Chris Edwards rightly takes the Wall Street Journal to task for its breathless report that “the stumbling U.S. economy is forcing states to slash spending and cut jobs in order to close a projected $40 billion shortfall in the current fiscal year.”

Like he says, smaller spending increases are “certainly no crisis after the orgy of budget expansion in recent years.”And Medicaid spending is dangerously out of control.

I’d only add that states are spending much more on k-12 education than Medicaid. At 25 percent of all state-derived expenditures, it’s almost double Medicaid’s 13 percent share. State spending on k-12 education dwarfs any other category.

And while cuts in government spending are a good thing, saving money with a huge expansion of freedom is even better.

That’s why the best way solve state budget problems is something no one is yet considering; broad-based school choice.

Here’s what the five states in our recent fiscal analysis of the Public Education Tax Credit stand to save if they do what’s right and greatly expand educational freedom:

Texas saves $15.9 billion in the first 10 years and $5.4 billion every year after the program has been in operation for 15 years.

New York saves $15.1 billion in the first 10 years and $4.8 billion every year after the program has been in operation for 15 years.

Wisconsin saves $9.3 billion in the first 10 years and $3.2 billion every year after the program has been in operation for 15 years.

Illinois saves $5.1 billion in the first 10 years and $1.6 billion every year after the program has been in operation for 15 years.

South Carolina saves $1.1 billion in the first 10 years and $350 million every year after the program has been in operation for 15 years.