2/17: States withhold funds from municipal gov'ts

Stateline: States withhold funds to cities, counties across nation

As budget shortfalls continue to make headlines, some states are withholding funds owed to municipal governments as a way to balance state books.

In North Carolina, about 7% of the proceeds from the state's corporate income tax had routinely been transferred to local governments for school capital costs, but starting this year, legislatorss decided to put that money -- about $125 million over two years -- towards the state's budget
deficit.

The withholding of funds is not without protest -- in some states, including Florida, lawsuits have been filed to get the funds reinstated.

It's an interesting situation to watch.

Also in the South:

ALABAMA: State Senate committee to vote on Gov. Riley's charter school plan

ARKANSAS: State lawmakers want more control over Medicaid program cuts

FLORIDA: State panel debates plastic bag ban, but offers no answer

GEORGIA: Nuclear reactors in Georgia to get $8.3 billon federal loan guarantee

KENTUCKY: State's economy could get boost from underused Earned Income Tax Credit

LOUISIANA: State prison system sues death row inmates to stall lethal injection lawsuit

MISSISSIPPI: 'Personhood' initiative filed to get abortion issue on statewide ballot

NORTH CAROLINA: State education officials change minds about altering history curriculum

SOUTH CAROLINA: Landfill in S.C. to store dangerous chemicals from Pickens County river

TENNESSEE: White Nose Syndrome blamed for deaths of Tennessee bats

VIRGINIA: In private, Gov. McDonnell pushes for deeper budget cuts of more than $1 billion

If you have a news story about public policy to suggest, send an email to info@bettersouth.org