Thursday, June 8, 2017

Georgia dependent on Federal Dollars

 Proposed Federal budget for FY2018

New information provided by the Census Bureau’s 2015 Annual Survey of State Government Finances shows that 34.3% of Georgia’s General Revenue comes from the Federal government.

If fiscal conservatives get their way and the Federal government does make large cuts in Federal spending, Georgia would have to scramble to make up the revenues currently supplied to the state by the Federal government either by cutting programs or raising taxes.

According to an analysis conducted by Governing magazine, Louisiana and Mississippi were the most dependent on Federal funds (about 42% each), followed by Arizona and Kentucky (40% each).
In contrast, North Dakota was the least dependent (18%).

Many readers may believe that the states closest to the DC area would be most dependent on Federal largesse, but in fact Virginia (21.5%) and Maryland (30.8%) were considerably less dependent on Federal assistance than Georgia.

According to Governing, monies for transportation, Medicaid, and other social assistance programs topped the reasons for Federal funding.

In Fiscal Year 2015, Georgia spent nearly $12.2 billion on public welfare, of which $6.9 billion (56.6%) were provided by Federal revenues. 

“The Census Bureau’s classification of public welfare funding includes Medicaid, Temporary Assistance for Needy Families (TANF), child welfare services and a range of other assistance programs mostly for low-income individuals. It excludes school nutrition programs and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC),” according to the news article.

The state spent $17.8 billion on education, of which $3 billion (17.2%) came from the Federal government.

Spending on roads and highway infrastructure totaled nearly $2 billion, with the Feds paying $1.1 billion, or more than 56% of the total bill. Mass transit funding is not included in these numbers.

These payments will be even greater as the state is asking the Feds to reimburse it for the costs of replacing the I-85 bridge that collapsed earlier this year.

Georgia continues to pursue Federal funds for deepening the Savannah River to support Savannah’s port and may need the Federal Energy Department to forgive loans given to Plant Vogtle’s nuclear plant construction, if the two nuclear reactors currently under construction are not completed.


You can see the entire Census Bureau report here and read the Governing analysis here.