Utah Less Dependent on Federal Funds than Most States


The U.S. Census Bureau’s Consolidated Federal Funds Report for Fiscal Year 2010 shows that, unlike many state economies that are increasingly reliant on federal government spending, Utah depends less per capita on federal dollars.

“This report validates what Utah’s leaders understand in practice-that relying on the federal dole is an unsound way to restore economic prosperity,” said Governor Gary R. Herbert. “Fiscal prudence, including state independence from federal dollars which always come with strings attached, is the most sure foundation for a recovering economy.”

The Governor added, “It is no accident that Utah is best poised to lead the nation out of the recession. We have a AAA bond rating, our unemployment rate is nearly two points lower than the nation’s unemployment rate, our economy is growing at two and a half times the national average, we don’t spend more than we have and we save for a rainy day. We make the tough decisions. Utah’s people understand that, Utah’s leaders understand that, and now the data prove it.”

The Census report notes that roughly one-third of Virginia’s economy relies upon the federal government. One-third of Connecticut and Maryland’s federal funding goes to health and human services, while one-third of Alaska, Hawaii and Virginia’s federal funds are spent on defense.

The full report may be found at https://www.census.gov/prod/2011pubs/cffr-10.pdf.

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