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An economic downturn could reduce states' fiscal capacity.
Unfortunately, the encroachment of the federal government in Medicaid threatens to reduce states to mere agents.
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The intent is to reduce state Medicaid costs.
A year ago, the Corzine administration expressed reservations about using early retirement incentives to reduce state spending.
"In our country, we need to reduce state violence against citizens," says Marina Ribiero.
That would reduce state tax revenues unless the legislatures amended their own laws.
Further cuts could reduce state money by another 5percentt, Ms. Shinoski said.
"It's derisory compared to the 100 billion euros the state must find to reduce state deficits," he said.
Mr. Medvedev said that as prime minister, he would reduce state control over the economy and continue to fight corruption.
Eight states are using proceeds from the tobacco settlement to reduce state budget deficits, and six more are considering it, according to the National Conference of State Legislatures.
The desire to reduce state control has persuaded ministers to end most "ringfenced" grants – money that was set aside to be spent by local authorities on priority areas.
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