Your post is simply untrue, under the FairTax the costs of state and local government is going to go up substantially.
Things that they buy will have the FairTax (currently stated at 29.87% exclusive) added to them and remitted to the Federal government. Since pre-tax prices are not going down anywhere near that much (more like 8% MAX), this will mean the cost of aggregate purchases will go up by at least 19-20%, and probably more since the tax rate is artificially low.
And since you claim government employees keep their same take-home salaries, these will have the FairTax added and the only savings is the removal of employer half FICA, so cost of salaries (non teacher) will also go up at least 20%.
This extra 20% will have to be raised through new additional state and local taxation as a result of the general FairTax-induced price inflation.
"... under the FairTax the costs of state and local government is going to go up substantially .... "
I see ... and where are the links to all of the studies by economists that irrefutably show this??? Or is this just another of your little "...it's true because I say so ..." statements???
Could you provide, perhaps, a website similar to the FairTax website that has the wealth of economic information that it provides but showing these things you claim???