Monday, September 06, 2010

The Federal Government Favors Some States Over Others

The Federal government spends $10,548 on each person in the United States. See Federal spending up record 16% amid recession. "The biggest chunk of funds went to Medicare, Medicaid and Social Security, entitlement programs that are projected to consume ever larger portions of the federal budget as the population ages."

But the rate per person varies quite a bit across the states. Here are the highest and lowest:

Alaska $20,351
Virginia $19,734
Hawaii $19,001

Nevada $7,148
Utah $7,435
Georgia $8,538

The article did not explain or discuss why there are such big differences. But this other article from the Washington Post does, at least a little. It says:
"Virginia was pushed to the forefront of federal spending by the high number of defense contractors and service members living in the state. It saw $67 billion in military spending, a large chunk of the $155 billion the federal government spent in the state in 2009. Only California, New York and Florida got more money overall.

Much of the federal money went to private contractors. In Fairfax County, for instance, almost $40 billion of the $46 billion the federal government spent in the county went to contractors.

In Maryland, federal spending in fiscal 2009 rose 15 percent, to $92 billion. Maryland's ranking reflects in part a large number of residents who are federal employees. Montgomery County, for example, got $28 billion in federal funds, including $4.6 billion in salaries, almost $3 billion in retirement checks and $17.5 billion in government contracts for various vendors."
But I don't think that explains all of it.

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