CHICAGO — Ohio and Indiana are heading into fiscal 2013 with fattened reserves and a brighter outlook tied to better-than-expected revenues from an improving economy.

Budget officials in Ohio said an uptick in revenues and spending cuts means the state will end 2012 with a small surplus, despite the loss of a $500 million payment that was expected from Gov. John Kasich's plan to lease the state liquor distribution system to a private company. A lawsuit that held up the privatization deal was not resolved until days before the end of the fiscal year.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.