Where States Get Their Money? For NY it’s far more from local funds than any other state!

Where States Get Their Money

Sarah Babbage, an associate at The Pew Charitable Trusts, researches and analyzes the fiscal health of states.

Kasia Murray, a manager at The Pew Charitable Trusts, researches and analyzes fiscal federalism.

A number of Republican and Democratic governors are proposing to raise or lower taxes this year, making this a useful time to look at the mix of state revenue and how it varies among states. Tax dollars are states’ largest revenue generator but make up just under half of their total revenue.

Below is a chart breaking down the sources of states’ revenue. It is based on the latest 50-state data from the U.S. Census Bureau for the fiscal year that ended June 30, 2013. The data account for all revenue used to fund government services statewide, and is a broader measure of states’ money than general fund budgets.

Second after taxes, federal funds accounted for approximately $513.5 billion, or 30 percent, of the $1.7 trillion collected by state governments in fiscal 2013…

After state taxes and federal funds, the third largest state revenue source (11 percent) in fiscal 2013 was service charges, such as public university tuition and hospital fees.

Miscellaneous sources, such as interest earnings and lottery revenue, made up 7 percent of state revenue…

Finally, states received a small share of their revenue (2 percent) as transfers from local governments for contributions to jointly funded programs. New York got more of its revenue from local funds (15 percent) than any other state. Among those states that require their local governments to pay for part of the health care costs incurred by Medicaid patients within their jurisdictions, New York’s local governments make a particularly large contribution.

Click here to download the data for revenue by source for the 50 states.

Read the full article here.

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