From the summary:
States face two distinct financial problems right now. First, California and Massachusetts officials last week raised concerns about their states’ ability to access credit markets for short-term borrowing. Second, most states have been facing budget deficits that have forced, or are now forcing, them to raise taxes, cut spending, or do both to balance their budgets.
These issues are serious, but they are distinct from one another. To better understand them, and to understand what the federal government should do to resolve them, we should take a closer look at each.