Monday, April 4, 2011

American Economy: "Feds becoming biggest part of state budgets"

This will be the first year that federal aid will become the largest individual component of state budgets, expanding Washington control over more of the decisions at that level, according to a report by an educational and research organization.

Already 27 states rely on federal aid as their primary source of funding, but the report by the Wyoming Liberty Group describes this year's level as a critical breaking point.


"It sends a profound message," says Wyoming Liberty Group research fellow Sven Larson, the author of the report. "There is a growing consensus among the states that dependency on the federal government is tolerable, even desirable."



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