Bail out the states?

Last week, I met with Gov. Jon Huntsman Jr., along with other editorial writers along the Wasatch Front. He discussed his proposed budget for 2009.
Here are a couple of questions I asked, along with his answers. The first has to do with the bailout money he expects the Obama administration to secure for the states. The second is an exchange we had on taxes in relation to the state’s economy.

First, I’m troubled by the idea that states need to be rescued. Many states, including Utah, must, by law, balance their budgets. That means making tough decisions regarding program cuts or taxes. A bailout ruins that accountability.
Second, a bailout becomes absurd when applied to states such as Utah which, despite my criticisms of the Legislature, is well-managed compared with other states. Simply put, Utah doesn’t need a rescue, but I don’t blame Huntsman for taking the money if it’s offered.
On the tax question, I asked first about raising taxes because I figured he would acknowledge that such a thing would harm the economy. The tax cut question then becomes a bit more difficult to answer.
Neither Huntsman nor lawmakers are in a mood to cut taxes this year. That would, of course, make it harder for them to balance the budget. But it seems to me that a cut would act as a stimulus to help Utah’s economy weather the storm.
He says the cuts of the last few years are still having an effect. I think that’s true. Utah’s economy remains relatively strong, but it can’t help but be affected by the problems nationwide. Businesses and individuals need help. So a tax cut makes more sense now than in any of the last several years, right?