May 12, 2004

FEDERAL POLICIES WORSENING STATE FISCAL PROBLEMS

This Fact Sheet: HTM | PDF
Press Release: HTM | PDF
Full Report: HTM | PDF

State by State Data

Related Report:
States Face Continuing Fiscal Problems: Evidence From Recent Reports

View Additional Reports

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A new Center report, Passing Down the Deficit, provides state-by-state data on the damage that federal policies are causing state budgets during the state fiscal crisis.  In all, states are losing $175 billion over fiscal years 2002-2005, or an average of 8.4 percent of total state general fund budgets, as a result of federal policies.  This has deepened the fiscal crisis and forced state and local governments to make much larger spending cuts and tax increases than otherwise would have been necessary.

Federal Policies Costing States

Tax cuts that reduce state revenue

$9 billion

Restrictions on state sales taxes

$65 billion

Unfunded mandates

$73 billion

Shifting of costs from Medicare to Medicaid

$28 billion

TOTAL

$175 billion