Federal tax credits for states being efficient with federal funds

Economy
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Any federal funding to the states (ideally given on per capita basis), if not spent by The States is automatically given to residents of the underspending state as federal tax credit.

This creates the incentive to balance effective spending with taxing. States that can spend effectively can maintain good public services while also giving residents a tax credit. States that waste money, will not give residents a tax credit. Eventually people leave mismanaged states, further reducing funding to poorly run states.

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I could not agree more! Our government is much bigger in size on the local and state side than at the federal side. Several states rely on the federal government to bail them out and it is not fair to the states that are effectively managing budgets. I love the idea of strict state-assisted funding and incentives to get residents of those states involved.