Fiscal Federalism VI: Federal Grants to State and Local Governments

Following on my three previous blogs (here, here and here) . . . this blog shows federal “grants to state and local governments” spending as percent of personal income. What is this?

According to the Consolidated Federal Funds Report (pdf) from which this data is drawn from, “grants to state and local government” constitute federal dollars that are provided to other jurisdictions.  This category is dominated by Medicaid which consists of federally-matched dollars tied to state spending.  Another major component are grants for infrastructure spending.

The table below shows the wide range of federal “grants to state and local government” dependency by state. The states that are most dependent are: Alaska (9.7 percent), Wyoming (9.2 percent), New Mexico (8.8 percent), Vermont (8.7 percent) and Mississippi (7.9 percent)

On the other hand, the states that are least dependent are: Virginia (2.8 percent), Nevada (3.1 percent), Florida (3.1 percent), Colorado (3.3 percent) and New Hampshire (3.6 percent–Woo Hoo!)

Federal Grants to State and Local Governments as a Percent of Personal Income for 2008

Fiscal Federalism V: Federal Other Direct Payments

Following on my two previous blogs (here and here) . . . this blog shows federal “other direct payments” spending as percent of personal income. What is this?

According to the Consolidated Federal Funds Report (pdf) from which this data is drawn from, “other direct payments” include:

  1. Medicare (more than half the total)
  2. Excess Earned Income Tax Credits (the portion that is refunded back to the individual)
  3. Unemployment Compensation
  4. Supplemental Nutrition Assistance Program
  5. Student Financial Assistance
  6. And a partridge in a pear tree . . .

The table below shows the wide range of federal “other direct payments” dependency by state. The states that are most dependent are: Kentucky (12 percent), North Dakota (9.9 percent), South Dakota (9.5 percent), Mississippi (7.6 percent) and West Virginia (7.3 percent)

On the other hand, the states that are least dependent are: Alaska (2.3 percent), Utah (3.3 percent), Colorado (3.5 percent), Nevada (3.5 percent) and New Hampshire (3.5 percent–Woo Hoo!)

Federal Other Direct Payments as a Percent of Personal Income in 2008