A year ago, Microsoft mega-billionaire Bill Gates gave a talk at TED about state budgets and education funding, entitled "How state budgets are breaking US schools." It was an attack on state budgeting practices. All but one of the fifty states are supposed to balance their budget, but Gates argued that most states used gimmicks "that would make Enron blush" such as borrowing money, selling off state assets, deferring payments to schools, tapping tobacco settlement payouts early, and abusing workers' withholding taxes to cover cash flow needs. He also pointed out that states faced a growing generational divide, with increasing pension obligations and health care costs destined to shift spending towards the old and away from the young. At one...