Random Samplings

The Funding of our State and Local Governments

Written by: Lisa M. Blumerman and Jeffrey L. Barnett, Governments Division, US Census Bureau

These days the health of our state and local governments is a topic that is much debated. Are our state and local governments solvent? Will they continue to be able to provide the services we expect and depend on?  Will our state and local governments be the next housing crisis? Or is the reality somewhere in between?

The U.S. Census Bureau’s 2009 Annual Surveys of State and Local Government Finances provide a look at the revenues, assets, expenditures, and debt of our nation’s governments.  These data help us better understand the fiscal health of our governments and allow us to begin to answer the questions above.

In order to understand the health of our governments, we must first understand how they are funded – or where the revenue comes from. Once that foundation is built, we can then understand how they spend our money. (See figure: Revenue of State and Local Governments: 2009).

State and local government revenues declined 22.1 percent from 2008 to receipts of $2.1 trillion in 2009. The general revenue funds of state and local governments totaled $2.4 trillion in 2009. As shown in the figure above, the major components of general revenue for state and local governments in 2009 were taxes (52.7 percent), federal support (22.2 percent) and charges (16.1 percent).

Taxes are the principal source of general revenue for our governments comprising 47.8 percent of general revenue for state governments and 39.5 percent of general revenue for local governments in 2009. Overall, tax revenue declined by 4.5 percent for all governments to

$1.3 trillion in 2009. This decline was driven by declines in receipt of monies from individual income and corporate taxes (11.3 and 19.2 percent, respectively). 

State and local governments differ in their dependence on federal funding for their support. In 2009, state governments received 31.8 percent of their general revenue from the federal government; whereas, local governments received 4.3 percent of their general revenue directly as federal support.  [Note, local governments receive a considerable amount of funding as “pass-through” funding from their state government. This funding originated at the federal level but because it “passes through” the state it is accounted for as state revenue in our data.]

The rest of the funding of our state and local governments comes from a variety of sources (as shown above), including current charges, utility revenue, liquor store revenue and insurance trust revenue. Typically, at the state level, insurance trust revenue (or revenue from investments related to state government pension and other trust funds) is the next largest generator of funds. However, this was not the case in 2009. In 2009, current charges was the next largest generator of funds at $161.2 billion. Insurance trust revenue declined in 2009. For both state and local governments, current charges generated $388.8 billion in 2009.

That is the picture of how our state and local governments generate the monies they need to provide us with services. Coming soon, “Your Tax Dollars at Work: How our State and Local Governments Spend our Money.”

These statistics are available for all state and local governments. To understand your governments’ finances for 2009, visit our website. 

Read the press release.

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Public Pensions See Drop in Assets

Written by: Lisa Blumerman, US Census Bureau

Anyone who has a retirement or pension plan knows they have substantial investments in financial markets and that their earnings are very dependent on changes in market performance.

So, what effect did the 2008 market decline have on our public employee retirement systems?

The Census Bureau’s 2009 state and local public retirement systems statistics (July 1, 2008, to June 30, 2009) show that state and local public employee retirement systems lost over $726 billion in public pension assets, following a $176.7 billion drop the year before.

The results of the survey also show that most investment categories — which are all dependent on market strength — showed decreases. Corporate stocks, which comprise one-third of the total cash and investment holdings, saw a 29.8 percent decline, decreasing from $1.2 trillion to $808.9 billion.

The only categories showing increases were cash and short-term investments, mortgages, and real property, which all together only comprised 9.1 percent of all cash and investment holdings.

In short, the market decline of 2008 had a large impact on our government retirement systems. We will have to stay tuned to results from future surveys to see if the health of our state and local retirement systems recovers from the impact made in 2008.

Read the press release

Explore more information on state and local retirement systems

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American Community Survey Takes Our Nation’s Demographic Pulse Each Year

Written by: James Treat, US Census Bureau

In every census between 1940 and 2000, millions of American households received a “long form”, which contained scores of questions on a wide range of demographic, socioeconomic and housing topics.

Following the 2000 Census, the long form was, in effect, split off from the census and turned into the American Community Survey. The rationale was simple: because our nation changes so rapidly, our communities needed this kind of information on a much more frequent basis − annually, rather than once a decade − in order to make informed decisions about where to build roads, construct schools and locate emergency services. And businesses sought these key data much more often than once every 10 years too for the purposes of site selection and marketing.

Yesterday, the Census Bureau released results from the annual ACS, which cover 2010. The information was collected from almost 2 million housing unit interviews across the country.

The survey offers statistics on more than 40 subjects, such as income, health insurance coverage, commuting to work, educational attainment, language spoken at home, ancestry, selected monthly homeowner costs, the foreign-born population, occupation, and military veterans. The numbers are available for not only the nation as a whole and all of our states and congressional districts, but also for counties and cities with total populations of more than 65,000. Statistics for smaller areas will be available later in the year.

Dig deep into this goldmine of numbers and here are a few of the nuggets you will find:

• Average travel time to work was highest for Maryland (31.8 minutes) and then New York (31.3 minutes). North Dakota had the lowest average travel times (16.1) followed by South Dakota (16.8).
• Real median household income decreased between the 2009 ACS and 2010 ACS in 35 states. For 15 states and the District of Columbia, real median household income in the 2010 ACS was not statistically different from that in the 2009 ACS.
• In 2010, 32 percent of the foreign-born population from Latin America were naturalized citizens. Among counties of birth, Jamaica (61 percent) and Cuba (56 percent) had the highest percent naturalized. Mexico (23 percent) and Honduras (21 percent) were among the countries with the lowest percent naturalized.
• In 2010, the percent of individuals 25 and older with at least a bachelor’s degree ranged from 17.5 percent in West Virginia to 39.0 percent in Massachusetts. In six states more than one-third of those 25 and over had a bachelor’s degree: Colorado, Connecticut, Maryland, Massachusetts, New Jersey, and Virginia.

In October, the Census Bureau will release a set of ACS estimates covering all areas with populations of 20,000 or more, based on data collected between 2008 and 2010. A third set of ACS estimates, covering the 2006-2010 period, will be released in December, providing information for all geographic areas regardless of size.

Nowhere else will one see data on such a wide array of key attributes about our communities. To dig into the data yourself, visit the American FactFinder.

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End of Recession Doesn’t Mean Good Times Return Right Away

Written by: David Johnson, US Census Bureau

An economic recession is typically defined by the National Bureau of Economic Research as a decline in the gross domestic product for two or more consecutive calendar quarters. The last recession began in December 2007 and ended in June 2009.

Numbers just released by the Census Bureau, however, illustrate that while the recession may technically be over, household economic conditions did not improve.

Every year, the Census Bureau collects data on how much income households receive. The year 2010 is the first full calendar year after the latest recession and the first chance we have to see whether, based on income, economic conditions have improved since the recession’s end.

The answer is “no.” During the 2010 calendar year, median household income was $49,445, 2.3 percent lower than in 2009 after adjusting for inflation. Median indicates half of households had income more than this amount and half less. The total household income indicates the amount of money everyone 15 and older living in the household collectively brought in that year.

More often than not in recent history, the end of a recession has not immediately led to rising income levels. There have been seven recessions since 1969. In four of them, including the last one, median household income actually declined in the first full year after the recession. On two other occasions, the change was not statistically significant. Only once did it actually increase.

Over the years, researchers and analysts have used these annual income estimates to chart the effectiveness of government programs, gauge the economic well-being of the country, develop marketing strategies for business and assess the impact of changing demographic patterns. These numbers are considered the most timely and accurate national data on income.

Respondents in our surveys may feel uneasy giving information on personal subjects like income. However, this is how the nation determines our economic health – through analyzing the responses of households across America. Furthermore, there is no need to worry. All Census Bureau employees take an oath and are sworn for life not to share any personal data with anyone.

To access all of our income data, visit our website.

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Characteristics of New Housing

What did new housing look like in 2010? How large was the average new house? How many bedrooms did new homes have? What was the average cost of a new single family home?

Every year, the U.S. Census Bureau collects data on the characteristics of new residential construction. Here is just some of the information that may be found in the hundreds of tables presented in 2010 Characteristics of New Housing, which is sponsored by the U.S. Department of Housing and Urban Development.

Interesting Facts:

- The average single family house completed was 2,392 square feet.

- 35% of single family homes completed had 4 or more bedrooms. 52% of them had 3 bedrooms.

- The average sales price of new single family homes sold in the United States was $272,900. Average prices by Census Region were: Northeast $415,800; Midwest $232,800; South $244,900; and West $316,600.

- 17% of new single family homes sold had a garage that could hold 3 or more cars.

- 62% of multifamily units completed used electricity for heating fuel, while 35% used gas.

- The average square footage of multifamily units completed and built for sale was 1,388.

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Pool of Nonemployer Firms Continues to Shrink

Written by: William G. Bostic Jr., Associate Director for Economic Programs

Firms that do not have paid employees (businesses ranging from small "mom and pop" corner stores to independent contractors to Internet-based mail order houses) have continued to suffer through the troubled economic times felt since 2008. In 2009, the number of nonemployer firms fell to 21.1 million, down 260,000 from 2008 and down more than 600,000 since 2007.

These statistics are from Nonemployer Statistics: 2009, a report released by the U.S. Census Bureau today, and are the only source of information available on the number of nonemployer firms and receipts at the local level. Such firms comprise the majority of U.S. businesses but account for only about 4 percent of total U.S. business receipts. Many of these firms represent self-employed individuals whose earnings are not necessarily their primary source of income.

Although most states experienced an overall decline, three states and the District of Columbia actually gained nonemployer firms between 2008 and 2009. Texas led the way, adding 8,260, followed by Georgia and Louisiana. On the other hand, New York lost nearly 24,000 firms, more than any other state, with Pennsylvania, California and Minnesota also losing many firms.

Across the nation, most industries experienced declines in nonemployer businesses and receipts. Among the few bright spots were the personal care services industry (such as barber shops and beauty salons) and child day care services, which added 72,000 and 27,000 businesses respectively.

These statistics are available at the national, state, county and metropolitan area levels. To see how nonemployer businesses fared in your local area, click here.

Nonemployer Statistics data exclude businesses with paid employees; statistics on employer businesses are covered in 2009 County Business Patterns, which was released at the end of June.

Read the press release.

View the detailed tables.

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U.S. Businesses Continue to Show Sharp Declines

Written by: William G. Bostic Jr., US Census Bureau

For most, it would not come as a surprise to learn that the last couple of years have been a time of economic hardship for our nation. Headlines have depicted a troubling job market and communities have faced the reality of deep budget cuts.

Statistics released recently from the Census Bureau’s County Business Patterns reveal a loss of 168,000 businesses between 2008 and 2009 and a decrease of 6 million employees.

This is the only complete source of annual county-level statistics for U.S. business establishments with industry detail. Most of the nation’s economic activity is covered by these statistics, and they are very useful for examining economic change over time.

These losses were universal among states; all states saw decline in employer businesses in 2009, and only Alaska and the District of Columbia gained employees between 2008 and 2009.

Additionally, the statistics presented in County Business Patterns show how each industry sector fared between 2008 and 2009. As another indicator of current economic hardships, 16 of 19 sectors showed declines, led by construction with a 7.8 percent decline in the number of establishments and a 15.3 percent decline in the number of employees.

These detailed statistics are provided at the national, state and county levels. To get a look at the business activity in your county, click here.

These statistics do not include figures for self-employed individuals, employees of private households, railroad employees, agricultural production employees and most government employees.

Watch our archived live video chat with Census Bureau statisticians.

To learn more, visit the Census Bureau Newsroom.

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Visualizing Foreign Trade Data

Recently, the U.S. Census Bureau added interactive graphs to the U.S. international trade data released each month. For example, these two graphs help you better understand international trade in petroleum.

The first graph shows the effect of prices on petroleum imports. The orange line shows the “nominal value” of petroleum imports for the month. The blue line shows the “real dollar” value, adjusted for 2005 prices. While the nominal value has a range of over $40 billion, the real dollar value range is less than $8 billion. To see the values for a month, just hover over the data point. (Visit the Foreign Trade website to interact with the graph). You can also turn either data series on-and-off by clicking it in the ledger.

You may have already heard of the U.S.’s significant imports of petroleum, but are you aware of the role petroleum plays in the U.S. trade deficit? Since 2006, petroleum has accounted for between 32% and 65% of the U.S. trade deficit in a given month. This interactive graph shows petroleum as a percent of the U.S. deficit for each month. You can hover over a data point to see the exact figure for that month.

All of the graphs we’ve added so far can be found here. We plan to add many more interactive graphs in the coming weeks and months. If there are any suggestions for data series you’d like to see included, please leave a comment below.

For more information on the U.S. Census Bureau’s Foreign Trade division, click here.

To read the Foreign Trade blog, click here.

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The Fruit of the Sea

By: Terri

The 1994 classic "Forrest Gump" taught you all the different ways to cook shrimp. USA Trade Online, on the other hand can provide detailed U.S. shrimp trade statistics. For example, did you know that from 2005 through 2009, Louisiana had consistently ranked in the top 5 states exporting frozen shrimp by dollar value, averaging $5.5 million each year?

Or that over that same period, Florida moved from #3 to #1 in value of frozen shrimp exports with a 95% growth rate and an annual average of $9.6 million each year?

You can also use USA Trade Online to demonstrate the impact of current events on the trade of a geographic region. In the aftermath of the 2010 oil spill, exports of frozen shrimp from the gulf sharply decreased. Louisiana frozen shrimp exports dropped 75% from April to June 2010, while Florida exports dropped 16%.

Download Data Shrimp Exports

Despite those losses, both markets have rebounded and shrimp exports are back to pre-oil spill levels. You can continue to track the recovery progress at USA Trade Online.

In the meantime ..."there's shrimp Creole, shrimp gumbo, pan fried, deep fried, stir fried..." and many more delicious choices for the proclaimed "Fruit of the Sea"!

This blog was re-posted from the Census Bureau's Global Reach blog.

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State Pensions Suffer Huge Loss

With 3.8 million Americans employed by state governments, the welfare of the state retirement systems is a valid concern, especially given the systems’ dependence on market strength. Because of these concerns, many state governments are asking hard questions about the conditions of their state pensions or making difficult decisions to ensure longevity.

According to new data released today, state retirement systems’ assets fell $641.3 billion in 2009, a big drop even by 2008 standards when retirement systems saw losses of $152 billion.

Most of the losses in 2009 were because of a $485 billion decrease in earnings on investments, following a loss of $440 million the previous year.

Total contributions to retirement systems were $65 billion. Employee contributions increased 5 percent to $33 billion.

In these times when state and local governments are facing severe budgetary hardships, having good data year to year to understand the changes taking place is more important than ever. The 2009 Annual Survey of Public-Employee Retirement Systems provides this valuable information. It reports annual financial activity for the nation’s 222 state administered public employee retirement systems, including cash and security investments holdings, securities, receipts and payments.

For the first time the Census Bureau is releasing actuarial liability data, which projects the total obligation to cover costs for providing pensions to former and present employees.

Visit our website for more information on state retirement systems.

View detailed tables.

Read the press release.

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