ECON Has anybody seen this factoid on State budgets?

I read this last night, but in the excitement it got away from me and I could not retrieve it. But I think it said that'

In a majority of the States, over half of the income for the public budget comes from the Federal government.

If true, there is no way that the Fed budget is going to get cut, no way.

In a majority of the States, over half of the income for the public budget comes from the Federal government.

Click to expand...

This may be true, but I wonder what percentage is simply the Fed returning tax dollars collected from state citizens? Going from memory, DC received the most fed money per dollar paid in (about 5 to 1), NM was the highest state at about 2 to 1, Tx received 92% back, Nevada was about the lowest at around 65%.

So, a great many states would be better off if they retained the tax monies headed for the feds......

"...So, a great many states would be better off if they retained the tax monies headed for the feds......"

Actually not a great many. I think a majority of the States get more money back from the Fed than they put in, in such payments as SS etc. Now you understand it is a majority of the States, not a majority of the population.

What I was referring to was the State budget. In a majority of the States, a pipe pumps Fed money directly into their budget or so I think I read.

If that is even remotely true, there is no Congress that is going to throw the States into bankruptcy. No way are they going to do that.

We are doomed.

If I were a betting person . . which I'm not . . my best guess is that the FED will decide to retain their funds, no more fed handouts, throw the states under the bus, and tell they that THEY have to raise their taxes on their state citizens to further the states operations. So, we'll get hit from both sides in taxation. The rule of fodder applies - guess WHO is the fodder???




NP

I listen to talk radio every morning going to work, so I don't have a link for this ... but Wednesday they were interviewing several of the senators (State) in Mississippi and the senators said that out of every dollar spent on medicaid the state provides $.14 cents, the federal government supplies the other $.86. So the state isn't willing to cut services to help balance the state budget because they don't want to lost the federal dollars. What no one seems to realize is that there isn't going to be federal funds coming in as an unending supply. And that the people taxed to provide the state funds are also the ones taxed to supply the federal funds.