New York State Comptroller Thomas DiNapoli

ALBANY—Last year, New York State sent $24.1 billion more in tax payments to the federal government than they received in return in federal spending in the Empire State.

New York State Comptroller Thomas P. DiNapoli reports the massive tax/funding disparity calculates out to New York receiving 90 cents of every $1 it sends to Washington, DC.

The State Comptroller's report notes that New York was one of just 11 states that sent more in tax dollars to Washington in federal fiscal year 2017 than it received. Only New Jersey, Massachusetts and Connecticut fared worse in terms of the tax/funding ratio.

“New York gives more than it gets back from Washington and threats to cut federal funding for health care and other programs could tip the balance even further,” DiNapoli says. “The state relies on the federal government for a third of its annual budget, but the imbalance of tax dollars remains. New Yorkers deserve to be treated more fairly in the federal budget.”

Federal spending in New York during federal fiscal year 2017 totaled $225.7 billion, while the state sent Washington, DC nearly $250 billion. Federal spending in New York included $140.5 billion in direct payments for individuals through programs such as Social Security and Medicare; $66.5 billion in grants; $11 billion in procurements and $7.4 billion in wages and salaries.

The average return for all states was $1.19 per tax dollar sent to Washington. New York's per capita contribution to the federal treasury— $12,588—was the fourth highest among the states. Connecticut had the highest per capita payments to the federal government at $14,671, followed by Massachusetts with $13,675 and New Jersey with $12,970. New York's per capital contribution was 30.7% higher than the national average of $9,628.

Mississippi generated the lowest per capita total tax payments at $5,884. New York's total payments of nearly $250 billion ranked third among the states behind California and Texas.

New York's balance of payments with Washington varies from year to year, but has remained consistently negative in each of the three federal fiscal years analyzed by DiNapoli's office. In federal fiscal year 2016, the state received 84 cents for every $1 it sent in taxes to the federal government, and in federal fiscal year 2013 the total was 91 cents for every $1.

The report also showed mixed results when it comes to federal transportation and transit funding for New York State.

New York's combined transportation grants were $165 per capita, slightly lower than the national average of $170. The state ranked last in the nation for per capita federal highway funding ($81) but first for transit funding ($78). The federal government also provided more modest aid for airports; New York received $5 per capita in such funding.

Missing from the report is analysis on the impacts of the federal tax reform law passed in January as well as other changes in the works on Capitol Hill. The State Comptroller says it is difficult to predict the outcome of the current debate on federal financing for health care and further tax reform policies, but noted that they could play a major role in New York State's future fiscal condition.

Instant Insights /

NY Getting Stiffed to the Tune of $24B by Feds

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