HOT BLAST: Feds big contributor to Alabama's state budget
Sep 24, 2013 | 1997 views |  0 comments | 20 20 recommendations | email to a friend | print
We've long argued that wealthy blue states pay for Alabama's miserly conservatism. That's because for every $1 Alabama pays in federal taxes it receives $1.66 in federal benefits. So, Alabama keeps its state taxes low and the feds make up the difference. Meanwhile, states like California, Connecticut and New Jersey receive less than $1 for every $1 paid in federal taxes.

Here's more evidence. In a recent analysis by the Pew Charitable Trust’s Fiscal Federalism Initiative, Alabama ranked fourth when it comes states receiving federal dollars in relation to their gross domestic product.

Overall, Pew found:

Federal spending that can be identified at the state level accounted for more than 90 percent of the total federal budget, or $3.2 trillion of the $3.5 trillion total in 2010. This figure includes direct payments to individuals, government procurement, federal employee salaries and wages, and grants to states. Such spending was equivalent to about one-fifth of total domestic economic activity in 2010. 
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