Display count of nodes from the parent terms of a taxonomy where dummy nodes are based on the child terms of the parent terms of taxonomy
Try creating a Taxonomy View with the following settings.


field: taxonomy term/id
filter: taxonomy vocabulary; states vocabulary
contextual filter: taxonomy term parent; display summary, show link w/ count, set a base url for link


I have done something similar with a contextual filter of Taxonomy Term/ID and it works fine.  Should work with Term Parent.  you might have to add a relationship to content as well, not too sure but that should get you started.  Good luck!