Nevada ranks last as recipient of U.S. funds

Benjamin Grove

Wednesday, June 4, 2003 | 11:20 a.m.

WASHINGTON -- Nevada ranked last among states in the amount of money it received per capita last year from the federal government.

Congress sent Nevada $10.7 billion in the 2002 fiscal year, which ended Sept. 30, according to new data released today by the U.S. Census Bureau. The largest pot of money was for health programs like Medicaid, a federal-state health program for low-income residents.

The federal money also went to Social Security payments, disability payments, federal government salaries and benefits, government contracts with universities and businesses, as well as education, housing, transportation programs and projects. Three expenditures -- for Medicaid, Medicare and Social Security -- accounted for 47 percent of U.S. domestic spending.

Nevada, the nation's 35th most populous state, ranked 38th among states in the total amount it received from the federal government, according to the Census report. California was the top recipient, with $206 billion.

But Nevada ranked last when measured on a per-capita, or per-person, basis.

"It's disappointing," Clark County Manager Thom Reilly said this morning. "I think it's an obvious area of concern that we continue to be an exporter state in terms of taxes."

Nevada historically has ranked at or near the bottom of the list; Nevada was last in 2001 and 2000, and 49th in 1999 ahead of Virginia. That's largely because Nevada has a relatively small population of low-income residents who qualify for federal aid, Mike Pieper, who is Gov. Kenny Guinn's lobbyist for Nevada in Washington, said. Compared with other states, Nevada receives less per capita for federal programs like Medicaid, typically one of the largest allocations of federal money that states receive.

Nevada also ranks relatively low in the amount of money it receives for federal welfare programs and for the Title I program, which is federal education money for schools with high populations of needy students.

Nevada ranked 20th in per capita personal income in 2002, according to the Commerce Department.

"It's sort of a good news-bad news situation," Pieper said. "The good news is that Nevada does not have a high rate of poverty" compared with other states.

With Medicaid and other health programs, it's also a matter of the state and municipalities not putting up matching funds that bring federal dollars home, Reilly said.

"It's a double-edged sword. You have spend more in order to match, and that's clearly the case on the issue of Medicaid," he said. The state has a great deal of discretion on what to cover under Medicaid, and it tends toward the minimum, he said.

In addition, he said, Nevada doesn't have many federally funded, community-based health clinics, "Given our large number of uninsured we have, that's a concern," he said.

The Census report also listed federal department spending by state, and Nevada ranked No. 1 in one category: Department of Energy nuclear waste disposal programs.

Nevada typically fares well in another category, measured per capita, Pieper noted: interstate and highway projects. The state generally pulls in about $200 million for federal roadway programs, roughly what the state contributes to federal coffers in gas taxes.

Alaska was first in the federal ranking, in part because it receives more than most states per capita for Medicaid and federal housing programs. The state also fares well in money for transportation projects.

Congressional observers often note that Alaska fares well in most federal money rankings largely because Sen. Ted Stevens, R-Alaska, is the chairman of the Senate Appropriations Committee, arguably the most powerful panel in the Senate because it controls the flow of federal project money to states.

Nevada has its own member of the committee, Sen. Harry Reid, D-Nev., who each year funnels money to Nevada for various projects.

"It's terrible that Nevada ranks very last in federal funding across the board," Reid spokeswoman Tessa Hafen said. "The state is one of the fastest growing in the nation and we must have additional resources to keep up with demand."

Nevada officials have said the state's population boom makes it difficult for the Census Bureau to keep accurate, up-to-date numbers of low-income residents, which means federal aid does not keep up with current population.

"It's kind of like trying to fit a 13-year-old boy into last year's sneakers," said Michael O'Donovan, spokesman for Rep. Shelley Berkley, D-Nev.

This was the second time in a week that Nevada ranked last in federal money survey. Nevada also was at the bottom of the list in the amount it will receive per capita as part of the $20 billion aid program for states that was included in the tax cut legislation signed by President Bush. Nevada again fared poorly because the program was designed to offer states help with Medicaid costs.

Sun reporter

Jean Reid Norman contributed to this story.