Federal fiscal indecision causes uncertainty for states

The Hill reports:

States once again must keep a close eye on Washington as the federal government works to finalize the 2016 budget, debates long-term funding for the Highway Trust Fund, and has yet to renew expired deductions, credits and other tax provisions. These key decisions have a direct impact on the timing and amount of federal funds that states receive, on their economies and on their tax collections.


Unfortunately, the uncertainty of the federal fiscal environment is not a new phenomenon. It has been 19 years since the federal government enacted a budget on time; the Highway Trust Fund has received more than 30 short-term extensions since 2009; and since the late 1980s, an increasing number of temporary tax provisions have been routinely patched for just one or two years at a time in the appropriately nicknamed "tax extenders" package.

Whether it's funding for schools, roads, healthcare, public safety or other critical programs, states depend on federal support to provide basic services. On average, federal grants make up 30 percent of state revenue, ranging from 19 percent in North Dakota to 43 percent in Mississippi in 2013, the most recent year for which data are available.

What better proof than this that central planning from Washington D.C. just doesn't work?