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State Deficitis & P2

Today's Wall Street Journal has a report "Bush's Home State Faces Budget 'Mess', stating most states face rising budget deficits.
Yesterday's Boston Globe reported in Massachusetts a state facing over $2 billion in budget cuts only 27% of facilities holding major environmental permits have been inspected by state or federal regulators in the past two years.
Is there a connection between low environmental permit inspection rates and states facing rising budget deficits?
And if so, does that mean for many states facing growing budget deficits the tendency is to let industry monitor itself while government environmental permit enforcement is being scaled down under fiscal restraint measures?
And if that is the case, what is to prevent a collapse of the integrity of  state environmental policies and enforcement similar to the collapse of the conflict of interest riddled, self governoring accounting industry in the US stock markets?
Thank you for your consideration of my inquiries.
Best Wishes,
Donald Sutherland
Member of the Society of Environmental Journalists