Transfer Payments to North Dakotans Increase in 1997

NEWS for North Dakotans
Agriculture Communication, North Dakota State University
7 Morrill Hall, Fargo, ND 58105-5665

November 19, 1998

Transfer Payments to North Dakotans Increase in 1997

North Dakota received nearly $2.5 billion in transfer payments in 1997, an increase of 5.2 percent from the $2.4 billion paid in 1996. The increase in transfer payments between 1996 and 1997 in North Dakota was higher than the national increase of 4 percent, according to the latest Economic Brief released from the North Dakota State Data Center at North Dakota State University.

Transfer payments represent income received for which no services were rendered. These payments are made by government and businesses to individuals and nonprofit institutions.

"The 1997 transfer payment represents more than 19 percent of the nearly $13 billion in personal income generated last year in the state," says Richard Rathge, data center director.

Retirement payments accounted for slightly more than half the total transfers paid directly to individual North Dakotans in 1997. Retirement payments amounted to $1.3 billion, an increase of 5.4 percent from the $1.2 billion in 1996.

"Retirement payments are an important component of our state's economy and reflect the important financial contribution of our seniors, a fact we often overlook," Rathge says.

Medical payments (consisting of Medicare, medical vendor payments and military medical payments) accounted for 35 percent of the state's total transfers to individuals. Slightly more than $820 million was paid to North Dakotans in 1997 in medical payments, an increase of 5.6 percent from the $777 million paid in 1996.

Income-maintenance programs (such as supplementary security income, AFDC, and food stamps) comprised the third largest category of individual transfer payments and accounted for 5.9 percent of the state's individual transfers. These payments rose to $141 million in 1997, or 1.2 percent more than the 1996 level.

The remaining 6.3 percent of North Dakota's individual transfers included unemployment insurance benefit payments, veterans benefit payments, and federal education training and assistance payments.

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[EDITORS: FOR A BREAKDOWN OF NORTH DAKOTA'S TRANSFER PAYMENTS FROM 1990 TO 1997, SEE YELLOW PUBLICATION FOLLOWING THIS STORY, "TRANSFER PAYMENTS IN NORTH DAKOTA, 1990-1997." THIS PUBLICATION IS ALSO AVAILABLE FROM THE STATE DATA CENTER, BOX 5636, NDSU, FARGO, ND 58105]

Source: Richard Rathge (701) 231-8621

Editor: Dean Hulse (701) 231-6136

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