States Decrease Social Welfare Spending

News of the Wall Street crisis continues to leave analysts mixed about how deeply it will affect Main Street. But it looks like those on the bottom rungs of the economic ladder will have a tougher climb as the economy could take another turn for the worse.

On the heels of this market meltdown, the findings from a recent Rockefeller Institute of government report are particularly troubling:

In 2006, for the first time since 1983, social welfare spending by state and local governments dropped after adjusting for inflation and the number of people living in poverty-a rough estimate of the real value of such programs for their target populations.

Like I have mentioned before, many states have taken a renewed interest in helping their poorest citizens. Yet, with budget shortfalls at the state and federal level, coupled with a worsening economy, it’s likely that states will have to cut funding even more.