In the Tuesday Wall Street Journal, Professor Alan Blinder wrote of his puzzlement at the very slow growth of productivity in the last three years. There is really no mystery. The rate of growth of investment in...
- Federal Aid as a Percentage of State General Revenue (Fis...
Federal Aid as a Percentage of State General Revenue (Fiscal Year 2012)
Though taxes are the most common and recognizable source of state government revenues, it's important to remember that they're not the only source. In fact, state governments received 32.8 percent of their total general revenues from transfers from the federal government in the 2012 fiscal year.
That number varies for specific states, however. For example, Mississippi obtains 45.8 percent of its total state general revenues from federal transfers (the largest share in the country). Also on the high end are Louisiana (44.3 percent), South Dakota (41.5 percent), Tennessee (41.3 percent), and Missouri (40.8 percent). On the other end of the spectrum, Alaska receives the smallest share from this revenue source at 20.0 percent. Rounding out the rest of the bottom five are North Dakota (21.0 percent), Hawaii (23.6 percent), Connecticut (23.7 percent), and Virginia (24.8 percent).
The weeks tax map shows the share of state general revenues from federal transfers for the 50 states and Washington, DC. Note that our measure of state general revenue includes tax collections but excludes utility revenue, liquor store revenue, and investment income from state pension funds.
(Click on the map to enlarge it. Reposting policy)
Here are some useful background resources on this topic:
- A Congressional Budget Office report from 2011 discussing where this federal funding comes from.
- A more detailed description from the Census Bureau of what goes into this category in their data.
- Analysis of what types of things federal aid to states funds from the U.S. Government Accounatility Office (with descriptions and historical data).
- Raw data from Census State Government Finances.
Interested in more comparisons of state taxation? Check out Facts & Figures 2014: How does your state compare?
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