Although a few states have taken some important steps towards reining in their financial obligations, in most of the country it continues to be business as usual, with shortfalls being met through a combination of one-time measures, borrowing, and clever accounting.

The point at which this inaction becomes unsustainable is rapidly approaching, however, and those governors and lawmakers who need a wake-up call might well use the deadline for raising the Federal debt ceiling as their alarm. Keep reading →