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Michael Hayes
Federal spending in Maryland declines

Federal spending in Maryland dropped by nearly $1.4 billion last year — a setback for a state economy built largely on Washington dollars and a likely omen, analysts say, of further austerity to come. The pullback, which was revealed in census figures released Tuesday, came largely in government contracting and individual assistance such as unemployment benefits and Medicare payments. State officials attributed the decrease to the tapering off of funds from stimulus programs as well as for construction at recently expanded Maryland military bases. Federal funds flowing to Maryland dropped 1.4 percent during the 12 months that ended last September, accounting for inflation....