North Dakota received $8.6 billion of the $3.2 trillion in funds the federal government spent nationally in 2009, which is an increase of 18 percent from 2008.

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 2009 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 by averaging approximately $4 billion per year. From 1999 to 2002, federal expenditures to North Dakota increased approximately 12 percent per year.

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, 8 percent in 2008 and 18 percent in 2009.

Of the $8.6 billion the federal government spent in North Dakota in 2009, nearly one-fifth of the funds went to Social Security ($1.4 billion).

“We will begin seeing significant increases in the proportion of federal expenditures going to Social Security as the leading edge of the baby boom generation turns 65 in 2011,” says Richard Rathge, State Data Center director.

Crop insurance payments accounted for 15 percent of total funds to North Dakota in 2009 and Medicare accounted for 10 percent.

Of the nearly 500 grant programs receiving federal funds in North Dakota during 2009, two programs accounted for $863 million (10 percent) of all federal funds North Dakota received. Medicaid received $449 million and highway planning and construction received $414 million. Procurement contracts (governmental purchases and contractual outlays) to North Dakota totaled $474 million, and salaries/wages for federal employees was $959 million.

While North Dakota received, less than half a percent of all federal funds distributed nationally, the state fared better on a per-capita basis. Per-capita federal expenditures to North Dakota totaled $13,323 in 2009, which ranked North Dakota sixth in the nation. Nationally, per capita federal expenditures totaled $10,396, which was 22 percent below North Dakota’s level.

Per-capita federal funds to North Dakota ranged from a low of $7,671 in Cass County to a high of $49,036 in Slope County.

NDSU Agriculture Communication