Retirees Get Almost Half of All Federal Cash Going to Oregon

Thursday, December 11, 2014

Joanna Evoniuk, GoLocalPDX Contributor

Almost half of all federal funds in Oregon go towards retirement programs, according to research by the Pew Charitable Trust. Oregon relies more on federal funds for retirement programs than any other state.

Last year Oregon received $32,713 million in federal funds. From that, $14,335 million, or 44 percent, went towards retirement benefits, like Social Security, survivor and disability payments; veteran benefits; and other federal retirement and disability and payments.

Close to a third of total federal fund funding went towards retirement benefit programs accross the nation in 2013. On average, states use around 30 percent of federal money towards retirement. Yet some states, such as Virginia and Alaska spend less than 4 percent in that area.

Oregon put a smaller percentage of its federal dollars into programs like food stamps, transportation, education, and grants. The state used 32 percent of federal funds for other benefits, 14 percent for grants and 7 percent for wages and salaries. Just 3 percent was spent on contracts—ranking Oregon among the third lowest in the nation for federal contract spending.

Although a large portion of federal money is going towards the elderly instead of education or economic development, Joyce DeMonnin, outreach director for Oregon AARP, said state funds are prioritized for education and young adults.

In Oregon’s 2011-2013 budget, 50 percent went towards education and over 26 percent was spent on human services.

Federal Funding in Oregon

Oregon does not receive a great deal federal funds compared to other states. Eric Fruits, economics professor at Portland State University, said this is partly because Oregon has no military bases. Also, Oregon’s population is relatively small—the size of the San Diego metro area—Fruits said.

“People think of Oregon as big and special, put it’s really just an asterisk—one percent of the population,” Fruits said.

The federal government spent over $3 trillion on states last year. States vary on the amount of federal funds that goes towards each program. In the report, Pew said what state activists push for helps determine what funding goes towards diffrent programs.

Oregon Representative Greg Walden’s office said supporting social security is important to him and the future.

“Rep. Waldon would say we need to keep the promise to seniors that we made, who have been waiting all these years for their social security,” Andrew Malcolm, Walden’s communications director, said. “Walden certainly supports plans to strengthen [social security] for the next generation.”

When talking about federal funds, Fruits said it’s important to remember states still have to pay for them through taxes.

“It’s like saying Caviar is on sale—you still have to pay for it,” Fruits said.