Economic Impact of Social Security

Economic Impact of Social Security RESEARCH CONDUCTED BY: Peter S. Arno, PhD Andrew R. Maroko, PhD WA OR ID MT WY ND SD MN WI MI NY ME CA NV AZ UT CO NM NE KS OK IA MO AR IL OH IN KY TN PA WV VA NC SC MS AL GA TX LA AK FL HI View the interactive website at http://socialsecurityspotlight.org

Report Executive Summary Social Security s significant economic contribution to communities across America is often misunderstood or ignored in the public debate. WWW.SOCIALSECURITYSPOTLIGHT.ORG is an online research tool with easily accessible information at the state, county, and congressional district level that provides a compelling perspective on Social Security s economic impact. The website s detailed data on beneficiaries by race/ethnicity, age and gender, tell part of Social Security s story. In 2014, 59 million Americans, representing 18% of the entire US population, received Social Security benefits, which accounted for about 5% of the total national economy. Social Security also has a critical economic stimulus effect in states and local communities, contributing $1.6 trillion nationally as benefits are spent and cycle through the economy. The economic stimulus impact varies from state to state generally, the larger states have more Social Security recipients and thus more benefits. However, the report s impact estimates are adjusted for taxes and the composition of state economies, which affect how benefits are multiplied and generate additional economic activity. For example in 2014, California residents received $80.4 billion in benefits, which added $165.9 billion to the state economy. At the other extreme, District of Columbia residents received $1.1 billion in benefits, generating $1.6 billion in economic activity. Drs. Peter Arno and Andrew Maroko, the report researchers, also present another metric called the Regional Support Index (RSI) to assess Social Security s support for the total resident populations for all counties and states. The RSI is composed of three variables: (1) percent of the state s or county s entire population that receives Social Security benefits; (2) percent of personal income in the state or county derived from Social Security; and (3) per capita Social Security income at the state or county level (total amount of Social Security benefits divided by total number of residents). Higher RSI values indicate a higher level of Social Security support for the population. When examining the change in the RSI between 2008 and 2013, a higher number reflects increasing Social Security support, whereas a lower number indicates decreasing support over this five-year period. At the state level, only North Dakota decreased its RSI score during this time. At the county level, only 197 out of 3,108 counties (6.3%) with reliable data for both years decreased their support over the same time period. While the overall national trend is increasing support by Social Security, a wide variation exists across all states and counties. 59 MILLION In 2014 18% or 59 million Americans received Social Security benefits accounting for 5% of the national economy Social Security s automatic economic stabilizer effect is important to consider as well because beneficiaries continue to receive benefits even during economic downturns. These dollars not only aid individuals and their families but also circulate in communities to help moderate the effects of the business cycle. Social Security is America s most efficient anti-poverty program. More than 99 cents of every dollar is paid in benefits, with less than one percent allocated to administrative expenses. It has been estimated that Social Security lifts 21 million Americans out of poverty, including nearly 14.5 million persons age 65 and older, 5.8 million between ages 18 and 64 and more than a million children., Social Security is a social insurance program for workers and their families throughout their lifetimes. Workers pay Social Security premiums for a guarantee that they will receive income in their retirement years or earlier if they become disabled, and that their spouse and children will receive support in the event of their death or disability.

Social Security is our nation s bedrock social insurance program. It protects American workers, their families and their children against the risks of poverty as a result of old age, death of a spouse or parent, or a life-changing disability. At a time of escalating inequality and declining retirement savings, the National Committee Foundation examines Social Security s crucial and often neglected role in the economic life of communities in every state. The Social Security Spotlight website was created to provide a one-stop information source detailing the impact Social Security has for millions of American families living in all 50 states, their communities and throughout the economy. By providing data on Social Security s economic impact as well as detailed data on beneficiaries by state, county and congressional district, race/ethnicity, age and gender, this research offers a clear and compelling description of the vital role Social Security plays throughout America. Funding The research and the SocialSecuritySpotlight website were funded by a grant from the Retirement Research Foundation. Task Force on the Future of America s Health and Retirement Security The project has been guided by the Task Force on the Future of America s Health and Retirement Security. Chair, Marilyn Moon, PhD, Institute Fellow and Director, Center on Aging, the American Institute for Research Ronald J. Angel, PhD, Professor of Sociology at the University of Texas at Austin Peter S. Arno, PhD, Senior Fellow and Director of Health Policy Research at the Political Economy Research Institute at the University of Massachusetts-Amherst. National Committee to Preserve Social Security and Medicare Foundation Carroll L. Estes, PhD, Founding Director of UCSF Institute for Health & Aging. Chair, Board of Directors, National Committee to Preserve Social Security & Medicare Foundation Madonna Harrington Meyer, PhD, Senior Research and Faculty Associate for the Center for Policy Research at the Syracuse University Aging Studies Institute T.J. Sutcliffe, Director of Income and Housing Policy at The Arc, Washington DC. Bruce Vladeck, PhD, Senior Advisor to Nexera, Inc., former Administrator of the Healthcare Financing Administration (HCFA) David R. Williams, PhD, Professor, Harvard School of Public Health. William K. Vaughan, Vice Chair, Board of Directors, National Committee to Preserve Social Security & Medicare Research Conducted By: Peter S. Arno, PhD, Senior Fellow and Director of Health Policy Research at the Political Economy Research Institute at the University of Massachusetts-Amherst. Board member, National Committee to Preserve Social Security & Medicare Foundation Andrew R. Maroko, PhD, Assistant Professor, City University of New York Graduate School of Public Health and Health Policy Project Manager Ann E. Beaudry 9 MILLION More than 9 million veterans receive Social Security benefits

Economic Impact of Social Security $ 1.6 TRILLION OR WA ID MT WY ND SD MN WI MI NY ME VT NH In 2014, Social Security contributed $1.6 trillion nationally as benefits are spent and generate additional economic activity in every state. Social Security has an economic stimulus effect and acts as an automatic economic stabilizer because benefits are received even during economic downturns. View the interactive website at http://socialsecurityspotlight.org CA NV AZ UT CO NM NE KS TX OK IA MO AR LA IL MS OH IN WV KY TN SC AL GA PA VA NC MA RI CT NJ DE MD AK HI $0-$25B $25B-$50B $50B-$75B $75B-$100B $100B-$125 $125B-$150B $150B-$166B FL DC

Social Security As Economic Stimulus As Social Security benefits are spent and cycle through the economy there is a cumulative impact, which increases aggregate economic activity as recipients spend their benefit dollars on goods and services (multiplier effect). The total economic output listed below is the product of Social Security benefits adjusted for federal and state taxes and the economic multiplier for each state. State Total Beneficiaries Tax Adjustment Factor Economic Multiplier Total Economic Output (Billions) Alabama $15,314,676 0.95 1.73 $25.3 Alaska $1,237,596 0.92 1.72 $2.0 Arizona $18,211,164 0.94 2 $34.2 Arkansas $9,132,432 0.95 1.7 $14.8 California $80,412,324 0.93 2.21 $165.9 Colorado $11,733,624 0.93 2.06 $22.4 Connecticut $10,631,796 0.92 1.83 $18.0 Delaware $3,052,488 0.93 1.81 $5.1 District of Columbia $1,079,844 0.93 1.58 $1.6 Florida $62,291,340 0.94 2.1 $122.5 Georgia $24,073,020 0.95 1.98 $45.1 Hawaii $3,729,996 0.92 1.87 $6.4 Idaho $4,383,096 0.95 1.79 $7.4 Illinois $32,485,392 0.94 2.09 $63.7 Indiana $19,521,948 0.95 1.82 $33.7 Iowa $9,098,028 0.93 1.74 $14.8 Kansas $7,842,828 0.93 1.82 $13.2 Kentucky $12,979,704 0.96 1.76 $21.9 Louisiana $11,334,288 0.95 1.81 $19.6 Maine $4,424,184 0.95 1.82 $7.7 Maryland $14,437,272 0.93 1.88 $25.1 Massachusetts $18,208,620 0.94 1.98 $33.7 Michigan $32,838,156 0.94 1.93 $59.8 Minnesota $14,649,612 0.91 2.08 $27.8 Mississippi $8,579,544 0.96 1.68 $13.8 Missouri $17,850,120 0.94 1.94 $32.7 State Total Beneficiaries Tax Adjustment Factor Economic Multiplier Total Economic Output (Billions) Montana $2,983,980 0.93 1.83 $5.1 Nebraska $4,774,164 0.92 1.8 $7.9 Nevada $7,059,816 0.94 1.75 $11.6 New Hampshire $4,360,092 0.94 1.84 $7.5 New Jersey $25,617,684 0.92 1.93 $45.7 New Mexico $5,441,784 0.92 1.71 $8.6 New York $53,062,296 0.93 1.93 $95.3 North Carolina $28,509,000 0.95 1.89 $50.9 North Dakota $1,736,736 0.92 1.67 $2.7 Ohio $32,711,028 0.95 1.8 $55.9 Oklahoma $10,530,276 0.95 1.84 $18.4 Oregon $11,886,720 0.94 1.93 $21.5 Pennsylvania $41,193,096 0.94 1.99 $77.2 Rhode Island $3,198,492 0.92 1.86 $5.5 South Carolina $15,270,204 0.95 1.76 $25.4 South Dakota $2,306,880 0.93 1.78 $3.8 Tennessee $19,601,880 0.95 1.96 $36.6 Texas $54,031,728 0.94 2.12 $108.0 Utah $5,398,836 0.92 2.07 $10.2 Vermont $2,050,356 0.92 1.77 $3.3 Virginia $21,105,540 0.93 1.81 $35.6 Washington $18,867,888 0.93 1.98 $34.7 West Virginia $6,535,308 0.95 1.61 $10.0 Wisconsin $17,454,792 0.94 1.91 $31.3 Wyoming $1,512,720 0.93 1.55 $2.2 USA $846,734,388,000 - - $1.6 Trillion

Social Security Regional Support Index (RSI 2013) The Regional Support Index (RSI) illustrates the level of support that Social Security provides to all residents of a given state or county. The index is composed of three variables: (1) percent of the state or county s entire population that receives Social Security benefits; (2) percent of personal income in the state or county derived from Social Security; and (3) per capita Social Security income at the state or county level (total amount of Social Security benefits divided by total number of residents. Higher RSI values indicate more Social Security support OR CA WA NV ID AZ UT MT WY CO NM Low Medium High ND MN WI SD MI IA NE OH IL IN WV KS MO KY OK TX TN AR SC AL GA MS LA PA VA NC NY ME VT NH MA RI CT NJ DE MD for the population. Visit http://socialsecurityspotlight.org to view the RSI for the counties within each state AK FL DC HI

Social Security Support Is Increasing The national and state maps illustrate a snapshot using 2013 figures. But examination of the tables makes it quite clear that between 2008 and 2013 Social Security increased its level of support in the vast majority of regions across the country. The precise reasons for changes in the level of support are not entirely known but it is likely based on a number of factors including, aging of the population, the economic recession during these years, and other social and demographic trends. When examining a change in RSI between 2008 and 2013, a larger number indicates increasing Social Security support over the five-year period, whereas a smaller number indicates decreasing support; this data cannot be interpreted as a percentage change. At the state level, only North Dakota decreased its RSI score over this time period. At the county level, only 197 out of 3,108 counties (6.3%) with reliable data for both years decreased their support over the same time period. State % Total Population Receiving SS Benefits (2013) % Personal Income from SS Benefits (Total Population; 2013) Per Capita SS Income ($) (Total Population; 2013) RSI Score (2013) RSI Score (2008) State % Total Population Receiving SS Benefits (2013) % Personal Income from SS Benefits (Total Population; 2013) Per Capita SS Income ($) (Total Population; 2013) RSI Score (2013) RSI Score (2008) Alabama 22.4 8.3 3,036 82.7 62.3 Alaska 11.8 3.2 1,596 11.2 0.0 Arizona 17.7 7.0 2,602 58.8 39.1 Arkansas 22.5 8.1 2,968 80.9 66.4 California 14.1 4.1 1,999 27.5 16.3 Colorado 14.7 4.5 2,107 32.3 17.6 Connecticut 18.0 4.7 2,850 53.5 40.9 Delaware 20.2 7.0 3,121 73.1 53.5 District of Columbia 12.1 2.1 1,587 7.1 3.8 Florida 21.0 7.3 3,022 74.8 56.1 Georgia 16.3 6.0 2,283 45.9 27.0 Hawaii 17.6 5.6 2,533 51.0 36.3 Idaho 18.5 7.1 2,576 60.6 41.3 Illinois 16.6 5.2 2,432 45.1 32.8 Indiana 19.3 7.4 2,851 68.2 51.6 Iowa 19.7 6.3 2,829 64.2 53.2 Kansas 17.8 5.9 2,604 54.0 41.0 Kentucky 21.5 7.8 2,840 75.3 58.8 Louisiana 18.2 5.7 2,348 49.9 37.5 Maine 24.1 7.8 3,185 87.1 65.9 Maryland 15.5 4.3 2,316 36.8 23.2 Massachusetts 18.0 4.6 2,605 48.7 37.4 Michigan 21.2 8.2 3,199 82.1 59.3 Minnesota 17.5 5.4 2,580 50.9 35.5 Mississippi 21.1 8.1 2,748 74.1 56.6 Montana 20.5 7.1 2,804 69.3 52.8 Nebraska 17.2 5.2 2,449 47.1 39.3 Nevada 16.5 6.1 2,386 48.1 27.0 New Hampshire 21.1 6.2 3,138 71.8 48.5 New Jersey 17.4 5.0 2,769 51.9 38.5 New Mexico 18.8 6.9 2,489 59.1 40.6 New York 17.5 4.8 2,603 48.5 37.2 North Carolina 19.4 7.1 2,754 65.7 47.8 North Dakota 17.1 4.3 2,307 40.5 42.9 Ohio 19.4 6.6 2,724 63.0 48.4 Oklahoma 19.3 6.3 2,631 59.7 48.8 Oregon 19.8 7.2 2,872 69.0 49.2 Pennsylvania 21.1 6.7 3,106 73.9 59.7 Rhode Island 20.4 6.2 2,930 67.1 51.4 South Carolina 21.3 8.4 3,027 80.5 57.5 South Dakota 19.3 5.7 2,606 56.5 46.4 Tennessee 20.8 7.3 2,882 71.8 54.0 Texas 14.2 4.4 1,942 28.1 18.1 Utah 12.3 4.8 1,764 22.3 11.4 Vermont 22.1 6.9 3,127 77.3 55.2 Virginia 16.8 5.0 2,425 44.5 30.7 Washington 17.2 5.4 2,563 49.6 33.4 West Virginia 24.8 9.6 3,396 100.0 85.9 Wisconsin 19.8 6.7 2,909 67.4 50.0 Wyoming 17.0 4.7 2,467 44.6 31.4 Missouri 20.4 7.0 2,844 69.0 53.1

Social Security is a social insurance program for workers and their families throughout their lifetimes 6.7 MILLION Widows, widowers and spouses receive Social Security benefits 39 MILLION Retired workers receive Social Security benefits

9 MILLION People with disabilities receive Social Security benefits 4.4 MILLION Children receive Social Security benefits

State Beneficiaries Visit www.socialsecurityspotlight.org to view detailed beneficiary and benefit information at the state, county and Congressional District level for each state and the District of Columbia. Downloadable tables provide a comprehensive summary for each state. State Total Beneficiaries Retired Workers Disabled Workers Widow(er)s and Parents Spouses Children 65 and Over State Total Beneficiaries Retired Workers Disabled Workers Widow(er)s and Parents Spouses Children 65 and Over Alabama 1,095,925 631,443 236,857 84,463 37,670 105,492 686,381 Alaska 89,047 59,221 12,641 5,246 2,880 9,059 61,001 Arizona 1,207,102 849,142 156,217 76,677 46,925 78,141 891,977 Arkansas 673,193 399,334 140,453 48,324 20,860 64,222 430,170 California 5,538,810 3,804,073 709,509 376,501 286,041 362,686 4,126,722 Colorado 794,937 552,118 107,158 52,182 33,118 50,361 588,137 Connecticut 654,533 469,331 81,799 39,769 21,598 42,036 502,510 Delaware 192,187 134,871 27,404 11,903 5,774 12,235 140,660 District of Columbia 79,716 52,477 14,732 4,640 1,933 5,934 55,934 Florida 4,223,274 2,977,966 560,856 271,000 157,803 255,649 3,145,869 Georgia 1,676,778 1,079,189 285,394 116,028 51,963 144,204 1,124,078 Hawaii 251,591 189,864 23,174 15,197 8,821 14,535 197,122 Idaho 306,264 208,370 43,820 19,779 12,362 21,933 218,849 Illinois 2,155,290 1,463,959 289,730 160,955 86,210 154,436 1,580,059 Indiana 1,286,099 837,039 208,645 93,791 44,591 102,033 889,217 Iowa 616,301 431,181 78,016 46,080 22,428 38,596 462,369 Kansas 521,955 353,737 75,123 36,920 18,016 38,159 379,144 Kentucky 954,284 536,540 208,016 79,977 40,265 89,486 596,915 Louisiana 854,211 471,272 157,558 88,547 47,648 89,186 553,876 Maine 325,496 209,810 59,093 20,954 11,247 24,392 225,169 Maryland 936,372 647,917 130,696 61,429 31,587 64,743 691,432 Massachusetts 1,224,469 806,825 205,642 75,031 42,575 94,396 881,566 Michigan 2,121,776 1,363,480 353,522 152,275 83,594 168,905 1,444,274 Minnesota 965,018 680,724 127,364 61,904 33,637 61,389 718,415 Mississippi 640,772 371,473 132,596 48,758 19,160 68,785 397,660 Montana 212,535 148,405 27,807 14,672 8,161 13,490 155,936 Nebraska 326,078 226,858 42,347 23,707 11,840 21,326 246,345 Nevada 475,811 338,621 64,243 27,804 15,341 29,802 348,360 New Hampshire 283,983 190,433 48,091 15,256 8,145 22,058 199,935 New Jersey 1,568,016 1,100,899 203,208 101,724 57,327 104,858 1,180,551 New Mexico 399,987 257,667 64,694 27,724 17,804 32,098 276,893 New York 3,482,978 2,345,599 516,900 226,428 142,119 251,932 2,527,345 North Carolina 1,948,531 1,299,071 332,173 120,801 51,825 144,661 1,341,149 North Dakota 124,372 85,385 14,048 11,372 5,778 7,789 95,700 Ohio 2,267,508 1,446,106 356,270 195,124 103,268 166,740 1,605,105 Oklahoma 749,794 472,916 127,712 58,457 27,406 63,303 514,038 Oregon 798,156 561,330 109,329 51,823 30,335 45,339 587,430 Pennsylvania 2,722,892 1,814,793 409,608 206,941 104,523 187,027 1,968,219 Rhode Island 216,029 145,063 37,422 12,256 5,367 15,921 153,349 South Carolina 1,040,971 683,006 179,872 68,220 29,216 80,657 708,065 South Dakota 165,499 117,284 19,250 12,460 6,047 10,458 125,947 Tennessee 1,371,562 860,375 252,231 99,456 46,441 113,059 915,988 Texas 3,842,249 2,424,311 574,012 319,026 204,481 320,419 2,701,705 Utah 365,730 244,753 47,947 22,946 18,457 31,627 264,139 Vermont 140,634 94,631 22,600 8,640 4,835 9,928 100,492 Virginia 1,415,661 950,681 212,945 97,874 53,274 100,887 1,017,990 Washington 1,230,039 844,816 179,192 78,141 51,193 76,697 900,203 West Virginia 464,823 258,928 93,837 45,053 26,991 40,014 300,151 Wisconsin 1,153,149 802,537 161,894 74,661 35,919 78,138 834,233 Wyoming 101,296 71,052 13,170 6,764 3,611 6,699 74,458 Missouri 1,246,269 796,376 222,218 87,551 40,659 99,465 850,555

State Benefits Visit www.socialsecurityspotlight.org to view detailed beneficiary and benefit information at the state, county and Congressional District level for each state and the District of Columbia. Downloadable tables provide a comprehensive summary for each state. State Total Beneficiaries Retired Workers Disabled Workers Widow(er)s and Parents Spouses All Children 65 and Over State Total Beneficiaries Retired Workers Disabled Workers Widow(er)s and Parents Spouses All Children 65 and Over Alabama $15,314,676,000 $9,880,476,000 $3,257,208,000 $1,170,924,000 $296,424,000 $709,656,000 $10,589,592,000 Alaska $1,237,596,000 $898,620,000 $174,132,000 $74,508,000 $22,512,000 $67,812,000 $922,236,000 Arizona $18,211,164,000 $13,814,772,000 $2,265,336,000 $1,174,092,000 $384,756,000 $572,208,000 $14,380,512,000 Arkansas $9,132,432,000 $6,048,564,000 $1,871,028,000 $654,516,000 $152,664,000 $405,660,000 $6,442,044,000 California $80,412,324,000 $59,662,704,000 $10,189,104,000 $5,610,204,000 $2,141,532,000 $2,808,780,000 $63,625,692,000 Colorado $11,733,624,000 $8,748,564,000 $1,519,872,000 $793,848,000 $284,472,000 $386,868,000 $9,227,076,000 Connecticut $10,631,796,000 $8,226,180,000 $1,189,596,000 $665,940,000 $204,276,000 $345,792,000 $8,727,348,000 Delaware $3,052,488,000 $2,304,624,000 $407,208,000 $191,976,000 $52,836,000 $95,856,000 $2,387,304,000 DC $1,079,844,000 $777,708,000 $182,268,000 $59,892,000 $18,048,000 $41,916,000 $824,208,000 Florida $62,291,340,000 $47,211,288,000 $7,922,808,000 $4,086,852,000 $1,241,640,000 $1,828,752,000 $49,419,168,000 Georgia $24,073,020,000 $16,972,332,000 $4,001,844,000 $1,653,420,000 $420,132,000 $1,025,292,000 $17,595,504,000 Hawaii $3,729,996,000 $2,995,908,000 $331,764,000 $220,380,000 $68,100,000 $113,844,000 $3,081,084,000 Idaho $4,383,096,000 $3,234,708,000 $597,804,000 $299,256,000 $99,168,000 $152,148,000 $3,372,564,000 Illinois $32,485,392,000 $23,913,864,000 $4,129,872,000 $2,529,600,000 $721,404,000 $1,190,640,000 $25,550,664,000 Indiana $19,521,948,000 $13,973,796,000 $2,938,392,000 $1,480,752,000 $384,396,000 $744,612,000 $14,724,636,000 Iowa $9,098,028,000 $6,876,792,000 $1,038,228,000 $710,796,000 $185,856,000 $286,368,000 $7,292,544,000 Kansas $7,842,828,000 $5,804,628,000 $1,027,452,000 $578,256,000 $156,828,000 $275,676,000 $6,166,944,000 Kentucky $12,979,704,000 $8,165,832,000 $2,841,816,000 $1,089,900,000 $294,852,000 $587,304,000 $8,902,212,000 Louisiana $11,334,288,000 $7,026,432,000 $2,128,740,000 $1,212,996,000 $361,512,000 $604,596,000 $8,058,588,000 Maine $4,424,184,000 $3,112,836,000 $769,452,000 $297,564,000 $89,160,000 $155,172,000 $3,314,652,000 Maryland $14,437,272,000 $10,787,856,000 $1,890,588,000 $951,396,000 $286,176,000 $521,268,000 $11,382,828,000 Massachusetts $18,208,620,000 $13,122,924,000 $2,870,196,000 $1,161,372,000 $376,716,000 $677,412,000 $14,169,360,000 Michigan $32,838,156,000 $23,270,148,000 $5,155,596,000 $2,445,288,000 $720,576,000 $1,246,572,000 $24,326,940,000 Minnesota $14,649,612,000 $11,169,852,000 $1,768,080,000 $968,472,000 $292,536,000 $450,672,000 $11,647,344,000 Mississippi $8,579,544,000 $5,578,680,000 $1,770,768,000 $639,468,000 $141,048,000 $449,580,000 $5,911,584,000 Montana $2,983,980,000 $2,238,660,000 $367,560,000 $217,644,000 $63,336,000 $96,780,000 $2,338,548,000 Nebraska $4,774,164,000 $3,598,356,000 $559,956,000 $362,148,000 $99,276,000 $154,428,000 $3,864,468,000 Nevada $7,059,816,000 $5,341,932,000 $946,632,000 $422,736,000 $121,296,000 $227,232,000 $5,490,564,000 New Hampshire $4,360,092,000 $3,201,564,000 $687,720,000 $243,936,000 $76,392,000 $150,480,000 $3,344,136,000 New Jersey $25,617,684,000 $19,446,096,000 $3,120,168,000 $1,672,152,000 $502,536,000 $876,732,000 $20,576,532,000 New Mexico $5,441,784,000 $3,858,588,000 $861,144,000 $381,504,000 $131,256,000 $209,280,000 $4,077,336,000 New York $53,062,296,000 $39,072,960,000 $7,442,244,000 $3,505,908,000 $1,142,076,000 $1,899,108,000 $41,390,172,000 North Carolina $28,509,000,000 $20,691,060,000 $4,643,100,000 $1,725,012,000 $426,924,000 $1,022,928,000 $21,248,424,000 North Dakota $1,736,736,000 $1,288,272,000 $181,980,000 $164,424,000 $44,244,000 $57,804,000 $1,411,260,000 Ohio $32,711,028,000 $22,903,080,000 $4,815,876,000 $2,960,172,000 $844,920,000 $1,186,992,000 $25,040,592,000 Oklahoma $10,530,276,000 $7,321,524,000 $1,719,252,000 $841,308,000 $213,732,000 $434,484,000 $7,877,952,000 Oregon $11,886,720,000 $8,956,860,000 $1,526,940,000 $806,472,000 $254,124,000 $342,324,000 $9,327,240,000 Pennsylvania $41,193,096,000 $29,953,008,000 $5,743,164,000 $3,232,056,000 $897,492,000 $1,367,376,000 $32,042,808,000 Rhode Island $3,198,492,000 $2,345,328,000 $509,748,000 $188,568,000 $45,504,000 $109,344,000 $2,467,020,000 South Carolina $15,270,204,000 $10,936,308,000 $2,553,204,000 $963,132,000 $242,940,000 $574,608,000 $11,270,412,000 South Dakota $2,306,880,000 $1,761,780,000 $249,924,000 $176,976,000 $46,896,000 $71,304,000 $1,865,640,000 Tennessee $19,601,880,000 $13,605,444,000 $3,440,328,000 $1,407,876,000 $374,124,000 $774,096,000 $14,336,820,000 Texas $54,031,728,000 $37,760,724,000 $7,881,480,000 $4,563,444,000 $1,570,932,000 $2,255,136,000 $41,202,252,000 Utah $5,398,836,000 $3,962,664,000 $668,436,000 $361,776,000 $164,748,000 $241,200,000 $4,222,740,000 Vermont $2,050,356,000 $1,514,160,000 $297,444,000 $129,360,000 $41,700,000 $67,680,000 $1,591,836,000 Virginia $21,105,540,000 $15,451,548,000 $2,998,548,000 $1,445,160,000 $458,196,000 $752,088,000 $16,323,096,000 Washington $18,867,888,000 $14,056,548,000 $2,536,956,000 $1,243,728,000 $449,904,000 $580,740,000 $14,812,284,000 West Virginia $6,535,308,000 $4,078,008,000 $1,330,788,000 $646,416,000 $203,328,000 $276,768,000 $4,586,640,000 Wisconsin $17,454,792,000 $13,154,628,000 $2,251,908,000 $1,178,016,000 $304,080,000 $566,148,000 $13,563,012,000 Wyoming $1,512,720,000 $1,141,080,000 $183,132,000 $105,252,000 $30,900,000 $52,344,000 $1,187,088,000 Missouri $17,850,120,000 $12,513,216,000 $3,029,892,000 $1,294,224,000 $332,376,000 $680,424,000 $13,273,884,000

Report Methodology Social Security s Economic Stimulus Estimates Social Security s economic stimulus impact is based on a study by Koenig and Myles (K&M) conducted for the AARP Public Policy Institute [4]. In their study, using data from 2012, they derived Social Security s state-based economic multipliers by using an input-output model of the US economy; these multipliers are used in this report. According to K&M, The input-output model captures not only the direct impact of Social Security expenditures but also the indirect and induced impacts that occur when recipient dollars work their way through the economy. NCF researchers made the following adjustments and assumptions to update their analysis: (1) used the latest available Social Security benefits data (2014) [5] ; and (2) derived the tax adjustment factor by dividing K&M s tax adjusted Social Security benefits for 2012 by actual Social Security benefits for 2012 and applied these ratios to 2014 Social Security benefits data. Thus, the total economic stimulus impact of Social Security at the state level is simply the product of Social Security benefits adjusted for federal and state taxes and the economic multiplier for each state. Social Security Regional Support Index (RSI) The RSI is based on work from Gallardo and Myles [6] and focuses on entire state or county population rather than just direct beneficiaries. The RSI is based on three variables: (1) percent of the state or county s entire population that receives Social Security benefits; (2) percent of personal income in the state or county derived from Social Security benefits; and (3) per capita Social Security income at the state or county level. Our approach uses the variables listed above and combines them into an index using principal component analysis (PCA), a data reduction technique which merges the variables into one number. [7] This enables us to compare changes in Social Security support by state or county over time to detect increases or decreases. It should be noted that state and county level RSI are each scaled from 0-100, but are weighted independently, and therefore the values at these different geographic levels are related but not directly comparable. Higher RSI values indicate more Social Security support for the population. When examining the change in RSI, a positive number suggests increasing Social Security support between 2008 and 2013, whereas a negative number indicates decreasing support over this five-year period. At the state level, only North Dakota decreased its RSI score over this time period. At the county level, only 197 out of 3,108 counties (6.3%) with reliable data for both years decreased their support over the same time period. Data Sources Regional Support Index (RSI) Personal income data: Bureau of Economic Analysis, U.S. Department of Commerce, Regional Data, Available, http://bit.ly/virm7z Social Security Data: Social Security Administration. https://www.socialsecurity.gov/policy/docs/statcomps/ oasdi_sc/2013/index.html General Social Security Data The majority of the Social Security data was gathered from sources within the Social Security Administration, including the Annual Statistical Supplement (2015) [8] and OASDI Beneficiaries by State and County (2014). [9] Earnings based on the Annual Statistical Supplement were converted from monthly estimates (December, 2014) to annual estimates by multiplying December data by 12. Beneficiaries by Race Social Security data stratified by race/ethnicity is not routinely collected by the Social Security Administration. Race and ethnicity data used here were derived from the 2014 American Community Survey public use microsample dataset via IPUMS-USA (University of Minnesota, www.ipums.org) [10]. The race and ethnicity of survey respondents were identified in a mutually exclusive manner so that those who identified as Hispanic are not counted in the White, Black, Asian, or other categories. Additional variables of interest (e.g., social security income, age, gender) were then coded and cross-tabulated in order to generate various tables and graphics. Veterans Social Security data stratified by veterans is not routinely collected by the Social Security Administration. The number of veterans receiving Social Security benefits by state was obtained from the Social Security Administration, and was based on their analysis of the Current Population Survey (personal communication; August 17, 2015). [1] The 2016 Annual Report of the Board of Trustees, Federal Old-age and Survivors Insurance and Federal Disability Insurance Trust Funds, Table III.A6 Administrative Expenses as a Percentage of Non-interest Income and of Total Expenditures, Calendar Years 2011-2015. Released, June 22, 2016. Available, http://1.usa.gov/294icj4 [2] Romig K. Social Security Lifts 21 Million Americans Out of Poverty. Center on Budget and Policy Priorities. November 9, 2015. Available, http://bit.ly/1u9dm9g [3] Arno PS, Wicks-Lim J. Overlooked but Not Forgotten: Social Security Lifts Millions More Children Out of Poverty. Analysis conducted for the Center for Global Policy Solutions, July 2016. Available, http://bit.ly/29tty9y [4] Koenig G, Myles A. Social Security s Impact on the National Economy, AARP Public Policy Institute, October 2013. Available, http://bit. ly/1cuzfnm [5] Social Security Administration, Table 3, Amount of benefits in current-payment status, by state or other area, type of benefit, and sex of beneficiaries aged 65 or older, December 2014. [released August 2015]. These figures are multiplied by 12 to derive an annual estimate for 2014. Available, http://1.usa.gov/1upjcmj [6] Gallardo R, Myles A. Economic Impact of Social Security in the United States, prepared for the Southern Rural Development Center, Technical Report, Fall 2011. Available, http://bit.ly/1ef8cwt [7] PCA was run in SPSS based on 2013 data to calculate one major component. Regression equations were fit to this data then coefficients & intercept applied to 2008 data. [8] https://www.ssa.gov/policy/docs/statcomps/supplement/2015/ [9] http://www.ssa.gov/policy/docs/statcomps/oasdi_sc/2014/ [10] Steven Ruggles, Katie Genadek, Ronald Goeken, Josiah Grover, and Matthew Sobek. Integrated Public Use Microdata Series: Version 6.0 [Machine-readable database]. Minneapolis: University of Minnesota, 2015.

The National Committee to Preserve Social Security and Medicare Foundation The National Committee to Preserve Social Security and Medicare Foundation (NCF) is proud to support the creation of Social Security Spotlight. Thanks to a generous grant from the Retirement Research Foundation and guidance from the Task Force on the Future of America s Health and Retirement Security, this important research provides a very clear description of the vital role Social Security plays in the lives of American families, communities and our national economy. The NCF is a non-profit 501(c)(3) organization whose mission is to protect, promote, and ensure the financial security, health, and wellbeing of current and future generations of Americans through research, analysis, and public education. The NCF is based in Washington, DC and affiliated with the National Committee to Preserve Social Security and Medicare founded in 1982. Mission At the core of the National Committee Foundation is advancing and advocating for national public policy and civic engagement to embrace the long-term vision that social insurance is vital to the health and economic security of current and future generations. In order to ensure that promise is met, NCF works toward the following goals: Goals Improve public understanding of the positive value of Social Security and Medicare; special attention to vulnerable populations such as women, children, persons with disabilities, the oldest old, ethnic minorities, and rural communities. Improve public understanding of the true nature and scope of the long-term challenges facing Social Security. Improve public understanding of the serious crisis posed by shrinking private-sector retirement sources and health coverage. Improve understanding of Medicare challenges including the successful implementation of health care reform. Increase accuracy in local, state, and national media coverage of Social Security and Medicare. Promote the value of Social Security and Medicare as a public trust. Build and engage a broad cross section of organizations and individuals to protect and improve retirement and health security for all generations. Promote expanded Medicare access to long-term care and other unmet health needs including access to dental, vision, and hearing care for seniors. Protect and strengthen Social Security for current and future generations. 10 G St NE #600, Washington, DC 20002 (202) 216-0420 http://ncpssm.org