This article from USA Today, notes that for the first time federal dollars outweigh other categories of internally-collected money in terms of state and local government revenue. That’s right, the federal government now is the chief source of income for the states and localities!
Here’s the article’s breakdown of sources of revenue for the states:
Top revenue sources for state and local governments in the first quarter, compared with the same period last year:
Federal grants: 15%
Income taxes: -11%
Property taxes: 2%
Sales taxes: -2%
Other taxes: 2%
Sources: U.S. Department of Commerce, Bureau of Economic Analysis
Anyone else worried about this?