Stateline Headlines

States Fight For Federal Law To Redress Balance of Power

States say Congress oversteps its authority, sometimes unwittingly, with lawmaking activity that tramples on state prerogatives. Legislation to deal with the problem is pending in both the U.S. House and Senate, and last week President Clinton signed an executive order that declares that federal regulations may override state and local laws only when Congress expressly says they may do so. But Delaware Gov. Tom Carper, who has just ended a one-year term as chairman of the National Governors' Association, says even more needs to be done.

Fed 'Control' of States Needs To Change, Bush Tells NCSL

Speaking to nearly 5,000 state officials at the National Conference of State Legislatures (NCSL) convention Tuesday, Texas Gov. George W. Bush called for a change in the relationship between state and federal government."I want to move beyond the command and control attitude in Washington, D.C." he said.

States In South, West Big Winners In 2000 Census

The historic movement of Americans away from the northeastern states to the west and southwest continued over the last decade, the Census Bureau reported Thursday, and as of 2003, the make-up of the U.S. House of Representatives will be adjusted to reflect the population shift.

Richer States Get Less From Uncle Sam

The federal tax burden falls most heavily on affluent Connecticut, while the state of New Mexico, home of the White Sands Missile Range, the Los Alamos National Laboratory and the highest poverty rate in the nation, gets the most federal dollars back, studies of the federal budgets impact on states show.

Bush Budget Cuts Education

President Bush proposed shrinking federal spending on education by more $3 billion in his new budget proposal released Feb. 6, but he also wants to launch new initiatives to strengthen math and science achievement and reform America's high schools.

Bush Budget Short on State Aid

With the federal government swimming in a sea of red ink, states can be grateful that their own financial pictures have gotten rosier because there is little extra money to trickle down from Washington, D.C. President Bush's proposed 2007 budget squeezes savings from an array of domestic spending programs -- including a number of programs that benefit states and local governments -- and calls for $13.6 billion in cuts to Medicaid spending over the next five years.

Federal Red Ink Shrinks Money for States

President Bush is offering states no help in paying for congressionally ordered changes to driver's licenses and would foist new costs on states to provide food for low-income pregnant women while slashing money to revitalize poor neighborhoods. One day after Bush released his $2.77 trillion proposed 2007 budget, analysts scouring the document concluded that while it is chock full of savings for the federal government, it could spell new financial responsibilities for states.

2006 Puts State-Level Issues in Limelight

The grass is definitely greener in state capitols than in Washington, D.C., this election year. While the federal government is mired in red ink and stymied by partisan division, most states in 2006 have extra cash and are blazing new policy trails.

Report: 9 states May Lose Under Bush Plan

Nine states would receive less money from Washington, D.C., if Congress adopts President Bush's 2007 budget proposal, while most others would see modest increases, suggests a new analysis by Federal Funds Information for States, a subscription service for state officials.

Child-Support Enforcement Takes Hit

Deep slashes in the federal child-support enforcement program -- included in Congress' most recent budget cuts -- have left states searching for ways to avoid scaling back what has been hailed as the government's most successful social-services program.

Governors to Meet With President Bush

The federal budget deficit, the Iraq war and al Qaeda terrorism may be federal -- not state -- issues, but their impact on the states colors what's on the minds of the nation's governors as they gather in Washington, D.C., over the next several days. During the National Governors Association's annual winter meeting, which runs Feb. 25-28, the states' chief executives will have the chance to voice their top concerns to President Bush and other federal officials.

States Suing Feds Over Seniors' Rx Costs

Fifteen states want the U.S. Supreme Court to block the federal government's plan to bill them for a portion of costs for the new Medicare prescription drug benefit passed by Congress. The states call the law "an unprecedented intrusion into each state's sovereignty."

Govs' Anger With Feds Boils Over

CHARLESTON, S.C. - As they approach crucial November elections, governors from both parties blame the Republican-led Congress and White House for a widening chasm between the federal government and the states.

States Hope for Better Deal in New Congress

(Updated 3:45 p.m. EST, Tuesday)When the 110th Congress convenes in January, there will be a new Democratic majority negotiating with a Republican president and, state leaders hope, a new relationship between the federal government and the nation's 50 statehouses.

States Feel the Pinch of Tight Bush Budget

States would be spared draconian cuts next year under President Bush's plan to balance the federal budget by 2012, but health, social and other programs important to states still would be squeezed. Bush's $2.9 trillion blueprint for fiscal 2008 resurrects some failed budget cuts and seeks to wring new savings that will be felt by states, primarily in health-care funding.

In their own words: What govs would tell feds

What do governors most want from Congress and the White House? "Stay out of my business" was the tart advice from Wyoming Gov. Dave Freudenthal (D). But other governors said they seek federal partnership in energy and health care - and more dollars to carry out laws imposed on them by Congress, such as the No Child Left Behind Act.

Bridge collapse points to national problem

The Minnesota bridge that collapsed this week is just one of 73,518 "structurally deficient" bridges across the country that state and federal inspectors have deemed in need of significant repairs.

Congress Tackles States' Agenda

As the domestic agenda takes center stage in Congress, states are sending lawmakers a simple message: more money and less federal interference.

In Minnesota, soldiers re-learn civilian life

MOORHEAD, Minn. - The 2,600 members of the Minnesota National Guard who recently returned from a 22-month deployment - including a record 16 months in Iraq - are getting their first glimpse at a state program intended to help them overcome the challenges of life at home.

Governors Rip Feds in Annual Policy Speeches

If there was any doubt states are frustrated with federal policymakers, the nation's governors provided stark reminders in "state of the state" speeches delivered during the first two months of 2008.

Will The 2008 Election Improve State-Federal Relations?

The next president faces a crucial choice in how he'll get along - not just with foreign governments - but with leaders at home in the 50 states. Stop coercing and start cooperating is the advice from Raymond C. Scheppach, executive director of the National Governors Association, in his latest commentary for Stateline.org.

Govs Turn to Fixing Infrastructure

PHILADELPHIA - Improving the nation's crumbling bridges, roads and sewage systems is a $1.6 trillion problem that governors intend to explore in the next year.

States Worry About Dwindling Road Funds

(Updated 12:30 p.m. EDT, July 24, 2008)Drivers are buying less gasoline, draining the federal Highway Trust Fund and jeopardizing thousands of major road and transit projects around the country.

Delegates Speak: California on Federal Funding

California delegate John Perez, 38, of Los Angeles, representative of the United Food and Commercial Workers Union, interviewed by Pamela M. Prah, Stateline.org.

States Eye Their Share of Federal Bailout

With President-elect Barack Obama and the Democratic Congress pledging quick action on a proposed multi-billion dollar fiscal package to boost the U.S. economy, states are banking they will get a cut of any federal rescue plan.

Sanford Fights Bailout for States

South Carolina Gov. Mark Sanford (R) is at odds with most of the nation's governors: He is crusading against calls to send billions of dollars to cash-strapped states to help stimulate the economy.

Opinion: New Infrastructure Spending Demands New Thinking, Oversight

Congress and the Obama administration should find a new and better way to distribute billions of economic-stimulus dollars for infrastructure projects, John Rennie Short, who studies urban and environmental issues as a professor at the University of Maryland, Baltimore County, writes in a commentary for Stateline.org.

House Stimulus Plan Wins State Praise

State officials got their first look of the massive economic package worth $825 billion that Congress promises to deliver next month to President-elect Barack Obama, and many liked what they saw.

Economic crisis: Today's state perspective(2)

A scan of today's state news stories shows spreading economic distress - and an array of political plans to cushion the impact, including talk in Nevada of taxing prostitution (it's legal in some counties there). Nevada is among the states hit hardest by the recession.

Congress, States Try to Harness West Winds

The economic stimulus package before Congress includes incentives to build more electric lines for wind power. But state and federal leaders still must conquer imposing obstacles, from mountain ranges to a daunting economy to layers of red tape.

States Brace for New Safety Net Money

The $789 billion economic stimulus bill includes aid for the poor that most experts agree will quickly flow back into the ailing economy, as cash-strapped families spend it on basic necessities. But already swamped state agencies face the daunting challenge of quickly getting the new money to those who need it most.

Stimulus to Ease, Not Fix, State Budget Woes

Exactly how much each state will get from the $787 billion economic package that President Obama is expected to sign shortly will vary widely, but the infusion of federal dollars still won't plug the gaping holes in many state budgets.

Q&A: How Much of a Difference Will the Economic Stimulus Package Make to States? (Economists)

Stateline.org asks economists Raymond C. Scheppach, David Wyss and Jerry Nickelsburg for a quick assessment in the first of a series of questions and answers with policymakers about states and the recession.

Court Cuts Trigger Blunt Warnings

The budget emergency facing state governments has produced an uncommon alliance of advocates - from business leaders to public defenders and chief judges - who, in blunt terms, are urging state lawmakers not to slash funding for the courts.

Q&A: How Much of a Difference Will the Economic Stimulus Package Make to States?

Stateline.org asks the U.S. Chamber of Commerce and American Association of State Highway and Transportation Officials for a quick assessment in the second of a series of questions and answers with policymakers about states and the recession.

Stimulus: No Blank Check for States

Of the $200 billion states stand to get from the federal economic stimulus package, governors will have leeway in how to spend about $135 billion with the rest of the money restricted for specific uses. Implementing the stimulus package will be a major topic among governors who arrive in Washington, D.C., this weekend for their annual winter meeting.

Tracking the Recession: Lowering Expectations

Governors and other elected officials are trying to avoid overselling the federal stimulus package as the magic solution for state budget woes.

Rejecting Stimulus Funds: Pros and Cons

With a record 12.5 million Americans on the unemployment line and state budgets bleeding billions of dollars, it might seem politically suicidal that a group of Republican governors would want to walk away from their states' full share of the federal stimulus package. But some experts say these governors' actions make sense politically.

Tracking the Recession: USDA Hands Out Stimulus money for Flood projects

Eleven states receive funds that federal officials say will rebuild dams and strengthen rural economies.

Despite Stimulus, Schools Feel Budget Pain

The economic stimulus will help public schools and colleges survive the recession over the next two years. But in some states the fiscal situation is so precarious that schools are still going to suffer large cuts.

Federal Stimulus Dollars, State Deficits -- and Federalism

Even with well-timed help from the economic stimulus package, state governments will face a rough three years ahead, warns Raymond C. Scheppach, an economist and executive director of the National Governors Association, in his latest commentary for Stateline.org. With state budgets through 2011 expected to face shortfalls of $200 billion to $250 billion, the federal government should take care not to heap more costs on states with new legislative initiatives, Scheppach writes.

Energy Stimulus Could See Lower Returns

Congress expects its nearly 70-fold increase in State Energy Program funding to save consumers $22.3 billion, but experts argue lax oversight could generate a much lower return on investment.

Tracking the Recession: Lawmakers Dreading End of Stimulus Dollars

Most of the federal stimulus money will be gone after next year, and state officials are growing uneasy about how they will balance future budgets. A new survey shows how much states relied on the stimulus to cover gaps in fiscal 2009 and 2010.

A List of Point People and Websites Overseeing the Stimulus in the States

To oversee stimulus spending, many states have appointed point people, sometimes called "stimulus czars." Stateline.org has compiled a list of Web sites and people overseeing the stimulus in all 50 states.

Summary of the Arizona State of the State Address

In her Jan. 11 state of the state address that Democrats said sounded more like a campaign speech, first-term Republican Gov. Jan Brewer blamed the state's dire fiscal woes on Washington and former governor Janet Napolitano (D), now head of the U.S. Department of Homeland Security.

High-Speed Rail Funds En Route

TODAY'S TAKE: A day after delivering his first State of the Union address, President Obama heads to Florida to showcase $8 billion in federal funds for high-speed rail projects in the Sunshine State and 30 others.

Summary of the Pennsylvania Executive Budget Address

In his last executive budget address, term-limited Democratic Gov. Edward G. Rendell Feb. 9 proposed a controversial tax plan that would trim the sales tax rate, but apply it to more goods and services. His $26.3 billion budget proposal includes $2.7 billion in federal stimulus money and assumes continued federal help with health care expenses.

The Not-So-Fast Track for High-Speed Rail

The last time intercity passenger trains served Madison, Wisconsin's capital city, students at the University of Wisconsin campus there were protesting the Vietnam War. The trains stopped running when Amtrak took over passenger service around the country in 1971. But last month, the federal government announced it would give the state $810 million in stimulus money to return passenger trains to Wisconsin's second-biggest city for the first time in more than four decades.The $8 billion in federal stimulus money billed as "high-speed rail" funding that will pay for the Wisconsin improvements is going to 31 states to improve service on trains of all speeds. But as even the straightforward case of Wisconsin shows, the path for states to actually build high-speed rail promises to be long, costly and, in some cases, politically contentious.

Confusion in the Capitols

There's an overwhelming sense of uncertainty among state lawmakers and health care officials around the country as they scramble to figure out what exactly the new health care law means for their governments, their citizens and their budgets. With estimates in individual states ranging from savings of $1 billion to $27 billion in additional costs, the one thing clear about health care reform is that little, if anything, is actually clear.

A Day to Talk Taxes

TODAY'S TAKE: Vermont Governor Jim Douglas and several state tax experts marked Tax Day Thursday (April 15) on Capitol Hill, where they debated the merits of several congressional proposals that could give the federal government a bigger say in determining some state and local tax rates.

The United Regions of America

President Obama would like to transform the traditional strategy of states battling each other for jobs and replace it with an approach that emphasizes U.S. regions competing against other countries in the global economy.

Sagebrush Stirrings

Western states are launching a new round in their periodic challenge to Washington over the use of federally owned land. Authors of the challenge say they mean their effort to be more than a symbolic gesture. Others are skeptical that it will have much effect on federal policy.

Congress Making States Nervous

TODAY'S TAKE: States are anxiously watching Congress wrangle over a series of measures they are counting on to help pay for health care, education and unemployment benefits for millions of their residents. But the federal government's well-documented financial problems - and the growing attention paid to them on the campaign trail - are threatening those measures. Critics say the government can't afford them.

States Face Fiscal Consequences if Bush-Era Tax Cuts Expire

Thanks to wrinkles in the way state tax codes relate to the federal tax code, some states could see more revenue - and others less - should Washington let federal tax cuts expire on December 31.

Future of Popular Build America Bonds Program in Doubt

The Obama administration helped financially distressed state and local governments by subsidizing a borrowing program for infrastructure projects. The program is scheduled to end Dec. 31, although the lame duck Congress may extend it.

States Adjust to a More Frugal Washington

Republicans and Democrats alike expect less money to flow from Washington to the states this year. The question is how much less - and whether austerity may come along with a more fundamental change in the state-federal relationship.

Aid to States Absent in State of the Union Address

TODAY'S TAKE: President Obama's State of the Union address echoed the call for austerity that many governors have already voiced in their own state-level speeches to legislatures, and left little doubt that states should not look to Washington for fiscal help.

Conservatives Seek to Amend U.S. Constitution Through State Action

States have the legal right to pass constitutional amendments without congressional approval. It's very hard to accomplish, but Tea Party-backed activists are mounting an organized effort.

Federal Budget Cuts Likely for State Justice Programs

PUBLIC SAFETY BEAT: President Obama and House Republicans both seek spending cuts for criminal justice programs important to states … Grover Norquist embraces prison reform … A Florida budget cut raises fears in Kentucky…and other public safety news.

Feds Give States Another Two Years to Comply with Real ID

TRANSPORTATION BEAT: States now have until January 2013 to comply with Real ID … California opts not to issue transportation bonds again, to keep cash on hand… The New Mexico House reverses course on driver's licenses for unauthorized immigrants, and other transportation news.

States Don't See Crisis in Federal Shutdown — Yet

If a congressional budget fight results in the federal government closing down later this week, the short-term damage to states would be minimal. It's a protracted shutdown that states worry about.

Federal Shutdown Could Worsen States' Budget Pain

TODAY'S TAKE: A shutdown of the federal government wouldn't amount to an immediate crisis for states. But it still could have negative fiscal consequences at a time when states can least afford them.

Massive Train Bottleneck Leads to a Rare Form of Cooperation

Railroads, shippers and governments disagree all the time about transportation issues. But they are united on one point: Something has to be done about costly delays in getting trains through Chicago.

Infographic: Wyoming First in Federal Dollars Per Capita

The federal budget provides about 30 percent of state revenue, making it the largest single source of funds for many states. But the feds are more generous with some states than others.

After the Stimulus, Big Shifts in Medicaid Funds

HEALTH BEAT: The extra Medicaid dollars states were getting as part of the federal stimulus program ran out last month. That's not the only change coming to Medicaid funding formulas.

Citing Federal Debt, Moody's Warns Five States

TODAY'S TAKE: Moody's Investors Service is warning that the political impasse over federal debt could result in five states seeing their own stellar credit ratings downgraded.

States Fret Over 'Game of Chicken' on Federal Debt Ceiling

TODAY'S TAKE: State officials are bracing for the impact of what Tennessee Governor Bill Haslam calls "an incredible game of chicken" over the federal debt ceiling, even going as far as calculating how long they can run programs without federal money.

States Prepare Timelines for Missed Debt Deadline

TODAY'S TAKE: States are calculating how long it will take before a political impasse over the federal debt ceiling begins to affect their bottom lines. Some are preparing backup plans, including the furlough of thousands of workers.

Infographic: How a Federal Default Would Hit States

If the federal government begins defaulting on its obligations next week, it will clearly have some impact on states. The question is: How much?

For States, Debt Deal is Short on Details

Spending reductions will eventually scale back some federal aid to states, but almost all of the specifics remain to be decided.

Balanced Budget Amendment Would Be Tall Order

TODAY'S TAKE: Republicans on Capitol Hill and in many state legislatures are talking about the need for a balanced budget amendment to the U.S. Constitution. Even if such a plan cleared Congress, however, it would need the approval of 38 states.

Amid Fiscal Uncertainty, States Prepare for Cuts

TODAY'S TAKE: With the stock market reeling, the federal government's credit rating lowered and major domestic spending cuts from Congress to come, some states see far more fiscal trouble on the horizon.

Transportation Deadlock Worries States

Next month, a deeply divided Congress will decide how much money to give states to build and maintain highways, bridges and public transit systems. The outcome is anybody's guess.

Pentagon Cuts Have Military States Worried

The federal debt-reduction deal contains at least $350 billion - but perhaps as much as $950 billion - in defense spending cuts over 10 years. Some states see serious problems for their military-dependent economies.

O'Malley Mulls Tax Hikes to Offset Federal Cuts

TAX & BUDGET BEAT: Maryland's governor says tax increases could happen next year ... Virginia's governor wants a new rainy day fund ... Tennessee fights to preserve its credit rating and more tax and budget news.

Will Obama Jobs Plan Include Aid to States?

TODAY'S TAKE: The White House reportedly favors a $300 billion jobs program that will contain direct aid to state and local governments, which have been laying off employees by the thousands.

Before Jobs Speech, Obama Pushes Highway Funding

TRANSPORTATION BEAT: As he prepares to address Congress on his plans for creating jobs, President Obama is urging federal lawmakers to renew a major transportation law, detailing the potential jobs that could be lost in every state if it lapses.

Congressional Super Committee Short on State Experience

TAX AND BUDGET BEAT: The congressional panel charged with cutting the national debt will make decisions that are critical for states, but most of the members have served as state officials only briefly, if at all.

Unemployment Overpayments: Fraud or Flawed System?

According to the federal government, states made errors in paying out 11 cents of every dollar they spent on jobless benefits last year. State officials say high error rates are largely due to clerical mistakes rather than government waste.

States Await Outcome of Wrangling Over Obama Jobs Plan

TODAY'S TAKE: President Obama's $447 billion jobs bill lacks the votes needed to pass the Democratic Senate, let alone the Republican House of Representatives. Lawmakers now will consider individual parts, including aid to states.

Feds Boost Disaster Aid for Roads

TRANSPORTATION BEAT: Facing a massive backlog of state requests for aid, Washington has come through with money to help disaster-stricken states rebuild their roads and bridges.

Washington and the States: A Year of Uncertainty and Foreboding

PART TWO OF FIVE: Every state knows it is about to get less financial help from the federal government. What none of them knows is just how much less.

Obama Budget Shakes Up Municipal Bonds

TODAY'S TAKE: President Obama wants to reduce tax breaks for high-income earners who invest in municipal bonds. The idea worries state and local governments, which say it would increase their borrowing costs.

Congressional Wrangling Leaves Sales Tax Deduction in Question

TODAY'S TAKE: Residents of seven states without an individual income tax are watching the budget debate on Capitol Hill to see whether they will be able to keep writing off state sales taxes on goods they purchase.

Governors Protest Cuts to Air Guard

TODAY'S TAKE: Governors from both parties are expressing alarm over proposed Pentagon budget cuts to the Air National Guard, saying the state-based force is taking a "disproportionate" share of the nation's fiscal pain.

Federal Credit Downgrade Hurts Colorado Localities

ECONOMY & BUSINESS BEAT: When Standard & Poors downgraded the federal government's credit rating last year, it also caused problems for municipalities in Colorado, where a unique state law governs local investments.

Ohio Governor Declines Federal Disaster Aid

TODAY'S TAKE: While the governors of Indiana and Kentucky accepted federal disaster relief after devastating tornadoes, Ohio Governor John Kasich declined, saying his state could handle the recovery on its own.

Divided Congress Resorts to 3-month Highway Bill

TRANSPORTATION BEAT: Congress keeps highway money flowing to the states for another three months, but the prospects are dim for a longer-term deal.

States May Lose Federal Help in Fighting Radon

Federal budget cuts worry state officials who depend on money from Washington to help combat cancer-causing radon gas.

As Federal Funding Dries Up, States May Play Greater Clean Tech Role

Drastic federal spending cuts pose challenges for the U.S. clean energy sector, researchers say, and states may need to help fill in the gap.

Alabama Immigration Debate Heats Up

While justices of the U.S. Supreme Court deliberate over the fate of Arizona’s anti-immigration law, Alabama lawmakers are deciding whether to tweak a similar they passed last year that is considered even harsher.

States Seek Help With Exports

States want Congress to renew the charter of a bank that many people may not have heard of, but many businesses have.

Insurance Changes Explained: Why State Officials Are Nervous About New Federal Rules

Traditionally, the federal government has left most regulation of insurance to the states. But passage of the Dodd-Frank law two years ago inserted the federal government deeper into the mix.

Grandparents Need More State Help to Raise Kids

More children are living with relatives or close family friends because their parents can no longer care for them, but most states aren’t doing enough to help, a new report says.

Is Federal Red Tape Tying Up Innovative Job Programs?

The federal government has made money available for a new approach to unemployment, but states have to jump through bureaucratic hoops to get it.

While Congress Stalls, States Worry About Highway Funds

A three-year standoff in Congress makes planning transportation projects harder for states.

Public-Sector Issues Erupt in Presidential Campaign

President Obama and GOP presidential hopeful Mitt Romney both found themselves over the weekend explaining comments they made involving the public sector.

Post-Recall Wisconsin Open for Business, Governor Says

The recent recall election in Wisconsin that let Governor Scott Walker keep his job was apparently also good for businesses in the state, or so says the governor.

Obama Moves Shake Up Maryland Dream Act Debate

A major shift in U.S. immigration policy from the White House could have repercussions for a ballot measure in Maryland in November that would let undocumented students qualify for in-state tuition.

All Eyes on U.S. Supreme Court

States await key decisions this week from the U.S. Supreme Court on health care, immigration and elections.