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CRC Column

The right to criticize government is also an obligation to know what you are talking about. 
-Lent Upson, 1st Executive Director of CRC  


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Federal Expenditures in Michigan, 2006
September 2008
Report 351

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Between federal fiscal year (FFY) 2005 and FFY06, Michigan slipped from 43th to 44th of the 50 states in the per capita amount of federal government expenditures received by all governmental and nongovernmental recipients in the state, and from 37th to 40th in the per capita amount of federal funds that flow to state and local government.

In March 2008, Citizens Research Council of Michigan published an analysis of data on federal expenditures by state in FFY05. That analysis argued for examination of federal programs to insure that Michigan receives maximum benefits from existing programs and efforts to develop new or modified federal programs that better address Michiganís needs. Data for FFY06 are now available (the Consolidated Federal Funds Report for Fiscal Year 2006 and Federal Aid to States for Fiscal Year 2006 were released by the federal government just seven months after the reports for FFY05 were issued). The new data emphasize that more could be done to maximize potential payments from some existing federal programs and to refine existing, or shape new federal programs to better meet Michigan needs. In particular, attention should be paid to increasing federal grants and procurements contracts to Michigan recipients.

The federal reports include both actual payments and obligated funds, and exclude some categories of federal spending such as interest on federal debt, some travel expenses, international payments and foreign aid that cannot be allocated to individual states. The FFY06 data show an increase in the dollar amount of federal payments in total and to Michigan; a reduction in Michigan population, both actual and in proportion to the nation; and a decline in the proportion of federal payments that flow to Michigan.

All Federal Payments and Promises

The federal government provides a variety of direct payments including retirement and disability payments, grants, procurement, and salaries and wages; direct and guaranteed loans; and various kinds of insurance. The value of all of these payments and promises, which go to individuals, governments, nonprofit and for-profit organizations, increased by $367.1 billion from FFY05 to FFY06.       Continue Reading this Publication