A First in American History: 2011 Federal Aid Set to Overwhelm State General Funds

By Fergus Hodgson
2011 is set to be the first year that federal aid becomes the largest component of state revenues. Already 27 states, including Louisiana, rely on federal aid as their primary source of funding, but the report’s author describes this year’s level as a critical breaking point.

TAGS: federal aid, Federalism, Fergus Hodgson, Louisiana Budget, State Sovereignty, Sven Larson, Wyoming Liberty Group

Study Finds Federal Grants Lead to Increased State Taxes

By Fergus Hodgson
Dependence on federal aid places state revenue in precarious position By Daniel M. Rothschild With federal grants to states increasing by 73 percent over the last decade and totaling $654 billion in 2010, governors and legislatures are grateful for federal assistance in plugging budget gaps. They may rethink their decisions in the coming years; however,...

TAGS: Daniel Rothschild, federal aid, Mercatus Center, Taxes