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The phrase "a state issue" is correct and usable in written English.
It can be used to refer to a problem or concern that is specific to a particular state or region, often in the context of governance or policy.
Example: "The rising unemployment rates have become a significant state issue that requires immediate attention from local lawmakers."
Alternatives: "a regional concern" or "a local matter".
Exact(60)
"This was a state issue," he declared.
"Saying this is a state issue is a cowardly excuse.
As Rose notes, "Gambling has typically been a state issue, not a federal one".
Mr. Kerry did not decry the vote, saying gay marriage is a state issue.
Though hardly a state issue, the bombing has angered many Puerto Ricans and other Caribbean people.
So was Representative Shays, who said, "I think it's a state issue".
Last June, Clinton told NPR that she thought marriage was a state issue.
If an operation does not cross state lines, Mr. Hill said, "it's a state issue".
Ms. Denish said the fund's activities affected her state and were therefore a state issue.
"It's not a state issue, it's a national issue," she said.
Mr. Bush has said it is a state issue, not a presidential one.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com