State government--not private industry--was the biggest creator of new jobs in the country last month, a development that could explain why states are putting so much energy into keeping and growing new businesses within their borders. With jobs of utmost concern this election year, states are trying an array of strategies: from banning outsourcing of state-contract jobs to incubating high-tech startup companies. more

This year's National Governors Association meeting in Washington, D.C., will have extra star power with the premier appearance of California Gov. Arnold Schwarzenegger (R). But the real focus will be on the tried-and-true issues of more federal money and less federal intrusion. more

A new report from the Center on Budget and Policy Priorities in Washington, D.C., forecasts a a fourth straight year of program cuts, tax and fee increases, and other budget-balancing maneuvers in the states. more

Is overspending during the "go-go `90s" a primary cause of the state budget crunch? The question is a political Rorschach test, and how you respond could reveal your political leanings. more