But the bottom line here is:
State budgets are not mostly labor and benefits. And although many of those benefits are costing more than planned for its only a small part of the reason some states are in trouble.
No you're wrong.
I'm sure you want some magic link available via the internet, and if you have access to academic databases, I could probably provide that, but I've studied enough towards my Master's to know the majority is going to be salaries and benefits - just as with many private companies.
For most states, the largest expenditure is education - in fact, I would challenge you to point out a state where that isn't the case. There may be some, but I don't know of any. Of course, that figure will be somewhat skewed as it also includes capital outlays, but I've yet to see a new building(s) exceed salaries and benes. And, a good chunk of the capital outlay will go towards salaries and benes of the construction workers who win the bid.
Even if you look at healthcare, which is often a states second biggest expense, most of that will go to salaries and benes of the healthcare providers. Sure, some of that will go to medical equipment like a wheelchair, but the biggest expense will be for the salaries and benes of the healthcare workers. (or a portion - the way it typically works is a state has to cover what the feds won't, hence the rally against unfunded mandates).
State budgets predominately fund the executive branch and the overwhelming majority of that is salary and benes. The smaller part is admininistrative shit like building materials (a new HVAC system or something, etc.) and then whatever other capital outlays are necessary.