Kentucky is Second Most Dependent State on Federal Money

Mar 26, 2018

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Kentucky is ranked the second most federally dependent state in the nation.

A recent study by WalletHub looked at two key factors: state government dependency and resident dependency. Kentucky’s government is ranked fourth in dependency on federal money, but is only ranked 23rd in the share of federal jobs. Analyst Jill Gonzalez said there are some drawbacks to being so dependent on federal money.

“So federally if any crisis were going to happen it would probably affect Kentucky more than other states,” she said.  

Gonzalez said federal funding makes up about 40 percent of Kentucky’s revenue, the 4th highest rate in the country.  However, she said Kentuckians are getting more money back from the federal government than what they put in.

“For every dollar a Kentuckian gives, they’re actually getting $2.61 back so that’s a really good return on their federal investment,” she said.  

Tennessee is ranked 13th overall and Indiana is the 11th most federally dependent state.