LEAVE THE MONEY IN THE STATES to begin with, and don't allow it to be wasted in the federal bureaucracies before it gets sent back to the states.
A few years ago, I saw a study on how much of each dollar is spent on nothing but bureaucracy (administration) in the federal government before it is spent in the thing for which it was designated. A comparative analysis was done with the state governments, which, of course, waste much, much less of each dollar.
Perhaps one of the economist types on FR has such a study to post. I'd like to see it again.
But the point is : Don't remove the money from the states to begin with! For teachers, policemen, firefighters, etc., why does the federal government even have any money with which to "help" the states ???? Why was the money removed from the states and sent through the wider, wasteful circle of the federal bureaucracy ????
We have got to end this illusion that the federal government is some how smarter and wiser than our state legislatures in fiscal matters. This federal elitism has become criminal.
In August of 2010, before the fall elections and when Pelosi was still Speaker, she called a vote when Congress was not even in session and gave away $29,000,000,000 to localities in in form of a bribe that has become known as "Son of Stimulus."
That is 29 of these pallets of $100 dollar bills.
The Democrats and Obama are gutting health care to our veterans, but there is plenty of money to give away with both fists to the education mafia and for Food Stamps.
Remember that.