Living Beyond Their Means

Nearly half the states are with Uncle Sam in the fiscal sick ward

With the Federal Government all but drowning in red ink, scant attention has been paid to the fiscal health of the states. Now two studies show that there is cause for concern. While not nearly as badly off as Washington, the states are busting their budgets at an alarming rate. The Bureau of the Census reports that, while state revenues rose 12.2% to $310.8 billion last year, spending increased at a faster rate (13.1%) and overall indebtedness jumped 10.6% to $134.8 billion....

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