"The debt-ceiling deal promises that major federal spending cuts are coming, whether or not the congressional "supercommittee" comes up with a deal. Big federal cuts will invariably squeeze the states, which rely on fereal funds for roughly a third of their spending. And states that rely most heavily on federal funding could be hit hardest by the Budget Control Act." [ added italics]The article also notes that states with most reliance on federal spending could also see credit ratings cut--Moody's has already put Virginia on notice.
Read the full article here. Get the US Census Bureau report in pdf. Image below is from report.
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