A better solution would be to have a budget that accounted for potential volatility, and specified where surpluses should go, and where things should be cut from if revenues are down.
State governments generally do not without some creative accounting. Most states have "balanced budget" requirements, although they're allowed to issue bonds - provided said bonds are specifically earmarked for specific programs, and in some cases approved through a separate process like a referendum.
Yes, but wouldn't it be way better to make them honestly try to balance budgets, rather than knowing they can always over-run and kick the can down the road?
A better solution would be to have a budget that accounted for potential volatility, and specified where surpluses should go, and where things should be cut from if revenues are down.