Most state budgets are an absolute mess. Only two states, Montana and North Dakota, are not confronting serious budget deficits in fiscal year 2010 despite the fact that 49 states have balanced budget constitutional requirements. * California, the world's eighth largest economy, has an obscene 49 percent budget gap amounting to $45.5 billion. Despite a contentious effort in Sacramento to close that gap, the deficit in California continues to grow. * Across the border in Arizona, they are staring down a 41 percent budget gap amounting to $4 billion.