N.D. Personal Transfer Receipts Increase

North Dakota residents received $4.2 billion in personal transfer receipts in 2009 (latest figures available), a 10 percent increase from $3.8 billion in 2008.

This month’s “Economic Brief,” a monthly publication from the North Dakota State Data Center at North Dakota State University, focuses on current personal transfer receipts. These are payments by government and businesses for individuals and nonprofit institutions serving individuals.

“The leading edge of the baby boom cohort reaches age 65 this year,” says Richard Rathge, State Data Center director. “This means that our state’s personal transfer receipts will rise even faster in the coming years.”

Retirement and disability insurance benefits, such as Social Security, along with medical benefits, such as Medicare and Medicaid, to North Dakotans accounted for 79 percent of all transfer receipts in 2009 ($3.3 billion).

The remaining $890 million of transfer payments to North Dakotans included income maintenance payments, unemployment insurance compensation, veterans benefits, education and training assistance, Bureau of Indian Affairs payments, disaster relief, personal injury payments and educational assistance payments.

“The impact of the national recession can be seen specifically in the unemployment compensation to North Dakotans,” Rathge says. “Unemployment compensation rose 115 percent from 2008 to 2009, from $56 million to $120 million.”

Transfer receipts accounted for 16 percent of all personal income received by North Dakota residents in 2009. Nationally, personal transfer receipts were 18 percent of total personal income.

Two states, West Virginia and Mississippi, showed personal transfer receipts accounting for at least one-fourth of all personal income. Colorado had the smallest proportion at 12 percent.

NDSU Agriculture Communication – Sept. 15, 2011