Is NC Missing its Federal Paycheck?
Published October 10, 2013
by Sarah Curry, The Locker Room, October 9, 2013.
When we discuss the NC state budget, many times we focus solely on the General Fund and tax revenue. This is not the whole picture and leaves out very pertinent information. North Carolina receives a certain percentage of their annual funding from the Federal government, amounting to approximately 35% of North Carolina’s total budget in recent years.
North Carolina did a good thing by changing unemployment benefits and also by rejecting Medicaid expansion. Relying on the federal government for money is not a safe or reliable method for state’s to use when funding government programs. The less federal government involvement in North Carolina’s state government, the better off North Carolina will be when these problems arise in the future. The Tax Foundation has looked into this issue across the country and has published a map showing all 50 states and their ranking of federal involvement in each respective state budget. North Carolina was ranked 29th in 2011, hopefully with some of the most recent legislation we can see our ranking increase with less involvement of federal funds in state government.
October 10, 2013 at 8:42 am
TP Wohlford says:
So, being a Contrarian, I'll point out that Texas gets a bigger percentage of its budget from the Feds than the norm.
Texas has a bunch of Fed money flowing in, starting with major military bases, NASA and all of those border agents. I'm sure there are even more major sources.
They also have major oil and gas reserves which has also is a good place to be.
So, while I do appreciate their approach to government, don't believe for a moment that their success is exclusively due to their tax structure.
