Dire States

STEPHEN MOORE

IF THE 1980s were the best of times for state governments, the 1990s have so far been the worst. When Governor Mario Cuomo announced earlier this year that New York is “broke to the marrow of its bones,” he could have been describing the sorry financial plight of thirty other states as well. Latest forecasts suggest that state governments may spend $30 billion more than they collect in taxes this year. Compared with the Federal Government’s $350-billion deficit, this figure may seem like a rounding error, but for the states, which have historically had balanced budgets, it is unprecedented.

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Ronald Reagan

Federal Government

STEPHEN MOORE

IF THE 1980s were the best of times for state governments, the 1990s have so far been the worst. When Governor Mario Cuomo announced earlier this year that New York is “broke to the marrow of its bones,” he could have been describing the sorry financial plight of thirty other states as well. Latest forecasts suggest that state governments may spend $30 billion more than they collect in taxes this year. Compared with the Federal Government’s $350-billion deficit, this figure may seem like a rounding error, but for the states, which have historically had balanced budgets, it is unprecedented.