With the president and Congress attempting to reach a budget deal in an effort to avoid the fiscal cliff, it is likely they will agree on spending cuts, including those to entitlement programs. If they do not reach a deal in time, the nation may stumble into another recession triggered by the automatic austerity measures related to the fiscal cliff. Either way, there is almost no doubt that social programs and other spending will be cut in some way. The latest offer on the table includes the elimination of unemployment insurance for hundreds of thousands of Americans, as well as longer-term reductions in Social Security.

Click here to see the 10 states with the best benefits

Click here to see the 10 states with the worst benefits

If another recession is not avoided, the need for state assistance, like unemployment insurance and welfare, will grow. Yet not all states provide for their residents equally. Based on a 24/7 Wall St. review of key state entitlements, including unemployment benefits, Medicaid, welfare and education, we identified the states guaranteeing the best and worst benefits.

Reviewing the 10 states that spend the most on benefits, education, health care, poverty and unemployment, it is clear that states that spend more on one program tend to spend more on most. Rhode Island, which does the most to spread the wealth, was among the top spenders per capita in all but one of the six major categories we considered. Of the 10 states that spent the most on benefits and social programs, the vast majority demonstrated a trend of spending much more per capita in many different programs.

This is not, however, always the case. In an interview with 24/7 Wall St., National Employment Law Policy (NELP) policy co-director Maurice Emsellem noted that while states such as Rhode Island and Hawaii (which spend a great deal on many social programs) also pay out the highest unemployment benefits as a percentage of weekly wages. Meanwhile, other traditionally big benefit spenders, like New York, spent among the least in the country on unemployment per capita.

The states that spend the most on benefits appear to do so for two main reasons. First, they have a political mandate to do so. All but one of the 10 of the states doing the most to spread the wealth voted Democratic in this year’s presidential election, with Alaska as the exception. Of the 10 states that spend the least on their social programs, all but one — Florida — voted Republican.

The states that spend the most also have relatively high median incomes and also tax residents more in order to pay for these programs. Some of the least generous states have among the lowest median incomes in the country, and their tax burdens — a measure of taxes relative to income — are also very low in these states.

There does not appear to be a relationship between the relative needs of residents for social programs and states spending more. Of the states that spent the most on weekly Temporary Assistance for Needy Families (TANF) cash assistance, for example, the vast majority have among the lowest poverty rates in the country. In fact, many of the states that spend the least on social programs in dollars per person appear to have the greatest need for increased spending in those programs.

In order to assess how much or little a state does to guarantee benefits and services, 24/7 Wall St. gauged spending by each state on a number of different programs. Average pension benefits figures we considered, published by the Center for Retirement Research at Boston College for the 2010 fiscal year, reflect the largest general employee public pensions for which the center provided information. Education expenditure figures for fiscal 2010 are from the U.S. Census Bureau’s study, “Public Education Finances: 2010.” Medicaid payments per enrollee for fiscal 2009 are from the Centers for Medicare and Medicaid Services. Unemployment insurance figures were provided by the U.S. Department of Labor’s Employment & Training Administration and are calculated over a 12-month period ending in the third quarter of 2012. Information on Temporary Assistance for Needy Families figures was taken from the the Department of Health and Human Services’ Administration for Children and Families.

These are the states doling out the best and worst benefits.

The States Doling Out the Best Benefits

10. Minnesota
> Average pension benefits: $16,650 (15th lowest)
> Total per pupil spending: $10,685 (21st highest)
> Medicaid payments per enrollee: $8,206 (6th highest)
> Pct. of weekly wages covered by unemployment benefits: 38.4% (tied for 14th highest)
> No. of months of TANF received: 40.9 (12th highest)
> Avg. TANF cash assistance per month: $350 (23rd highest)

The median household income in Minnesota in 2011 was $56,954, the 11th highest in the U.S. and significantly greater than the national figure of $50,502. Meanwhile, the cost of living in the state was cheaper than 35 other states. Only 8.8% of the population went without health insurance, the fourth-lowest proportion of all states. Medicaid payments per beneficiary were $8,206 in 2009, the sixth-highest of all states. Minnesota’s record of public education spending is somewhat strong, too. Although Minnesota spent only the 21st highest amount of all states per pupil in fiscal 2010, it spent among the lowest amounts on different support services, meaning that more education money was spent directly on the students.

9. New Jersey
> Average pension benefits: $17,467 (16th lowest)
> Total per pupil spending: $16,841 (2nd highest)
> Medicaid payments per enrollee: $8,268 (5th highest)
> Pct. of weekly wages covered by unemployment benefits: 35.4% (24th lowest)
> No. of months of TANF received: 38.7 (14th highest)
> Avg. TANF cash assistance per month: $318 (24th lowest)

In 2009, New Jersey spent the fifth-highest amount per enrollee on Medicaid, at $8,268. This was also well above the national rate of $5,527. In addition to its high spending on health, New Jersey also spent the nation’s second-highest amount on education, at $16,841 in 2010. But because these services are quite costly, in 2010 the state had the nation’s second-highest state and local tax burden. Governor Chris Christie has spent much of his tenure championing education reform and in August passed a law allowing school districts to more easily fire ineffective teachers, even if they are tenured.

Also Read: States with the Highest (and Lowest) Taxes

8. Connecticut
> Average pension benefits: $30,247 (4th highest)
> Total per pupil spending: $14,906 (6th highest)
> Medicaid payments per enrollee: $9,577 (the highest)
> Pct. of weekly wages covered by unemployment benefits: 28.2% (8th lowest)
> No. of months of TANF received: 26.0 (14th lowest)
> Avg. TANF cash assistance per month: $445 (12th highest)

Connecticut has been a top spender in a number of different programs in recent years. In 2010, the state was the sixth-highest spender on education per pupil, while individuals receiving pension benefits from the Connecticut State Employee Retirements System averaged $30,247 in pension benefits — more than all but three other comparable state pension programs. In 2009, Medicaid spending per beneficiary was higher in Connecticut than anywhere else in the U.S. However, such spending often comes with a price. In October, state Comptroller Kevin Lembo issued a statement projecting the state would face a budget deficit next year. He noted “our deficit projection is driven by the spending side, where the rising Medicaid caseload continues to grow and will likely run $100 million over budget.”

7. Maine
> Average pension benefits: $19,366 (23rd highest)
> Total per pupil spending: $12,259 (13th highest)
> Medicaid payments per enrollee: $6,895 (13th highest)
> Pct. of weekly wages covered by unemployment benefits: 38.4% (tied for 14th highest)
> No. of months of TANF received: 36.2 (tied-22nd highest)
> Avg. TANF cash assistance per month: $382 (17th highest)

In recent years, Maine has outspent benchmark national figure on numerous services that help spread wealth and resources. In 2009, Medicaid payments per beneficiary in Maine reached nearly $6,900 versus just $5,527 nationwide. In 2010, the state spent over $1,600 more per pupil on education than the U.S. average. But the state may have trouble outspending other states in the near future. Last year, Maine’s median household income was just over $46,000 — down significantly from $49,868 in 2007, before the housing crisis. Partially due to limited income taxes, the state revised revenue estimates significantly downward in November.

6. Massachusetts
> Average pension benefits: $18,777 (20th lowest)
> Total per pupil spending: $14,350 (7th highest)
> Medicaid payments per enrollee: $7,579 (8th highest)
> Pct. of weekly wages covered by unemployment benefits: 33.6% (20th lowest)
> No. of months of TANF received: 44.3 (7th highest)
> Avg. TANF cash assistance per month: $470 (7th highest)

Few states do more to help disadvantaged residents than Massachusetts. Families eligible for cash assistance from TANF received, on average, $470 for 44.3 months in 2010 — both among the highest figures in the nation. Much of this spending has been questioned recently. In July, in an attempt to combat welfare program fraud, Governor Deval Patrick signed a law banning the use of Electronic Benefit Transfer (EBT) cards in casinos, strip clubs and jewelry stores. The state was also a leading Medicaid provider in 2009, when per enrollee spending was $7,579, one of the nation’s highest. Massachusetts also spent $14,350 per pupil, more than all but six other states.

5. Alaska
> Average pension benefits: $18,905 (22nd lowest)
> Total per pupil spending: $15,783 (3rd highest)
> Medicaid payments per enrollee: $8,782 (3rd highest)
> Pct. of weekly wages covered by unemployment benefits: 25.8% (5th lowest)
> No. of months of TANF received: 43.2 (8th highest)
> Avg. TANF cash assistance per month: $591 (the highest)

In 2010, Alaska had a state and federal tax burden of just 7%, lower than any other state in the U.S. Despite a low tax burden, the state had the third-highest per student education spending as well as the nation’s third-highest per enrollee Medicaid spending. According to the Center for Medicare and Medicaid Studies, “Alaska’s tendency toward comparatively high costs for health care was influenced by its isolation and small markets.” Alaska also provided families receiving TANF benefits with more cash per month on average than any other state, at $591. This high spending may have been influenced by the high cost of living in Alaska.

Also Read: The Best and Worst Run States in America

4. New York
> Average pension benefits: $18,782 (21st lowest)
> Total per pupil spending: $18,618 (the highest)
> Medicaid payments per enrollee: $8,960 (2nd highest)
> Pct. of weekly wages covered by unemployment benefits: 25.7% (4th lowest)
> No. of months of TANF received: 48.9(4th highest)
> Avg. TANF cash assistance per month: $537 (3rd highest)

New York was the nation’s leader in education spending in 2010, when it spent $18,618 per pupil, nearly $1,800 more than the next-highest state, New Jersey. That same fiscal year, the average family received 48.9 months of TANF benefits at an average of $537 per month — one of just five states to exceed $500 in monthly assistance. Increased spending on these programs may be partially driven by the cost of living in New York, which was higher than every state but Hawaii in the third quarter of 2012. The cost of health services in New York was also among the nation’s highest. As of 2009, New York spent the second-most of all states on Medicaid per enrollee. In January 2011, Governor Andrew Cuomo created the state’s Medicaid Redesign Team, which had, as of August, generated $17.1 billion in savings for the federal government.

3. Hawaii
> Average pension benefits: $23,579 (9th highest)
> Total per pupil spending: $11,754 (14th highest)
> Medicaid payments per enrollee: $5,140 (16th lowest)
> Pct. of weekly wages covered by unemployment benefits: 52.8% (the highest)
> No. of months of TANF received: 36.2 (tied for 22nd highest)
> Avg. TANF cash assistance per month: $559 (2nd highest)

In 2010, Hawaii provided residents receiving TANF benefits with an average of $559 per month, more than any state but Alaska. It was also the only state, in the 12 months ending in the third quarter of 2012, that provided recipients of unemployment insurance with more than half their previous weekly wages. Although Medicaid payments per enrollee in Hawaii were less than the national figure of $5,527, many residents receive coverage from the state’s PrePaid Health Care Act, which mandates employers provide health insurance “to employees who work at least twenty (20) hours per week and earn [at least $628] a month.” Last year, just 7.1% of Hawaii residents were uninsured versus 15.1% nationwide.

2. Pennsylvania
> Average pension benefits: $21,844 (13th highest)
> Total per pupil spending: $12,995 (10th highest)
> Medicaid payments per enrollee: $7,397 (9th highest)
> Pct. of weekly wages covered by unemployment benefits: 37.7% (16th highest)
> No. of months of TANF received: 54.8 (the highest)
> Avg. TANF cash assistance per month: $313 (21st lowest)

Pennsylvania was a top spender on both education and health programs. It spent nearly $13,000 per student, the 10th highest of all states, while Medicaid spending per enrollee of just about $7,400 was ninth highest. Additionally, eligible residents of the state received TANF benefits longer than all states, at an average of nearly 55 months. Families enrolled received an average of just $313, however, well below the U.S. average of $392. In October, according to the Philadelphia Enquirer, a bill was introduced to the state’s House of Representatives that aimed to withhold extra TANF benefits from families that add children while enrolled in the program — though several sponsors later removed their names from the bill.

1. Rhode Island
> Average pension benefits: $34,577 (2nd highest)
> Total per pupil spending: $13,699 (9th highest)
> Medicaid payments per enrollee: $8,566 (4th highest)
> Pct. of weekly wages covered by unemployment benefits: 43.4% (2nd highest)
> No. of months of TANF received: 44.5 (6th highest)
> Avg. TANF cash assistance per month: $416 (14th highest)

Rhode Island does more to spread wealth among its residents than any other state. In the third quarter of 2012, unemployment insurance in Rhode Island covered 43.4% of the recipients’ previous weekly wages, more than any state except for Hawaii. The state also provided the average eligible family with 44.5 months of TANF benefits — more than all but five states. In 2010, the average pension benefits under the Employee Retirement System was $34,577 — higher than all but one comparable state pension. But such benefits may soon be a thing of the past. In 2011, Rhode Island reformed its pension system by suspending cost of living adjustments and turning employees’ retirement plans into 401(k)-pension hybrid plans.

Click here to see the 10 states doling out the worst benefits

States Doling Out the Worst Benefits

10. Mississippi
> Average pension benefits: $19,968 (20th highest)
> Total per pupil spending: $8,119 (6th lowest)
> Medicaid payments per enrollee: $4,890 (12th lowest)
> Pct. of weekly wages covered by unemployment benefits: 28.7% (10th lowest)
> No. of months of TANF received: 37.0 (17th highest)
> Avg. TANF cash assistance per month: $234 (12th lowest)

Mississippi’s income inequality is among the worst in the country as the state’s low and middle-income residents are poorer than residents of any other state in the country. Mississippi had the lowest median household income in 2011 at just $36,919. The state also had the highest poverty rate in the country, with 22.6% of households below the poverty line. Although former Governor Haley Barbour shepherded significant cuts through the legislature during 2010, the current governor Phil Bryant earlier in 2012 got the legislature to pass modest increases in education and Medicaid funding.

9. Texas
> Average pension benefits: $19,022 (24th highest)
> Total per pupil spending: $8,746 (10th lowest)
> Medicaid payments per enrollee: $4,884 (11th lowest)
> Pct. of weekly wages covered by unemployment benefits: 34.0% (22nd lowest)
> No. of months of TANF received: 31.5 (24th lowest)
> Avg. TANF cash assistance per month: $230 (9th lowest)

Texas legislators last year cut approximately $5.4 billion from the 2012 budget in order to help balance it, with school districts across the country facing cuts in personnel, sports teams, and bus services. The legislature also slashed by two-thirds family planning services, which is predominantly used of by lower-income women. This has led to the closure of at least 60 family planning clinics in the state and cuts to dozens more. But Governor Rick Perry has taken a zealously conservative budget position in 2012, as his “Texas Budget Compact” vowed no new or increased taxes and constitutional limits on state spending.

Also Read: America’s Best (and Worst) Educated States

8. Idaho
> Average pension benefits: $16,470 (14th lowest)
> Total per pupil spending: $7,106 (2nd lowest)
> Medicaid payments per enrollee: $5,658 (24th lowest)
> Pct. of weekly wages covered by unemployment benefits: 36.8% (19th highest)
> No. of months of TANF received: 6.5 (the lowest)
> Avg. TANF cash assistance per month: $298 (19th lowest)

In the third-quarter of 2012, Idaho was one of the nation’s least expensive states to live in. Despite the low costs of living, few states spend less on social programs than Idaho. In 2010, the state spent just over $7,000 per student, the second-lowest amount in the nation behind Utah. A September report from the Center for Budget and Policy Priorities stated that per student spending in Idaho was down 19% from 2008 after adjusting for inflation. This was a larger decline than nearly all states in the U.S. Needy families in the state also received little support, getting just over six months of TANF benefits on average — worse than any other state and nearly 32 months less than the U.S. average.

7. Florida
> Average pension benefits: $20,266 (17th highest)
> Total per pupil spending: $8,741 (9th lowest)
> Medicaid payments per enrollee: $4,168 (4th lowest)
> Pct. of weekly wages covered by unemployment benefits: 28.4% (9th lowest)
> No. of months of TANF received: 30.4 (20th lowest)
> Avg. TANF cash assistance per month: $237 (13th lowest)

While the budget that Governor Rick Scott signed in April contained $1 billion more in funds for public education than the previous budget, the plan slashed spending for a variety of projects ranging from health care to economic development in low-income areas. The state implemented a controversial law in 2011, mandating drug testing for welfare recipients, although the program is currently in legal limbo. While the governor touted the plan as a way to prevent welfare abuse, the law ended up costing taxpayers about $46,000 more than it saved them, as only 108 people out of the 4,086 who took the test actually failed it. Despite these measures, the governor has already pushed through business friendly tax cuts and has proposed lower business taxes for 2013.

6. South Carolina
> Average pension benefits: $18,263 (18th lowest)
> Total per pupil spending: $9,143 (tied for 16th lowest)
> Medicaid payments per enrollee: $5,181 (17th lowest)
> Pct. of weekly wages covered by unemployment benefits: 32.3% (17th lowest)
> No. of months of TANF received: 23.7 (10th lowest)
> Avg. TANF cash assistance per month: $204 (4th lowest)

South Carolina does a very poor job in spreading wealth. It spent far less than the national average in a variety of programs. The state’s limited tax revenue in recent years might explain its lower spending. South Carolina’s state and local tax burden in 2010 was 8.4%, 10th lowest in the U.S. That year, the state’s education spending was also lower than the average national spending, at just $9,143 per student compared to $10,615 per student nationwide. South Carolina was also one of the worst states at assisting needy families, providing families enrolled in TANF an average of just $204 a month for an average of just under 24 months — both among the worst in the U.S. During 2009, per enrollee spending on Medicaid was also below the U.S. average of $5,527.

5. Alabama
> Average pension benefits: $20,216 (18th highest)
> Total per pupil spending: $8,881 (13th lowest)
> Medicaid payments per enrollee: $4,081 (3rd lowest)
> Pct. of weekly wages covered by unemployment benefits: 26.1% (6th lowest)
> No. of months of TANF received: 25.3 (12th lowest)
> Avg. TANF cash assistance per month: $292 (18th lowest)

In the third quarter of 2012, Alabama covered, through unemployment insurance, just 26.1% of residents’ prior weekly wages. This was the sixth-lowest percentage in the nation and more than seven percentage points below the national average of 32.6%. In 2009, Medicaid payments per enrollee in Alabama were lower than all but two others states. More recently, low health care costs may help drive reduce the expenses associated with medicaid. In the third quarter of 2012, health care in Alabama was less expensive than any other state in the nation.

Also Read:  The 10 Most Expensive Cities to Buy a Home

4. Arizona
> Average pension benefits: $19,406 (22nd highest)
> Total per pupil spending: $7,848 (3rd lowest)
> Medicaid payments per enrollee: $4,846 (9th lowest)
> Pct. of weekly wages covered by unemployment benefits: 24.6% (2nd lowest)
> No. of months of TANF received: 36.9 (18th highest)
> Avg. TANF cash assistance per month: $209 (5th lowest)

According to a number of measures, Arizona was one of the nation’s least generous states. In the third quarter of 2012, unemployment insurance benefits covered, on average, just 24.6% of residents’ previous weekly wages, the second lowest rate in the nation. In 2010, the average family enrolled in TANF received just over $200 a month. This was worse than all but a few states. The state was also among the nation’s worst for both per pupil spending and Medicaid spending, although the East Valley Tribune has reported that Governor Jan Brewer is considering whether to expand Medicaid enough to receive a “generous ‘enhanced’ funding rate from Washington.”

3. Tennessee
> Average pension benefits: N/A
> Total per pupil spending: $8,065 (5th lowest)
> Medicaid payments per enrollee: $4,742 (8th lowest)
> Pct. of weekly wages covered by unemployment benefits: 28.8% (11th lowest)
> No. of months of TANF received: 41.5 (11th highest)
> Avg. TANF cash assistance per month: $165 (2nd lowest)

Tennessee had the nation’s third-lowest tax burden in 2010, when residents paid just 7.7% of per capita income in state and local taxes. Low taxes may have limited the state’s spending on education programs and on Medicaid. Tennessee spent just $8,065 per pupil in fiscal 2010, while Medicaid payments per beneficiary equaled just $4,742 — both among the lowest figures in the nation. The state also gave little assistance to needy families, at an average of $165 for 41.5 months, and covered less than 30% of previous wages for those receiving unemployment insurance. Last year, Tennessee had greater income inequality than 80% of all states.

2. Arkansas
> Average pension benefits: $13,253 (4th lowest)
> Total per pupil spending: $9,143 (tied-16th lowest)
> Medicaid payments per enrollee: $4,639 (6th lowest)
> Pct. of weekly wages covered by unemployment benefits: 40.8% (7th highest)
> No. of months of TANF received: 9.4 (2nd lowest)
> Avg. TANF cash assistance per month: $156 (the lowest)

Although the state’s median household income was the nation’s third-lowest in 2011, at $38,758, Arkansas is among the nation’s least generous state in terms of spreading wealth. Families in the state’s TANF program received an average of $156 a month, lower than any other state in the U.S. Only one other state, Idaho, provided families with fewer months of benefits than Arkansas, where the average family was eligible for less than 10 months. These are especially problematic in a state where nearly 20% of residents lived below the poverty line, more than all but three other states.

1. Oklahoma
> Average pension benefits: $15,326 (11th lowest)
> Total per pupil spending: $7,896 (4th lowest)
> Medicaid payments per enrollee: $4,848 (10th lowest)
> Pct. of weekly wages covered by unemployment benefits: 34.9% (23rd lowest)
> No. of months of TANF received: 24.6 (11th lowest)
> Avg. TANF cash assistance per month: $198 (3rd lowest)

In 2010, Oklahoma spent under $8,000 a year on its students, the fourth-lowest amount in the U.S. That same year, the average eligible family received less than $200 a month in TANF benefits, the third-lowest amount in the U.S. and barely half the U.S. average of $392. Earlier this year, the state passed a law requiring some adult TANF applicants to pass a drug test in order to receive benefits. Oklahoma provided residents receiving unemployment insurance with an average of just $270, equal to less than 35% of their previous weekly wages. Though slightly above the U.S. average, this was less than half of all states.

Michael B. Sauter, Alexander E.M. Hess and Samuel Weigley

Click here to see the 10 states doling out the best benefits

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