The state lawmakers are already aware. In some cases they try to do something about it, but most of them are fine with the arrangement.
State lawmakers, while generally better than what we see out of DC, are no paragons of virtue.
Dont state lawmakers understand that probably most of the vote-winning federal funding that they receive for various projects Congress cannot justify under its constitutional Article I, Section 8-limited powers?
Congress is not empowered to tax for those purposes which are within the exclusive province of the States. Justice John Marshall, Gibbons v. Ogden, 1824.
In other words, most of the federal dollars that the states receive are arguably state revenues which the corrupt feds stole from the states by means of constitutionally indefensible federal taxes.