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FEDERAL GOVERNMENT IMPACT

Federal Government Impact

Every state in the nation relies on the federal government for financial aid. Mississippi received the most, with federal dollars accounting for close to half of its General Fund. Click here to see how much money your state has received.

As the federal deficit tops $16.5 trillion, lawmakers in Washington are instituting financial cutbacks to discretionary programs, including funding that states heavily rely on to finance day-to-day expenses. See how states should respond to the risk of a significant reduction in federal funds.

Some states have taken steps to decrease their reliance on federal funding, but immediate action is necessary to ensure the fiscal solvency of the states. In order to break the cycle of fiscal dependency and reckless spending, state legislators and citizens must understand the impact that the federal government has on state budgets. That's where State Budget Solutions comes in.

 

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  • Research
  • Solutions
  • Commentary
    • HEADLINES: New York

      NY gets federal OK to reinvest $8B in Medicaid savings

      The Albany Times Union | by Claire Hughes | April 15, 2014

      The long-awaited waiver is $2 billion short of what the state had asked for in 2012.

    • HEADLINES

      State government dependence on federal funding growing at alarming rate

      The Washington Examiner | by David Freddoso | April 15, 2014

      This trend of increased state dependency on Washington reduces state and local control, while threatening the states' long-run autonomy.

    • HEADLINES

      Increased federal aid to states is a long term trend

      State Budget Solutions | by Bob Williams, Joe Luppino-Esposito | March 26, 2014

      State Budget Solutions’ analysis of the latest data shows that, between 2001 and 2012, the percentage of general revenue dollars coming from the federal government increased in 41 states. Click here to see how much your state gets from the feds.

    • HEADLINES: Idaho

      Otter orders more transparency on federal spending, preparation for cuts

      Idaho Reporter | by Dustin Hurst | March 24, 2014

      Idaho Gov. Butch Otter has issued an executive order that will help Idahoans identify the sources of funding for government programs and initiatives.

    • HEADLINES

      Common-Core Tensions Cause Union Heartburn

      Education Week | by Andrew Ujifusa and Stephen Sawchuk | February 20, 2014

      From the early days of the Common Core State Standards, the two national teachers' unions have been among the initiative's biggest boosters, helping to make the case to the nation's 3.5 million teachers for the tougher expectations and putting significant money into the development of aligned curricula and tools.

      But in some union quarters, that support is starting to waver—the product of flawed implementation in states, concerns about the fast timeline for new testing tied to the standards, and, in at least one instance, fallout from internal state-union politics.

    • POLICY BRIEF

      Financial Incentives Are The "Core" Of New Education Standards

      State Budget Solutions | by Bob Williams, Joe Luppino-Esposito | June 18, 2013

      The implementation of the Common Core State Standards Initiative is forcing states to determine when a “good offer” becomes an offer that cannot be refused. This report will explain the issues, in terms of both finances and fedearlism, surrounding the adoption of the Commone Core.

    • RESEARCH

      Municipal Bankruptcy: An Overview for Local Officials

      This guide serves as an overview of the basics of municipal bankruptcy, and boils down the municipal bankruptcy process so that officials and citizens have a framework within which to discuss whether bankruptcy is a viable option. It outlines who, what, where and when, as well as costs and benefits.

    • RESEARCH

      Federal Aid to the States 2008-2011

      by Kristen De Pena | February 21, 2013

      It is well understood that the federal government must make spending cuts-these cuts will most likely drastically change the amount of federal dollars that are allocated to the states. Unfortunately for most states, dependence on federal funding has continually risen since 2008.

    • RESEARCH

      Forecasting the Recovery from the Great Recession: Is This Time Different?

      The National Bureau of Economic Research | by Kathryn Dominguez & Matthew Shapiro | February 4, 2013

      Was the slow recovery of the U.S. economy from the trough of the Great Recession anticipated? 

    • RESEARCH

      States' Implementation of the Patient Protection and Affordable Care Act

      U.S. Government Accountability Office | August 1, 2012

      The Patient Protection and Affordable Care Act (PPACA), signed into law on March 23, 2010, made significant changes to the way eligibility for the Medicaid program will be determined and who the program will cover. State governments will play a key role in implementing many aspects of this reform, which must be in place by the beginning of 2014. States will need to address the financial implications of implementing this Medicaid expansion and accompanying enrollment systems.

    • SOLUTIONS

      Health Care Compact is real way to reform health care system

      by Keli Carender, Shonda Werry | March 26, 2012

      The Health Care Compact is an interstate compact - which is really just "an agreement between two or more states that is consented to by Congress" - that would return the authority and the responsibility to regulate health care back to the member states.

    • SOLUTIONS: Maine

      Fixing Maineís Welfare System

      Maine Heritage Policy Center | December 7, 2011

      Fixing Maine's welfare system requires embracing a Wisconsin-style approach and keeping the system focused on promoting work and self-sufficiency. Maine's current welfare system does just the opposite, trapping people and families in poverty and promoting dependence and an overreliance on government.

    • SOLUTIONS: South Carolina

      Ditching No Child Left Behind - all of it

      The South Carolina Policy Council | December 2, 2011

      South Carolina should refuse federal No Child Left Behind Funds and the accompanying mandates and find a way to fund poor school districts adequately.

    • SOLUTIONS

      Breaking the Cycle of Federal Dependency

      State Budget Solutions | by Kristen De Pena | November 22, 2011

      In the wake of the failures of the famed "Super Committee," $1.2 trillion in automatic cuts go into effect in 2013, and those cuts will undoubtedly impact state budets.  Although multi-faceted, the problem is clear: states must learn to fend for themselves financially.

    • SOLUTIONS: Nebraska

      Medicaid The Need for Medicaid Reform Grows Larger After Obamacare

      The Platte Institute | by Brian Blasé and C.L. Gray, M.D. | August 1, 2011

      Replacing the current federal financing structure of Medicaid with fixed allotments to the states would help save both state and federal budgets. Without this policy change, states will dig further budgetary holes and the federal government will face an increased likelihood of a debt crisis.  If states received a non-fungible Medicaid block grant from the federal government rather than fungible matching funds, each state would have the incentive to reign in Medicaid spending.  If states were freed from the myriad federal mandates (such as the “maintenance of effort” clause of the Patient Protection and Affordable Care Act) they would gain the ability to run Medicaid efficiently.

    • HEADLINES: New York

      NY gets federal OK to reinvest $8B in Medicaid savings

      The Albany Times Union | by Claire Hughes | April 15, 2014

      The long-awaited waiver is $2 billion short of what the state had asked for in 2012.

    • HEADLINES

      State government dependence on federal funding growing at alarming rate

      The Washington Examiner | by David Freddoso | April 15, 2014

      This trend of increased state dependency on Washington reduces state and local control, while threatening the states' long-run autonomy.

    • HEADLINES

      Increased federal aid to states is a long term trend

      State Budget Solutions | by Bob Williams, Joe Luppino-Esposito | March 26, 2014

      State Budget Solutions’ analysis of the latest data shows that, between 2001 and 2012, the percentage of general revenue dollars coming from the federal government increased in 41 states. Click here to see how much your state gets from the feds.

    • HEADLINES: Idaho

      Otter orders more transparency on federal spending, preparation for cuts

      Idaho Reporter | by Dustin Hurst | March 24, 2014

      Idaho Gov. Butch Otter has issued an executive order that will help Idahoans identify the sources of funding for government programs and initiatives.

    • HEADLINES

      Common-Core Tensions Cause Union Heartburn

      Education Week | by Andrew Ujifusa and Stephen Sawchuk | February 20, 2014

      From the early days of the Common Core State Standards, the two national teachers' unions have been among the initiative's biggest boosters, helping to make the case to the nation's 3.5 million teachers for the tougher expectations and putting significant money into the development of aligned curricula and tools.

      But in some union quarters, that support is starting to waver—the product of flawed implementation in states, concerns about the fast timeline for new testing tied to the standards, and, in at least one instance, fallout from internal state-union politics.

    • HEADLINES: Idaho

      Federal dollars account for 36 percent of state's budget

      The Idaho Reporter | by Dustin Hurst | February 12, 2014

      But while the Legislature might use one hand to push back against Uncle Sam, the other is wide open, searching for any type of cash handout it can get.

    • HEADLINES

      New data reveals amount of federal aid to states in 2012

      State Budget Solutions | by Joe Luppino-Esposito, Shannan Younger | January 28, 2014

      Surprised to learn that state governments combined received 31.6% of their general revenue from the federal government in 2012, with one state getting a whopping 45.4% from the feds? Click here to learn what percentage of your state's general revenue came from Washington, D.C.

    • HEADLINES: Vermont

      Medicaid, housing up for boost in state budget

      The Barre Montpeleier Times Argus | January 23, 2014

      The Vermont House is set to consider an annual midyear budget adjustment today that deviates very little from Gov. Peter Shumlin's proposal.

    • HEADLINES: Rhode Island

      Chafee's $8.5B budget holds tax rates, boosts K-12

      WPRI.com | by Ted Nesi | January 16, 2014

      The governor's proposed budget would increase Rhode Island's state spending by 4% to $8.5 billion in the 2014-15 fiscal year that starts July 1, with about a third of the money coming from the federal government.

    • HEADLINES: Virginia

      State budget to get boost of $18 million

      Fredericksburg.com | by Chelyn Davis | December 31, 2013

      Virginia's budget will see an $18 million boost this year thanks to a federal bonus for enrolling more children in a government health insurance program.