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Comment on Will California become America's first failed state?

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The Economist in July of this year made an interesting contrast between the fiscal policies of California and Texas.

http://www.economist.com/displayStory.cfm?story_id=13990207

I think one of the biggest strengths for fiscal security the Texas government has to offer is our inability to take on debt. By decree of the Texas state constitution, the budget must be balanced each and every year. That's something that article misses out on.

Of course, there are some really stupid things that Texas does in relation to its spending. Namely, budgets are set two years in advance. It might have made sense when Texas was first formed, but it hardly makes sense now.

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