Tuesday, February 15, 2011

States Rely More and More on Federal Funds

Even as states attempt to assert more political independence from the federal government (or at least some states are), the fact is that states are becoming more and more dependent upon federal funds for their own budgets. The  Mercatus Center has a great chart showing how, in the past 22 years, states have come to rely more on federal funds.

While political independence is all well and good, how can a state be an sovereign entity in our federal system if it relies so heavily upon monies from the federal government?

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