Today the U.S. Census Bureau released their annual Consolidated Federal Funds Report which tracks federal spending by state for Federal Fiscal Year 2009. This is an important report when it comes to better understanding the status of Fiscal Federalism in America.
The chart below shows federal spending in New Hampshire by major type. Total federal spending increased by $442 billion to $3.2 trillion in 2009 from $2.7 trillion in 2008, or 16.1 percent. Federal spending jumped in New Hampshire by $1.5 billion (14.9 percent) to $11.8 billion in 2009 from $10.3 billion in 2008–a smaller increase than the national average.
As shown in the chart below, the largest percentage jump in spending was in “Grants to State and Local Governments” which increased by $735 million (39.2 percent)–this category includes Medicaid spending. The next largest percentage jump was in “Other Direct Payments,” such as the Earned Income Tax Credit, which increased by $377 million (19.5 percent). Other categories were: “Salaries and Wages” which increased by $105 million (14.2 percent); “Retirement and Disability,” i.e., Social Security, which increased by $309 million (8 percent) and “Procurement” which increased by $7 million (0.4 percent).
As a percent of personal income, for calendar year 2008, New Hampshire’s reliance on federal spending is the 4th lowest in the country at 18.6 percent–well below the national average of 23.4 percent and neighboring Maine (26.1 percent) and Vermont (26.3 percent).