States pick up tab on federal agenda

By Robert Tanner, AP National Writer
Wednesday, March 10, 2004 | No comments posted.

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States will wind up paying at least $29 billion this year to cover the costs of programs and initiatives handed down by the federal government - from education to homeland security - as Washington leaves an increasingly large burden for states, according to a new report.

A bipartisan group of state legislators documented the costs in a report released today, with the biggest burdens coming from special education requirements, President Bush's new No Child Left Behind education law, and prescription drugs.

"It is a fairly significant problem," said Pennsylvania state Rep. David J. Steil, a Republican who helped craft the National Conference of State Legislatures' report.

"It's quite easy to define a need, and then push it down to local governments to pay for it."

Others questioned whether states overhype allegations of so-called unfunded mandates, especially since many programs are voluntary.

The report said the $29.7 billion estimate was conservative and the total could be much higher. It accounted for 6 percent of states' total general fund spending. Costs include:

- $10 billion for special education programs.

- $9.6 billion for No Child Left Behind.

- $6 billion for prescription drugs for Medicare-eligible patients.

- $1 billion for environmental regulations.

The costs are expected to rise to $34.2 billion next year, causing onerous burdens at a time when state finances are still weak, the report found.
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