Around 20 states have shut down disability funds due to rising costs and shrinking funds. The funds traditionally provided aid to veterans and those who were hurt on the job. The federal government and a few states are offering tax breaks to companies that hire returning veterans, but many have disabilities that make it harder for them to get a job. The funds helped to take pressure off of employers who feared huge costs from workers? compensation claims. Some say that current laws and benefits have taken the place of the funds, but others say that they are still important.
See "State disability funds going broke, and going away", David A. Lieb, Business Week, March 25, 2012