Federal aid has become an increasingly dominant component of state budgets. In fact, Louisiana and Arkansas rely on the federal government for more than 50 percent of their revenue, and 16 states have dependency rates over one-third. (North Carolina receives 33 percent of revenue from federal aid.) While this money may be tempting to state officials, the Mercatus Center at George Mason University has shown that the long-term mandates translate into greater expenses than the aid. After expiration, state and local taxes tend to ratchet up by 40 percent of the initial revenue infusion.