In September, 2008, in a report titled Federal Aid to Michigan, 2006, Citizens Research Council reported that Michigan ranked 44th of the 50 states in the per capita amount of federal funds that flowed to all Michigan recipients, and 40th in the per capita amount of federal funds that flowed to Michigan state and local governments. That report recommended that various federal programs be reviewed to insure that they do not inadvertently disadvantage potential Michigan recipients and that individual, businesses, non-profits, and governments in Michigan must become more aware of, and more successful in competing for, federal grants and contracts. The federal government has now released reports for 2007 that reveal that Michigan has declined to 45th of the 50 states in the per capita amount of federal payments to all recipients, and has improved to 36th in the per capita amount of federal funds flowing to Michigan state and local governments. This update is based on information published in the Consolidated Federal Funds Reports for Fiscal Year 2007 and Federal Aid to States for Fiscal Year 2007.
All Federal Payments. In 2007, $2.6 trillion dollars were paid by the U.S. government for retirement and disability, other direct payments, grants, procurement contracts, and federal salaries and wages, and $71.7 billion of those federal payments came to Michigan. The federal government also provided $22.3 billion in direct loans ($1.1 billion came to Michigan), $172.7 billion in guaranteed loans ($5.0 billion came to Michigan), and $1.2 trillion in insurance liability ($5.2 billion came to Michigan). These amounts exclude payments on the federal debt, international payments, and foreign aid.
If Michigan had received the same proportion of all federal payments to states as the proportion of its population to total U.S. population, an additional $14 billion in direct payments would have been made to Michigan recipients in 2007. If Michigan had received the same proportion of all direct payments, loans, and insurance as its percent of the total population, an additional $48 billion in value would have flowed to this state.
As Michigan’s auto-based economy continues to erode, federal support becomes increasingly important as a source of income, contracts, grants, loans, and insurance. Unfortunately, in 2007 Michigan slipped to 45th of the 50 states in the total amount of federal government payments received on a per capita basis. This includes payment to individuals, businesses, non-profits, and governments through retirement and disability payments; other direct payments; grants; procurement contracts; and salaries and wages.
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