The following excerpts are from the 2012 Mid-Year Keating Report, which includes analysis of federal, state, and local government finances, as well as an in-depth look at public works and transportation construction, public-private partnerships, the economy and government purchases.

While state finances are showing improvement, budget questions remain as states bring in more tax revenues, according to the "Keating Report" from American City & County's sister publication Government Product News.

One expert who says there is finally some good news for state governments is Sujit CanagaRetna, senior fiscal analyst for the Atlanta-based southern office of the Council of State Governments. "State tax revenues continued expanding, and in the final quarter of 2011, states recorded their eighth consecutive quarter of growth," CanagaRetna told GPN. "In fact, in the fourth quarter of 2011, overall state tax collections finally eclipsed levels reached in the final quarters of 2007 and 2008, a stark reminder of the harshness of the Great Recession."

New strength in manufacturing should keep the momentum going, CanagaRetna says…

Read the entire story from Government Product News, our sister publication.