WOW: Federal aid to Louisiana makes up 43.7% of its yearly general fund budget

Federal grants-in-aid to Louisiana comprise 43.7 percent of the state’s general fund budget, the third highest rate among the 50 states, according to a new study from the Tax Foundation.

The Tax Foundation analysis is based on fiscal-year 2017 numbers, the latest year for which data is available. Nationwide, state budgets contain an average federal funding share of 22.9 percent, according to the study.

Among the programs funded by aid from the federal government are Medicaid payments, public education and help with state infrastructure projects, the Tax Foundation said. States that rely heavily on federal aid tend to have larger numbers of low-income residents and lower levels of state tax revenues, according to the report.

But states that are resource-rich and rely heavily on severance taxes, such as Alaska and North Dakota, have smaller shares of low-income residents. Even so, they tend to receive a higher share of federal revenues.

States’ Reliance on Federal Assistance

Rank State Federal Aid as % of State General Revenues
1 Montana 46.1%
2 Wyoming 44.5%
3 Louisiana 43.7%
4 Mississippi 43.3%
5 Arizona 43.1%
6 New Mexico 40.6%
7 Alaska 39.3%
8 Kentucky 38.9%
9 West Virginia 38.1%
10 Indiana 38.0%
11 Tennessee 37.7%
12 Missouri 37.7%
13 Arkansas 37.2%
14 Alabama 36.8%
15 New York 35.9%
16 Pennsylvania 35.0%
17 South Dakota 34.8%
18 Georgia 34.3%
19 Maine 34.3%
20 Ohio 33.9%
21 Oklahoma 33.8%
22 New Hampshire 33.2%
23 Michigan 33.1%
24 Vermont 33.0%
25 Rhode Island 32.8%
26 Oregon 32.8%
27 Florida 32.8%
28 Texas 32.6%
29 Nevada 32.6%
30 South Carolina 31.9%
31 Maryland 31.2%
32 Nebraska 30.9%
33 Idaho 30.7%
34 California 30.7%
35 North Carolina 30.5%
36 Colorado 30.0%
37 Iowa 29.4%
38 Washington 29.2%
39 Massachusetts 28.7%
40 New Jersey 28.7%
41 Illinois 28.5%
42 Delaware 28.1%
43 Connecticut 27.0%
44 North Dakota 26.8%
45 Wisconsin 26.3%
46 Minnesota 26.0%
47 Utah 24.2%
48 Kansas 23.3%
49 Virginia 21.1%
50 Hawaii 20.7%

Source: Tax Foundation



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