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New Mexico gets most back from Washington

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Ed Quillen | Aug 17, 2010 08:00 AM

Since this is an election year, it's time to ponder politics. Let's ignore policy and platforms for the moment, and look at money. Which state's congressional delegation is best at delivering the dollars? 

The champion team is in the West. According to statistics compiled by the Tax Foundation in Washington, D.C., New Mexico's representatives and senators lead the nation in bringing home federal money.

The foundation calculates how much federal money a state receives for every dollar of federal taxes it pays. In the 2005 fiscal year (the most recent year available), people in the Land of Enchantment received $2.03 from Washington for every $1 they paid in federal taxes.

That made New Mexico first in the nation, and the foundation's historical record , going back to 1981, shows New Mexico as the leading state every year, although it's down a little from its record of $2.33 in 1988. It hasn't mattered whether the state's delegation is dominated by Republicans or Democrats.

Contrast that to the lowest state, New Jersey, which in 2005 received only 61 cents for every dollar sent to Washington.

This looks like the start of a pattern, with Uncle Sam redistributing wealth from the East to the West, but there isn't a discernible geographic leaning in the 2005 numbers. Mississippi, for instance, came in right behind New Mexico at $2.02, and Louisiana was fourth at $1.78, while Nevadans got only 65 cents from Washington for each dollar they sent.

Western states which receive more than they send are Montana, $1.47; Idaho, $1.21; Arizona, $1.19; Wyoming, $1.11; and Utah, $1.07. States which bring in less than they send include Oregon, 93 cents; Washington, 88 cents; Colorado, 81 cents; and California, 78 cents. (Alaska's Senator Ted Stevens, who died last week, was also famous for bringing home bacon for that Western state.)

Although New Mexico is a fixture at the top of the list, other states' rankings may vary considerably over the years. Colorado, for instance, was relatively "self-supporting" in 1981 at 94 cents, but by 1989 was receiving $1.21 for every federal tax dollar.

Why is New Mexico best at getting federal money? According to an article in the Christian Science Monitor, much of it is tied to federal Medicaid reimbursement for the state's considerable population under the poverty line -- and that has little to do with the earmarking skills of its congressional delegation.

But New Mexico also has hot zones of federal spending, like the Los Alamos National Laboratory, the Waste Isolation Pilot Plant near Carlsbad, White Sands Missile Range, and three Air Force bases. Its representatives and senators doubtless work to enhance their funding.

Ed Quillen is a freelance writer in Salida, Colorado.

Federal dollars in NM
Carol Miller
Carol Miller
Aug 17, 2010 01:48 PM
Federal dollars are both a curse and a safety net in NM. The state is flooded with military and nuclear bomb dollars while most of us would prefer funding for improving our schools or job creation. We can look up the hill to Los Alamos, currently the wealthiest county in the US, and see a trillion dollar federal investment in what has now become a Bechtel-operated bomb factory. Surrounding it on all sides are some of the poorest communities in the US.

Other major federal payments are the Payment in Lieu of Taxes (PILT) owed to local government for their loss of potential tax revenues. These dollars are frozen at an unrealistic level and $1.5 billion are owed towards eliminating the PILT deficit of the 90s and 00s.

Tribes are owed billions and waiting for the settlement of Cobell v Salazar.

No wonder we need a safety net of Medicaid coverage and other federal entitlements and transfers.
 

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