CRS UPDATES DATA ON FLOW OF FEDERAL FUNDS TO STATES.
88-409 E
- AuthorsRymarowicz, Lillian
- Institutional AuthorsCongressional Research Service
- Index TermsNITA
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 88-9014
- Tax Analysts Electronic Citation88 TNT 231-11
88-409 E
CRS REPORT FOR CONGRESS
This report updates prior CRS compilations on the flow of Federal funds to individual States for fiscal year 1987. All of the aggregrate dollar amounts shown in table 1 have been derived from statistics designed for other purposes. For this reason, the figures are approximations and cannot be used with the precision accorded data from accounting records. Tables 2 and 3 illustrate the preferred measures of the impact of Federal activity on individual States rankings, ratios, and per capita tax payments and expenditures.
by
Lillian Rymanowicz
Analyst in Public Finance
Economics Division
June 1, 1988
TABLES
1. Estimated Distribution of Federal Tax Payments by Residents of Individual States and Allocable Federal Expenditures in the States, Fiscal Year 1987
2. The Ratio of Federal Funds Allocated to Each State for Each Dollar of Federal Taxes Paid by State Residents, Fiscal Year 1987, Descending Order of Rank
3. Estimated Per Capita Federal Tax Payments by Residents and Allocated Per Capita Federal Expenditures, in Individual States, Fiscal Year 1987
TABLE 1.
Estimated Distribution of Federal Tax Payments by Residents
of Individual States and Allocable Federal Expenditures
in the States, Fiscal Year Ending September 30, 1987
(dollars in millions)
Tax Payment Expenditures
__________________________ ________________________
Amount /a/ % of Total /b/ Amount /c/ % of Total
_________ ______________ __________ __________
Totals $834,836 100.00% $818,883 100.00%
Alabama 10,262 1.23 13,927 1.70
Alaska 2,431 0.29 2,846 0.35
Arizona 10,274 1.23 12,561 1.53
Arkansas 5,662 0.68 7,316 0.89
California 105,148 12.60 100,782 12.31
Colorado 11,380 1.36 12,301 1.50
Connecticut 16,487 1.97 13,600 1.66
Delaware 2,499 0.30 1,822 0.22
District of
Columbia 2,989 0.36 14,530 1.77
Florida 41,031 4.91 41,410 5.06
Georgia 18,879 2.26 19,166 2.34
Hawaii 3,467 0.41 4,759 0.58
Idaho 2,468 0.30 3,164 0.39
Illinois 44,077 5.28 30,947 3.78
Indiana 16,676 2.00 14,691 1.79
Iowa 8,251 0.99 8,528 1.04
Kansas 8,327 1.00 8,760 1.07
Kentucky 9,155 1.10 10,367 1.27
Louisiana 11,620 1.39 11,821 1.44
Maine 3,285 0.39 4,109 0.50
Maryland 18,446 2.21 23,186 2.83
Massachusetts 25,002 2.99 25,513 3.12
Michigan 33,130 3.97 23,348 2.85
Minnesota 14,524 1.74 13,227 1.62
Mississippi 5,373 0.64 8,725 1.07
Missouri 16,376 1.96 21,063 2.57
Montana 2,171 0.26 2,887 0.35
Nebraska 4,799 0.57 5,331 0.65
Nevada 3,598 0.43 3,461 0.42
New Hampshire 4,077 0.49 3,042 0.37
New Jersey 37,031 4.44 23,031 2.81
New Mexico 3,842 0.46 7,366 0.90
New York 73,087 8.75 60,269 7.36
North Carolina 18,012 2.16 16,598 2.03
North Dakota 1,897 0.23 3,002 0.37
Ohio 35,486 4.25 31,207 3.81
Oklahoma 9,597 1.15 10,069 1.23
Oregon 8,115 0.97 7,532 0.92
Pennsylvania 40,236 4.82 38,064 4.65
Rhode Island 3,452 0.41 3,453 0.42
South Carolina 8,488 1.02 10,383 1.27
South Dakota 1,746 0.21 2,660 0.33
Tennessee 13,384 1.60 15,300 1.87
Texas 55,481 6.65 47,517 5.80
Utah 3,960 0.47 5,705 0.70
Vermont 1,611 0.19 1,474 0.18
Virginia 20,671 2.48 31,392 3.83
Washington 15,687 1.88 17,619 2.15
West Virginia 4,482 0.54 5,325 0.65
Wisconsin 15,159 1.82 12,192 1.49
Wyoming 1,551 0.19 1,535 0.19
Totals 834,836 100.00 818,883 100.00
/a/ Sum of total tax revenues (for Federal fund and trust fund accounts) reported as actual receipts in the Budget of the U.S. Government. Fiscal Year 1989. p. 6g-22. State estimates were derived by applying percentages of the distribution shown in column 2.
/b/ Percentages computed from Memorandum on the Allocation of the Federal Tax Burden by State Fiscal Year 1987-1989. Tax Foundation, Inc. March 1988. Table 1 (column headed "1987 Total Tax Burden.") p. 2.
/c/ Computations by CRS from table 1 of the U.S. Bureau of the Census, Federal Expenditures by State for Fiscal Year 1987 (prepared pursuant to the Consolidated Federal Funds Amendments of 1986, P.L. 99-547). The total varies from published amounts by $28.927 billion, of which $21.759 billion was not allocated by State and $7.170 billion was distributed to U.S. territories. Excluded from the Census compilation are interest payments on the Federal debt, unemployment compensation payments disbursed by States, and other expenditures for which State-by-State allocations were not available. See the technical notes on pages V-X of the Census report.
TABLE 2.
The Ratio of Federal Funds Allocated to Each State for
Each Dollar of Federal Taxes Paid by State Residents
Fiscal Year 1987,
In Descending Order of Rank /a/
1. District 26. Oklahoma $1.07
of Columbia $4.96 /b/ 27. Iowa 1.05
2. New Mexico 1.95 28. Massachusetts 1.04
3. Mississippi 1.66 29. Louisiana 1.04
4. North Dakota 1.61 30. Georgia 1.04
5. South Dakota 1.55 31. Florida 1.03
6. Virginia 1.55 32. Rhode Island 1.02
7. Utah 1.47 33. Wyoming 0.98
8. Hawaii 1.40 34. Nevada 0.98
9. Alabama 1.38 35. California 0.98
10. Montana 1.36 36. Pennsylvania 0.96
11. Arkansas 1.32 37. Oregon 0.95
12. Missouri 1.31 38. North Carolina 0.94
13. Idaho 1.31 39. Vermont 0.93
14. Maryland 1.28 40. Minnesota 0.93
15. Maine 1.28 41. Indiana 0.90
16. Arizona 1.25 42. Ohio 0.90
17. South Carolina 1.25 43. Texas 0.87
18. West Virginia 1.21 44. New York 0.85
19. Alaska 1.19 45. Connecticut 0.84
20. Tennessee 1.17 46. Wisconsin 0.82
21. Washington 1.15 47. New Hampshire 0.76
22. Nebraska 1.13 48. Delaware 0.74
23. Kentucky 1.12 49. Michigan 0.72
24. Colorado 1.10 50. Illinois 0.72
25. Kansas 1.07 51. New Jersey 0.63
/a/ Computations are based on table 1. Assuming that $1.00 in expenditures equals $1.00 in tax payments, the percentages in column 4 of table 1 were divided by those in column 2. This procedure, in effect, assumes that the gap between taxes and expenditures financed by borrowing from the public is in the long-run financed from tax revenues.
/b/ Rankings are based on unrounded figures.
TABLE 3.
Estimated Per Capita Federal Tax Payments by Residents
and Allocated Per Capita Federal Expenditures,
in Individual States, Fiscal Year 1987
(dollars)
Federal Tax Payment /a/ Federal Expenditures /b/
_______________________ ________________________
Amount Rank Order Amount Rank Order
Totals /c/ $3,430 -- $3,364 --
Alabama 2,513 43 3,411 22
Alaska 4,630 4 5,421 2
Arizona 3,034 28 3,710 14
Arkansas 2,371 48 3,064 34
California 3,801 11 3,642 15
Colorado 3,453 17 3,732 13
Connecticut 5,135 1 4,236 9
Delaware 3,880 8 2,829 41
District of
Columbia 4,805 3 23,360 1
Florida 3,413 19 3,443 20
Georgia 3,034 29 3,080 32
Hawaii 3,201 25 4,394 7
Idaho 2,473 45 3,171 28
Illinois 3,806 10 2,672 46
Indiana 3,015 30 2,656 47
Iowa 2,911 35 3,009 36
Kansas 3,363 21 3,538 17
Kentucky 2,456 47 2,782 43
Louisiana 2,605 41 2,650 48
Maine 2,767 38 3,461 19
Maryland 4,067 7 5,113 4
Massachusetts 4,270 5 4,358 8
Michigan 3,601 12 2,538 50
Minnesota 3,421 18 3,115 31
Mississippi 2,047 51 3,324 26
Missouri 3,209 24 4,124 10
Montana 2,684 40 3,569 16
Nebraska $3,011 31 $3,344 25
Nevada 3,573 13 3,437 21
New Hampshire 3,857 9 2,878 39
New Jersey 4,827 2 3,002 37
New Mexico 2,561 42 4,911 5
New York 4,100 6 3,380 24
North Carolina 2,809 37 2,588 49
North Dakota 2,823 36 4,467 6
Ohio 3,291 23 2,894 38
Oklahoma 2,933 34 3,077 33
Oregon 2,979 32 2,765 44
Pennsylvania 3,371 20 3,188 27
Rhode Island 3,501 15 3,502 18
South Carolina 2,478 44 3,031 35
South Dakota 2,463 46 3,751 12
Tennessee 2,757 39 3,151 29
Texas 3,305 22 2,829 40
Utah 2,357 50 3,396 23
Vermont 2,940 33 2,690 45
Virginia 3,501 14 5,317 3
Washington 3,457 16 3,883 11
West Virginia 2,363 49 2,807 42
Wisconsin 3,154 27 2,536 51
Wyoming 3,165 26 3,134 30
/a/ Computations by CRS from data in table 1 and population data (as of July 1, 1987) from table 8. U.S. Bureau of the Census. Federal Expenditures by State for Fiscal Year 1987.
/b/ From U.S. Bureau of the Census. Federal Expenditures by State for Fiscal Year 1987. Tables 8 and 12.
/c/ Figures exclude U.S. territories and, for expenditure totals, some amounts not allocated by State.
- AuthorsRymarowicz, Lillian
- Institutional AuthorsCongressional Research Service
- Index TermsNITA
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 88-9014
- Tax Analysts Electronic Citation88 TNT 231-11
