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February 2, 2006 Federal Dollars to North Dakota Up in 2004 North Dakota received $6 billion of the $2.2 trillion the federal government distributed nationally in 2004, an increase of 5.4 percent from 2003. “What is most impressive is the diversity of federal money coming into the state,” says Richard Rathge, director of the State Data Center at North Dakota State University. “For example, a fourth of the money comes in the form of grants encompassing nearly 450 different programs.” This month’s “Population Bulletin,” a monthly publication from the North Dakota State Data Center, focuses on federal expenditure data obtained from the 2004 “Consolidated Federal Funds Report” (CFFR). During the mid- to late 1990s, federal dollars flowing into North Dakota showed little variation, averaging approximately $4 billion per year. Between 1999 and 2002, federal expenditures to North Dakota significantly increased 12.4 percent per year on average. Federal expenditures decreased 11 percent between 2002 and 2003, and then increased 5.4 percent in 2004. A sizeable proportion of the increase in 2004 can be attributed to a 26.4 percent increase in procurement contract dollars (governmental purchases and contractual outlays). In 2004, 8.3 percent of all federal funds entering North Dakota were procurement contracts ($503 million), up from 6.9 percent in 2003 ($398 million). Of the $6 billion the federal government spent in North Dakota in 2004, more than half of the monies went to Social Security, Medicare, Medicaid, agricultural assistance payments, crop disaster funds, and highway planning and construction funds ($3.3 billion). These particular funds, together, increased 1.5 percent from $3.2 billion in 2003. 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 $9,513 in 2004, ranking North Dakota sixth in the nation for per- capita federal expenditures. Nationally, per-capita federal expenditures totaled $7,223 in 2004, 24 percent below North Dakota’s level. Per-capita federal funds to North Dakota ranged from a low of $4,982 in Mercer County to a high of $22,821 in Divide County. ### Source: Richard
Rathge, (701) 231-8621, richard.rathge@ndsu.edu
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