Ah, the multiplier effect.
Well, it works locally as well as globally...especially in communities dominated by few employers or industries.
But, now that you mention it, a 15% cut in state expenditures will certainly have a multiplier effect on the state economy (what sort of effect is endlessly debated by "economists" :)). Think about the multiplyer effect of a 15% cut in taxes if you doubt it.
Using tax dollars to provide services is inherently less efficient than a free market. I think it's not hard for you to agree that, for individual service, the more centralized the govt, the less efficient it becomes. Ultimately, if it were at all possible, the responsible individual making knowledgeable and adequate use of insurance options, will be the most efficient provider of service.
With a few exceptions, were govt staffed only by angels in the business of really educating consumers on how to provide for themselves -- rather than infested by too many looking for an excuse to build their powerbase -- would not the liberal intent would be better served?