Federal Funding To New Jersey Has Increased 43 Percent Since 2001
The mix of federal to state dollars directly impacts our state and local taxes. When federal taxes are cut, our state and local taxes are raised to make up the difference.Our friends must have missed the news as recently reported in the New York Times - Sharp Rise in Tax Revenue to Pare U.S. Deficit. Still, that doesn’t tell the whole story, because you need to know if New Jersey has been receiving more or less federal funding since federal taxes were cut in 2001 and again in 2003.
Here are the facts. Since 2001 federal funding to New Jersey has increased 43 percent and federal funding for education to New Jersey has increased 69 percent.
Federal Funding for NJ 1999 - $4,818,619,000 (Education= $404,043,000)
Federal Funding for NJ 2000 - $5,072,801,000 (Education = $444,988,000)
Federal Funding for NJ 2001 - $5,848,945,000 (Education = $495,695,000)
Federal Funding for NJ 2002 - $6,458,560,000 (Education = $571,918,000)
Federal Funding for NJ 2003 - $6,769,698,000 (Education = $703,131,000)
Federal Funding For NJ 2004 - $7,248,990,000 (Education = $766,519,000)
Federal Funding for NJ 2005 - $7,360,683,000 (Education = $821,115,000)
Federal Funding for NJ 2006 - $8,348,666,000 (Education = $835,799,000)
Source: New Jersey Department of the Treasury
As hard as this is for some people to believe, the facts are that New Jersey state and local taxes have increased because New Jersey governments have been spending more money. New state taxes, increased fees and higher tax rates have been imposed because state spending is growing faster than the rate of increase in personal and business income.