North Dakota received $7.3 billion of the $2.8 trillion in funds the federal government expended nationally in 2008, an increase of 8 percent from 2007.

This month’s “Population Bulletin,” a monthly publication from the North Dakota State Data Center at North Dakota State University, focuses on federal expenditure data obtained from the 2008 Consolidated Federal Funds Report published by the U.S. Census Bureau.

During the mid to late 1990s, federal dollars flowing into North Dakota showed little variation, averaging approximately $4 billion per year. From 1999 to 2002, federal expenditures to North Dakota increased 12 percent per year on average.

Federal expenditures decreased 11 percent from 2002 to 2003, but then increased 5 percent in 2004 and 10 percent in 2005. After a dip of 5 percent in 2006, total federal expenditures to North Dakota increased 7 percent in 2007.

A sizeable proportion of North Dakota’s increase in 2008 can be attributed to increases in crop insurance payments, Medicare and crop disaster grant monies. In 2008, direct payments for crop insurance totaled $940 million, up from $629 million in 2007. Medicare payments increased from $713 million in 2007 to $817 million in 2008. Grant money for the crop disaster program increased from $3.7 million in 2007 to $179 million in 2008.

Of the $7.3 billion the federal government spent in North Dakota in 2008, nearly one-fifth of the funds went to Social Security ($1.3 billion).

“This amount is expected to dramatically increase as North Dakota’s baby boom population starts tapping into Social Security,” says Richard Rathge, State Data Center director. “The leading edge of the baby boom turns 65 next year.”

Crop insurance payments accounted for 13 percent of total funds to North Dakota in 2008 and Medicare accounted for 12 percent. Of the more than 400 grant programs receiving federal funds in North Dakota, two programs accounted for $643 million (9 percent) of all federal funds received in 2008. The Medicaid program received $401 million and highway planning and construction received $242 million.

Procurement contracts (governmental purchases and contractual outlays) to North Dakota totaled $552 million and salaries/wages for federal employees totaled $872 million in 2008.

While North Dakota received less than 0.5 percent of all federal funds distributed nationally, the state fared better on a per-capita basis. Per-capita federal expenditures to North Dakota totaled $11,415 in 2008, ranking North Dakota seventh in the nation. Nationally, per-capita federal expenditures totaled $9,041 in 2008, which was 21 percent below North Dakota’s level.

Per-capita federal funds to North Dakota ranged from a low of $6,905 in Morton County to a high of $32,061 in Grant County.

NDSU Agriculture Communication