ALBANY— New York State taxpayers sent the federal government some $47 billion more in taxes than the state received in federal spending in fiscal year 2000, according to a new analysis by The Public Policy Institute.

The deficit in the state's "balance of payments" with Washington is the largest ever, and up from $37.4 billion in 1999, the Institute found. The Institute is the research affiliate of The Business Council of New York State Inc.

"The size of our imbalance of payments represents a larger-than-ever economic drain on the Empire State," Daniel B. Walsh, president/CEO of The Business Council and CEO of the Institute, wrote in a letter to members of New York's Congressional delegation. Walsh told the delegation that the new research "demonstrates the rightness of the cause for which Governor Pataki and you have been fighting in recent weeks - a fair assistance package to help with rebuilding in the wake of the terrorist attacks."

In fiscal 2000, the Internal Revenue Service collected more than $166 billion in taxes on economic activity in New York State. Federal agencies returned an estimated $119 billion in grants, procurement and other expenditures.

The Public Policy Institute analysis is based on the research performed in past years for former Senator Daniel Patrick Moynihan by experts at Harvard University's Kennedy School of Government. It uses the same base data as the Kennedy School analyses - tax data from the Tax Foundation, a non-partisan research group based in Washington, and expenditure data from the U.S. Census Bureau. The Public Policy Institute's analysis differs slightly from the Kennedy School's methodology; for instance, the Institute's calculations use actual tax and spending data rather than adjusting those numbers to reflect cost-of-living differences among the states.

Table 1: New York State's Balance of Payments with Washington FY 2000 (dollars in millions)
Total federal taxes paid by New Yorkers1							$158,508
Federal taxes paid by New Jersey and Connecticut residents who work in New York2							8,175
A: Federal taxes on New York							$166,693
Nominal federal expenditure in New York3							$110,333
Allocated share of interest on federal debt4							9,012
B: Federal expenditures in New York							$119,345
New York's balance of payments (B - A)							-$47,338

Largest Losers in Federal Balance of Payments
California	-$63,319	Michigan	-$20,531
NEW YORK	-$47,338	Connecticut	-$15,910
Illinois	-$40,205	Florida	-$15,767
New Jersey	-$27,267	Massachusetts	-$14,245
Texas	-$23,099	Ohio	-$11,699

Calculations by The Public Policy Institute
1	Source: Tax Foundation, Washington, D.C.
2	New Jersey residents paid $81 billion, and Connecticut residents $39 billion, in federal taxes in 2000. Approximately 7% of federal taxes collected in New Jersey, and 6.4% of those from Connecticut, are attributable to jobs in New York State. (Percentages are based on New York State Department of Taxation and Finance figures for state taxes paid by New Jersey and Connecticut residents.)
3	Source: US Census Bureau, Consolidated Federal Funds Report for Fiscal Year 2000.
4	Total interest paid domestically on federal debt was $113 billion; the 8 percent proportion allocated to New York is the state's share of total federal tax payments.

Table 2: States' Balance of Payments with Washington (Dollars in millions)
State	Taxes Paid	Spending Received	Surplus/Deficit
Alabama	23,502	30,553	7,051
Alaska	4,374	6,202	1,828
Arizona	30,749	30,992	243
Arkansas	13,256	15,582	2,326
California	253,481	190,162	-63,319
Colorado	33,212	24,806	-8,406
Connecticut	36,489	21,733	-14,756
Delaware	5,844	4,291	-1,553
Florida	115,086	99,319	-15,767
Georgia	53,105	45,479	-7,626
Hawaii	7,135	9,421	2,286
Idaho	6,678	7,389	711
Illinois	100,213	65,705	-34,508
Indiana	38,605	30,918	-7,687
Iowa	17,521	15,747	-1,774
Kansas	17,343	15,246	-2,097
Kentucky	21,456	25,664	4,208
Louisiana	23,014	27,263	4,249
Maine	7,336	8,266	930
Maryland	42,232	47,490	5,258
Massachusetts	58,389	44,144	-14,245
Michigan	71,414	50,883	-20,531
Minnesota	37,648	25,132	-12,516
Mississippi	12,728	19,082	6,354
Missouri	35,118	37,684	2,566
Montana	4,597	6,178	1,581
Nebraska	10,946	10,233	-713
Nevada	15,461	9,505	-5,956
New Hampshire	10,114	6,377	-3,737
New Jersey	75,341	48,075	-27,266
New Mexico	8,795	14,970	6,175
NEW YORK	166,683	119,345	-47,338
North Carolina	48,436	44,121	-4,315
North Dakota	3,495	5,444	1,949
Ohio	73,217	61,518	-11,699
Oklahoma	17,436	21,604	4,168
Oregon	22,108	17,810	-4,298
Pennsylvania	85,630	78,183	-7,447
Rhode Island	7,191	7,285	94
South Carolina	21,659	23,525	1,866
South Dakota	4,338	5,385	1,047
Tennessee	34,441	35,518	1,077
Texas	137,404	114,305	-23,099
Utah	11,662	10,700	-962
Vermont	3,855	3,581	-274
Virginia	52,243	65,679	13,436
Washington	48,066	36,630	-11,436
West Virginia	8,300	12,211	3,911
Wisconsin	36,122	26,354	-9,768
Wyoming	3,645	3,427	-218
The Public Policy Institute

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