AP Reporter Robert Tanner reports: "Tax cuts, new cash to health-care programs, blueprints for new roads and schools - states have jumped into 2006 with ambitious plans to spend the money pouring into their coffers, a windfall that's just in time for governors and legislators as they start re-election campaigns."

Lowering tax rates is the only proper way for states to use these revenue "windfalls" -- that is, return them to the people who made the extra money possible in the first place by working so hard. Unfortunately, while some governors plan to give a portion of their revenue windfalls back to taxpayers, most are planning to spend like drunken sailors that refuse to pass out. AFP Scholar Dr. Barry Poulson identifies such behavior as part of the ratchet-up taxes effect: Without an effective limit on government growth, officials tend to increase spending during periods of prosperity to use-up higher revenues, face budget shortfalls when revenues fall due to an economic downturn, and finally, reluctant to cut spending, increase taxes to offset shortfalls.

• Florida: With $3.2 billion in higher-than-expected revenues, GOP Gov. Jeb Bush is pushing for $1.5 billion in tax cuts, including a rebate for homeowners, elimination of a tax on stock and bond holdings and repeal of a tax on alcoholic beverages sold by the drink.

• Oklahoma: Democratic Gov. Brad Henry wants to pour most of the extra money into education, with scholarships and raises for teachers. He also wants to cut taxes on retirees, fix bridges and fund high-tech research.

• California: GOP Gov. Arnold Schwarzenegger proposed a stunning increase in spending, including a record $54.3 billion for K-12 education; $170 million over two years to get health care for 300,000 uninsured children; and a big boost in funds for highway improvements. The state estimates $7 billion in higher-than-expected tax revenues over two years.