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Now come rumblings of tax increases, reduced services and higher mass-transit fares.
Sydney Ferries was privatised in 2012, leading to a reduction in services and higher fares.
The government attributed the gain to robust growth in manufacturing and services and higher productivity in farming after abundant rainfall.
State lawmakers said on Thursday that they were happy that the city was no longer facing cuts in services and higher taxes.
Mr. Schwarzenegger has proposed cuts in programs, including state health services and higher education, to reduce the gap, or "structural deficit".
But operators led by Stagecoach, which runs about 40% of bus services in Tyne and Wear, claimed the move would mean higher fares, worse services and higher taxes.
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Support for high rates of trade union membership, high-quality public services and high taxes seems part of the Nordic identity.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com