Albany, NY — The Rockefeller Institute of Government has released its second annual report analyzing the distribution of federal budget receipts and expenditures across the United States, providing policymakers and the public with vital information about the redistribution of federal funding and its impact in each state.

 

With a negative balance of $35.6 billion, New York State residents continue to contribute more and receive less in federal spending than any other state. It is the second straight year that New York has had the greatest negative balance of payments in the nation.

 

For the first time, the report is accompanied by an interactive dashboard that allows users to explore the distribution of funds across all 50 states and view state-by-state breakdowns of how funds are spent.

 

“We found that once again residents of New York contribute tens of billions more to the federal government than the state gets back in federal spending — nearly twice as much as the next two states combined,” said Rockefeller Institute President Jim Malatras. “Policymakers should carefully consider how this exacerbates the pressures put on the same taxpayers under the recent federal tax changes.”

 

Using preliminary 2017 data, the Institute’s analysis examines where federal funds are generated and spent, the balance of payments differential that exists between states, the primary explanations for those differences, and how these gaps may change over time.

 

Its findings include:

• At -$35.6 billion, New York’s overall balance of payments remains the least favorable of any state in the nation. New York maintains its rank as the state with the greatest negative balance of payments from 2016.

• New York’s shortfall in 2017 is nearly as large as that of second-ranked New Jersey (-$21.3 billion) and third-ranked Massachusetts (-$16.1 billion) combined. Connecticut and Illinois round out the list of the states with the least favorable balances.

• The state’s per capita balance of payments, -$1,792, continues to rank as one of the least favorable in the nation. New York’s negative per capita balance of payments is less than all but three other states. This is only a very slight improvement over 2016, when New York ranked third to last with a per capita measurement of -$1,946.

• Since 2016, the US per capita balance of payment gap has grown by $202, reflecting an increase in federal spending relative to tax revenue. New York has seen an improvement of $155.

• While New York’s balance of payments has improved, it has not kept pace with the national average. New York’s shortfall compared to the national average continues to expand.

• New York was one of only 10 states with a negative balance of payments. The others were New Jersey, Massachusetts, Connecticut, Illinois, Washington, North Dakota, Colorado, Nebraska, and New Hampshire.

The report was authored by Rockefeller Institute Director of Fiscal Analysis and Senior Economist Laura Schultz and Fiscal Policy Analyst Michelle Cummings with technical assistance and consultation from the New York State Division of the Budget, and input from experts in federal agencies and think tanks.