Group Says Most States Lose Out on Military Spending‏

These findings follow the release of a recent report by the Political Economy Research Institute.

The trucks in the foreground are American purchased Ford Rangers used by the Afghan Army, an example of the one-way spending of the U.S. tax dollar. Photo by: Tim King

(WASHINGTON, D.C. ) - In spite of the claims that military spending creates jobs, much of the money spent on the military never makes it back to the States, according to an analysis released today by the National Priorities Project (NPP) of newly released 2005 federal spending data.

NPP's analysis provides state-level rankings comparing the money that came back to states in military spending with how much was paid in taxes by state taxpayers for military spending.

A total of 32 states paid more in taxes than they got back, while 19 paid less. The top three states with the worst return for their tax dollar are Minnesota ($0.19), Delaware ($0.23) and New York ($0.24).

States which had the best return for their tax dollar are New Mexico ($5.00), Alaska ($4.81) and Hawaii ($3.95). Per capita rankings are also available. This analysis is based on the Census Bureau's Consolidated Federal Funds Report (CFFR) for fiscal Year 2005 and IRS tax data for 2005.

"These numbers challenge the myth that military spending is essential for job creation," said Greg Speeter, executive director of the National Priorities Project. "For most Americans, spending close to $700 billion on the military next year would only promise fewer dollars to meet their real needs."

NPP's report also provides breakdowns by state and per capita on:

* the amount each state received in Department of Defense procurement contracts, showing that the largest recipients were California ($31.2 billion), Virginia ($26.8 billion) and Texas ($20.6 billion) while the smallest were Idaho ($156), Delaware ($178) and Wyoming ($184).

* the amount each state received from the Department of Education, the Environmental Protection Agency and Food and Nutrition Services, as compared to military spending. While $390.9 billion was distributed for the military in Fiscal Year 2005, $56.8 billion came to states in Department of Education programs.

* total expenditures by state as reported by the CFFR and compared with the information on taxes paid by state. Thirty-one states received more than its taxpayers paid in taxes and 20 states paid more in taxes than came back in federal spending.

These findings follow the release of a recent report by the Political Economy Research Institute which found that the economic impact of military spending that goes to local areas is not as effective at creating jobs as other types of spending. Specifically, the report shows that public spending on education creates more jobs that are higher paying than the same amount of money spent on the military.

Spending data at state and county levels for dozens of federal spending programs from 1983-2005 is also available at The NPP Database.

The National Priorities Project (NPP) is a 501(c)(3) research organization that analyzes and clarifies federal data so that people can understand and influence how their tax dollars are spent. Located in Northampton, MA, since 1983, NPP focuses on the impact of federal spending and other policies at the national, state, congressional district and local levels. For more information, go to nationalpriorities.org

Source: National Priorities Project