| Abstract: | Given the drive to balance the federal budget, cutbacks andchanges in federal aid are likely to place added burdens onstate governments. This article examines whether state governmentsare fiscally up to task. A review of the recent and currentfiscal position of the states suggests that current state fiscalstrength may be temporary, and is unevenly distributed amongthe states. In addition, many factors will differentially influencestate responses to the changing federal environment. Statesmay not be as fiscally ready, as Washington assumes, to handleincreased long-term responsibilities. |
