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

Federal Largesse Does Not Benefit States

By Jennifer Moreale
Chris Edwards of the Cato Institute highlights the level of government intervention by examining the various forms of federal aid to the states. As he writes in Downsizing the Federal Government: “There are more than 800 state and local aid programs, based on my count of programs in the Catalog of Federal Domestic Assistance. They...

TAGS: Barack Obama, Cato Institute, Chris Edwards, Downsizing The Federal Government, Federal Budget Deficit, Federalism, FY2011 Budget