-Caveat Lector-
{What is really frightening is that this is not obvious! Where would
Washington get money in the first place if some did not give more than they
received back! I did find it interesting that the conservative states
receive so much. I will have to think on that a while. Amelia}
Many states give more than they get from Washington
By SHANNON McCAFFREY
The Associated Press
12/15/00 11:17 PM
WASHINGTON (AP) -- Billions of tax dollars flowed from Northeastern and
Great Lakes states to the South and West last year, according to an annual
Harvard University study of federal spending released Friday.
Generally, Southern states received billions more dollars from the federal
government than they paid in taxes. States in the Northeast and around the
Great Lakes, along with Nevada and California, were the biggest losers.
The 10 largest "donor" states had a combined outflow of $93 billion in
fiscal year 1999, up from $87 billion the year before, the report found.
Overall, 31 states gained and 19 states lost.
The 24th annual report was prepared by professors at Harvard University's
John F. Kennedy School of Government. It analyzed data from fiscal year
1999.
States that fared the best tended to be lower-income states where residents
did not pay as much in taxes, the study's authors said.
"The drumbeat in the background of all this is taxes," said Jay Walder, a
lecturer in public policy at the Kennedy School and one of the study's
authors. States that saw a decline in income saw a decline in taxes and so
sent less cash to Washington, he said.
The authors also said deep cuts in defense spending were also key. Those
cuts had concentrated military spending in some states that now benefitted
disproportionately. States that saw a steep drop in defense spending did not
see other spending on mandatory programs like Social Security, Medicare and
Medicaid increase to fill in the gap.
This year's report showed few shifts.
Connecticut again fared the worst, with a per person deficit of $2,840 and a
total deficit of $9.3 billion. Connecticut has ranked last since 1993.
New Mexico, which has led the states since 1984, did so again. It had a
surplus of $6.9 billion, which came out to $3,944 per person.
Other top deficit states were New Jersey, New Hampshire, Illinois, Nevada,
Minnesota, Michigan, Delaware, Massachusetts and New York.
The other top surplus states were Montana, Virginia, North Dakota, West
Virginia, Alaska, Mississippi, South Dakota, Alabama and Hawaii.
The authors also noted that their map roughly corresponded with this year's
Electoral College map, with most donor states having voted for Democrat Al
Gore and most surplus states for Republican President-elect Bush.
"When you look at that electoral map and see who voted for the loser ...
those are the states that are going to be sending money to the states that
voted for the one that won," said retiring Sen. Daniel Patrick Moynihan,
D-N.Y.
Moynihan first commissioned the study in 1977 largely to disprove the
widespread belief that New York was a beneficiary of federal largesse. The
report eventually grew to include all 50 states.
The 10 states with the largest deficits have remained virtually unchanged
over the last 10 years. But Moynihan said he was not frustrated that the
study has not prompted a more equitable distribution of federal funds.
"We found the structural matters that are behind it all and that's what we
set out to do," he said.
------
On the Net:
Kennedy School of Government: www.ksg.harvard.edu/fisc99
Moynihan: www.senate.gov/~moynihan
Copyright 2000 Associated Press. All rights reserved. This material may not
be published, broadcast, rewritten, or redistributed.
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