There's The Big Deficit And All The Little Ones

While Congress and the Administration grapple with the 10-ton gorilla known as the federal deficit, state and local governments are engaged in similar struggles. According to the Commerce Dept., the combined balance of all state and local operating budgets, including capital outlays, registered a shortfall of $45.5 billion at an annual rate in the first quarter--the second-largest outpouring of red ink since the recovery began (chart).

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