Washington, DC, USA. There is still time for Congress to avoid the fiscal cliff that would force billions of dollars in spending cuts and tax increases at the start of next year.

But whatever happens, the states run the risk of being big losers. “A self-inflicted wound” to a struggling economy. “Ham-handed cuts” nobody thought would actually happen. “The big, dumb spending cuts that no one wants.”

Sacramento, CA, USA. One of the oldest urban redevelopment programs in the country went out of existence this year. Cities in California are finding it hard to recover from the blow.

Blame it on the mermaids. Only in California could the demise of a state program intended to help cities counter urban blight be linked to a dive bar in the state capital.

Sacramento, CA, USA. If approved, two November ballot initiatives would raise California taxes over the next several years to increase funding for schools cut in past budgets.

In November, voters will decide whether to approve a temporary sales tax increase and income tax hike on the state’s highest earners to restore some of those cuts.

Montgomery, AL, USA. History, rural suspicians of urban areas, and a fear of raising taxes, stopped Alabama state legislators from helping its largest county avoid insolvency.

After Alabama's worst-ever tornado outbreak struck two-thirds of the state last year, killing 230 people, the governor and lawmakers immediately united to lead an effort to clean up debris, speed aid to victims and repair and rebuild roads, bridges, schools and other public buildings.

Washington, DC, USA. Cooling assistance is running out. Budget cuts and a blistering hot spell left states short on cash this summer while tackling high energy demand.

Now many worry about having enough heat when winter comes. Faced with a July in which triple-digit temperatures and a historic drought left many of Illinois’ most vulnerable citizens struggling to keep cool, the state decided to step in.