State and local government budgets are by all accounts in dire straits. Last year, collectively, they faced a $100 billion budget shortfall. After 12 months of belt tightening, emergency aid, layoffs and tax hikes, things are even worse. The Center on Budget and Policy Priorities said in a report this year that the gap could be $140 billion. And last week, respected analyst Meredith Whitney suggested that state governments will collapse unless the federal government offers a trillion-dollar bailout that will rival the bank bailout of 2008. And yet, across America, many government workers are getting rich off taxpayer-funded salaries....