Ear to the Ground - State News Roundup

Moody's Investors Service said it might downgrade California's general obligation bonds, currently "A1.", giving California the lowest rating among the 50 states

In 2007 Michigan taxpayers and businesses were punished with $1.4 billion in new taxes -- the Michigan Business Tax, the 22 percent business tax surcharge and a higher state income tax -- increasing unemployment to 10.6%, the worst in the nation. While families and workers are struggling to make ends meet, state government brought in $712 million this past year more than it could spend - on the heels of a $350 million surplus the year before. Now more than ever Michigan must CUT TAXES!

The Connecticut comptroller's office says state government has added 824 full-time employees since Gov. M. Jodi Rell ordered a "hiring freeze" in May of last year.

Incoming Arizona Gov. Jan Brewer has promised to "shrink government but grow freedom"

Maryland Gov. Martin O'Malley unveiled his new budget, including $1.2 billion in cuts, 700 state employee layoffs and level-funding for numerous programs.