clipped from: www.usatoday.com   
Federal aid is top revenue for states
 MONEY SOURCES

Top revenue sources for state and local governments in the first quarter, compared with the same period last year:

Federal grants: 15%

Income taxes: -11%

Property taxes: 2%

Sales taxes: -2%

Other taxes: 2%

Sources: U.S. Department of Commerce, Bureau of Economic Analysis

In a historic first, Uncle Sam has supplanted sales, property and income taxes as the biggest source of revenue for state and local governments.

The dominance of federal money is set to expand dramatically this year because tax collections are sinking while the bulk of federal stimulus aid is just starting to arrive. "This money isn't manna from heaven. It comes with a price," says Indiana state Sen. Jim Buck, a Republican. He worries that the federal money will leave states under greater federal control and burden future generations with debt.