The Coming Collapse in State Budgets...

Here's a report by 60 Minutes (holy shit! an alphabet news agency reporting something bad about government) on the coming collapse in a number of large state's budgets.



Ed Morrisey, formerly of Captain'sQuarters, now of HotAir.com's take is that,  

The “ride to the rescue” in Porkulus didn’t produce any improvement in behavior. Instead of either facing the music and making cuts in expenditures — especially in reducing bureaucracies — the states used the Porkulus bloc-grant funding to paper over their budget gaps and punt on the hard decisions. The federal government shouldn’t have borrowed money to provide that fig leaf the first time, and they won’t get an opportunity for Round 2 fig-leafism with a GOP House.


That leaves the states on their own to do what they should have done years ago — cut spending and press for pension reform in the public-union contracts. Will the states finally take control of their budgets? If they don’t, prepare for another collapse in the banking sector.

My question is will state and local politicians do what's right and finally reign in spending or will they scream for Uncle Sugar to bail them out like GM/Chrysler and the banks?  I'm betting they think the the Fed's will bail them out.

via InstaPundit