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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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    • HEADLINES: Illinois, Maryland, Minnesota, New Hampshire , North Carolina

      Williams Report - July 7, 2014

      State Budget Solutions | by Bob Williams | July 7, 2014

      We hope you had a great Independence Day weekend! Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES: Illinois, Indiana, Maine , Massachusetts , Michigan, New Jersey, North Carolina , Oklahoma

      Special Edition Williams Report July 2, 2014

      State Budget Solutions | by Bob Williams | July 2, 2014

      Welcome to a special edition of the Williams Report! There has been a lot of news this week: an important U.S.Supreme Court decision on unions and the end of the fiscal year in many states have been in the headlines. Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES: Alaska, Arizona, California, Colorado, Idaho, Montana, Nevada, Oregon, Utah, Wyoming

      Showdown in the west: Federal lands put state budgets at risk

      State Budget Solutions | by Hannah Oh | June 16, 2014

      On June 11, Carl Graham, director of the Coalition for Self-Government in the West (CSG-W), told an audience at Americans for Tax Reform that the financial future of the western United States is being jeopardized by federal ownership over large swaths of land. 

    • HEADLINES: Oklahoma, North Carolina , South Carolina, Indiana

      Common Core is taking a permanent summer vacation in several states

      State Budget Solutions | by Hannah Oh | June 9, 2014

      Multiple state efforts to repeal the Common Core State Standards (CCSS) have culminated in success in recent weeks. 

    • HEADLINES: Virginia

      McAuliffe says state faces possible $300M shortfall

      Virginian-Pilot | by Julian Walker | May 20, 2014

      Virginia's protracted budget dispute has taken a surprising turn for the worse. New tax data suggests a $300 million shortfall this fiscal year, and that could compel fractious legislators to redouble efforts to find an elusive compromise.

    • 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: Illinois, Maryland, Minnesota, New Hampshire , North Carolina

      Williams Report - July 7, 2014

      State Budget Solutions | by Bob Williams | July 7, 2014

      We hope you had a great Independence Day weekend! Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES: Illinois, Indiana, Maine , Massachusetts , Michigan, New Jersey, North Carolina , Oklahoma

      Special Edition Williams Report July 2, 2014

      State Budget Solutions | by Bob Williams | July 2, 2014

      Welcome to a special edition of the Williams Report! There has been a lot of news this week: an important U.S.Supreme Court decision on unions and the end of the fiscal year in many states have been in the headlines. Join us on Twitter today by following @StateBudgets and tweeting with the hashtag #SBSBob.

    • HEADLINES: Alaska, Arizona, California, Colorado, Idaho, Montana, Nevada, Oregon, Utah, Wyoming

      Showdown in the west: Federal lands put state budgets at risk

      State Budget Solutions | by Hannah Oh | June 16, 2014

      On June 11, Carl Graham, director of the Coalition for Self-Government in the West (CSG-W), told an audience at Americans for Tax Reform that the financial future of the western United States is being jeopardized by federal ownership over large swaths of land. 

    • HEADLINES: Oklahoma, North Carolina , South Carolina, Indiana

      Common Core is taking a permanent summer vacation in several states

      State Budget Solutions | by Hannah Oh | June 9, 2014

      Multiple state efforts to repeal the Common Core State Standards (CCSS) have culminated in success in recent weeks. 

    • BLOG: Virginia

      Do not resuscitate the Virginia budget with Medicaid expansion included

      State Budget Solutions | by Joe Luppino-Esposito | June 4, 2014

      A government shutdown looms in Virginia, and the solution proposed by the governor and some state legislators will only worsen the underlying fiscal crisis in the state.

       

    • HEADLINES: Virginia

      McAuliffe says state faces possible $300M shortfall

      Virginian-Pilot | by Julian Walker | May 20, 2014

      Virginia's protracted budget dispute has taken a surprising turn for the worse. New tax data suggests a $300 million shortfall this fiscal year, and that could compel fractious legislators to redouble efforts to find an elusive compromise.

    • HEADLINES: New Mexico

      NM's revenue from feds tenth highest among states, study says

      Albuquerque Business First | by Dennis Domrzalski | May 16, 2014

      New Mexico state government got 37.9 percent of its revenue from the federal government in FY12.

    • HEADLINES: California

      Gov. Brown's revised budget proposal boosts spending for Medi-Cal

      The Los Angeles Times | by Chris Megerian | May 14, 2014

      Enrollment in the state's healthcare program for the poor has soared past expectations as a result of President Obama's federal overhaul, Gov. Jerry Brown said Tuesday, and by next year about a third of Californians will be covered, costing hundreds of millions of dollars more than anticipated.

    • HEADLINES: Louisiana

      Louisiana House approves $25 billion state budget

      NOLA.com | May 9, 2014

      Lawmakers sidestepped concerns about the federal rejection of financing for the LSU hospital privatization deals already put in place by Jindal and largely funded with federal money. They made no changes to the plans.

    • HEADLINES: Louisiana

      Louisiana House debates $25 billion budget, with new concerns raised about LSU hospital deals

      The Daily Journal | by Melinda De Slatte | May 8, 2014

      Since the Legislature received the Republican governor's recommendations, worries have been raised by federal rejection of financing for the LSU hospital privatization deals already put in place by Jindal and largely funded with federal money.