Personal transfer receipts accounted for 16.2 percent of all personal income received by North Dakota residents in 2006 (latest statistics available). That’s a proportion relatively unchanged since the late 1980s.

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 to individuals and nonprofit institutions serving individuals.

North Dakota residents received $3.41 billion in personal transfer receipts in 2006, an 8.7 percent increase from $3.14 billion in 2005.

“Much of the increase in transfer payments during this period was due to rising health-care costs,” says Richard Rathge, State Data Center director. “Medical benefits increased by 16 percent, compared with Social Security payments, which rose by only 5 percent. Nonetheless, as the leading edge of the baby boom turns 65 in 2010, we will see dramatic increases in both Social Security and Medicare.”

The largest category of transfer receipts for North Dakota residents in 2006 consisted of retirement and disability insurance benefits ($1.457 billion) followed by medical benefits ($1.381 billion) and income maintenance benefits ($227 million). The remaining $346 million in transfer payments included such payments as unemployment insurance compensation, veterans benefits, Bureau of Indian Affairs payments, disaster relief payments, personal injury payments, educational assistance payments and federal education and training assistance.

Personal transfer receipts as a proportion of total personal income vary from state to state. Nationally, personal transfer receipts were 14.7 percent of total personal income in 2006. Eight states showed personal transfer receipts accounting for at least 18 percent of all personal income received by residents. West Virginia, Mississippi and Arkansas showed the largest proportions at 25.3 percent, 22.5 percent and 20.8 percent, respectively. Colorado had the smallest proportion at 10 percent.

NDSU Agriculture Communication