I'm Guessing Both
Reader Stanton Brown sends this story from the Los Angeles Times, headlined "Many States Face Gloomy Budget Choices," along with a comment:

Note that there is no mention of incredibly bloated budgets during the flush years. This story is an example of either blatant propaganda or mind-numbing incompetence.

The answer is probably both: The reporter took in propaganda from the National Governors Association and a variety of government officials who can't fathom cutting spending and would rather raise taxes and increase spending, and in his incompetence failed to consider alternative data and viewpoints.