Antonides, Robert J.

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South Dakota State UniversityOpen PRAIRIE: Open Public Research Access InstitutionalRepository and Information ExchangeEconomics Commentator Economics9-21-1978Federal Funds in South DakotaRobert J. AntonidesSouth Dakota State UniversityFollow this and additional works at: http://openprairie.sdstate.edu/econ_commPart of the Agricultural and Resource Economics Commons, and the Regional EconomicsCommonsThis Newsletter is brought to you for free and open access by the Economics at Open PRAIRIE: Open Public Research Access Institutional Repositoryand Information Exchange. It has been accepted for inclusion in Economics Commentator by an authorized administrator of Open PRAIRIE: OpenPublic Research Access Institutional Repository and Information Exchange. For more information, please contact michael.biondo@sdstate.edu.Recommended CitationAntonides, Robert J., "Federal Funds in South Dakota" (1978). Economics Commentator. Paper 128.http://openprairie.sdstate.edu/econ_comm/128r- COOPERATIVE EXTENSION SERVICE."t"United States Department of Agriculture CooperatingEditor:; Robert J. Antonides'Extension Economist'IEconomics DepartmentNo 130South Dakota State University Brookings 57006 (605) 688-4141Federal Funds in Sodth DakotaBy Robert J. AntonidesExtension economist and associate professorSeptember ZL, 1978Federal funds flowing in to South Dakota increasedby more.than 37 percent, or $388 million dollars,from 1976 to 1977. In constant 1967 dollars, the increase was 29 percent or $176 million. In a statewhere 1977 personal incomes totaled about $3.75 billion in current dollars, the impact of $1.4 billionof federal spending can be significant.The trends of Federal outlays in South Dakota forthe past eight years are shown in Table 1. Thistable also illustrates the rather erratic nature ofthe spending.Table 2 presents similar figures for total Federalfunds in all of the states, as well as the percentageof outlays that go to South Dakota. The relativelylarge increase of Federal dollars in 1977 did notbring them back to the percentage levels of theearly 1970s. This, in itself, may not be too surprising since in most states the proportion ofFederal outlays received tends to be closely correlated with the proportion of U.S. total population within each state. The report being summarizedhere estimates South Dakota's population at .3 percent of the U.S. population, receiving .4 percentof the Federal funds.The Federal outlays in South Dakota, by agencyand some of the major programs within each agency,are presented in Table 3. Agencies are listed in thetable by declining order of the importance of theiroutlays within the state. Within each agency, thesame procedure has been followed, with smaller programs lumped into "other agency funds".The first column of Table 3 is in actual dollarswhile the second column shows the percentage eachitem is of all Federal outlays within South Dakota.After the total for each agency, the figure in parentheses is the proportion of that agency's budgetallocated to the state.Funds provided by the Department of Health, Education and Welfare continue to lead Federal outlayswithin the state, accounting for 30.9 percent of allFederal funds in the state, though they only represent .3 percent of that Department's budget. TheDepartment of Agriculture funds expanded from about$92 million in 1976 to $333 million in 1977 (275percent), to boost it into second place in outlaysin South Dakota and from .6 percent of its budget tonearly 1.7 percent. Greatly expanded commodityloans, together with feed grain and wheat stabilization programs, accounted for nearly 90 percent ofthe increase.At this point it is appropriate to emphasize someof the special considerations for use of the figurespresented here. These tables were developed from"Geographic Distribution of Federal Funds in SouthDakota" compiled for the Executive Office of thePresident by the Community Services Administration.These reports were formerly "Federal Outlays".Federal funds here generally means "oligations"and are only for the Executive Branch of the Federal Government.Comparisons with previous years must be made withcaution. There is a category of programs classifiedas "Indirect Federal Support" which are not includedin any of the figures shown here. As examples,there was about $600 million of such "funds" distributed in South Dakota in 1977 by the Departmentof Agriculture which are not shown. (Including$223 million of emergency disaster loans and $247million of loans to rural electrics.In 1977, the Treasury Department paid $46 millionas "Interest on the Public Debt." The Departmentof Housing and Urban Development provided almost$40 million in home mortgage insurance. These arenow listed as "Indirect" and not shown.Some of the funds or outlays are loans andothers are "transfer" - type payments. One of thelargest outlays is for a broad category of "SocialSecurity . In a sense, these are monies paid into the Federal Government and returned. Anotherexample appears in Agriculture under the title"Meat and Poultry Inspection". In fact, theFederal Government hires inspectors for feder-^lly~inspected plants, but an almost equivalentamount is paid by the processor to the government.It is important to note the difference between"Funds" and "Aid". The Treasury Department's report of "Federal Aid to States" lists assistance tostate and local governments in the amount of $240tiillion for South Dakota or only about 17 percentof the $1,428 million shown here as Funds. Aidsdo not include such items as Federal administrativeexpenses incurred in the state, grants to individualsor institutions, payments for services of Federalemployees, or grants for administrative expensesof regional bodies.Some expenditures are likely to go unnoticedwith a casual study of the tables. Careful studywill show that substantial amounts are also spentby Departments other than the Department of Interiorfor Indian-related activities, such as by the Department of Labor, Department of HEW, the Departmentof Agriculture and others.These observations lead to another: not allmoney coming into the state has the same impact onthe economy. Much depends upon how the money isspent and re-spent. This is called the multipliereffect. Thus, salary payments to Federal employeesworking in local areas may have a higher multipliereffect than expenditures for equipment that theseemployees use that is not locally purchased.Table 1 Voc. Educ. - BasicGrant to States 2,480 .2Federal Funds In South Dakota, 1970-1977 Child Development -Head Start 2,255 .2Percent Nat'l Direct Student Loans 1,943 .1Amount In Consumer Change Alcohol & Drugs 1,902 .1Millions Price Amount in from Aging Special Support Proj. 1,876 .1Fiscal of Index Millions of Previous Native American Program 1,802 .1Year Current $ (1967=100) Constant $* Year Educ. Opportunity Grants 1,654 .1Higher Education 1,599 .11970 Ilk 116.3 623 Indian Education 1,570 .11971 Ikl 121.3 612 - 1.8 Higher Educ. Ins. Loans 1,508 .11972 855 125.3 682 +11.5 Other Welfare 1,035 .11973 1,040 133.1 781 +14.5 Total Federal Funds, Dept.1974 883 147.7 598 -23.4 of HEW (.3% of U.S. Total) 441,577 30.91975 985 161.2 611 + 2.21976 1,040 170.2 611 0 DEPT. OF AGRICULTURE1977 1,428 181.5 787 +28.8 Commodity Loans 117,561 8.2Feed Grains Prod.Stabilization 53,593 3.7*Calculated by dividing current dollars by Consumer Commodity InventoryPrice Index. Operations 31,002 2.2Wheat Prod. Stabilization 27,475 1.9Crop Insurance 16,704 1.2Watershed, Water &Table 2 Waste Programs 11,500 .8Rural Tel. Bank Loans 9,606 .7Total Federal Fiinds, 1970-1977 Soil & Water Conserv. 8,693 .6Food Stamp Bonus Coupons 8,486 .6Percent Other Food Programs 8,485 .6Amount in Change Percent Sal. & Exp. ASCS, FHA, REA 7,554 .5Millions Amount in from of Total Forest Prot., Util. & Res. 7,367 .5Fiscal of Millions of Previous Spent School Food Program 6,658 .5Year Current $ Constant $'•= Year in S.D. Storage Facility Loans 4,799 .3Meat & Poultry Inspect.1970 190,010 163,379 .38 and Grading 2,070 .11971 208,848 172,175 +5.4 .36 Manpower Training 2,062 .11972 227,014 181,176 +5.2 .38 Extension Service 2,007 .11973 260,609 195,800 +8.1 .40 Great Plains Conserv. 1,789 .11974 281,467 190,567 -2.7 . .31 Agriculture Exp. Sta. 1,313 .11975 326,726 202,684 +6. 4 .30 Rural Housing 630 .11976 358,870 210,852 +4.0 .29 Other 3,788 .31977 395,656 217,992 +3.4 .36 Total Dept. of Agriculture(1.7% of U.S. Total) 333,148 23.3^Calculated by dividing current dollars by Consumer DEPT. OF DEFENSEPrice Index. Military Active Duty Pay 71,234 5.0Military Prime Contracts(Total) 24,844 1.7Civilian Pay '23,215 1.6Military Retired Pay 15,101 1.1DISTRIBUTION OF FEDERAL FUNDS IN SOUTH DAKOTA Mil. Reserve & Nat.FISCAL YEAR 1977 Guard Pay 7,843 .5(Agencies ranked by outlays within the state) Civilian FunctionsPrime Contracts 1,713 .1FY 1974 ;% of Federal Other 1,312 .1Funds Funds Total Dept. of Defense($1,000) Within S.D. (.2% of U.S. Total) 145,262 10.2DEPT. OF HEALTH, EDUC. & DEPT. OF THE INTERIORWELFARE Indian-Related Outlays 61,828 4.3Social Security (Total) 273,428 19.1 Federal Reclamation 28,507 2.0Medicare (Total) 50,868 3.6 Drought Emergency 5,073 .4Medical Assist. Program 24,752 1.7 Fish & Wildlife 4,032 .3Public Assist. - Maint. Outdoor Recreation Assist. 2,858 .2and Training (State 13,682 1.0 Parks and Forests 2,213 .1Social Services - Low Geol. Min. & Wtr. Res. 1,867 -Income & Public. Assist. 9,968 .7 Pay. in lieu of Taxes 1,748 .1Basic Educ. Grants 9,020 .6 Other 532 .1Educationally Deprived Total Dept. of InteriorChildren 7,905 .5 (2.3% of U.S. Total) 108,660 7.6SAFA - Maint. & Oper. 7,836 .5Other Health 6,705 .5 VETERANS ADMINISTRATIONOther Education 5,198 .4 Veterans Hospltalization 31,552 2.2Limit on Salaries & Vet. Adj. Training 17,075 1.2Expenses S_^SA 3,350 .2 Vet. Disabil. Comp. 13,402 .9Higher Educ. Work - Study 3,309 .2 Vet. Disabil. Pensions 9,011 .6Rehab. Services & Fac. Other 19,877 1.4Basic Support 3,033 .2 Total Veterans AdministrationHealth Professions 2,898 .2 (.5% of U.S. Total) 90,917 6.4DEPT. OF TRAJISPORTATIONHighway Plan. & Constr.Operations, FAAOtherTotal Dept. of Transportation(.5% of U.S. Total)DEPT. OF COMMERCEEcon Development -Public WorksEcon Development -Drought Assist.WeatherOther Econ DevelopmentOtherTotal Dept. of Commerce(.6% of U.S. Total)POSTAL SERVICE(.4% of U.S. Total)DEPT. OF LABORTraining Assist.Indian EmploymentEmployment Serv. Admin.Unemploy. BenefitsUnemploy. InsuranceFederal EmployeesWork Incentive Prog.OtherTotal Dept. of Labor(.3% of U.S. Total)TREASURY DEPARTMENTFiscal Assist, toState & Local Gov'tCompliance, InternalRevenue ServiceOtherTotal Treasury Department(.2% of U.S. Total)CIVIL SERVICE COMMISSIONOUTLAYS (.2% of U.S. Total)DEPT. OF HOUSING & URBANDEVELOPMENTCommunity DevelopmentOtherTotal Dept. of Housing &Urban Development(.4% of U.S. Total)ENVIRONMENTAL PROTECTIONAGENCYGrants for Waste Treat.OtherTotal Environmental Prot.Agency (.1% of U.S. Total)RAILROAD RETIREMENTBOARD OUTLAYS(.2% of U.S. Total)DEPT. OF JUSTICE(.3% of U.S. Total)COMMUNITY SERVICESADMIN. (.4% of U.S. Total)GENERAL SERVICES ADMIN.General Supply FundFederal BuildingsOtherTotal Gen. Serv. Admin.(.1% of U.S. Total)SMALL BUSINESS ADMIN.Small Bus. Loans61,8133,51972866,07944,8612,1341,7411,2471,07751,06050,62811,56412,0573,9243,2302,2501,4291,19633135,98121,7042,0962,09825,89825,5459,0726,43115,5039,56262710,1899,1714,8413,4091,6339498223,4048234.3.24.63.1.1.1.1.13.63.52.51.5.1.1l.f1.8.6.51.1.7.7.6.3.2.1.1.1.2.1Salaries & Exp. SBADisaster LoansWater Polluation ControlLoansOtherTotal SBA(.4% of U.S. Total)NATIONAL FOUNDATION OFARTS & HUMANITIES(.5% of U.S. Total)FEDERAL ENERGY ADMIN.(.3% of U.S. Total)ACTION(.4% of U.S. Total)NATIONAL SNATIONAL SCIENCEFOUNDATION(.1% of U.S. Total)ENERGY RESEARGH &DEVELOPMENT ADMIN. (+)NATIONAL AERONAUTIGS& SPACE ADMIN. (+)TENNESSEE VALLEYAUTHORITY (+)WATER RESOURCES COUNCIL(.7% of U.S. Total)EQUAL EMPLOYMENTOPPORTUNITY COMMISSION(.1% of U.S. Total)FEDERAL HOME LOANBANK BOARD(.1% of U.S. Total)INTERSTATE COMMERCECOMMISSION(.1% of U.S. Total)DEPT. OF STATE (+)State Total - FederalFunds - All Agencies(.4% of U.S. Total)6986378442023,2041,16489472068834325010851484638$1,428,827.1.2.1.1.1.1100.0NOTES: Figures in ( ) indicate proportion of thisagency's total outlays distributed in S.D.+ Indicates less than .05% of 1 percent).Dollar figures are in thousands and therefore may not all add to totals due torounding.SOURCE: "Geographic Distribution of Federal Fundsin South Dakota," formerly "Federal Outlaysin South Dakota." Compiled for the Executive Office of the President by theCommunity Services Administration.2,600 copies printed at an estimated costof 5C each for educational purposes.Etlufiitioiml prourains and materials areollered toall people without regard toajje. race, color, religion, sex, handicap or national oriK'n.Cooperative Extension ServiceU.S. Department of AgricultureSouth Dakota State UniversityBrookings, South Dakota 57007OFFICIAL BUSINESSPenalty for Private Use $300Economies NewsletterPostage and Fees PaidU.S. Department of AgricultureAGR 101Third class mailBulk Rate

Federal Funds in South Dakota

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Federal Funds in South Dakota

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