02/22/2013 - A frontpage article in the Feb. 22 edition of the New York Times cited a Pew report about the effects sequestration could have on states. View the report, "Fiscal Cliff Deal Poses Uncertainty for States," or visit the fiscal federalism initiative for more.
"States are increasingly alarmed that they could become collateral damage in Washington’s latest fiscal battle, fearing that the impasse could saddle them with across-the-board spending cuts that threaten to slow their fragile recoveries or thrust them back into recession.
"Federal spending on salaries, wages and procurement makes up close to 20 percent of the economies of Maryland and Virginia, according to an analysis by the Pew Center on the States.
"The cuts would not hit all states equally, the Pew Center on the States found. While the federal grants subject to the cuts make up more than 10 percent of South Dakota’s revenue, it found, they make up less than 5 percent of Delaware’s revenue."
Read the full article, "Fear of U.S. Cuts Grows in the States Where Aid Flows," at the New York Times website.