We should not forget that a significant portion of the financial problems of the states results from UNFUNDED MANDATES thrust upon them by the Federal government. Repeal the 17th Amendment!
Also, the last budget was based on PROJECTED sales tax revenues. By Texas state law, the legislature must pass a balanced budget(based on information available at the time). Dramatically reduced sales tax revenue caused the budget shortfall NOT Texas knowingly spending more than was going to be available.
While Texas may have budget issues as of 01/07/11, when the Texas Legislature is dismissed in the spring, the budget issues will be handled.(The remedies may be painful, but Texas will do what is needed.) Lefties like Krugman just can’t stand to see conservative states thrive and prosper. (Oh, did I mention the 4 new US congressional districts Texas picked up, due to all the new residents?) Too freaking bad for Krugman and his ilk.