New at Reason: Mike Flynn and Adam Summers on the Vicious Cycle of State Fiscal Failure

April 7, 2009

For decades, write Mike Flynn and Adam Summers, state governments have followed a predictable schedule. In good economic times, they collect a lot more tax revenue than they really need. But instead of giving the money back to taxpayers or putting it in a rainy day fund, they pretend the good times will never end. When the good times do inevitably come to a close, governors plead poverty and either ask the federal government for help or raise taxes on their beleaguered citizens. Eventually, the economy rebounds and the vicious cycle starts again.

Read all about it here.