Federal Money Compromises States Independence

It seems so easy to just take the federal money rather then having to make hard decisions to fix problems within the state. The government is broke and borrowing trillions to pay the bills, so why would a state reasonably believe taking the money to run their state a good idea, knowing full well that in the near future it will all end. What will they do then? 

It doesn't have to be this way. Look what Wisconsin and several other states did to change the landscape to rid themselves of federal dependency. It can be done but it take a commitment on the part of the state government to do the right thing.

I wonder how many of the states that have become independent from federal government influence are run by Republicans?

States Increasingly Reliant on Federal Dollars
Source: Bob Williams and Joe Luppino-Esposito, "Increased Federal Aid to States Is a Long Term Trend," State Budget Solutions, March 26, 2014.
April 1, 2014

States have received federal money for years, but they have become increasingly reliant on federal funds over the last decade, say Bob Williams, president, and Joe Luppino-Esposito, editor, of State Budget Solutions.

Between 2001 and 2012, 41 states saw an increase in the percentage of their general revenue dollars that came from the federal government.

• Since 2000, the states have received $5.27 trillion from the federal government.
• Since 2001, 34 states have seen more than 30 percent of their general revenue come from the federal government.
• States saw an increase in federal funding in 2009-2011 due to the stimulus bill, but the trend of increased federal dollars has continued.

Moreover, the Census Bureau has changed the way that they get their spending data, resulting in more accurate -- and lower -- determinations of federal funds. Even with this relatively lower number, the amount of federal funding to the states has increased.

• California received $639 billion over the 2002-2012 period, the highest amount of revenue dollars.
• However, more than half of Mississippi's general fund revenue came from the federal government in both 2007 and 2010.

This trend is a dangerous one. With federal debt skyrocketing, Congress needs to cut federal spending. With so many states relying on federal funds for more than one third of their revenue, all of these states risk a financial shortfall from federal spending reductions. These states need to act responsibly, examine their individual funding arrangements and develop a plan to reduce their dependency.