WASHINGTON (AP) — U.S. states expect to collect higher tax revenues in the coming budget year that combined would top pre-recession levels, according to a survey released Tuesday. The increase could reduce pressure on states to cut budgets and lay off workers.

A slowly healing job market and modest growth have boosted sales and income taxes, which provide nearly three-quarters of state revenue. Overall corporate income taxes are also growing.

Still, many states continue to struggle with budget shortfalls. And some states, such as California, are seeing greater revenues only after raising taxes to stem deficits.

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