The New Retrenchment: Social Welfare Spending, 1977-2006

Source: Tom Gais and Lucy Dadayan, Rockefeller Institute of Government, 2008

A new report out of the Rockefeller Institute of Government lays the fiscal picture out in stark black and white (and this is a report that was completed before the current fiscal meltdown). The report documents that for the first time since 1983, social welfare spending by state and local governments went down. It fell just over 4 percent from 2005 to 2006, with cash assistance declining by nearly 4.5 percent.

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