Federal Funds and State Fiscal Independence
Publication Date: May 2008
Publisher(s): Heritage Foundation (Washington, D.C.)
Author(s): Sven R. Larson
Keywords: Budget; SCHIP; state spending; separation of powers
Coverage: United States
If the present trend in federal aid to states continues, federally sponsored programs will soon eclipse state budgets and turn the federal government into the single largest revenue source for states. Federal aid to states blurs lines of government accountability to voters and erodes state fiscal independence, limiting states' ability to implement innovative fiscal policies and meet state priorities effectively.