The Congressional Budget office released a report on the costs of illegal immigration for state and local governments [HT: Marginal Revolution]  Unfortunately, the report is only available as a PDF file, but its not overyly long, approximately 13 pages in length.  It estmiates the spending by state and local governments due to undocumented immigrants in 3 key ares: Education, Health Care, and Law Enforcement.  Unlike the key paragraph highlighted by MR, the actual document is a lot less clear in its conclusions about related spending.  And in fact, state under the Revnues Versus Spending section:

Most of the studies that include both revenues and costs for multiple programs show that state and local governments spend more on unauthorized immigrants than they collect in revenues from that population

Thanks to Sandy for leading me to realize that Marginal Revolution had fallen off of my feed reader.