K-12 Tax & Spending Climate: US State Economic Growth Comparison
hat these states have in common is that their decline in federal pandemic transfer payments exceeded their growth in wages and business income. The opposite was true in the fastest-growing states, including Florida (4.7%), Arizona (4.9%), Texas (5%), Utah (5.5%), Colorado (5.8%), South Dakota (5.8%), Montana (6.1%), Idaho (6.5%), North Dakota (7%), and Delaware (8.8%).
In California, wages and salaries increased by $69.4 billion while Covid transfer payments declined $122.4 billion, including $65.7 billion from expiring enhanced unemployment benefits. Every new job that was added in California last year yielded only a $2,700 net increase in personal income since many workers had earned nearly as much unemployed.
Wages and salaries in Illinois rose $32.8 billion last year, but were offset by a $36.2 billion reduction in Covid transfer payments, including $14.2 billion in jobless benefits and $21.3 billion in stimulus payments. In New York, wages and salaries increased by $57 billion, but pandemic handouts declined by $75.7 billion.
