In 2009, the state took in about $1.40 in federal assistance for every dollar it paid out in taxes
Despite dramatic reductions in federal funding since the large payouts in the first two years after Hurricane Katrina, Louisiana still gets more federal aid than its businesses and residents pay in federal taxes.
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In 2009, the last year for which data are available, the state took in about $1.40 in federal assistance for every dollar it paid out in taxes, though precise numbers are difficult because many companies operate in several states.
The Tax Foundation, which in the past has done surveys that put Louisiana and other Southern states among the leaders in return for tax dollars, attributed the high rankings to the larger percentages of low-income residents, who pay less in taxes and are eligible for federal programs such as Medicaid, Title I education assistance to economically disadvantaged public schools, and public housing subsidies.
The higher dependence on federal aid means Louisiana will be affected disproportionately as the Obama administration and Congress, led by a new House Republican majority that ran on reducing the federal deficit, begin negotiating spending cuts.
"We've been near the top in federal per-capita spending for years, and that means we'll be affected more than other states by across-the-board cuts," said Pearson Cross, chairman of the political science department at the University of Louisiana at Lafayette. "But I don't think Louisiana's Republicans will pay a political price.
"By and large, the constituencies for Louisiana's Republican delegation expect them to move to cut federal spending aggressively, even if it means less money for the state from federal largesse."
Louisiana's federal funding hit a peak in 2006, the year after Hurricanes Katrina and Rita, when the state took in more than $16,000 per person. That was $2,000 per person more than Alaska, the perennial leader in per-capita federal funding.
In 2009, the state received $10,765 in federal aid per resident, ranking it 23rd among the 50 states, continuing a slide from No. 1 in per-capita federal spending in 2006, No. 10 in 2007 and No. 15 in 2008.
Louisiana's ranking should go up in the next year with recent federal capital expenditures for long-stalled Katrina rebuilding projects, such as the Charity Hospital replacement and renovations and replacements of storm-damaged New Orleans city schools. It also could be boosted if Louisiana lawmakers are successful in allowing the Gulf states to get 85 percent of all fines paid by BP for last year's oil spill, a measure the Obama administration supports, at least in concept.
Louisiana Republicans understand the state depends on federal spending more than other states, but say it won't deter them from voting for substantial cuts.
"We must get our country back on track by aggressively pursuing spending cuts in order to achieve a balanced budget, and that means making the tough choices necessary to sustain the American dream for future generations," said Rep. Steve Scalise, R-Jefferson.
Rep. Jeff Landry, R-New Iberia, a member of the 85-member GOP House freshman class, agreed with Scalise, though he said he hopes key state priorities can be retained.
"With each American's share of the national debt at over $45,000, there is no doubt the size and scope of the government must be cut drastically," Landry said. "At the same time, we cannot indiscriminately slash and burn the budget; we must target our cuts responsibly. We must invest in coastal restoration, flood protection and sound infrastructure along our coast. These services benefit not only job providers, but the entire nation with affordable, domestic energy."
Landry said Louisiana can offset the budget cuts by moving more quickly to receive a "fair share" of federal offshore oil and gas royalties, though that would have the affect of reducing federal revenue and thereby adding to the national deficit.
Under the 2006 energy bill written in part by Sen. Mary Landrieu, D-La., Louisiana is scheduled to get 37.5 percent of offshore royalty payments for oil and gas development off its coast, but not until 2017.
While Republicans have supported across-the-board cuts, Landrieu and the state's only other congressional Democrat, freshman Rep. Cedric Richmond of New Orleans, say budget cuts shouldn't disproportionately hurt poorer states like Louisiana.
In 2008, the New Orleans metropolitan area, which includes Richmond's district, ranked 18th among the top 100 metro areas in terms of per capita spending.
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Bruce Alpert can be reached at balpert@timespicayune.com or 202.383.7861.