New at Reason: Leonard Gilroy on Big Spending States and the Bailout

November 26, 2008

One of the most profound spillover effects of the current economic crisis, writes Leonard Gilroy, is that it has exposed a festering fiscal health crisis in state and local government. Today 13 states are staring at budget shortfalls in excess of $1 billion in fiscal year 2009, with California ($31 billion) and New York ($6.4 billion) leading the pack. Texas, on the other hand, is currently the envy of the nation with an $11 billion budget surplus. How did the state do it? By spending within its means and partnering with the private sector.