> Most of America's 50 states have constitutional amendments that
> effectively impose a balanced budget. As tax revenues drop due to the
> economic downturn, the states are cutting back on expenditures,
> exacerbating America's slump - and the world's.
Just out of curiousity, is this really true? My impression is that no matter what their constitutions say, most states are running deficits in fact if not in name. I know that here in New York State, we are borrowing $4.5 billion to cover current expenses (without any debate over it, which is kind of an eerie silence, considering what a flaming taboo it's been ever since NYC went into state receivership back in the 70s). My impression is that lots of other states are doing the same through various accounting gimmicks we all thought we swore off 25 years ago.
I'm not saying this makes everything alright by any means. I was just wondering about it as a matter of fact. Is New York an anomaly or are most states getting ready to run jury-rigged deficits?
Michael