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Publius: The Journal of Federalism 1996 26(3):141-159;
© 1996 by CSF Associates Inc.
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Federal Cutbacks and the Fiscal Condition of the States

Bruce A. Wallin
Northeastern University

Given the drive to balance the federal budget, cutbacks and changes in federal aid are likely to place added burdens on state governments. This article examines whether state governments are fiscally up to task. A review of the recent and current fiscal position of the states suggests that current state fiscal strength may be temporary, and is unevenly distributed among the states. In addition, many factors will differentially influence state responses to the changing federal environment. States may not be as fiscally ready, as Washington assumes, to handle increased long-term responsibilities.


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