On June 30th, many states closed their books on their fiscal year. And many are in deep financial trouble.  Lower tax receipts, combined with "built in" budget increases are driving most states deeper into the red.

Two stories, related to me on the same day, offer a clue as to the "disaster" that is state government.

Story 1 - A friend is a subcontractor for a state agency.  In early June, he received a flurry of bid requests for a range of projects.  In fact, the bid requests, for that one month, far exceeded the bid requests for the entire year.  When he called to inquire, he was told, "We realized that we have a huge surplus of funds left over in our fiscal year budget.  If we don't spend the money before June 30th, our budget for next year will be reduced.  However, if we spend all the money, we'll get the AUTOMATIC increase that is built into next year's budget."

Story 2 - Another acquaintance provides supplies for a state agency that handles food items.  Every year, in the month of June, the agency buys an inordinate amount of non-perishable supplies.  It's not that they need the supplies.  In fact, in some cases, they already have a year's worth of goods on hand.  But, if they show fiscal restraint, they are punished in the next budget cycle.  

Just two more examples of punishing the responsible while rewarding the irresponsible.

It's as if our state budget is a sailing ship heading for the rocks, and the wheel is locked in the "suicide" position.