Kansas is having that "Duh" moment. They legislated tax reductions for small businesses with unintended, and under-estimated, consequences. The usual conservative lines fed the tax-cutting move - you know, lower taxes = more jobs. Well, lower taxes meant less revenue and now their budget is in trouble. There should be no surprises here. With less revenue you either cut services (like education) or you raise taxes on other stuff. That's the approach of some of the current crop of GOP candidates for AZ Gov. If any of these tax-cutter types win in November, it must be Kansas, toto.
See the NY Times article for more.
Add to your reading this excellent overview of effects of state level tax cuts at Blog for Arizona.