Low ranking on U.S. spending called good sign

Although Utah was ranked 44th nationally for per-capita federal spending, that low ranking is not necessarily bad, say some state officials.

Utah received $11.4 billion in federal aid last year, according to the U.S. Census Bureau's Consolidated Federal Funds Report for Fiscal Year 2001, released Tuesday. That amounts to $5,095 per capita in the state, more than $1,000 less per capita than the national average of $6,268.

"That's actually a good sign. . . . Consistently for the past several years Utah has been at the bottom of the list," said Neil Ashdown, deputy director of the Governor's Office of Planning and Budget. "That surprises some people because Utah is a defense state, but defense is actually a small part of federal spending in this report."

Utah's status near the bottom of the list is consistent with its ranking as one of the lowest states for poverty per capita.

Ashdown says the reason Utah doesn't receive much aid compared with other states is that many programs supported by federal money are for services for people in need, including retirement, disability, Medicare and housing and urban development.

"If you're low on the list in this particular report, it means your economy is doing better than most states, at least in some areas," Ashdown said.

The federal government provided $1.8 trillion to the 50 states in 2001, a 9 percent increase over 2000. The amount of money that came to Utah increased 10 percent over the previous year. The funds went toward domestic benefits, subsidies, grants, goods and services, and salaries and wages. Factors that influenced the amount of per capita spending include state populations, the number of federally funded programs in a state and the number of federal employees in a state, according to a Census Bureau news release.

One area where Utah's federal aid increased significantly was in defense. Federal defense money for the state increased 25 percent from fiscal 2000 to fiscal 2001, largely due to the fact Utah's Hill Air Force Base is still going strong while bases across the country are facing closures and realignments.

"Hill is more viable since other bases are closing down," Ashdown said.

The report covered the period from October 2000 to the end of September 2001, which means increased funding for Olympic security following the Sept. 11 attacks will probably not show up on federal reports until 2002, Ashdown said.

Social Security, Medicare and Medicaid accounted for $854 billion of the $1.8 trillion spent in 2001, or 48 percent of the U.S. government's domestic spending that year, according to the Census Bureau. The Department of Defense spent $255 billion.

Per capita federal spending was highest in Alaska, which had $10,214, followed by Virginia, with $10,067, North Dakota, with $9,262, New Mexico, with $9,118, and Maryland, which received $9,094.

The report is the only consolidated source of state and local data on the majority of direct federal expenditures, as well as on federal loan and insurance programs.

---

E-MAIL: ehayes@desnews.com