WASHINGTON — Cut spending, raise taxes and fees, and accept billions of dollars from Congress. That’s been the formula for states trying to survive the worst economy since the 1930s.
As Republicans prepare to take control of the House and exert more influence in the Senate, it’s clear that option No. 3 will soon wither. States will continue to face substantial deficits over the next few years, but they will have to get by with the end of stimulus spending and less financial help from the federal government. In recent interviews, top GOP lawmakers made clear it will be much less.