Fiscal Federalism IV: Federal Retirement and Disability

Following on my previous blog which showed overall federal spending as a percent of personal income . . . this blog shows federal “retirement and disability” spending as percent of personal income. What is this?

According to the Consolidated Federal Funds Report (pdf) from which this data is drawn from:

Retirement and disability programs include federal employee retirement and disability benefits, social security payments of all types, selected Veterans Administration programs, and selected other federal programs

The table below shows the wide range of federal “retirement and disability” dependency by state. The states that are most dependent are: West Virgina (12.8 percent), Alabama (10.4 percent), Arkansas (10.1 percent), Mississippi (10 percent) and Kentucky (9.8 percent).

On the other hand, the states that are least dependent are: Alaska (4.6 percent), Connecticut (4.7 percent), California (4.8 percent), Massachusetts (5.1 percent) and New Jersey (5.1 percent).

Federal Retirement and Disability Spending as a Percent of Personal Income by State for 2008