[fullmetal]

If I remember correctly, one of the big differences between California and Texas (which is actually looking at a budget shortfall in the near future) is the means by which each state collects revenue.

California seems to take a large portion of its revenue from income-derived taxes (state income tax), while Texas counters this with zero state income tax and fairly substantial property taxes.  (I think this is still the case.)

Naturally, as economic cycles ebb and rise, California\'s revenue base will correlate pretty closely, subjecting it to some amount of risk.  Property taxes in Texas, however, tend to be a very stable source of revenue. The merits of either may be debated, though Texas seems to be doing slightly better at the moment.

[fullmetal]

If I remember correctly, one of the big differences between California and Texas (which is actually looking at a budget shortfall in the near future) is the means by which each state collects revenue.

California seems to take a large portion of its revenue from income-derived taxes (state income tax), while Texas counters this with zero state income tax and fairly substantial property taxes.  (I think this is still the case.)

Naturally, as economic cycles ebb and rise, California\'s revenue base will correlate pretty closely, subjecting it to some amount of risk.  Property taxes in Texas, however, tend to be a very stable source of revenue. The merits of either may be debated, though Texas seems to be doing slightly better at the moment.