41 states report a 6% increase in tax revenues for the fourth quarter of 2010, according to data compiled by The Nelson A. Rockefeller Institute of Government at the State University of New York at Albany.  Calling it the fastest rate of increase in state tax revenues since the second quarter of 2006, the Institute attributes the jump to both tax increases and the improving economy.

The increases still leave state revenues lower than they were pre-recession, and most states still face budget cuts in the coming fiscal year.