New Report Reveals Level of Federal Aid to the States and Importance of Fiscal Federalism

ALEC ^ | 2-28-14 | Will Freeland

[ThethoughtsofGreg]

In the face of a stagnating economy and national debt topping $17 trillion, many policymakers in Washington, D.C. are seeking ways to reduce spending. Given that many states increasingly rely on federal spending to craft their state budgets, the necessary federal spending reductions could pose a serious fiscal threat to states that fail to prepare. What’s more, those federal funds come with serious strings attached, which often hamper state autonomy and effectiveness in policymaking. A recent report from State Budget Solutions based on Census data reveals that on the whole, states received 31.6 percent of their total revenue from the federal government in 2012.

The report shows that Mississippi is the most dependent (in percentage terms) on revenue from the federal government, with just over 45 percent of their budget coming from Washington DC. On the other hand, Alaska has the lowest percentage of funds coming from the federal government, at 19.97 percent. State Budget Solutions has a great interactive map seen below,

[veracious]

The importance of DC seizing control of USA, by stealing state apportionments right out from their citizens lives rather than dealing w/ the USConst. protection of apportionment. How many people think USG would have become the monster it has, if they had to deal with state governments to take what is properly state tax money for DC purposes? The _amendment_ allowing this is an foundational element in the destruction of USA.