alt Hacker NewsMy state (Indiana) has a constitutional clause that prohibits borrowing except in the case of an unexpected shortfall in revenue or war. This means the state may not pass a deficit budget except in time of war. It had worked out well for the state.
Replies
erickhill • today at 12:18 AM
Do you mean a war as formally declared by Congress, or perpetual wars that occur regardless?
justsomehnguy • today at 2:14 AM
> Population (2025)
> • Total
> 6,973,333[3]
Works for Indiana, good. But I doubt it scales.
I believe most states have a balanced budget requirement and can’t borrow money for their operations, like the federal government can. CA, for example, has a rainy day fund that they use to even out the revenue fluctuations.
src: https://taxpolicycenter.org/briefing-book/state-and-local-ta...