They have been doing that for the last 6 years, that is why now they are in so much trouble, because the economy is not doing good either.
State Spending -- The Last Prop Holding Up the Failing Bush Economy
Sorry to say but is bound to get worst and Obama knows that and in order to start a economic recovery he knows that states and local governments need help in order to keep away from a total economic colapse.
State and city governments have yet to shrink the economy; indeed, they have even managed to prop it up. They have quietly maintained their spending at pre-crisis levels even as they warn of numerous cutbacks forced on them by declining tax revenues. The cutbacks, however, are written into budgets for a fiscal year that begins on July 1, a month away. In the meantime the states and cities, often drawing on rainy-day savings, have carried their share of the load for the national economy.
So actually they are working with what they have.
At $1.8 trillion annually in a $14 trillion economy, the states and municipalities spend almost twice as much as the federal government, including the cost of the Iraq war. When librarians, lifeguards, teachers, transit workers, road repair crews and health care workers disappear, or airport and school construction is halted, the economy trembles.
www.mydd.com...
) vet... my college was paid for and later because of a service connected disability
my vocational rehab was paid for as well... not all are so lucky. Some states like California offer either free tuition or significant discounts for
in state tuition, others don't. I really don't know what the answer is about education is.... obviously having corporations back schools creates a
whole slew of conflicts of interest, especially in regards to research... but so does government backing but if this keeps up some kids no matter how
bright will never be able to afford a decent education and others will be saddled with debt to the day they retire... neither bodes well for the
nation and while I am for some form of national health care I am not so certain about schools... but you are right it needs to be addressed. 
