Federal expenditures versus receipts for Michigan, Alabama and Tennessee

I was watching the questioning of the big-3 CEOs by Congress today and noticed some of the most intense questioning came from Senators from Alabama and Tennessee. They both mentioned concerns about the safety of taxpayers money loaned the auto-makers.

So just out of curiousity, I wondered how much the Federal Government spends in Michigan (as an example of a state heavily committed to the auto industry) and the states these senators represent.. for one year.

http://www.geocities.com/jwalkerxy/Fed_expeditures_state.xls">Here's what I found:


........................ Federal Taxes paid............................ Total Federal................................ Federal Receipts
...................................by state............................ Expenditures by state........................ minus Expenditures
.....................................2005............................................. 2005.......................................... 2005......
Michigan............ $66,300,000,000................................ $64,787,000,000 ............................ $1,513,000,000
............per capita $6,582.72 ......................................... $6,432.50
Alabama............. $24,675,000,000 ............................ $42,061,000,000 ............................ ($17,386,000,000)
............................ $5,331.85 ...................................... $9,088.67
Tennessee........... $35,900,000,000 ............................ $48,288,000,000 ........................... ($12,388,000,000)
............................ $5,831.03 ...................................... $7,843.14


I also noted that Federal expenditures for GRANTS (BLOCK, FORMULA, PROJECT, AND COOPERATIVE AGREEMENTS), GUARANTEED/INSURED LOANS and Insurance for the three states were:

Michigan: $25,134,697,631.... per capita: $2,495.55

ALabama: $21,301,215,569 .... per capita: $4,602.83

Tennessee: $19,109,282,704 .... per capita: $3,103.81


Just interesting. IF you added the amount Alabama and Tennessee get in grants, guaranteed/ insured loans and insurance from the Federal Government it would be quite a bit greater than what the domestic auto industry is asking for in bridge loans.

off the hog while we've been in a BUSH created recession for 8 years. The southern states have been playing hardball to get the auto $ and we'll see if they pull it off. Probably will. In the meantime, be sure to look at what those states do with that money cuz' it sure as hell doesn't go into education. Kids from those states in particular come up to Michigan to enroll they are always a couple of grade levels behind.

So sick of this country's policies.........

I am sorry to admit that, since I don't have contacts in the area, I had not been aware of just how horrible things had become for Michigan. I suppose I thought that, since Roger & Me, things had gotten better. I surely saw a lot of people driving SUVs - so this election cycle was good for me because it really brought to my attention that Michigan needed some love from the rest of the nation.

I do hope that Obama's election will help. One good thing about not having a candidate from the south, too.

grandstanding is that the auto industry affects many states. But of course, the main thing is if the auto industry fails we will go from the worst recession since the 30's to a full blown depression. And this will affect the entire country and every state.

This is not about helping michigan. It's about saving the country from going into a depression and keeping a domestic automotive manufacturing base. While transplants are nice for Alabama, South Carolina and some others the control of these companies resides elsewhere and the profits go out of the country.

My only point in this post is that given the Federal support of Alabama and other southern states (using the Grants, low-cost loans and underwritten insurance programs as an example) are we not helping them in just the same way the bridge loan the big three are asking for? ](although the grants, low cost loans and underwritten insurance for the southern states have been going on for decades and may very well go on for decades more. This Federal support makes it easier for them to offer tax breaks to foreign car manufacturers.) .. and some of the people (Sen. Shay - Ala.) who were grilling the big-3 CEOs are from states enjoying indeterminate grants and insurance underwriting or open-ended bail-outs which they seem to be finding so difficult to accept for a few months or possibly a year for the 3 domestic auto producers.

Someone from Alabama had the nerve to be posting here, bragging how none of the foreign car makers who've relocated there will have to pay state taxes for the next decade or so. And how bad Detroit is... blah blah blah.

Yet there Alabama is, along with the rest of the red states, at the top of the "freeloader" list.

There is something about those states that cause them to be unable to take care of themselves.

The reason we send money is to bring them up to some kind of expectation so we don't have to roll up the windows as we drive thorugh.

Without the assistance the landscape would be truly unpleasant to look at.