FWIW, California doesn't have to balance its budget. According to an
assistant state Treasurer I talked to, it's only required that the
Governor present a balanced budget. It doesn't have to pass. Of
course, as CA runs deficits year after year, it raises the interest
rates it has to pay... so it's a good idea to balance the budget.

On Tue, Aug 10, 2010 at 3:53 PM, raghu <[email protected]> wrote:
> I am puzzled about this little excerpt from a Bloomberg article: is
> there anything special about the state of Vermont?
>
> "Unlike the federal government, every state except Vermont is required
> to balance its budget, forcing spending cuts, tax increases or both --
> actions Federal Reserve Chairman Ben Bernanke said last week are
> contributing to the nation’s sluggish recovery."
>
> quote from:
> http://www.bloomberg.com/news/2010-08-10/u-s-house-set-to-approve-26-billion-state-aid-as-lawmakers-break-recess.html
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-- 
Jim Devine
"All science would be superfluous if the form of appearance of things
directly coincided with their essence." -- KM
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