Wisconsin: To most, Wisconsin does not seem to have the same problems managing its money as California, its dairy rival. But the recession has hit Wisconsin harder than most state governments, especially when it comes to lost tax revenues and the size of the hole in its budget. On top of that, unemployment is climbing as the state’s largest sector—manufacturing—sputters. Wisconsin’s history of budget shortfalls and pattern of borrowing frequently to cover operating expenses, among other measures, made it poorly positioned to weather the most recent severe economic downturn. Download the report on Wisconsin.