Quote Originally Posted by JBMcB View Post
Yes, because their budget projections assumed a constantly increasing level of income. This included contracts and non-discretionary spending that they cannot change if the economy sours. Then, the economy soured.

That's it in a nutshell. The reason for the economy souring doesn't really matter - municipalities need to be ready for this possibility. They weren't.
Actually, the people who've been "ready" have been the right-wingers at Cato Institute, chomping at the bit to use this crisis as a means to break public unions. And the reasons for the economic problems do matter: This was a crime, and nobody's going to jail for it. See the Academy Award-winning "Inside Job" for the real story on who crashed the economy; hint: They're a lot of the same people who stand to benefit from crushing unions and ramming privatization down our throats.