From The Wall St. Journal:
Oregon's recent experience shows the difficulty. Earlier this year, voters approved a $727 million tax increase that was expected to balance the state's budget. Although the pain was limited to corporations and higher earners, it was an extraordinary step: Not since the 1930s had Oregon voters approved an income tax increase.
But by May, a new shortfall of $577 million had materialized. Gov. Ted Kulongoski responded by ordering across-the-board budget cuts of 9%, which included a once unthinkable $240 million cut to K-12 education.† Read more.