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Northeast-Midwest Weekly Update -- 28 August 1998

Posted on behalf of Glenn Starnes <gstarnes@nemw.org>

     The Northeast-Midwest Institute on Tuesday, September 1, will
release the 1998 edition of FLOW OF FEDERAL FUNDS TO THE STATES with a
press briefing at 10:00 am in Room HC-6 of the U.S. Capitol.  This
report uses the latest available data to track all federal funds
flowing to the 50 states.  At the same time, the Institute will
release individual reports on the 18 northeastern and midwestern

     The FLOW OF FEDERAL FUNDS TO THE STATES includes tables of fiscal
1997 data on all 50 states, along with ten-year trends information on
tax burden and return on tax dollar, and summary descriptions of
spending and taxation in the 18 Northeast-Midwest states.  The report
ranks the 50 states on per-capita federal spending, taxation, and
return on tax dollar.

     From the FLOW OF FEDERAL FUNDS: FISCAL 1997 and the 18 state
FISCAL 1997, journalists and policymakers will learn that:

     * THE NORTHEAST-MIDWEST REGION received back only $0.87 for
       every tax dollar sent to Washington in fiscal 1997, one cent
       less than the return in fiscal 1996 and the lowest return
       since 1989;

     * The WEST'S ratio of per-capita federal spending has fallen
       steadily over the past decade, from 112 percent in fiscal 1987
       to 100 percent in fiscal 1997.  Largely as a result of
       decreased military spending, NEW ENGLAND'S ratio of per-capita
       spending also decreased from 119 percent in fiscal 1987 to 111
       percent in fiscal 1997.  The SOUTH, in contrast, has enjoyed a
       six point increase in its share of per-capita federal
       spending, rising from 97 percent in fiscal 1987 to 103 percent
       in fiscal 1997.  The MIDWEST, meanwhile, has experienced
       stable and low federal spending throughout the past decade.

     * THE NORTHEAST-MIDWEST REGION received $4,988 per capita in
       federal funds in 1997, while  the SOUTH AND WEST received
       $5,232 per capita;

     * CONNECTICUT residents paid the nation's highest per-capita
       federal taxes in fiscal 1997  $9,089, compared to the U.S.
       average of $5,765; 

     * Had MASSACHUSETTS received back federal dollars in the same
       proportion as the taxes it paid, it would have received an
       additional $3.4 billion in fiscal 1997;

     * NEW JERSEY stood 2nd among the states in its level of per-
       capita taxation and 49th in return on tax dollar;

     * Over the past decade, IOWA consistently has been the only
       midwestern state to enjoy a positive return on tax dollar;

     * MINNESOTA'S return on tax dollar stood at $0.78, the lowest
       rate in the decade;

     * On a per-capita basis, federal spending in OHIO in fiscal 1997
       was the lowest it had been since 1987;

     * Return on federal tax dollar for LOUISIANA rose from $1.06 in
       fiscal 1987 to $1.37 in fiscal 1997; WEST VIRGINIA'S rose from
       $1.23 to $1.62;

     * CALIFORNIA'S federal spending fell from 109 percent of the
       national per-capita average in fiscal 1987 to 97 percent in
       fiscal 1997, largely as a result of the decrease in military

     CONTACTS:  Journalists can call Lani Sinclair (301-270-9347). 
Hill offices can call Tim Daniels (225-5361) or Cameron Taylor (224-