States’ fiscal problems have never been worse
World War II jolted the U.S. out of its last massive financial crisis, but with no global war to propel a recovery this time states are scrambling to staunch the red ink splashing across their budget sheets.
Cities, states wrangle over cuts to local aid
In Minnesota, Republican Gov. Tim Pawlenty's cuts in state funding to local government forced cities and counties to consider their own round of layoffs, furloughs and benefit freezes. State reductions were so troubling in Massachusetts that three cities are now deciding whether to cancel their primary elections to conserve cash.






