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“New Yorkers deserve to be treated more fairly in the federal budget,” Comptroller DiNapoli said.
By Forum Staff
The Empire State sent an estimated $24.1 billion more in tax payments to Washington, D.C. than it got back in federal spending in Fiscal Year 2017, getting back 90 cents for every dollar, according to a recently released report by State Comptroller Tom DiNapoli.
The analysis shows federal spending in New York during FY 2017 totaled $225.7 billion while the State sent Washington nearly $250 billion. Federal spending in New York included $140.5 billion in direct payments for individuals through programs such as Social Security and Medicare; $66.5 billion in grants; $11 billion in procurements; and $7.4 billion in wages and salaries.
While New York received 10 cents less per dollar of taxes, most states received more than they paid. The average return for all states was $1.19 per tax dollar sent to Washington. New York’s per capita contribution to the Federal Treasury, $12,588, was the fourth highest among the states, DiNapoli noted.
According to the report:
• New York’s contribution for social insurance taxes, including those for Social Security and unemployment insurance, at $4,094 per capita, was 15.5 percent above the national average of $3,543, ranking it 10th among all states.
• Corporate income taxes made up 9.5 percent of total federal tax receipts in FY 2017. Per capita corporate income taxes for New York were $1,213, or $301 higher than the national level of $912, placing New York third among all states.
• Federal grants to state and local governments totaled $669 billion in 2017, with Medicaid, the largest of these programs, at 55.7 percent of the total. New York ranked second among the states, at $3,350 per capita, 63 percent above the national average, largely because of Medicaid, and other safety net grants. Federal aid makes up more than a third of New York’s current state budget.
• The federal government spent $473.7 billion in FY 2017 for procurement in the 50 states and Washington, D.C. The Department of Defense was the source of 63 percent of such spending. With $574 in per-capita procurement spending, about 40 percent of the national average, New York ranked 41st among the states. Defense spending was $307 per person in New York, compared to a national average of $916.
• Spending on federal employee wages and salaries throughout the nation totaled $256.7 billion. New York’s share was slightly less than 3 percent of the national total. This included $5.1 billion for civilian pay ($258 per capita) and $2.2 billion for military pay ($113 per capita). Overall, per capita expenditures in New York for wages and salaries, $371, were almost 53 percent below the national level and ranked New York 42nd among all states.
“New York gives more than it gets back from Washington and threats to cut federal funding for health care and other programs could tip the balance even further,” DiNapoli added. “The State relies on the federal government for a third of its annual budget, but the imbalance of tax dollars remains. New Yorkers deserve to be treated more fairly in the federal budget.”
