There are also often limits on the purpose the money is borrowed for: in many states they can borrow to fund infrastructure or pay for some other project that spans many years, but they can't borrow to just meet a deficit. The result is that without federal aid we'll see a repeat of 2008 and just after: firing schoolteachers and other state workers, making those who remain take a pay cut, jacking up university expenses even more. And the impact on revenue is going to be much larger than 2008/2009.
