Washington grapples with a head-snapping terrorism week
A week of fresh terror warnings and renewed questions about pre Sept. 11 alerts dominates U S discourse. Vice President Cheney and officials defend warnings as prudent while critics urge fuller disclosure about missed clues and government follow-through, with new details on FBI suspicions about Zacarias Moussaoui emerging.
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State budgets face hard year ahead as revenue dries
States confront a $40 billion gap as April tax returns underperform and Medicaid costs rise. Governors and legislatures brace for a painful year with 37 states predicting continued deficits, while tax hikes focus on targeted levies like cigarettes rather than broad sales or income taxes. California edges toward a $23.6 billion shortfall with a mix of cigarette taxes and higher vehicle fees.
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Scott Pattison
National Governors Association
National Conference of State Legislatures
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