Federal Government Impact

Every state in the nation relies on the federal government for financial aid. Fiscal irresponsibility, specifically uncontrolled spending, strains the relationship between the states and federal government. Even though states have so-called "balanced budgets," budget gimmicks are widespread, increasing states' reliance on consistent federal assistance. As the federal deficit tops $15 trillion, lawmakers in Washington are instituting severe financial cutbacks to discretionary programs, including funding that states heavily rely on to finance day-to-day expenses.

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: Missouri

      Governor Nixon Wants to Add $68 Million to State Budget

      The Missouri News Horizon | by Dick Aldrich | March 29, 2012

      As the state Senate prepares to come up with its version of the state budget, Governor Nixon wants to add another $68 million to the pot.

    • 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.

    • HEADLINES: Maine

      Feds create $10.5M hole in state budget

      The Kennebec Journal | by Susan M. Cover | March 15, 2012

      A federal decision to stop paying for some mental health services for jail inmates will cost the state an additional $10.5 million next year, lawmakers learned Wednesday.

    • HEADLINES

      Obama urges governors to boost education funding

      Boston.com | by Beth Fouhy | February 28, 2012

      The President reaffirmed his view that decisions about education should be left to states and not the federal government. “I believe education is an issue that is best addressed at the state level,’’ the president said, “and governors are in the best position to have the biggest impact.’’

    • HEADLINES

      U.S. States Seek to Contain Harm as Pentagon Plans Defense Cuts

      Bloomberg | by Michael C. Bender | February 28, 2012

      States that stand to suffer most from proposed defense cuts are mobilizing to mitigate economic harm, according to interviews with 10 governors.

    • HEADLINES

      As economy improves, governors debate who deserves the credit

      The Los Angeles Times | by Michael A. Memoli | February 27, 2012

      Governors of both parties have taken steps to balance their budgets, but Republicans triggered some of the most high-profile battles.

    • HEADLINES: Montana, Nebraska, Iowa, New Jersey, New Mexico , New York, Oregon, Wisconsin

      Feds loan $638M for health co-ops in 8 states

      CBSNews.com | February 23, 2012

      Health care cooperatives that are being launched in eight states announced they will receive a total of $638 million in loans from the Obama administration under the federal health insurance law.

    • HEADLINES: Tennessee

      Haslam budget expected to include new cuts, new spending

      The Knoxville News Sentinel | by Tom Humphrey | January 30, 2012

      With increases in expenses and no federal money to fall back on, there will almost certainly be some spending cuts as well as spending increases in the budget presented Monday night in the governor's annual "state of the state" address.

    • HEADLINES: Illinois

      State action urged to stop pension debt from ballooning

      The Chicago Sun-Times | by Dave McKinney | January 30, 2012

      Illinois' multibillion-dollar pile of unpaid bills will quadruple within five years unless steps are taken to curtail state pension and Medicaid spending, a government watchdog concluded Monday in a new analysis of the state's budget.

    • HEADLINES: Tennessee

      Haslam budget includes pay raise but some layoffs

      The Tennessean | by Chas Sisk | January 30, 2012

      Gov. Bill Haslam proposed a $31 billion spending plan that would raise pay for state workers by 2.5 percent, fund a new science building at Middle Tennessee State University and cut more than 1,100 state jobs across Tennessee.


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    • 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 Maine’s 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.