuters) – The Obama administration on Thursday rescinded $1.195 billion intended to fund the development of high-speed rail in Ohio and Wisconsin and said it will redirect the funds to “other states eager to develop high-speed rail corridors” in the United States.

“I am pleased that so many other states are enthusiastic about the additional support they are receiving to help bring America’s high-speed rail network to life,” Transportation Secretary Ray LaHood said in a statement.