State and municipal budgets face crises
Strapped for cash, many state and local governments faced fiscal challenges this year. The most prominent example was in Wisconsin, where Gov. Scott Walker's bill that would have sharply curtailed collective-bargaining rights faced a serious backlash from unions and public-sector employees. In November, Jefferson County, Ala., filed the biggest municipal bankruptcy in history. States including Washington, New York and New Jersey struggled to deal with low tax revenues. Here, protesters gather at the State Capitol in Madison, Wis.