This one sure flew on by, I noticed only while reading a stock message board!

Center of Budget and Policy Priorities states:

At least twenty-five states, including several of the nation’s largest, face budget shortfalls in fiscal year 2009. Of these 25 states, specific estimates are available for 22 states and the District of Columbia; the combined deficits of these 22 states plus the District of Columbia are expected to total at least $39 billion for fiscal 2009 — which begins July 2008 in most states. Another 3 states expect budget problems in fiscal year 2010, although some of those gaps may occur earlier than expected. Many of the other states have not yet released information about their fiscal status.

How could they allow a glorified shell game via wall street on residential properties with these kinds of implications?

i.e. someone lives there, it is shelter, so much of the states revenues are from property taxes, based on home evaluations.