Intergovernmental Issues: Key Trends and Issues Regarding State and Local Sector Finances, a Report to Congressional Requesters [open pdf - 952KB]
From the Highlights: "State and local governments work together with the federal government to deliver a broad range of public services. GAO's [Government Accountability Office] prior work has shown that the state and local government sector will likely face fiscal pressures during the next 50 years due to a gap between spending and revenues. The fiscal sustainability of the state and local government sector is essential to effectively implement intergovernmental programs. GAO was asked to review recent trends in state and local government expenditures and revenues, fiscal pressures for state and local governments with intergovernmental implications, and the implications of federal policy for these pressures. This report (1) examines trends in state and local government expenditures and revenues during the past two decades; and (2) synthesizes expert views regarding the effects of federal policy on state and local government fiscal conditions."
Government Accountability Office: https://www.gao.gov/