I wish it were that simple. The question occurs that we value different functions of state government at different levels; this makes your idea as difficult as any other I've heard of.

The biggest problem I've seen is that in many areas, people have made industries of state spending. Education is but one example: on my island, the education industry has been so top heavy with administration that little money is left for students. In Thorne Bay, Southeast Island School District (the state) built a new gym/music complex that was so expensive they had to lay off the music teacher because they couldn't afford a music program.

I imagine the same type of thing has happened across the state.