States Where Government Aid Goes the Furthest

Source: Liz Farmer, Governing, August 28, 2014

Two new studies question federal funding formulas for public assistance. Are some states getting shortchanged?
Real Personal Income Estimates Shake Things Up
Source: Federal Funds Information for States (FFIS), State Policy Report, Volume 32, Issue 10, May 2014
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The Bureau of Economic Analysis (BEA) has been doing work that compares the cost of living among states. In late April, BEA released a report that puts its “regional price parity” data to use. Specifically, it adjusts each state’s per capita personal income to account for differences in price levels among the states. The results are interesting, and the impact of applying them to an existing grant program is stunning.

The Real Value of $100 in Each State
Source: Alan Cole, Lyman Stone, Richard Borean, Tax Foundation, August 18, 2014

This week’s tax map shows the real value of $100 in each state. Because average prices for similar goods are much higher in California or New York than in Mississippi or South Dakota, the same amount of dollars will buy you comparatively less in the high-price states, or comparatively more in low-price states. Using data from the Bureau of Economic Analysis that we’ve written about previously, we adjust the value of $100 to reflect how prices are different in each state….
Update: For an additional map that breaks the data down by metropolitan statistical areas, click here.