Publication Date: February 2008
Publisher: Center on Budget and Policy Priorities (Washington, D.C.)
Author(s): Iris J. Lav; Phillip Oliff
Research Area: US Fiscal Future
Keywords: City budgets; Economic projections; State budgets; Federal budget
Grants to state and local governments have long been an important way in which the federal government supports and administers programs efficiently. The new budget, however, continues to significantly erode those grants. This leaves states and localities the option of either curtailing services or increasing their own taxes to compensate for declining federal funds.