The States Where America Spends The Most (And The Least) Per Person

The US Census came out with its annual report, the “Consolidated Federal Funds Report for Fiscal Year 2009:  State and Country Areas” on how much the federal government spends on the 307,006,550 citizens who lived in America at the end of 2009. The state that received the most money per person was Alaska– $20,351. The state which received the least per person was Nevada– only $7.148.

The total federal domestic spending in the government’s last fiscal year was $3.2 trillion. That was up 16% from the previous year, almost entirely because of the government’s stimulus package, set up to ameliorate the effects of the recession.  This was the greatest increase since 1983 which also occurred at the end of a deep and long recession.

Unfortunately for budget hawks, most of what the federal government spends now is nearly impossible to cut. That is certainly true if most members of Congress and the President want to get re-elected. Twenty-two percent of 2009 expenditures, $715.6 billion, went to Social Security.  Health and Human Services, which handles payments for Medicare and Medicaid, spent 28% of budget dollars–$907 billion.

The Defense Department’s expenditures were almost 17% of the budget, or $535 billion. That does not include the costs for Veterans Affairs–nearly 3% of the budget or $91 billion. It turns out that the most important swing factor among states for federal expenditure per person is defense spending. The number is unusually high in Alaska and low in states like Oregon and Minnesota.

The money spent by the federal government on defense, social services, and entitlement programs is so high that only 30% of the government’s expenditures are left for the entire balance of the nation’s financial obligations.

Five states did extraordinarily well in terms of the amount of money that they received per person. Anther five did very poorly. The 24/7 Wall St. analysis of these states not only looks at what each one received but why that number was better or worse than the national average — $10,395 per person.

The five winners:

1. Alaska

Amt. per Capita: $20,351.13
Population: 698,473
Percent of U.S. Population: 0.23%
Percent of U.S. Funds Per Person: 0.45%

Alaska got $20,351 per person. The most significant reason is that the northernmost state receives substantial money from the federal government for defense. That is divided into only 698,473 people. Alaska’s payment per person for defense dwarfs that of any other state.
2. Virginia
Virginia is next with $19,734 per person. Once again, the reason is primarily defense spending. The Pentagon is located in Arlington and there are many military bases in the state.

Amt. per Capita: $19,733.90
Population: 7,882,590
Percent of U.S. Population:2.57%
Percent of U.S. Funds Per Person: 4.87%

3. Hawaii

Amt. per Capita: $19,000.95
Population: 1,295,178
Percent of U.S. Population:0.42%
Percent of U.S. Funds Per Person: 0.77%

Hawaii is third at $19,001. Defense is a large contributor, and Hawaii has one of the largest health and human services payments per person of any state. That means Medicare and Medicaid. The state has a large percent of its residents enrolled in these federal programs due to both age and to some extent the portion of the population that is indigent.

4. Maryland

Amt. per Capita: $16,169.03
Population: 5,699,478
Percent of U.S. Population:1.86%
Percent of U.S. Funds Per Person: 2.89%

Maryland is fourth with average receipts per person of $16,169. This is another state with government expenses for the military at a level that is over twice that of the US average. Its proximity to the nation’s capital is a factor in this.

5. New Mexico
Amt. per Capita: $13,669.99
Population: 2,009,671
Percent of U.S. Population:0.65%
Percent of U.S. Funds Per Person: 0.86%

New Mexico is fifth with $13,669 . The state has very large amounts of money which come from the Department of Energy and Department of Interior. New Mexico has a long border and a vast amount of land which is part of the federal parks system.

The five losers:

1. Nevada

Amt. per Capita: $7,148.49
Population: 2,643,085
Percent of U.S. Population: 0.86%
Percent of U.S. Funds Per Person: 0.59%

Nevada received only $7,148 per person. The amount spent per person on defense is close to nothing. Medicare, Medicaid, and Social Security payments are also below those of most other states.

2. Utah
Amt. per Capita: $7,434.65
Population: 2,784,572
Percent of U.S. Population: 0.91%
Percent of U.S. Funds Per Person: 0.65%

Utah is second from the bottom with federal expenditures of $7,434. Defense spending in the state is below the national average. Social security payments per person are also among the lowest of  all states. The percent of the population under 18 is 31% compared to the national average of 24%. People over 65 represent 9% of Utah’s population against a national average of 12%.

3. Georgia

Amt. per Capita: $8,537.55
Population: 9,829,211
Percent of U.S. Population: 3.20%
Percent of U.S. Funds Per Person: 2.63%

Georgia is third at $8,538 per person. The state ranks well below average in defense spending, Medicare, Medicaid. and Social Security.

4. Minnesota

Amt. per Capita: $8,676.32
Population: 5,266,214
Percent of U.S. Population: 1.72%
Percent of U.S. Funds Per Person: 1.43%

Minnesota is fourth from the bottom among states with expenditures per person of $8,676. While about average across most categories, defense spending in the northern tier state is almost non-existent.

5. Oregon

Oregon’s expenditure per capita from the federal government is $8,781. The reason is that the state gets almost no money from the federal government for defense.

Amt. per Capita: $8,781.11
Population: 3,825,657
Percent of U.S. Population: 1.25%
Percent of U.S. Funds Per Person: 1.05%

For the full list of fifty states, continue reading.. .

24/7 Wall St. Analysis of the Census Bureau’s Consolidated Federal Funds Report for Fiscal Year 2009

Douglas A. McIntyre