State Budget Crisis

State governments are broke, and things are going to get worse before they get better - a whole lot worse.

Look at California. It's facing a $19 billion budget deficit next year and had to raise tuition in the state university system by 32% to try and collect revenue.

Arizona sold off its state capitol, state Supreme Court building and legislative chambers to a group of investors that is now leasing them back.

And take Illinois, which spends twice as much as it collects in taxes and is six months behind on a stack of bills totaling $5 billion. Illinois state employees - including state troopers needing to gas up their patrol cars - are finding some places won't honor their state credit cards. And legislators are getting evicted from offices because the Illinois government failed to pay the rent.

Little wonder the "Prairie State" now has a new nickname: the "Deadbeat State."