A group headed by Paul Volcker and Richard Ravitch will argue in a report tomorrow that Illinois's budget is unsustainable and threatens growth in the fifth-most-populous state.

Proposal 5, to be decided Nov. 6, would require a two-thirds vote of both houses of the Legislature to raise taxes or expand the tax base by ending loopholes.

State transportation officials will pay nearly $2.1 million to the contractor of the new Hastings bridge for overtime and other expenses necessary to get the bridge open by December 2013 after flooding and the state government shutdown caused delays last year.

The measure on the Nov. 6 ballot would increase the sales tax a quarter-cent on the dollar for four years and hike income taxes on a sliding scale for seven years on those making more than $250,000 annually. It would raise billions of dollars a year for state programs including education and public safety and thwart nearly $6 billion in cuts to public schools and colleges in the current budget year.

Arizona expects a 5 percent increase in state tax collections in fiscal 2013, one of just nine states where revenues are projected to rise more than 5 percent, according to a new report.

Gov. Mitch Daniels' administration transferred $360 million to five pension programs Thursday under a plan meant to divvy up much of state government's surplus.

Only California, New York and Texas are carrying more debt. Blame the pensions.

An examination of state debt on a per capita basis and reveals that state debt amounts to $13,425 for every man, woman and child in America. The debt total equals $37,486 for every private sector worker. It is almost a third of private sector Gross State Product. Find info on your state here.

Standard & Poor's downgraded New Jersey's financial outlook to negative from stable.

The state of Illinois is running into credit trouble, just like anyone else who pays bills late and owes lots of money.

It is well understood that the federal government must make spending cuts-these cuts will most likely drastically change the amount of federal dollars that are allocated to the states. Unfortunately for most states, dependence on federal funding has continually risen since 2008.

Should Congress provide a bankruptcy option for states, or would bankruptcy be a mistake? The goal of this Article is to carefully vet this question, using all of the theoretical, empirical and historical tools currently available. The discussion is structured as a "case" for bankruptcy.

An analysis of the state constitutional debt provisions in California, New Jersey and Hawaii, and the debt that these states face in spite of those provisions.

The latest study by SBS reveals total state debt averages $13,754 for every American and $38,721 for each of the private sector workers in this country.

State Budget Solutions' second annual state deficit report reveals aggregate state debt presently exceeds $4 trillion. While states themselves can rely on budget gimmicks to hide the extent of the deficit, SBS takes a straightforward approach to calculating total state debt. See where your state ranks.

Aggregate state debt now exceeds $1.8 trillion, with much more potentially hidden off the official books.  As of 2009, total state debt averages almost $17,000 for each of the 107 million private sector workers in the United States.

Research by State Budget Solutions reveals the total official financial liability for each state according to the latest comprehensive annual data available. The research included total debt outstanding, recent budget shortfalls, pension and retirement health care liabilities, and Unemployment Trust Fund loans. The research also looks at the overall financial landscape for each state by considering top income tax rates, past economic performance, and economic outlook.

State Budget Solutions recommends that state legislators take action in 2013 to resolve the serious state financial crises by changing their focus from inputs to outcomes by redesigning budgets from the ground up based on priorities and performance.

The ongoing state budget "crisis" strongly underscores the urgent need for North Carolina to adapt significant state budget reforms, including putting North Carolina taxpayers back in charge of approving new debt, and forcing legislators and state agencies at reasonable intervals to justify all spending, not just spending increases.

States should use the budget solutions of avoiding budget gimmicks and use any additional revenue to first eliminate all the dubious financial devices from budgets and to avoid state debt.

North Carolina should limit non-voter-approved debt. Any further borrowing by the state should be subject to voter approval. It should also reform state employee pensions by moving to more portable and flexible benefits, such as a 401(k). State government should set aside reserves to cover future health care costs for retired state employees. Health Savings Accounts would be one solution and will remain an option at least until 2018, when the state will need to meet federal health insurance regulations.