Subsidies to Private Industries Equal 3 Percent of the Missouri State Budget
Yesterday, I highlighted how the state government spends billions in subsidies to private industries in Missouri — $6.476 billion since 1997, to be precise. My colleague Audrey Spalding wonders:
$500 million may be only 0.27 percent of GSP, but how does it compare to Missouri’s budget? If this is all money the state spends, I would think a better comparison would be to the state budget. My guess is that’s a higher percentage…
Her suspicion is correct. During the period between 2002 and 2008, the amount of subsidies to private industries equals 3 percent of the state government’s total expenditures on governmental activities.
| Year | Total Subsidies | Total Expenses — Governmental Activities |
Percentage |
| 2002 | $409,000,000 | $17,690,103,000 | 2.31% |
| 2003 | $610,000,000 | $17,436,504,000 | 3.50% |
| 2004 | $559,000,000 | $18,594,078,000 | 3.01% |
| 2005 | $755,000,000 | $19,626,984,000 | 3.85% |
| 2006 | $590,000,000 | $19,669,008,000 | 3.00% |
| 2007 | $534,000,000 | $19,711,347,000 | 2.71% |
| 2008 | $557,000,000 | $20,901,172,000 | 2.66% |
| Sum | $4,014,000,000 | $133,629,196,000 | 3.00% |
The subsidy data come from the Gross Domestic Product by State data from the Bureau of Economic Analysis (BEA). The total expenses for government activities data come from the Comprehensive Annual Financial Reports from the Missouri Office of Administration.
Another commenter requests a breakdown of this data to understand where these subsidies go. Here it is:
| From 1997 to 2008 | ||
| Industry | Amount (In Millions) |
Percentage |
| Agriculture, forestry, fishing, and hunting | $3,437 | |
| Crop and animal production (Farms) | $3,437 | 100% |
| Forestry, fishing, and related activities | $0 | 0% |
| Finance and insurance | $7 | |
| Federal Reserve banks, credit intermediation and related services | $7 | 100% |
| Real estate and rental and leasing | $2,602 | |
| Real estate | $2,602 | 100% |
| Rental and leasing services and lessors of intangible assets | $0 | 0% |
| Transportation and warehousing, excluding Postal Service | $429 | |
| Air transportation | $226 | 53% |
| Rail transportation | $165 | 38% |
| Water transportation | $33 | 8% |
| Truck transportation | $5 | 1% |
| Warehousing and storage | $0 | 0% |
| Other transportation and support activities | $0 | 0% |
| Pipeline transportation | $0 | 0% |
| Transit and ground passenger transportation | $0 | 0% |
