During the recent debt ceiling negotiations, the impact of federal government funding to states wasn't really discussed very much. Yet Washington provides states with considerable money for key social net programs. The federal budget haircut will compel states to swallow some bitter fiscal medicine.An article in today's Miami Herald noted that federal funds "accounted for 34.7 percent of state budgets." In Florida, the story noted, Uncle Sam provides the Sunshine State government with its single largest source of money. This situation puts its Republican governor, Rick Scott (photo), on the spot. Florida has many issues connected to the funding agita, such as the state's AAA bond rating and a large elderly population that's vitally interested in Medicare, Medicaid, and Social Security.
These issues are mirrored in nearly every other state in the Union. There are no easy answers, and absolutely no one knows where the money will come from. The notion that the country, or individual states, can economically grow their way out of this fiscal disaster seems more of a hope than a plan.
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