http://www.washingtonexaminer.com/how-much-does-your-state-spend-on-welfare/article/2560160Wyoming spends the smallest portion of its budget on welfare programs, according to fiscal year 2013 data released by the Census Bureau. About 13 percent of Wyoming’s budget goes to welfare, with education getting 30 percent of the budget, and the rest going to other various government functions.
On the other hand, Tennessee spends the highest portion of its budget on welfare, at 36 percent. Tennessee spends slightly less on education with 32 percent of its budget dedicated to schools, and the rest going to other functions, especially highways.
Nationwide, state governments collectively spend $2 trillion, with $520 billion of that going toward welfare programs, or just under 26 percent. Education is the highest category of state government spending, with 30 percent of state government spending nationwide.
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Every state that spends less than one-fifth of its budget on welfare is west of the Mississippi River. Besides that, geographic regions have a wide variance in welfare spending as a portion of state budgets. New York spends 32 percent of its budget on welfare, while neighboring New Jersey spends 22 percent. Florida spends 28 percent of its budget on welfare, while nearby South Carolina spends 21 percent.
The Census Bureau’s definition of state welfare expenditures includes funds received from the federal government and then spent by the states on programs in which eligibility is determined by financial need. For example, spending on Medicaid and food stamps is included. The definition also includes state funds transferred to local governments for welfare programs. However, spending on government hospitals and health agencies fall under separate categories, as do pension payments.