States have been forced to gear up for a potential second round of across-the-board federal spending cuts after Congress left for its summer recess without a budget deal. Another round of sequestration would reduce federal spending on everything from Meals on Wheels to Head Start, according to Federal Funds Information for States, a Washington group that helps states manage their federal money. On average, the federal budget accounts for about 30% of state revenues (but less than 10% in CT), making it the largest single source of money for many states. About 90% of the federal dollars come in the form of grants. About three-quarters of those grant programs would be subject to sequestration, according to FFIS, which estimates a second round of sequestration cuts would reduce domestic federal spending by $4.2 billion in FY 2014.
Source: Stateline, 8/21/13, Sequestration
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