Progress on monetary reform is the overlooked, all important variable that will shape the outlook for financial markets, economic growth and the prospect for balancing the budget of federal, state and local governments, to say nothing of the budget of the average American family.

FORBES: The Budget Stalemate Shows The Need For Monetary Reform

Napolitano said the president's federal budget was pushing billions of dollars in spending requirements onto state and local governments.

CNN: Democrats decry 'No Child Left Behind'

Ryan's program has helped more than 80, 000 families since it started, and it has earned the trust of local governments: While some of its annual budget comes from individual and corporate donations, more than half of it comes from city and state grants.

CNN: A way forward for pregnant, homeless women

State and local governments are in a heap of trouble, struggling with budget deficits as sharply declining property values and high unemployment have cut deeply into their tax revenues.

FORBES: Jobs Report Shows Serious Problems For Recovery

But the severe recession from which we are still recovering has caused serious budget problems for many state and local governments, which fund the vast majority of the costs of public elementary through high school education.

WHITEHOUSE: The White House

About a third of it was help to states and local governments so that they could plug their budget holes.

WHITEHOUSE: Town Hall Meeting on the Economy

Next, each of these local governments, by law every year, must present and vote on their budget at a public meeting.

FORBES: Cook County, Illinois Treasurer Warns U.S. Homeowners And Retirees Of Local Debt Hazards

The negative municipal bond narrative is based on the potential inability of local governments (mostly towns and cities) to make interest payments because of declining revenues and severe budget cuts.

FORBES: Is Meredith Whitney Right About Municipal Bonds?