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Some of the smallest U.S. states get the most in federal funds

By Catholic Online (NEWS CONSORTIUM)
August 20th, 2012
Catholic Online (www.catholic.org)

The federal government took billions of dollars it received in corporate, income and property taxes from each state and redistributed the money programs in each state. However -- a review of federal data indicates that many states, considering their size and the taxes they paid, received a disproportionate amount of funding.

LOS ANGELES, CA (Catholic Online) - The states that receive the most money from the federal government are usually the most populous ones. In 2010, eight of the 10 states with the highest population received the most. However, when accounting for population and the amount states pay in federal taxes, the breakdown looks very different.

States such as Alaska and Virginia received more than $15,000 per person from the federal government, even after subtracting the billions the state spent on income tax. This figure is nearly two-and-a-half times the amount received per person after taxes in states like Nevada, which is generally regarded as one of the poorest states in the country.

According to the Web site 24/7, these are the states that get the most federal money.

1. Alaska

Federal spending per capita net of income taxes: $15,197
Total federal spending per capita: $17,762
Federal income taxes per capita: $2,565

No state in the U.S. received more money per person from the federal government than Alaska. The state had the second-highest figure for defense spending in 2010, at $7,337.59 per capita. The federal government also allocated a great deal toward wages and salaries in Alaska, $5,709.52 per capita.

2. Virginia

Federal spending per capita net of income taxes: $14,201
Total federal spending per capita: $17,008
Federal income taxes per capita: $2,807

Virginia received more than $136 billion in federal funds in 2010, receiving more than 12 percent of the total Department of Defense procurement spending, which was the second-highest proportion in the country, behind California.

3.  Maryland

Federal spending per capita net of income taxes: $13,723
Total federal spending per capita: $16,673
Federal income taxes per capita: $2,950

Maryland had the fifth-highest federal spending per capita from the Defense Department as Maryland has 11 military bases. Maryland received more spending per capita in nonmilitary programs than any other. The state's proximity to the capital is likely a major factor.

4.  Hawaii

Federal spending per capita net of income taxes: $13,709
Total federal spending per capita: $15,331
    
The Hawaiian Islands have 11 military bases, contributing to the country's highest per capita federal expenditure from the Department of Defense in 2010. Along with a large number of military personnel on the government payroll, Hawaii also had the highest federal salaries and wages.

5. New Mexico

Federal spending per capita net of income taxes: $12,399
Total federal spending per capita: $13,578
Federal income taxes per capita: $1,179

New Mexico received the third-highest procurement spending per capita in the U.S. at $3,641.68. A significant component of this spending was under the category of non-defense agency spending for the Department of Energy.

6. Kentucky

Federal spending per capita net of income taxes: $12,129
Total federal spending per capita: $13,198
Federal income taxes per capita: $1,069

The federal government gave Kentucky more than $7,000 per person on direct payments, which included retirement and disability benefits, unemployment benefits and student assistance - all large programs. Medicare benefits accounted for nearly 57 percent of such payments.
 
7. Alabama

Federal spending per capita net of income taxes: $10,656
Total federal spending per capita: $11,820
Federal income taxes per capita: $1,164

Alabama comes in second for the amount of spending per capita, $3,761 on retirement and disability. The Cotton State also ranks seventh for procurement spending per capita, 78 percent of which was defense spending, and large parts of which also included the Department of Health and Human Services and the Department of Agriculture.

8. West Virginia

Federal spending per capita net of income taxes: $10,568
Total federal spending per capita: $11,609
Federal income taxes per capita: $1,041

West Virginia is the only state in the top 10 where federal spending on defense was not a significant contributor. West Virginia only ranked 48th for federal defense spending - $609 per capita. A large portion of federal spending in West Virginia, almost 16 percent, was for Medicare benefits, slightly more than the national rate of 15.6 percent.

9.  Connecticut


Federal spending per capita net of income taxes: $10,506
Total federal spending per capita: $15,662
Federal income taxes per capita: $5,156

Connecticut received almost 50 percent more government funding per capita than the national average. In 2010, Connecticut was awarded $11.1 billion in military procurement contracts, giving the state the fourth-highest per capita federal defense expenditure.
 
10. North Dakota

Federal spending per capita net of income taxes: $10,438
Total federal spending per capita: $12,930
Federal income taxes per capita: $2,492

With the third-smallest population in the U.S., North Dakota's federal spending per capita was understandably larger than more populous states. North Dakota ranked third in the country for receiving Direct payments other than retirement and disability.

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