Data Tracker

California and the feds: presidential picks aside, money matters

In this Feb. 11, 2005 file photo, trays of printed social security checks wait to be mailed from the U.S. Treasury's Financial Management services facility in Philadelphia. Social security retirement insurance paid out $63 billion to Californians in the 15-16 tax year.
In this Feb. 11, 2005 file photo, trays of printed social security checks wait to be mailed from the U.S. Treasury's Financial Management services facility in Philadelphia. Social security retirement insurance paid out $63 billion to Californians in the 15-16 tax year. AP

California and some other parts of the U.S. are in different political orbits when it comes to presidential picks. But the nation’s largest state and the federal government are more deeply entwined than ever on tax, spending and other fiscal matters.

In the wake of the presidential victory by Republican Donald Trump – who lost to Democrat Hillary Clinton in California by nearly 4.3 million votes – some Golden State denizens have suggested more autonomy if not outright independence from the rest of the United States.

 

Little mention is made of the federal government’s major role in the lives of Californians, from the $47.5 billion in federal contracts awarded to state businesses and other recipients in federal fiscal year 2015, or the nearly $96 billion in federal funds in the current state budget, representing more than one-third of the budget total.

About 344,000 Californians work directly for the federal government, according to the most recent census data, paying state taxes and generating economic activity.

Some Trump supporters, meanwhile, have opined that the rest of the country would be better off without California and its Democratic-leaning electorate.

Yet those people rarely note that California, which represents about 12 percent of the country’s population, generated 13.5 percent of the total federal income tax payments in 2014, the most recent data available – the most of any state.

Compared to most other states, California generally has paid more to the federal government than it receives in federal spending.

A report last year by the New York Office of the Comptroller concluded that California received 99 cents in federal spending for every dollar it paid in federal taxes during the 2013 federal fiscal year, one of 11 states that received less federal money than they paid in taxes.

California, though, has outsized involvement in some federal programs. For example, the state has embraced the federal Affordable Care Act, known as Obamacare, opting to expand Medi-Cal to cover more than 3.5 million new participants.

If Trump and congressional Republicans follow through on their threat to repeal the law, annual federal funding for Medi-Cal would drop by more than $15 billion, according to the California Budget and Policy Center.

California and federal government budget ties 

Data Tracker is a regular feature that breaks down the numbers behind today’s news. Explore more trends at sacbee.com/datatracker.

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