Top 5 States That Rely Most on Federal Aid

[Achilles]

Top 5 States That Rely Most on Federal Aid

By Michael W. Chapman | January 10, 2019 | 2:34 PM EST


U.S. currency. (YouTube)

(CNSNews.com) -- In a new report on how much federal aid goes into state budgets, the Tax Foundation found that "33 percent of all state revenues consisted of federal grants-in-aid" but Mississippi's budget held the largest percentage: 43.3%. Virginia's budget held the lowest percentage, 21.1% in federal aid.

The data presented were from fiscal year 2016, the latest information available.

As the Tax Foundation explained, "Federal aid is allocated to states for a variety of purposes, primarily to supplement state funding for programs or projects deemed to be of national interest. Some federal aid is awarded in the form of competitive grants, while other federal funding is allocated according to formulas established by law."
(Tax Foundation)

"States that rely heavily on federal grants-in-aid tend to have sizable low-income populations and relatively lower tax revenues," said the Tax Foundation. "On the other hand, states with relatively lower reliance on federal aid tend to collect more in taxes and have smaller low-income populations, although some exceptions exist."

The top 5 states whose general revenue funds comprised the highest percentages in federal aid are,

Mississipi, 43.4% of budget is federal aid
Louisiana, 42.7%
New Mexico, 41.2%
Arizona, 41.2%
Kentucky, 40.9%

The top 5 states whose general revenue funds comprised the lowest percentages in federal aid are,

Virginia, 21.1%
Hawaii, 22.7%
Kansas, 23%
North Dakota, 23.8%
Utah, 25.7%

https://www.cnsnews.com/news/article...st-federal-aid

[Oscar Wilde]

... waitaminute.

I think mehbe there might be a simple solution to this ... STATES, stop giving money to the fed gub!

O.W.

[Miradus]

I need more information than this graphic provides.

A lot of the big receiving states have a ton of federal lands and federal ports and infrastructure. Are they counting that support? Or is it only highway money and welfare or what?

[always learning]

agreed Miradus and good points

[consteacher1]

Once again, all I can say is thank GOD for Mississippi! I am ashamed of the government we have here in da Bayou State. JB Edwards is a sham, raising taxes on us over a BILION dollars over the past 3 years. His biggest sin, imho, is VASTLY expanding medicaid and then calling it "economic growth"!!!!! Come down here and eat, play and just have fun! so while we are among the oilest, saltiest, sweetest, and (natural) gassiest state in the union, pray 'cause we got snookered by this friggin dem of a governor. He will NOT be re-elected! prep and pray, the end has arrived

[Davy Crockett]

You Louisianas keep getting snookered by your politicians.
I think about Huey Long but, probably, before that.

And that woman governor during Katrina?

[consteacher1]

yepsters, Kathleen Blanco---and she was a blank. Yet another waste of flesh, Good bless her but her policies stank like our current dictator of my banana republic. Long admitted he was skimming money: two of every $3 went for state needs, a buck into old Huey's deduct box. Sigh, we seem to have a couple of early campaigners for gov, hopefully we put someone who wants to do good here. prep and pray, the end has arrived and happy early Mardi gras!

[Green Man]

I need more information than this graphic provides.

A lot of the big receiving states have a ton of federal lands and federal ports and infrastructure. Are they counting that support? Or is it only highway money and welfare or what?

Not exactly up to date (2005) but I think the rankings are fairly consistent today.

http://njrereport.com/index.php/2006...fect-together/

http://photos1.blogger.com/blogger/3...00/taxes10.jpg


Jersey and Taxes, Perfect Together

Posted on March 18, 2006 by grim

Ever wonder where your federal tax dollars go? And how much we get back for them?

Biggest Tax Donors

The state of Massachusetts gets 77 cents in federal spending for every dollar that it sends to Washington in tax revenue, according to a study by a tax policy think tank.

The nonprofit Tax Foundation released the results of an annual study which found that states that had more high-cost urban areas with higher median incomes chipped in more federal tax revenues than they got back in spending.
…
Scott Hodge, president of the Tax Foundation, said the disparity for states like Massachusetts has more to do with their citizens earning more money, and less to do with the congressional delegation not doing its job.

“The main culprit is not lazy congressmen who don’t bring home enough pork, but rather the progressive income tax,” Hodge said. The study identifies 18 donor states — those who contribute more to the federal tax pie than they get back — and 32 “beneficiary” states. New Jersey had the distinction of being the biggest donor, with that state only getting back 55 cents for every dollar in federal taxes paid by its residents and businesses.

Thanks to metroplexual for the link as well as the graphics. If you think this is interesting wait until you see the migration pattern charts!

Caveat Emptor!
Grim

[Green Man]

https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/

One big point of difference among state economies is the tax burden of the average citizen. This number varies greatly. But what are the reasons behind why some states tax their residents more or less?
If a state can afford not to tax its residents at high rates, there are multiple explanations. One is that their economic policies are sound and the state economy is doing well. But another is that the state gets disproportionately more funding from the federal government than states with harsher tax codes.
Americans have looked at federal assistance programs with growing scrutiny. According to a 2018 Rasmussen report, 61% of American adults think there are too many people receiving government financial aid. On the other hand, only 9% think not enough people are receiving funds. Regardless of overall trends, though, it is true that some states receive a far higher return on their federal income-tax contributions than others.
Just how big is this difference? And to what extent does it change our perception of state and local tax rates around the country? WalletHub sought to answer those questions by comparing the 50 states in terms of three key metrics. Read on for our findings, commentary from a panel of experts, and a detailed explanation of our methodology.
1MAIN FINDINGS2RED VS. BLUE STATES3CORRELATION ANALYSIS
4ASK THE EXPERTS: MAKING SENSE OF FUNDING DISPARITIES5METHODOLOGY

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Most Federally Dependent States
[There should be a chart below but it doesn't paste....]

[Miradus]

So states like Minnesota and Illinois are top earners for Fedgov? Am I reading that right?

What a crazy world.