Ka-ching! Hawaii Got $20B From Feds Last Year
WASHINGTON — The federal government spent more than $20 billion in Hawaii for the first time last year.
That’s according to released this week by the U.S. Census Bureau that details how the federal government splits money between the states.
To put the federal total in perspective, Hawaii last year barely half that amount from its most important industry, tourism, $11.2 billion. No surprise: The lion’s share of federal money poured into populous Honolulu, which received $17.4 billion last year.
In the past decade alone, the federal government more than doubled its spending in Hawaii, from $9.7 billion in 2001 to $20.9 billion in 2010, according to the report.
Hawaii ranks No. 1 for per capita federal spending on wages and salaries as well as per capita defense spending. The state ranks No. 5 for total federal spending per capita. Hawaii’s total take per capita is $15,331, about 50 percent higher than the national average, $10,460.
The annual report shows that federal spending in Hawaii increased from $19 billion in 2009, a hike of 10 percent. Total federal spending in 2010 was $3.3 trillion, up from $3.2 trillion, or 2.3 percent.
Hawaii has earned a reputation for its ability to pull in federal dollars, often attributed to Senate Appropriations Chairman Daniel Inouye‘s influence. The reliance on federal spending is a concern at a time when Congress is embarked on efforts to reduce spending, especially in the defense area. The federal government spent $10 billion on defense in Hawaii in 2010.
Last year, just four states benefitted from higher federal spending per capita: Alaska ($17,762), Virginia ($17,008), Maryland ($16,672) and Connecticut ($15,662). The state with the lowest per capita spending last year was Nevada ($7,321).
2010 Federal Spending on Hawaii
| Area of Expenditure | Amount Spent1 | State Rank Per Capita Amount |
|---|---|---|
| Salaries and Wages | $7.9 billion | 1 |
| Retirement and Disability | $4.4 billion | 21 |
| Grants | $3.0 billion | 23 |
| Procurement | $2.7 billion | 10 |
| Other direct payments | $2.8 billion | 38 |
| Total | $20.9 billion | 5 |
Source: , U.S. Census Bureau
Of the federal retirement benefits that went to Hawaii, $688 million went to civilian retirees and $347 million went to military retirees.
Looking more closely at some of the other direct payments last year, the federal government paid Hawaii:
• $729 million in hospital insurance
• $328 million in unemployment insurance
• $47 million in prescription drug coverage
2010 Federal Spending on Hawaii by County
| County | Amount Spent2 | U.S. Resident Population |
|---|---|---|
| Honolulu | $17.4 billion | 953,207 |
| Hawaii | $1.3 billion | 185,079 |
| Maui | $771.1 million | 154,834 |
| Kauai | $523.7 million | 67,091 |
| Kalawao | $1.3 million | 90 |
Here’s a look at how Hawaii fared nationwide. The states that are the same dark purple shade as the Islands are the ones that pulled in the most federal money per capita.
