“California, which has suspended nearly $4 billion in public works projects, is one of a half dozen states delaying or halting projects because of capsizing budgets, an inability to attract investors to the municipal bonds used to bankroll many projects and a reduction in gasoline tax revenues — which underlie a lot of transportation financing.” (New York Times, Tuesday)
Not mentioned: Gov. Schwarzenegger has increased spending 32 percent since taking office.
FEE Timely Classic:
“The Mythology of State Spending,” by John Hood