Seems like they are robbing Peter to pay Paul.
This is risky option at best, since most states and the Federal Government, are required to pay late fees when they delay your refund because of their actions. So they get to hold your tax refund for some unspecified period of time in order to pay off an earlier debt.
But when the loan (that is what we are giving them) is due, they MUST pay the principle and the interest. So then they incur more debt.
So they raise tax levels and create new taxes. That causes the economy to contract.
We all pay more in taxes, giving them just a little more rope to hang themselves.
Then, next tax season, they will hold onto our refunds just a little longer. Pay more in "late fee" interest on our loans, and incur more debt.
See where this is going.
The famous, Death Spiral of Debt.
This is what caused the failure in the housing market and the banking market.
This is total, and undeniable fiscal ignorance. We all know that when the bills get too high, you cut back. You don't arbitrarily decide not to pay a creditor. That is against the law. That is against morality.
So, perhaps we should, as a group, take the states to debtors court. Force them to cut back on their overhead, and irresponsible spending. Force them to be more fiscally mindful with OUR money. Force them to pay back the loans in a timely manor, so as not to induce more debt at the expense of our loans.
It the state were a business, our Government would have taken them over long ago for being insolvent.