The Geographic Distribution of Federal Funds By Edward N. Trevelyan

Transcription

1 FEDERAL AND STATE FINANCES The Geographic Distribution of Federal Funds By Edward N. Trevelyan The U.S. Census Bureau s Consolidated Federal Funds Report is a key source of government spending data, including not only agency and program detail, but also the geographic distribution of funds. This article provides details and insights into the make-up and significance of this flow of federal funds on state and local areas. Introduction With domestic expenditures of $2.06 trillion in federal fiscal year 2003, the United States government spent nearly as much as the combined outlays of the 90,000 state and local governments in the United States. 1 As the president s FY 2006 budget begins its journey through the congressional review process, there is renewed interest in the relative merits of countless federal funding programs. Table A TOP 10 FEDERAL PROGRAMS, EXCLUDING LOANS AND INSURANCE (Sorted by descending amount) Code Program Amount Social Security Retirement Insurance $305,159,678,337 PC.100 Procurement Contracts Department of Defense 201,229,509, Medical Assistance Program 167,790,232, Medicare Hospital Insurance 152,257,430, Medicare Supplementary Medical Insurance 121,796,655,308 PC.200 Procurement Contracts All Federal Government 112,525,535,206 Agencies other than Defense and USPS Social Security Survivors Insurance 93,304,326, Social Security Disability Insurance 77,146,762,769 SW.500 Salaries and Wages All Federal Government Civilian Employees except Defense and USPS 76,829,390,816 DO.200 Unemployment Compensation Benefit Payments 51,146,482,437 Source: U.S. Census Bureau. The effects on the economy of this annual outflow of federal funds go well beyond the nearly $441 billion in grants, primarily to state and local governments. The $327 billion in defense and nondefense procurement contracts have equally profound impacts upon economic indicators nationwide, as do the $211 billion in salaries and wages paid to military and civilian employees. It is, however, the over $1 trillion in direct payments to individuals and others that has come to really drive federal spending and ultimately its effect on the national economy. In FY 2003, over 50 percent of the entire federal domestic budget was distributed under these direct programs. Dominating this category are three highly visible, and often politically charged programs. Social Security, Medicare and Medicaid accounted for $955 billion, or 46 percent of all U.S. government domestic spending. Debate over budget items is informed by substantive policy details, including the degree to which federal dollars are perceived to affect local economies. The Census Bureau provides an important window into this geographic distribution of federal funds through its annual Consolidated Federal Funds Report (CFFR). This report covers most domestic spending by the federal government, tracked to recipients at the state, county, and in some cases, local levels. The largest item not covered is the interest payment on the federal debt, which cannot be meaningfully assigned by geographic area. The balance of this article will provide details and insights into the make-up and significance of these flows of federal funds. CFFR Report Coverage The Consolidated Federal Funds Report covers federal government expenditures or obligations for the categories listed below. For FY 2003, amounts reported totaled $2.1 trillion for the direct expenditure or obligation categories (items 1 thorough 5, below) and $966 billion for other federal assistance (items 6 through 8): 1. Retirement and disability ($636 billion) 2. Other direct payments ($446 billion) 3. Grants ($441 billion) 4. Procurement contracts ($327 billion) 5. Salaries and wages ($211 billion) 6. Direct loans ($34 billion) 7. Guaranteed or insured loans ($227 billion) 8. Insurance ($705 billion) 50 The Book of the States 2005

2 Dollar amounts reported under these categories can represent either actual expenditures or obligations. As a general guide, the grants and procurement data in this report represent obligated funds, while direct payments, salaries and wages represent actual expenditures (outlays). Data on loan and insurance programs (categories 6 through 8) generally represent the contingent liability of the federal government. Because the latter categories represent available funds or coverage, they are excluded in calculations of total direct expenditure or obligation (the $2.1 trillion referred to above). Amounts Excluded From CFFR Coverage Federal expenditures excluded conceptually are those that cannot be geographically distributed, all international transactions and foreign payments, and federal outlay categories not covered by any of the reporting systems that served as data sources for the CFFR. The largest item was net interest on federal government debt, which was estimated to be $153 billion in FY The fiscal year 2003 total outlays for the international affairs function in the federal budget were estimated at $21 billion. For some agencies, data for selected object categories could not be obtained. These include the procurement actions of the judicial and legislative sectors of the federal government. Expenditures other than salaries and wages are not available for the Federal Deposit Insurance Corporation, National Credit Union Administration, and Federal Saving and Loans Insurance Corporation. Expenditures for the Central Intelligence Agency, the Defense Intelligence Agency, and the National Security Agency also are excluded from coverage, or otherwise not separately identifiable. Table B TOP 10 FEDERAL RETIREMENT AND DISABILITY PROGRAMS (Sorted by descending amount) Code Program Amount Social Security Retirement Insurance $305,159,678, Social Security Survivors Insurance 93,304,326, Social Security Disability Insurance 77,146,762,763 DR.200 Federal Retirement and Disability Payments Civilian 49,602,931,073 DR.100 Federal Retirement and Disability Payments Military 33,428,532, Supplemental Security Income 32,494,880, Veterans Compensation for Service-Connected Disability 20,622,188, Social Insurance for Railroad Workers 8,836,027, Veterans Dependency and Indemnity Compensation for SVC-Connected Death 3,773,936, Pension for Non-Service-Connected Disability for Veterans 2,489,932,193 Source: U.S. Census Bureau. FEDERAL AND STATE FINANCES The federal budget outlays estimated for FY 2003 totaled $2.0 trillion. However, comparison of the federal budget amount with data reported in the CFFR can be misleading, since the federal budget amounts differ from CFFR in accounting concepts and the treatment of intragovernmental transfers. For example, outlays for many programs in the federal budget are reported on a net basis, whereas the CFFR reports gross outlays or obligations to nonfederal recipients. Summary of Methodology This is a consolidated report, developed by bringing together available statistics on federal government expenditures or obligations. The first phase of the CFFR program is to identify the available data sources. The following reporting systems and agencies are used as primary data sources: Federal Assistance Award Data System Department of Defense General Services Administration Federal Procurement Data System Office of Personnel Management U.S. Postal Service In addition to these primary sources, several other federal agencies are requested to provide data, usually for selected programs. Most of these are agencies that do not report under the requirements of the Federal Assistance Award Data System. Relationship to Federal Assistance Award Data System The Federal Assistance Award Data System (FAADS) is a quarterly report of financial assistance awards made by each federal agency. Coverage includes most (but not all) grants, direct payments to individuals and others, loans, and insurance coverage. Data submitted by federal agencies for the FAADS serve as the primary source for most of the statistics in the CFFR. The FAADS does not provide information on either salaries and wages or procurement contracts. All The Council of State Governments 51

3 FEDERAL AND STATE FINANCES Table C TOP 10 FEDERAL OTHER DIRECT PAYMENT PROGRAMS (Sorted by descending amount) Code Program Amount Medicare Hospital Insurance $152,257,430, Medicare Supplementary Medical Insurance 121,796,655,308 DO.200 Unemployment Compensation Benefit Payments 51,146,482,437 DO.300 Federal Government Payments for Excess Earned Income Tax Credits 33,210,791, Food Stamps 21,421,437,521 DX.200 Federal Employee Life/Health Insurance Premium Payments Employer Share 17,177,036, Federal Pell Grant Program 12,079,460, Crop Insurance 5,922,366,683 DX.550 Temporary State Fiscal Relief Fund 4,999,999, Production Flexibility Payments for Contract Commodities 4,232,389,246 Source: U.S. Census Bureau. CFFR data not obtained through the FAADS are otherwise obtained from federal agencies. Data on financial assistance awards are submitted quarterly by federal government agencies. The Census Bureau collects these data and combines them to form a single quarterly database on federal government financial assistance awards. Each quarterly database is distributed to the Congress and to state governments. In addition to grant awards, the FAADS program covers direct payments to individuals (such as retirement benefits), direct payments for specified use (such as food stamp awards), direct loans, guaranteed loans and insurance coverage of the federal government. All financial assistance awards covered in the FAADS are identified by a Catalog of Federal Domestic Assistance (CFDA) program number (or a pseudo code, if a CFDA number is unavailable). For grants, the FAADS data represent the federal obligation incurred at the time the grant is awarded. The amounts reported do not represent actual expenditures, since obligations in one time period may not result in outlays during the same time period. Moreover, initial amounts obligated may be adjusted at a later date, either through enhancements or de-obligations. These de-obligations may appear in the CFFR data as negative amounts. Users should be aware of what these amounts represent and use care in interpreting such data. For FY 2003, the CFFR derived data from the FAADS by summing the four quarterly reports that covered financial assistance awarded between October 1, 2002, and September 30, All program awards identified in FAADS are reported by state, county, and (in certain cases) city of recipient. Submitting federal agencies use either FIPS codes for states, counties and places, or General Services Administration location codes. Table Descriptions and Data Sources Total Expenditure: $2.1 trillion All amounts in Table 2.3 are aggregates from the data included in Tables These are national and state area summaries of the federal expenditure object categories (1 through 5) identified above under CFFR Report Coverage. The Total Expenditure amount does not include data on contingent liabilities (loans and insurance, from categories 6 through 8), which are separately listed in Table 2.9. Retirement and Disability: $636 billion In the CFFR, data covering federal government direct payments are separated into two object categories: direct payments for retirement and disability benefits (Table 2.4), and all other direct payments (Table 2.5). Retirement and disability programs include federal employee retirement and disability benefits, Social Security payments of all types, selected Veterans Administration programs, and selected other federal programs. Except as indicated below, data in Table 2.4, are compiled from amounts reported by the federal agencies for the FAADS. The following retirement and disability direct payment programs are not available from the FAADS, but are obtained from other data sources. Military retirement benefits data are supplied by the Department of Defense. Coast Guard retirement benefits data are obtained from the U.S. Coast Guard (now a unit of the Department of Homeland Security) and the Office of Personnel Management (OPM). Federal civilian employee retirement and disability payment data are obtained from the Compensation Group, OPM. Pension plan termination insurance payment data are provided by the Pension Benefit Guaranty Corporation (PBGC). Public Health Service (PHS), Commissioned Corps retirement data are reported by the PHS. 52 The Book of the States 2005

4 National Oceanic and Atmospheric Administration (NOAA) Commissioned Corps data are provided by the U.S. Coast Guard, Pay and Personnel Center. Foreign Service Officers retirement data are provided by the State Department. The Tennessee Valley Authority (TVA) retirement data are reported by the TVA. Other Direct Payments: $446 billion Amounts shown in Table 2.5 come from the FAADS, except for those programs listed below. Direct payments for individuals are reported by state and county area only. The following other direct payment programs are not available from the FAADS, but are obtained from other data sources. Excess earned income tax credit data are reported by the Department of the Treasury, Internal Revenue Service, Statistics of Income Division. Crop Insurance data on the amount of indemnity payments (claims) and premium subsidies are provided by the Agriculture Department. The Federal Emergency Management Agency provides data for payments under the National Flood Insurance program. Legal Services Corporation provides annualized grant and contract payment data. U.S. Postal Service expenditures for current operations, other than procurement and salaries and wages, are provided by the Postal Service as part of that agency s total submission for CFFR. Data for the federal government (employer) share of premiums on federal employee life and health insurance are provided by the OPM, Compensation Group. The Education Department reports payments under the Federal Family Education Loan program. Statistics on federal expenditures for unemployment compensation are compiled from information obtained from the Department of Labor. The Office of Justice Programs provides data for payments under the Public Safety Officers Benefit Program of the Department of Justice. Grants: $441 billion The principal source of the grants data in the CFFR (about 98 percent of all grants reported) is the information submitted quarterly for the FAADS. These Table D TOP 10 FEDERAL GRANT PROGRAMS (Sorted by descending amount) FEDERAL AND STATE FINANCES Code Program Amount Medical Assistance Program $167,790,232, Highway Planning and Construction 36,005,167, Section 8 Housing Choice Vouchers 20,947,329, Temporary Assistance for Needy Families 17,367,393, Special Education Grants to States 8,848,672, Title I Grants to Local Education Agencies 8,384,322, Natonal School Lunch Program 7,035,861, Head Start 6,526,419, Disaster Assistance 5,555,554, State Children s Insurance Program (CHIP) 5,383,757,064 Source: U.S. Census Bureau. data represent the federal obligation incurred at the time the grant is awarded. Procurement: $327 billion Statistics in Table 2.7 are provided by the U.S. Postal Service (USPS) for Postal Service procurement and by the Federal Procurement Data Center (FPDC) within the General Services Administration for procurement actions of nearly all other federal agencies, including the Defense Department. The FPDC collects procurement statistics on a quarterly basis from most federal government departments and agencies, and provides these data according to the place of performance rather than the location of the prime contractor. Excluded from the procurement totals reported are the amounts for the judicial and legislative branches of government and most intergovernmental transfers of funds. Also excluded from the totals are amounts for procurement in foreign countries. Procurement data awarded by the USPS include all outlays made under formal contractual agreements. The FPDC data include contractual actions for construction, purchases of equipment, and other purchases of tangible items by the federal government. Also included with the FPDC data are contractual actions for services often not generally associated with procurement, such as the purchase of utilities, building leases, and other services entered into via contractual agreement. Salaries and Wages: $211 billion Amounts reported for federal government salaries and wages are from four sources: the Department of Defense, the OPM, the USPS, and the U.S. Coast Guard (within the Department of Homeland Security). Amounts reported include salaries and wages, housing allowances, and in general all other person- The Council of State Governments 53

5 FEDERAL AND STATE FINANCES Table E FEDERAL PROCUREMENT PROGRAMS (Sorted by descending amount) Code Program Amount PC.100 Procurement Contracts Department of Defense $201,229,509,585 PC.200 Procurement Contracts - All Federal Government Agencies other than Defense and USPS 112,525,535,206 PC.300 Procurement Contracts U.S. Postal Service 13,658,031,503 Source: U.S. Census Bureau nel compensation, except retired military pay, which is included in the CFFR s Retirement and Disability Category. Amounts for military personnel stationed overseas are also excluded from totals. Direct Loans, Guaranteed Loans, and Insurance: $823 billion All data on loans and insurance programs of the federal government, with the exception of data on flood insurance and student loan programs, come from the FAADS. Flood insurance data are provided by Federal Emergency Management Agency, a unit of the Homeland Security Department. Student loan data are provided by the Department of Education. Loan and insurance program amounts in Table 2.9 reflect the volume of loan or insurance activities. These amounts represent either direct loans made to certain categories of borrowers, or the federal government contingent liability for loans guaranteed and direct insurance against loss. Loans and insurance data do not represent actual expenditures associated with the loan or insurance programs. Any actual outlays under these programs, such as insurance claims paid by the federal government, appear in the direct payments categories in the CFFR. Federal government contingent liability can vary by program, and caution should be used in comparing one federal loan or insurance program to another, or in interpreting the data presented to reflect actual federal outlays over time. Statistical Calculations Per capita federal expenditure amounts in Table 2.10 are computed using resident populations as of July 1, Percentage distributions of federal expenditures in Table 2.11 are computed based on U.S. expenditure totals in each object category. The Defense Department and other agency expenditure amounts in Table 2.12 are computed from data in Tables 2.4 through 2.9. Figures for all Department of Defense agencies are tallied to arrive at a total for Department of Defense expenditures. This total is then netted from the grand total of federal government expenditures, and the residual categorized as nondefense expenditures. This procedure is followed for each state and outlying area. The defense/nondefense totals are then used to compute per capita and percent distribution amounts, using the procedure described above for Tables 2.10 and Data in Table 2.12 in the column on Energy Department defense-related activities are from the Department of Energy, Office of the Assistant Secretary for Defense programs. These data represent defenserelated atomic energy activities, and are presented on an exhibit basis only. Since the data are for the Department of Energy, they are included in the columns for All other federal agencies, rather than Department of Defense. Per capita state rankings in Table 2.13 are derived from per-capita figures shown in Table The District of Columbia and the outlying areas are excluded from the rankings. Geographic Coverage and Presentation The CFFR report presents data by state and county area. The District of Columbia and the Outlying Areas of American Samoa, Federated States of Micronesia, Guam, Republic of the Marshall Islands, Commonwealth of the Northern Mariana Islands, Republic of Palau, Commonwealth of Puerto Rico, and the U.S. Virgin Islands are included. In addition to county areas, municipal governments that are independent of any organized county are included in the CFFR as county equivalent areas. It is important to note that the CFFR covers federal government payments to all types of recipients, both government and other, located in the geographic areas over which these governments have jurisdiction. For example, the federal payments to the New York City area could represent monies allocated to the city government, a private company located in the city, or a private citizen residing in the city. No attempt is made in the CFFR to provide information on the re- 54 The Book of the States 2005

6 FEDERAL AND STATE FINANCES cipients (individually or by type) of federal money. For most programs, information on recipients and recipient types (and other details) can be found in the FAADS. Estimates for Substate Grant Distributions Many federal grant programs involve a direct payment to state governments, which are then responsible for program administration. Examples include: grants that are passed through to local governments (such as block grant programs); grants in which the financial impact of federal funds is spread out over all areas of the state, such as those for highway construction; and grants or assistance programs such as Low Income Home Energy Assistance, which the state can administer but for which the ultimate beneficiaries are found throughout the state. The CFFR contains data on the substate allocation of funds for a selection of major grant programs of this passed through variety. Substate geographic distributions are obtained through a periodic survey conducted by the Census Bureau. To the extent possible, these data are allocated by county or county-equivalent area. Substate allocation figures for these programs are available for some, but not all, of the states and outlying areas. More is not Always Better All things being equal (which they rarely are), the receipt of a relatively high level of federal funds to a state or local area is desirable. In the competition for federal dollars and the perceived attainment of receiving a fair share of these funds, one must be mindful of the bases for qualifying for many assistance programs. If federal funds are received for purposes such as improving the health and quality of life of our children or seniors, or providing for national defense and homeland security, these are generally recognized as positive outcomes. Similarly, if the funds received are to provide educational opportunities, improved housing, or a cleaner environment, that too would be welcomed by most citizens. On the other hand, if federal funds are awarded to a geographic area due to undesirable circumstances, then these receipts might actually have negative connotations. Some examples of situations where the qualification for federal funds would be undesirable include: high crime rate; low student achievement; deteriorating infrastructure (roads, bridges, water and sewer systems, etc.); homelessness; low income or poverty; high unemployment; polluted land, water and air; crop failures; or disasters. If an area is receiving federal funds for these latter reasons, then clearly, more is not better. While taxpayers are naturally curious about the degree to which taxes are returned to their geographic area (whether it be region, state, county, city or congressional district), it is important that they are mindful of this distinction between positive and negative triggers for federal funding. Similarly, economists, policy analysts, and other researchers must carefully weight their balance of payment models to account for these distinctions. Otherwise, such models have little intrinsic value, and can lead to misperceptions about the impact of taxation and federal assistance. Furthermore, technical and statistical limitations must be carefully considered when CFFR data are used to bolster arguments about the impact of federal funds. While CFFR s geographic orientation can be enormously useful in identifying broad regional trends, it can produce misleading conclusions at the micro level unless the limitations are kept in mind. Among these limitations are the following: CFFR data represent expenditures or obligations to government and non-government recipients in state, county and county-equivalent areas. These data cannot, in any consistent and meaningful way, Table F FEDERAL SALARY AND WAGE PROGRAMS (Sorted by descending amount) Code Program Amount SW.500 Salaries and Wages - All Federal Government Civilian Employees Except Defense and USPS $76,829,390,816 SW.600 Salaries and Wages U.S. Postal Service 50,428,120,500 SW.100 Salaries and Wages Department of Defense (Active Military Employees) 46,908,385,000 SW.400 Salaries and Wages Department of Defense (Civilian Employees) 27,336,125,000 SW.200 Salaries and Wages Department of Defense (Inactive Military Employees) 7,445,634,000 SW.700 Salaries and Wages U.S. Coast Guard (Uniformed Employees) 1,729,656,933 Source: U.S. Census Bureau The Council of State Governments 55

7 FEDERAL AND STATE FINANCES Table G TOP 10 FEDERAL LOAN AND INSURANCE PROGRAMS (Sorted by descending amount) Code Program Amount Flood Insurance $661,793,028, Mortgage Insurance Homes 147,385,534, Crop Insurance 40,064,741, Federal Family Education Loans 28,132,568, Federal Direct Student Loans 22,072,946, Veterans Housing Guaranteed and Insured Loans 13,970,795, Mortgage Insurance Purchase of Units in Condominiums 10,661,965, Small Business Loans 8,110,128, Commodity Loans and Loan Deficiency Payments 7,424,473, Very Low to Moderate Income Housing Loans 4,165,519,838 Source: U.S. Census Bureau be generalized to congressional district geographies. While there is a handful of instances in which the boundaries of counties (and even entire states and outlying areas) coincide with congressional district boundaries, the predominant relationship is one of cross-cutting boundaries. Because most data are reported to the county level of geography, they are of little value in determining district-level expenditures. Such precision might be possible, but only with more precise reporting. While every effort is made in the CFFR to portray an accurate and meaningful geographic distribution of federal funds, there are notable instances in which the geographic coding of federal funds may not match the true place of performance. This problem is dealt with effectively by the careful data collection processes of several CFFR feeder agencies, such as the OPM, the FPDC and the USPS. However, current resource limitations prevent universal application of such processes (or the alternative of highly detailed postcollection editing). Perhaps the most recognizable outgrowth of this limitation is a tendency for grant coding to reflect corporate or headquarters addresses, to the detriment of more meaningful distribution data. Looking to the Future As we enter the 21st century, what are the dynamics, priorities and realities that will determine the demographic and economic future of the United States? In contrast to the exuberance of the 1990s, the economic climate is far more cautious, if not guardedly optimistic. In this era of federal belt-tightening, states face growing pressure to shoulder a higher proportion of government services. Prescription drugs and other health care costs continue to outpace the rate of inflation and the traditional revenues that once supported them. Medicaid cost increases alone threaten to outpace state revenues. Retiring workers of the baby boom generation will soon impose new pressures on the solvency of the Social Security system. Adding to these challenges are the fiscal pressures emanating directly or indirectly from the September 11, 2001 terrorist attacks. Many of the resources needed to address the resultant homeland security concerns must originate at the state and local levels. Areas of significant concern include training and equipping police, fire and emergency medical first-responders; security for borders, ports and waterways, airports, and communications networks; food and water safety; and vaccinations against biological and chemical agents. Against this backdrop of economic and security concerns, as well as new budgetary limitations imposed by federal tax cuts and defense-related spending increases, the level and focus of federal assistance to state and local governments will be closely watched. As competing economic and fiscal agendas and budget priorities are debated, the Census Bureau s CFFR data will continue to provide a valuable research and reference resource. Notes 1 U.S. Census Bureau, Consolidated Federal Funds Report, FY 2003, cffr03.html; U.S. Census Bureau, Survey of State and Local Government Finances, FY , U.S. Census Bureau, 2002 Census of Governments, About the Author Edward N. Trevelyan is a survey statistician with the Federal Programs Branch, Governments Division, Bureau of the Census, U.S. Department of Commerce. Acting as the executive agent of the U.S. Office of Management and Budget, this office is responsible for several projects and studies on the geographic distribution of federal funds, and also serves as the Federal Audit Clearinghouse for collecting and disseminating audits and related data on the use of federal awards. 56 The Book of the States 2005

8 Table 2.1 TOTAL FEDERAL GRANTS TO STATE AND LOCAL GOVERNMENTS BY STATE AND REGION: (In millions of dollars) State or other jurisdiction United States... $441,038 $412,371 $338,977 $308,530 $294,469 $269,128 $229,778 $227,542 $228,936 Eastern Region Connecticut... $5,376 $5,279 $4,364 $4,033 $3,846 $3,653 $2,905 $3,080 $3,195 Delaware... 1,181 1, Maine... 2,610 2,270 1,905 1,770 1,664 1,602 1,378 1,389 1,315 Massachusetts... 13,328 12,339 9,718 9,070 8,838 8,019 6,365 6,813 6,829 New Hampshire... 1,865 1,632 1,288 1,238 1,120 1, New Jersey... 11,481 10,822 8,478 7,876 7,262 7,108 6,602 6,506 6,639 New York... 47,575 42,461 32,897 31,564 28,870 28,066 24,384 24,560 24,348 Pennsylvania... 18,624 18,017 14,487 13,940 13,141 12,381 10,268 10,117 10,354 Rhode Island... 2,234 2,094 1,607 1,574 1,411 1,368 1,144 1,176 1,276 Vermont... 1,331 1,281 1, Regional Total ,605 97,316 76,705 72,832 67,860 64,720 55,118 55,772 56,007 Midwestern Region Illinois... $15,720 $14,975 $11,883 $11,228 $10,586 $10,156 $9,296 $9,229 $9,487 Indiana... 7,313 6,969 5,850 5,108 4,706 4,152 3,539 3,657 3,546 Iowa... 3,877 4,060 3,079 2,714 2,595 2,424 1,977 2,030 2,074 Kansas... 3,415 3,272 2,721 2,323 2,183 1,934 1,620 1,700 1,649 Michigan... 12,970 13,279 10,887 10,107 9,764 8,618 7,237 7,194 7,589 Minnesota... 6,914 6,492 5,260 4,753 4,499 4,199 3,952 3,535 3,685 Nebraska... 2,512 2,342 2,054 1,720 1,651 1,511 1,227 1,232 1,440 North Dakota... 1,537 1,425 1,284 1,101 1,009 1,067 1, Ohio... 15,687 14,844 11,762 10,665 10,254 9,733 8,327 8,776 9,115 South Dakota... 1,698 1,506 1,254 1,088 1,056 1, Wisconsin... 7,544 7,255 5,843 5,254 4,842 4,697 3,617 3,679 3,729 Regional Total... 79,187 76,419 61,877 56,061 53,145 49,498 42,848 42,633 43,895 Southern Region Alabama... $6,649 $6,344 $5,298 $4,833 $4,632 $4,161 $3,483 $3,325 $3,419 Arkansas... 4,541 4,047 3,448 2,778 2,614 2,440 2,283 2,131 2,019 Florida... 17,463 16,350 13,666 12,149 11,191 10,320 8,504 8,442 9,078 Georgia... 10,561 10,500 7,929 7,520 6,752 6,233 5,469 5,359 5,461 Kentucky... 6,634 6,346 5,100 4,687 4,395 4,236 3,702 3,355 3,437 Louisiana... 7,820 7,437 6,173 5,300 5,228 4,708 4,457 4,734 5,291 Maryland... 8,632 6,312 7,586 6,911 5,744 5,022 3,950 3,544 3,594 Mississippi... 5,318 5,046 4,246 3,517 3,387 3,025 2,626 2,754 2,738 Missouri... 8,655 8,429 6,868 5,939 5,478 5,065 4,231 4,091 4,159 North Carolina... 11,613 10,939 9,122 8,158 7,608 7,133 6,284 5,227 5,487 Oklahoma... 5,136 5,108 4,119 3,583 3,231 3,059 2,510 2,435 2,472 South Carolina... 5,969 5,592 4,730 4,163 3,879 3,525 2,987 3,032 3,027 Tennessee... 9,057 8,658 7,027 6,372 5,900 5,510 4,555 4,476 4,531 Texas... 28,423 24,858 21,675 18,346 18,370 15,809 13,184 13,287 13,338 Virginia... 7,886 7,714 5,908 5,163 4,749 4,423 3,518 3,403 3,504 West Virginia... 3,562 3,298 2,971 2,729 2,490 2,480 2,100 2,088 2,074 Regional Total , , , ,148 95,648 87,149 73,843 71,683 73,629 Western Region Alaska... $3,022 $3,127 $2,314 $2,174 $1,929 $1,427 $1,303 $1,051 $1,125 Arizona... 7,235 6,664 5,190 4,704 4,537 4,147 3,355 3,095 3,150 California... 51,329 48,084 39,797 36,080 36,370 32,090 27,014 26,413 26,934 Colorado... 6,014 4,740 3,916 3,591 3,446 3,048 2,444 2,410 2,391 Hawaii... 1,911 1,835 1,514 1,348 1,335 1,190 1,184 1,126 1,162 Idaho... 1,858 1,837 1,505 1,270 1,177 1, Montana... 1,938 1,912 1,665 1,474 1,399 1, Nevada... 1,955 1,840 1,442 1,340 1,249 1, New Mexico... 4,322 3,954 3,586 3,032 2,750 2,547 2,152 1,942 1,866 Oregon... 5,103 4,814 4,308 3,684 3,518 3,275 2,853 2,797 2,763 Utah... 2,845 2,697 2,244 2,065 1,994 1,727 1,355 1,446 1,318 Washington... 8,881 8,296 6,794 6,345 5,720 5,422 4,496 4,152 4,351 Wyoming... 1,616 1,234 1,213 1, Regional Total... 98,029 91,034 75,488 68,129 66,357 58,998 49,828 47,867 48,472 Regional total without California... 46,700 42,950 35,691 32,049 29,987 26,908 22,814 21,454 21,538 Dist. of Columbia... 4,310 4,832 4,020 4,675 5,293 4,101 2,740 2,578 2,238 American Samoa of Micronesia Guam Marshall Islands No. Mariana Islands Palau Puerto Rico... 4,808 4,828 3,899 3,842 5,284 3,895 3,719 3,387 3,535 U.S. Virgin Islands Undistributed ,032 3, Source: U.S. Department of Commerce, Bureau of the Census. Consolidated Federal Funds Report for Fiscal Year 2003, issued September Key:... No data available. The Council of State Governments 57

9 Table 2.2 SELECTED PROGRAMS BY STATE: FISCAL YEAR 2003 (In millions of dollars) Department of Agriculture Cooperative State Research and Extension Service Agricultural Research and State and USDA Marketing Extension education Farm Service Food and Safety outlying area Total Total Service Total activities activities Agency Inspection Service United States, total... $385,693,169 $22,101,978 $506,272 $998,125 $429,069 $569,056 $3,330 $45,601 Alabama... 5,895, ,373 6,507 31,472 16,415 15, ,347 Alaska... 2,407, ,757 1,194 8,270 2,948 5, Arizona... 7,028, ,608 12,950 11,418 3,714 7, Arkansas... 3,850, ,986 8,017 20,064 8,451 11, California... 46,210,746 2,753,094 57,618 43,690 12,823 30, Colorado... 4,232, ,744 7,715 19,561 5,674 13, Connecticut... 4,482, ,264 3,232 8,936 3,630 5, Delaware... 1,024,668 57,134 1,095 7,564 2,847 4, Florida... 17,256, ,874 19,700 27,832 10,756 17, Georgia... 8,949, ,081 9,118 31,758 12,556 19, ,063 Hawaii... 1,515, ,286 1,776 17,692 2,207 15, Idaho... 1,651, ,887 2,440 7,645 2,185 5, Illinois... 13,999, ,178 16,669 20,893 8,929 11, ,069 Indiana... 6,282, ,709 6,480 21,648 10,565 11, ,716 Iowa... 3,382, ,256 2,867 29,175 12,102 17, ,197 Kansas... 2,758, ,968 5,499 15,982 7,861 8, ,883 Kentucky... 5,968, ,472 8,228 24,247 13,464 10, Louisiana... 6,486, ,640 19,458 18,278 8,800 9, ,855 Maine... 2,404,349 84,457 2,441 9,418 4,160 5, Maryland... 6,329, ,002 4,534 19,563 10,502 9, Massachusetts... 9,840, ,876 4,925 13,377 4,155 9,2å Michigan... 11,513, ,171 24,065 29,340 12,784 16, Minnesota... 5,710, ,397 6,909 25,500 13,148 12, Mississippi... 4,926, ,216 6,081 26,526 11,413 15, Missouri... 7,139, ,951 10,098 27,397 12,476 14, Montana... 1,434, ,827 3,597 14,422 4,814 9, Nebraska... 2,079, ,766 3,350 16,841 7,526 9, Nevada... 1,911,493 98,485 2,216 4,809 1,796 3, New Hampshire... 1,424,871 53,376 2,885 5,342 1,959 3, New Jersey... 10,169, ,199 7,440 11,241 4,700 6, New Mexico... 3,765, ,342 7,308 9,751 3,799 5, New York... 43,463,311 1,410,386 30,982 38,295 14,600 23, North Carolina... 10,066, ,469 10,592 40,835 18,913 21, ,137 North Dakota... 1,203,215 69,293 3,544 11,497 4,944 6, Ohio... 13,232, ,633 15,508 29,353 11,650 17, ,374 Oklahoma... 4,726, ,490 20,175 18,369 9,259 9, ,567 Oregon... 4,715, ,706 7,435 16,838 6,104 10, Pennsylvania... 16,654, ,758 13,053 26,618 13,949 12, Rhode Island... 1,854,940 61,359 1,571 4,274 2,592 1, South Carolina... 4,913, ,058 4,904 16,860 9,601 7, ,459 South Dakota... 1,376,298 82,888 6,567 9,957 4,624 5, Tennessee... 8,152, ,154 9,867 23,409 13,081 10, Texas... 24,352,768 1,876,613 34,465 48,220 23,299 24, ,778 Utah... 2,337, ,391 2,291 11,071 4,220 6, ,094 Vermont... 1,184,613 58,988 1,973 7,915 2,470 5, Virginia... 6,200, ,043 9,558 23,504 11,546 11, ,361 Washington... 7,474, ,393 11,182 20,051 6,249 13, West Virginia... 3,301, ,598 4,378 13,226 6,918 6, Wisconsin... 6,772, ,929 7,838 28,307 11,863 16, ,519 Wyoming... 1,420,298 41, ,783 1,647 4, District of Columbia... 3,633,268 54,122 2,280 2,286 1,004 1, American Samoa ,776 21, , of Micronesia 122,159 1, ,725 1, Guam ,096 18, , , Marshall Islands... 58, Northern Marianas... 87,299 14, , Palau... 46, Puerto Rico... 4,695,055 1,744,421 6,548 12,806 7,013 5, Virgin Islands , , ,950 1,309 1, Undistributed ,616 24,059 23, The Book of the States 2005

10 Special Nutrition Child Commodity Food Needy supplemental Forest Payments to State and National State and service nutrition assistance stamp family food program Service states and private Forest outlying area total programs programs program (a) program (WIC) total counties forestry Service Other United States, total... $19,245,996 $10,424,165 $165,055 $4,013,337 $96,045 $4,547,394 $559,888 $358,546 $185,771 $4,365 $11,206 Alabama , ,683 3,366 33,573 1,329 76,136 3,443 2,015 1, Alaska... 57,600 29, , ,492 17,705 8,875 7, Arizona , ,968 3,932 32,532 1,407 93,367 10,731 7,057 3, Arkansas , ,716 1,481 22,989 1,021 46,179 8,243 5,988 2, California... 2,527,276 1,329,573 14, ,047 8, ,490 74,972 62,163 6,062 2,284 4,463 Colorado ,786 95,214 2,535 26, ,535 12,501 5,433 6, Connecticut ,161 75,639 1,320 26, , Delaware... 45,953 27, , , Florida , ,708 5,251 88,333 3, ,947 5,864 2,366 3, Georgia , ,338 3,850 74,269 1, ,739 4,681 1,231 3, Hawaii... 82,871 42, , ,480 1, , Idaho... 70,608 42, , ,023 24,189 20,022 4, Illinois , ,816 7,073 94,181 2, ,562 4, , ,138 Indiana , ,577 2,892 40,914 1,680 61,726 1, , Iowa ,807 88,756 2,263 19, ,211 1, Kansas , , ,620 1,131 30,603 1, , Kentucky , ,145 3,245 30,781 1,286 66,248 3, , Louisiana , ,461 7,549 48,132 1,934 84,685 6,497 3,518 2, Maine... 57,540 35,851 1,511 8, ,401 8, , Maryland , ,339 1,885 36,086 1,895 56,154 2, , Massachusetts , ,067 2,318 31,642 1,934 62,819 1, , Michigan , ,820 9,427 89,394 3, ,615 5,186 2,725 2, Minnesota , ,107 2,934 56,594 1,895 61,988 8,673 3,886 2, ,956 Mississippi , ,435 2,246 34,164 1,064 64,060 10,566 7,311 3, Missouri , ,281 3,083 48,492 2,037 67,426 4,556 2,504 1, Montana... 58,207 31,526 1,228 11, ,113 21,957 12,464 9, Nebraska ,024 66,138 1,811 14, ,429 2, , Nevada... 86,020 49, , ,748 3, , New Hampshire... 36,971 20, , ,910 1, , New Jersey , ,279 3,000 93,803 3,903 77,238 2, , New Mexico , ,574 1,891 18,471 1,606 36,297 7,341 2,022 4, New York... 1,311, ,661 12, ,580 14, ,159 6, , North Carolina , ,520 3,793 74,988 1, ,781 14, , North Dakota... 43,799 24, , ,037 1, , Ohio , ,737 6, ,992 2, ,399 1, , Oklahoma , ,616 2,210 45,367 1,379 59,814 4,186 1,214 2, Oregon , ,321 2,499 45,220 1,143 57, , ,987 5, Pennsylvania , ,484 6, ,545 6, ,750 6,576 3,665 2, Rhode Island... 53,383 31, , ,230 1, , South Carolina , ,862 2,795 32, ,581 9,084 3,104 5, South Dakota... 56,701 30, , ,711 4,621 3, Tennessee , ,022 4,885 39,163 1,440 90,555 4, , Texas... 1,755,111 1,102,541 8, ,187 5, ,539 10,552 4,435 6, Utah ,704 80, ,542 1,376 31,473 9,813 1,913 7, Vermont... 41,465 18, , ,683 2, , Virginia , ,834 1,486 4,460 1,313 69,109 5, , Washington , ,878 2,244 40,114 1,257 98,628 46,100 40,191 5, West Virginia ,733 74,385 1,818 11, ,113 3,743 1,869 1, Wisconsin , ,801 2,681 45,512 1,982 57,555 8,651 1,596 7, Wyoming... 29,034 15, , ,875 2,436 2, District of Columbia... 47,860 24, , ,463 1, , American Samoa... 20,441 8, , , of Micronesia Guam... 15,511 5, , , Marshall Islands Northern Marianas... 12,857 4, , Palau Puerto Rico... 1,715, ,088 3,387 1,359,583 1, , Virgin Islands ,496 14,067 1,775 90, , Undistributed Food and nutrition service Department of Agriculture Continued Forest service The Council of State Governments 59

11 National Rural Rural regional, and Water systems Resources Develop. Community and cooperative Housing and waste Appalachian State and Conservation activities facilities development preservation disposal systems Regional outlying area Service total grants programs grants systems grants Other Commission United States, total... $125,231 $617,535 $24,901 $38,630 $5,690 $438,957 $109,357 $35,974 Alabama , , ,153 Alaska... 2,575 18,413 3, , Arizona... 2,670 11, ,172 1,546 0 Arkansas... 3,050 8, , California... 2,934 46, , ,329 26,011 0 Colorado , ,046 2 Connecticut , , Delaware , Florida... 3,994 28, ,855 17,600 0 Georgia... 1,511 16, ,189 1,895 2,588 Hawaii... 4,064 2, , Idaho , , Illinois... 9,327 21, , ,035 1, Indiana , , Iowa... 8,609 10,173 1, , Kansas... 2,285 4, , Kentucky... 1,307 21, , ,480 4,900 3,437 Louisiana... 2,894 7, , Maine , , Maryland... 1,462 4, , Massachusetts , , Michigan , , , Minnesota... 1,143 13, , ,442 2, Mississippi... 13,845 20,252 1, ,817 1,194 3,569 Missouri... 10,535 18, , , Montana , , Nebraska... 2,127 4, , Nevada , New Hampshire , , New Jersey , , New Mexico... 5,648 5, , New York... 1,540 21, , , ,000 North Carolina ,249 3,543 1, ,424 1,546 2,504 North Dakota... 2,423 6, , Ohio , , ,126 Oklahoma... 4,522 10, , ,833 2,836 1 Oregon , , ,737 8,228 0 Pennsylvania... 4,181 19, , ,885 Rhode Island South Carolina , , , South Dakota , , Tennessee... 2,276 18, , , ,728 Texas... 7,211 16, ,528 5, Utah , , Vermont , , Virginia... 2,311 19,321 1, , ,010 Washington... 1,947 16, , ,780 5,974 0 West Virginia... 6,058 13, ,222 2,903 2,899 Wisconsin ,610 1, , Wyoming... 1,656 1, , District of Columbia American Samoa of Micronesia Guam... 1, Marshall Islands Northern Marianas Palau Puerto Rico , , Virgin Islands Undistributed Department of Agriculture Continued Rural development activites 60 The Book of the States 2005

12 Department of Commerce Department of Defense U.S. Army Corporation Corps of National National for National Engineers U.S. Army Dept. of Economic Oceanic and Telecommunications and Corporation Dept. of civilian National State and Commerce Development Atmospheric and Information Community for Public Defense construction Guard outlying area total Aministration Administration Administration Service Broadcasting total program construction United States, total... $934,399 $434,480 $418,365 $81,554 $146,763 $368,206 $281,448 $8,529 $272,919 Alabama... 23,300 14,457 5,866 2, ,525 6, ,591 Alaska... 56,928 13,541 43, ,889 6, Arizona... 7,096 4,143 2, ,378 4, Arkansas... 7,589 6, ,106 1, California... 70,771 46,697 20,568 3,506 32,635 35,957 10, ,418 Colorado... 11,899 2,782 8, ,738 3,976 3, ,482 Connecticut... 10,086 3,243 6, ,572 2, Delaware... 2, , , , ,774 Florida... 24,205 10,981 11,004 2,220 2,835 12, Georgia... 16,398 12,326 3, ,031 5,443 1,295 1,295 0 Hawaii... 22,404 3,471 18, ,140 3, ,608 Idaho... 10,561 9,139 1, ,282 1,356 4, ,754 Illinois... 14,367 11, , ,296 1, Indiana... 8,352 7, ,153 8, ,968 Iowa... 3,393 1, ,439 1, ,454 Kansas... 6,210 3, ,751 3,060 2, Kentucky... 13,694 12, ,239 4, Louisiana... 27,074 5,411 19,333 2, ,219 1, ,883 Maine... 13,693 4,137 7,966 1,590 2,172 1,577 7, ,193 Maryland... 17, , ,980 4, Massachusetts... 18,543 3,663 13,399 1, ,003 1, ,542 Michigan... 22,268 13,817 3,772 4,679 6,972 7,729 6, ,085 Minnesota... 14,323 12, , ,567 2, ,836 Mississippi... 33,432 8,590 23,125 1,717 6,829 1,932 16, ,085 Missouri... 8,758 6, , ,799 4,378 1,051 3,327 Montana... 5,046 3, ,131 2,915 1,472 4, ,833 Nebraska... 5,990 1, , , Nevada... 4,150 1,701 1, ,866 3, ,047 New Hampshire... 9, ,878 1, ,351 12, ,186 New Jersey... 8,956 6,736 2, ,820 3,324 1, ,201 New Mexico... 13,635 10, ,045 3,766 3, New York... 31,086 17,867 6,164 7,055 20,846 31,140 13, ,626 North Carolina... 38,946 16,629 20,301 2, , North Dakota... 5,050 3, , ,367 2, ,385 Ohio... 17,294 12,613 3,189 1,492 7,794 10, Oklahoma... 17,852 7,202 8,889 1, ,390 5, ,138 Oregon... 50,327 10,284 37,873 2, ,249 2, ,832 Pennsylvania... 21,245 17,222 1,883 2, ,441 5, ,325 Rhode Island... 11,163 3,842 7, South Carolina... 31,060 14,440 14,913 1, ,514 4, ,619 South Dakota... 5,342 3, , ,484 7, ,789 Tennessee... 11,389 10, ,865 4,707 6, ,288 Texas... 38,472 23,245 11,832 3, ,328 8,330 1,311 7,019 Utah... 4,574 4, ,594 5, Vermont... 3,320 2, ,034 1, Virginia... 16,966 8,702 5,907 2, , Washington... 71,426 7,265 62,627 1,534 1,433 5,874 3, ,151 West Virginia... 10,615 9, ,318 12, ,387 Wisconsin... 13,083 4,433 6,607 2,043 5,581 7,187 4, ,830 Wyoming District of Columbia... 3,373 1, ,593 1,575 6, American Samoa... 1, , of Micronesia Guam... 1, , ,242 Marshall Islands Northern Marianas... 1, , Palau Puerto Rico... 11,447 5,782 5, , Virgin Islands... 2, , Undistributed... 1,327 1, ,054 90, ,755 The Council of State Governments 61