US states' financial woes likely to erode services?

by ~ The Rebel ~ Posted 2012/07/18 02:05:54

Related Topics: Health Care, Police, Gas, Pension, School, Aging, Schools, Budget, Medicaid, Financial, Federal Government, Population, Us States, Sale

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U.S. states face long-term budget burdens that are already limiting their ability to pay for basic services such as police, local schools and transportation, a report says.

Aging populations and rising health care costs are inflating Medicaid and pension expenses. At the same time, revenue from sales and gas taxes is shrinking. And grants from the federal government, which account for about one-third of state revenue, are likely to shrink.