Tuesday, August 30, 2016

States opposed to Obama more dependent on federal government

States that voted against President Obama twice are more dependent on the federal government, according to an analysis of new data released by the Pew Charitable Trusts on Monday.

All told, the average state that voted against Obama twice relied on federal funding for an average of 33.8 percent of its budget, the report found.

Among the 27 states that voted for Obama twice, federal grants made up 29.9 percent of the average state budget.

The report shows that seven years after the beginning of the economic recovery, states across the country are more reliant on federal dollars to cover their costs than before the recession.

Overall, Pew found that federal dollars account for 30.8 percent of state budgets in 2014, the lowest level since the recession hit. But the share of federal dollars in state coffers is still higher than in 2008, the start of the financial crisis, when states relied on federal money to account for 27.8 percent of their budgets.

Most states are required to balance their budgets every year, which means states rely on federal money to plug holes more during a recession than they do in times of strong economic performance. The federal share of state budgets spiked between 1992 and 1996, as the economy recovered from a recession, and again between 2001 and 2004.

Full story http://thehill.com/policy/finance/293706-states-opposed-to-obama-more-dependent-on-federal-government

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