Unfortunately, Obama has continued to paint his proposal in the rosiest possible light, insisting against all historical evidence that a massive expansion of the federal role in health care somehow would save money. Thankfully, Congress for the most part has been more honest and acknowledged that providing coverage to or subsidizing coverage for tens of millions of residents who are now uninsured would have a vast long-term price tag.

Who do lawmakers think should bear much of the burden? In the Senate's case, 50 state governments. The health bill crafted by Senate Finance Committee Chairman Max Baucus, D-Mont., would essentially transform Medicaid from “a patchwork state-federal insurance program targeted mainly at children, pregnant women and disabled people” into Medicare for 11 million low-income residents, according to a Washington Post analysis.

The Schwarzenegger administration estimates this would cost California a staggering $8 billion.

This is an enormous problem. The plunge in revenue due