Discussion:
Where California's billions of dollars in federal funding is going
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Leroy N. Soetoro
2024-11-27 19:46:38 UTC
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https://www.msn.com/en-us/news/us/where-california-s-billions-of-dollars-
in-federal-funding-is-going/ar-AA1uD7Fr

Federal funding comprises more than one-third of the latest budget in
California, a state where non-partisan analysts recently made dismal
fiscal projections.

After the California Legislative Analyst’s Office predicted the state was
headed toward a staggering $30 billion budget deficit by 2027, lawmakers
on both sides of the aisle voiced support for scrutinizing spending and
trimming the budget.

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California receives more federal funding than any other state. But the
looming budget shortfalls are raising questions about where those dollars
are going.

Federal funding comprised 33.9%, or $152.8 billion, of the state's 2024-25
budget, according to the California Budget and Policy Center. The
majority, or 75% of the funds went to support health and human services
programs. Most of the remaining dollars were allocated to other
“essential” state programs regarding labor and workforce development, K-12
education, higher education, and transportation.

The federal government has sent California $31 billion in one-time aid
since the pandemic hit in 2020, with federal funds accounting for 23% of
K–12 funding in 2020–21 and 11% in 2021–22, according to the Public Policy
Institute of California. The organization noted that the state is still
facing fiscal challenges in education departments.

Besides the state’s K-12 system, top California colleges and universities
also rely heavily on federal funding to spearhead research programs and
financial support for students. For example, the University of California
received nearly $16 billion in aid during the fiscal year 2022-2023.

A vast amount of the federal funds California has received involves COVID-
19 relief packages. The state received more than $43 billion from the
Biden administration’s American Rescue Plan between March 2021 and
December 2024, including $27 billion in state fiscal recovery funds.

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Just under $1 billion went to “address public health impacts” and back
efforts such as vaccine incentives. About $7 billion served as reparations
due to the negative economic impacts of COVID-19 on households and
businesses. Broadband Investments received $2.4 billion while $16.7
billion went to replace lost state revenue.

Big dollars also flowed in from the government after natural disasters.

Gov. Gavin Newsom (D-CA) recently announced that affected residents would
receive $40.7 million in new federal aid to address the devastation the
state saw from wildfires six years ago.

The money comes from the federal grand funding, specifically the 2018
Community Development Block Grant—Disaster Recovery Workforce Development
program, and will be distributed to Butte, Lake, Los Angeles, Shasta, and
Ventura counties, the governor said earlier this month.

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The news California would receive additional disaster relief funding this
month follows over $139 billion in federal dollars it has received to
respond to the wildfires, hurricanes, and other disasters that occurred
between 2017 and 2019. An additional $20.5 billion was doled out to the
state from the FEMA Disaster Relief Fund and the SBA Disaster Loans
account.

The grant aid California received for the 2018 wildfires comes as the
state receives a hefty chunk of federal grant funding every year. During
fiscal year 2021, it received approximately 13% of all federal grant
funding distributed by the U.S. government, per a state analysis.

Federal grant funding to the state that year came from 27 different
federal agencies. At more than $109 billion, the bulk of aid came from the
Department of Health and Human Services.

As a sanctuary state, California has also received millions in FEMA
funding for services for illegal immigrants. The federal agency has spent
$159 million on assisting the individuals since 2023, according to an
analysis by Center Square.

With his state continuing to face a staggering budget crisis, California’s
Democratic governor recently made a trip to Washington, D.C., to petition
the Biden administration for more money, including still more disaster and
health funding.
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Siri Cruise
2024-11-27 20:15:16 UTC
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Post by Leroy N. Soetoro
California receives more federal funding than any other state. But the
looming budget shortfalls are raising questions about where those dollars
are going.
Places like Travis AFB, Camp Pendelton, Edwards AFB, Moffet Field,
et cetera.
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Klaus Schadenfreude
2024-11-27 21:10:41 UTC
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Post by Leroy N. Soetoro
California receives more federal funding than any other state.
More in total, but *not* more per capita.

It is important to distinguish among the various types of federal expenditure.
Some federal expenditure is solely redistributive, such as SNAP, TANF, Medicaid
(MediCal in CA), etc. Redistribution is *not* a legitimate role for government,
but we're stuck with it. But a lot of federal expenditure is for legitimate
government functions. There is a *lot* of defense expenditure in California:
naval bases, air force bases, Camp Pendleton Marine base, etc. (There is even a
"Los Angeles Air Force" base next to L.A. airport, focused on coordination with
aerospace satellite manufacturers.) You can make a case that we spend too much
on "defense," but national defense *is* a legitimate government function, and
the expenditure does not have as its primary goal making defense industry
workers and their local economies thrive.

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