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Rural America's fiscal challenge

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  • Alison Felix
  • Jason Henderson

Abstract

Fiscal challenges at state and local governments are a potential threat to the economic recovery in rural America. Rural communities depend heavily on intergovernmental transfers from the states to provide local services. Many people in rural communities rely on the state or local government for their jobs and on Medicaid as part of their income. Thus, rural economies are highly susceptible to state budget shortfalls. As state governments cut spending in response to looming budget deficits in coming years, rural America's fiscal problems may also deepen.

Suggested Citation

  • Alison Felix & Jason Henderson, 2010. "Rural America's fiscal challenge," Main Street Economist, Federal Reserve Bank of Kansas City, issue 3.
    • Handle: RePEc:fip:fedkms:y:2010:n:3
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    File URL: http://www.kansascityfed.org/publicat/mse/MSE_0610.pdf
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