Since they can't print their own money and all. I've heard much of the stimulus was in reality just a bailout for the states. 2010-2011 budgets should be interesting as the economy deteriorates further. I've been a harsh critic of Florida's budget process, but recently I've been satisfied. It's far from perfect, but a couple more years of sharp economic declines will be exactly what the state needs to cut the waste out of government.
This was a bail out of the Government. If the banking system was allowed to clean its self up then Government would not have been able to borrow. If the Banking system could have failed without cutting off funds to the Government then we would not see all of this money being made available. The Government will never allow their source of funds to dry up.
What about all those short term debt instruments they bought based on Sub-Prime Mortgages? Didn't all of that blow up in the states' collective faces?
googled: which states have budget shortfalls "States are facing a great fiscal crisis. At least 47 states faced or are facing shortfalls in their budgets for this and/or next year, and severe fiscal problems are highly likely to continue into the following year as well. Combined budget gaps for the remainder of this fiscal year and state fiscal years 2010 and 2011 are estimated to total more than $350 billion." . . . Updated March 13, 2009 http://www.cbpp.org/cms/?fa=view&id=711 googled: which municipalities have budget shortfalls "The effect of the weak economy on Philadelphiaâs budget cannot be overemphasized. Unfortunately, Philadelphia is not alone. The gap between state and local revenues and expenditures grew to record proportions - over $100 billion - in the third quarter of 2008, according to the Bureau of Economic Analysis. As a result, State and City governments across the United States have been required to take significant action to address large projected budget shortfalls. The maps show how other cities have dealt with the crisisâboth in FY09 and for FY10." http://www.phila.gov/budgetUpdate/budget/FYP/otherMunicipalities.html