When it comes to getting money back from the Federal government, New York State is getting shortchanged, according to a report released on Tuesday by state Comptroller Thomas DiNapoli.
For every $1.00 the state sends to Washington, D.C., it gets only 91 cents back in federal spending compared to the national average of about $1.22, the report states.
“The Empire State pays more to Washington than it gets back,” DiNapoli said in a press release. “A high-income state like New York generates more in federal taxes than other states, but we also have significant costs, and the continuing imbalance raises questions about equity for New Yorkers.”
New York ranked 46th in the nation in its balance of payments between the amount it generates in federal taxes and the amount of federal government spending it receives, the report says.
Across America, 39 states had a positive balance of payments with the federal government while 11 were negative.
DiNapoli’s report also found:
New York State generated almost $120 billion in individual income taxes, 9.2% of the total amount collected by the federal government.
Direct payments to individuals in programs such as Social Security, Medicare, food assistance, and benefits for veterans and for retired federal employees totaled about $2 trillion nationwide in federal fiscal year 2013. New York received abround $123 billion, a per capita average close to the national average.
In grants to state and local governments, New York received $53.1 billion which was higher than 46 states on a per capita basis. Medicaid makes up almost half of all federal spending for these grants, and New York’s per capita Medicaid funding from Washington was the highest of any state in the country.
However, in procurement and federal employee compensation, New York received less than half the national per capita level of federal spending. The state’s combined total in these two categories was $18 billion, less than 3% of the nationwide total.
The distribution of federal money to the states is not apportioned by any single formula, but rather it is driven by dozens of laws and economic, demographic and political factors. Examples include a state’s population, its numbers of residents in poverty, those eligible for Social Security and Medicare, resident income levels, and each state’s own fiscal and budget policy choices.
