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Where Local Revenues from State Governments are Declining

Local governments and school districts in many places have incurred substantial reductions in intergovernmental revenues in recent years.

Across the country, many local governments and school districts have seen money from state capitols start to dry up in recent years.

Governing compiled financial data reported to the Census Bureau and compared the most recent fiscal year 2014 aggregate local intergovernmental revenue totals to averages between 2007 and 2009, when revenues peaked in most states. Nationally, total inflation-adjusted funding from states to localities and schools dipped 6 percent from prior levels. In 16 states, the cuts exceeded 10 percent.

Localities in some places were hit much harder than others. Arizona (-24 percent) and Ohio (-19 percent) recorded the largest drops in intergovernmental revenues from states, followed by Massachusetts, Hawaii and West Virginia. Only Alaska and North Dakota – two states benefitting from substantial energy revenues – reported sizable increases.




Changes in Intergovernmental Revenue from States to Localities

The following table shows total revenue from states to all local governments and school districts. Duplicative intergovernmental transactions are excluded. Figures, reported by the Census Bureau, are estimates derived from a sample of local governments in each state.

State Change (%) Change FY 2007-2009 Average1 FY 2014
Alabama -15% -$968,371 $6,643,024 $5,674,653
Alaska 36% $540,215 $1,480,122 $2,020,337
Arizona -24% -$2,458,964 $10,237,958 $7,778,994
Arkansas 2% $112,137 $4,659,867 $4,772,004
California -9% -$9,211,691 $100,725,981 $91,514,290
Colorado 7% $429,396 $5,730,174 $6,159,570
Connecticut -7% -$345,254 $4,795,682 $4,450,428
Delaware -3% -$38,396 $1,382,039 $1,343,643
Florida -17% -$3,885,307 $23,124,595 $19,239,288
Georgia -11% -$1,335,368 $11,927,577 $10,592,209
Hawaii -18% -$49,233 $272,651 $223,418
Idaho -12% -$262,611 $2,254,669 $1,992,058
Illinois 3% $503,208 $18,224,466 $18,727,674
Indiana 9% $866,429 $9,237,031 $10,103,460
Iowa 11% $475,254 $4,522,447 $4,997,701
Kansas -7% -$288,533 $4,293,094 $4,004,561
Kentucky -10% -$499,854 $4,890,764 $4,390,910
Louisiana -12% -$758,046 $6,500,123 $5,742,077
Maine -16% -$240,781 $1,547,435 $1,306,654
Maryland -1% -$110,740 $7,792,851 $7,682,111
Massachusetts -18% -$1,972,060 $10,737,913 $8,765,853
Michigan -6% -$1,203,196 $20,261,818 $19,058,622
Minnesota 0% $4,668 $11,470,612 $11,475,280
Mississippi -11% -$546,075 $4,863,782 $4,317,707
Missouri -2% -$115,045 $6,108,913 $5,993,868
Montana 2% $26,585 $1,281,910 $1,308,495
Nebraska 5% $95,427 $2,107,048 $2,202,475
Nevada -3% -$132,638 $5,050,740 $4,918,102
New Hampshire -3% -$51,356 $1,543,081 $1,491,725
New Jersey -7% -$938,115 $13,127,400 $12,189,285
New Mexico -12% -$532,655 $4,342,245 $3,809,590
New York -5% -$2,643,095 $52,568,848 $49,925,753
North Carolina -5% -$680,418 $13,540,592 $12,860,174
North Dakota 116% $922,205 $792,286 $1,714,491
Ohio -19% -$4,068,497 $20,977,025 $16,908,528
Oklahoma -13% -$604,130 $4,555,503 $3,951,373
Oregon 0% -$27,195 $5,941,975 $5,914,780
Pennsylvania -7% -$1,580,366 $21,821,894 $20,241,528
Rhode Island -11% -$138,059 $1,264,856 $1,126,797
South Carolina -6% -$301,952 $5,388,702 $5,086,750
South Dakota 0% -$2,222 $738,043 $735,821
Tennessee 5% $354,364 $6,566,142 $6,920,506
Texas 6% $1,601,431 $28,481,480 $30,082,911
Utah -7% -$237,676 $3,261,531 $3,023,855
Vermont 3% $42,144 $1,599,134 $1,641,278
Virginia -2% -$249,479 $11,436,766 $11,187,287
Washington 0% $44,787 $10,948,699 $10,993,486
West Virginia -18% -$397,021 $2,223,190 $1,826,169
Wisconsin -2% -$198,524 $10,936,159 $10,737,635
Wyoming -4% -$76,125 $1,819,850 $1,743,725

1)Amounts adjusted for inflation, shown in FY 2014 dollars.
SOURCE: Governing calculations of U.S. Census Bureau Annual Survey of State and Local Government Finances data

Historical Intergovernmental Revenues By State

Select a state to view inflation-adjusted totals flowing from states to localities and schools:


State Unrestricted General Support

Many local governments experienced larger declines in a much smaller pot of money that’s unrestricted in how it may be spent. Local governments in 17 states incurred inflation-adjusted declines in unrestricted funding exceeding 20 percent, although some rely on this money very little to begin with.

These payments include shared taxes, revenue-sharing programs and other aid unrestricted in the function or purpose of its use. Excludes aid targeted to schools or single-purpose special districts.

State Change (%) Change FY 2007-2009 Average1 FY 2014
Alabama -15% -$36,682 $239,345 $202,663
Alaska 38% $15,050 $39,824 $54,874
Arizona -18% -$482,351 $2,634,650 $2,152,299
Arkansas -12% -$38,476 $327,416 $288,940
California -69% -$607,717 $877,473 $269,756
Colorado 57% $58,383 $101,753 $160,136
Connecticut 150% $207,036 $137,755 $344,791
Delaware 0% $0 $0 $0
Florida -4% -$91,167 $2,065,429 $1,974,262
Georgia -100% -$477,754 $477,754 $0
Hawaii 87% $97,114 $111,117 $208,231
Idaho 7% $14,667 $224,263 $238,930
Illinois -8% -$163,205 $1,997,046 $1,833,841
Indiana -78% -$1,871,322 $2,404,527 $533,205
Iowa 11% $16,495 $151,722 $168,217
Kansas 41% $38,060 $91,979 $130,039
Kentucky -100% -$7 $7 $0
Louisiana -14% -$33,407 $232,385 $198,978
Maine -35% -$48,838 $139,830 $90,992
Maryland 1% $1,121 $126,687 $127,808
Massachusetts -35% -$518,223 $1,495,085 $976,862
Michigan -5% -$59,996 $1,200,802 $1,140,806
Minnesota -18% -$290,926 $1,613,855 $1,322,929
Mississippi -31% -$271,196 $861,212 $590,016
Missouri 4191% $198,637 $4,739 $203,376
Montana -44% -$117,104 $268,561 $151,457
Nebraska 9% $38,107 $434,394 $472,501
Nevada -11% -$137,951 $1,233,591 $1,095,640
New Hampshire -35% -$31,819 $90,624 $58,805
New Jersey -25% -$546,331 $2,184,772 $1,638,441
New Mexico -15% -$233,323 $1,564,838 $1,331,515
New York -73% -$1,257,791 $1,712,008 $454,217
North Carolina -12% -$21,410 $179,386 $157,976
North Dakota 331% $559,715 $169,329 $729,044
Ohio -39% -$957,906 $2,425,291 $1,467,385
Oklahoma 0% -$292 $116,007 $115,715
Oregon 14% $24,517 $175,257 $199,774
Pennsylvania 158% $170,453 $108,108 $278,561
Rhode Island -21% -$16,121 $77,811 $61,690
South Carolina 2% $36,442 $1,690,635 $1,727,077
South Dakota -61% -$34,730 $56,503 $21,773
Tennessee -50% -$310,733 $623,797 $313,064
Texas -23% -$54,117 $233,281 $179,164
Utah 0% $0 $0 $0
Vermont -100% -$28,641 $28,641 $0
Virginia -1% -$9,144 $1,096,164 $1,087,020
Washington 34% $31,921 $92,836 $124,757
West Virginia -17% -$19,192 $110,714 $91,522
Wisconsin 7% $144,646 $2,125,066 $2,269,712
Wyoming -1% -$4,418 $576,255 $571,837

1)Amounts adjusted for inflation, shown in FY 2014 dollars.
SOURCE: Governing calculations of U.S. Census Bureau Annual Survey of State Government Finances data
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