State & Local Government Policy, Business and Technology

Washington area seeks to break free from federal spending

The Washington Post: The Washington area’s reliance on federal spending has become a major headache for state and local governments, with congressionally mandated program cuts leaving gaping holes in revenue projections from Annapolis to Richmond.

George Mason University’s Center for Regional Analysis estimates that the federal government spent $13.4 billion less in the Washington area in 2013 than in 2010. That decrease, economists say, contributed to the following: Virginia is struggling to fill a projected $2.4 billion revenue gap in its state budget over the next three years, even though the national economy is improving; Maryland faces a $600 million budget deficit next fiscal year and nearly $300 million for the current fiscal year; the District last week announced a possible revenue shortfall of $163 million for fiscal 2016.

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