Category Archives: Economics

Spending in the States

The National Association of State Budget Officers publishes spending data for the states. In this interactive visualization, I present the data in a graphical and flexible format.

Data for each state is subdivided by fund (see below for definitions). Data through 2015 is actual, while data for fiscal year 2016 is estimated. The figures for the state “United States” were computed by summing the spending in all states, then dividing by the U.S. population. These figures are not adjusted for inflation.

Of note is the tab comparing spending in states that have an income tax vs. those that have no income tax.

Click here to access the visualization.

Example from the visualization. Click for larger.
Example from the visualization. Click for larger.

From NASBO, definitions of the funds.

General Fund: The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state.

Federal Funds: Funds received directly from the federal government.

Other State Funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other State Funds” column. For higher education, other state funds can include tuition and fees. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds.

Bonds: Expenditures from the sale of bonds, generally for capital projects.

State Funds: General funds plus other state fund spending, excluding state spending from bonds.

Kansas benefits from foreign trade

The Kansas economy benefits greatly from foreign trade, and we should oppose restrictions on trade.

Bryan Riley of Heritage Foundation has contributed an extensive analysis of the benefits foreign trade brings to Kansas. Riley is Jay Van Andel Senior Policy Analyst in Trade Policy at Center for Trade and Economics (CTE).

Riley notes three ways that foreign trade benefits Kansas:

  • Imports provide competitive products for Kansas consumers and manufacturers.
  • Exports benefit Kansas farmers and aerospace workers.
  • Foreign investment supports thousands of Kansas jobs.

He recommends: “The state’s congressional delegation can best advance the interests of Kansans by opposing protectionist policies and working to remove barriers to international trade and investment.” Specifically:

These benefits are threatened by U.S. trade barriers that protect politically well-connected companies from competition while driving up prices and threatening jobs in Kansas industries reliant on international trade.

The state’s congressional delegation can best advance the interests of Kansans by opposing protectionist policies and working to remove barriers to international trade and investment.

The danger to Kansas, and to the entire country, is that President-Elect Donald J. Trump campaigned on a platform of renegotiating trade agreements and imposing high tariffs if favorable agreements were not obtained. This is the opposite of free trade.

Concluding, Riley projects a bright future for Kansas — if trade increases:

Kansas is positioned to prosper from continued growth in trade with the rest of the world as trade barriers are reduced. Physical barriers, such as the limits imposed by canals and ports unable to handle modern cargo ships, and governmental barriers, like limits on shipping and the use of imported inputs, are falling across the globe. The state’s congressional delegation should take the lead in making sure that government-constructed impediments to trade and prosperity fall as well.

Riley’s paper at Heritage is Trade and Prosperity in the States: The Case of Kansas. He also appeared on WichitaLiberty.TV earlier this year to discuss trade and its importance. See WichitaLiberty.TV: Heritage Foundation’s Bryan Riley on free trade.

Airport traffic statistics

Airport traffic data presented in an interactive visualization.

Example from the visualization, showing Wichita compared to all airports. Click for larger.
Example from the visualization, showing Wichita compared to all airports. Click for larger.
The source of this data is TranStats, a service of the Bureau of Transportation Statistics, specifically table T-100 Domestic Segment (U.S. Carriers). TranStats describes the table: “This table contains domestic non-stop segment data reported by U.S. air carriers, including carrier, origin, destination, aircraft type and service class for transported passengers, freight and mail, available capacity, scheduled departures, departures performed, aircraft hours, and load factor when both origin and destination airports are located within the boundaries of the United States and its territories.”

This data is produced monthly, but this visualization holds data only through the complete year 2015. Visualization created by the author using Tableau Public.

Click here to access the visualization.

Personal income in the states

An interactive visualization of personal income growth and change in the states.

The Bureau of Economic Analysis, an agency of the United States Department of Commerce, collects and analyses data regarding the U.S. and world economies. One series is personal income, defined by BEA as “Personal income is the income received by, or on behalf of, all persons from all sources: from participation as laborers in production, from owning a home or business, from the ownership of financial assets, and from government and business in the form of transfers. It includes income from domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or losses.”

This interactive visualization presents personal income data from BEA. Data is subdivided by state, along with regions and the entire country. There are four views of data. Some work best with just two or three states, while others can show many states. You may choose a range of dates (this data is quarterly). Also, select one or more states or regions. Click on the legend to highlight one or more series.

Click here to use the visualization.

Example from the visualization, showing Kansas and the United States. Click for larger.
Example from the visualization, showing Kansas and the United States. Click for larger.

Wichita MSA employment

An interactive visualization of Wichita-area employment by industry.

The Bureau of Labor Statistics, part of the United States Department of Labor, makes monthly employment statistics available. I’ve gathered them for the Wichita metropolitan area and present them in an interactive visualization.

This data comes from the Current Employment Statistics, which is a monthly survey of employers.1

The three tabs along the top of the visualization represent three different views of the data; one table and two charts. Employment figures are in thousands. All series except one are not seasonally adjusted.

Click here to access the visualization. The visualization was created by myself using Tableau Public.

Example from the visualization and instructions. Click for larger.
Example from the visualization and instructions. Click for larger.


Notes

  1. Bureau of Labor Statistics. Current Employment Statistics data and their contributions as key economic indicators. www.bls.gov/opub/mlr/2016/article/current-employment-statistics-data-and-their-contributions-as-key-economic-indicators.htm.

Kansas, a frugal state?

Is Kansas a frugal state, compared to others?

frugal-kansas-on-facebook-2016-10-12-excerptOn Facebook, a person wrote “We were already a frugal state …” (I’ve obscured the name to protect the uninformed.)

Is this true? What is the state and local government spending in Kansas, on a per-person basis? How does it compare to other states?

Every five years the U.S. Census Bureau conducts a census of governments. In its own words: “The Census of Governments identifies the scope and nature of the nation’s state and local government sector; provides authoritative benchmark figures of public finance and public employment; classifies local government organizations, powers, and activities; and measures federal, state, and local fiscal relationships.”1

I’ve gathered data from the 2012 census of governments — which is the most recent — and made it available in an interactive visualization. Nearby is a snapshot from the visualization, showing Kansas and nearby states, and a few others. (Using the visualization, you may select your own set of states to compare.)

In the visualization, you can see that Kansas spends quite a bit more than nearby states. Of special interest is Minnesota, which is often used as an example of a high-tax state, and a state with excellent schools and services. But Minnesota spends barely more than Kansas, on a per-person basis.

What about Colorado? It seems that Kansans often look to Colorado as a state full of bounty. But Kansas outspends Colorado. Same for New Mexico, Wisconsin, Texas, and — especially — Missouri.

So: Is Kansas a frugal state? It doesn’t seem it is.

Click here to access and use the visualization.

State and local government employment and costs, selected states. Click for larger.
State and local government employment and costs, selected states. Click for larger.


Notes

  1. U.S. Census Bureau. Census of Governments. Available at www.census.gov/govs/cog/.

GDP by state and component

An interactive visualization of gross domestic product by state and industry.

The Bureau of Economic Analysis, a unit of the U.S. Department of Commerce, gathers data about economic output, known as gross domestic product. The visualization presented here presents this data in tabular and graphic form.

The GDP figures are real, meaning adjusted for inflation. They are annual numbers through 2015.

BEA industry classification, showing subtotal and total classifications
BEA industry classification, showing subtotal and total classifications
As illustrated below, the visualization has three tabs, meaning three different views of data. By using the controls at the right of the visualization, you may select one or more states, and one or more industries. By clicking on entries in the legend, you may highlight one or more series. (Use Ctrl+click to select more than one.)

As indicated in the nearby table, some of the “industries” are actually subtotals of several industry components. The industry “All industry total” is the total GDP of all industries.

Source of data is Bureau of Economic Analysis, an agency of the United States Department of Commerce. Click here to access this visualization.

GDP by state and components. Click for larger.
GDP by state and components. Click for larger.

Populations of the states

An interactive table and charts of populations in the states and regions, starting in 1929.

How have the states grown in population since 1929? Growth varies greatly.

In the accompanying visualization, one chart of the growth of population uses a logarithmic scale. This better shows a wide range of values. On this scale, negative values can’t be shown. The example shown in this article highlights Kansas against the other states.

Click here to access this visualization.

Source of data is Bureau of Economic Analysis, an agency of the United States Department of Commerce.

Population growth in the states, Kansas highlighted, using logarithmic scale. Click for larger.
Population growth in the states, Kansas highlighted, using logarithmic scale. Click for larger.

GDP by metropolitan area and component

An interactive visualization of gross domestic product by metro area and industry.

The Bureau of Economic Analysis, a unit of the U.S. Department of Commerce, gathers data about economic output, known as gross domestic product. The visualization presented here presents this data in tabular and graphic form.

The GDP figures are real, meaning adjusted for inflation. They are annual numbers through 2015.

BEA industry classification, showing subtotal and total classifications
BEA industry classification, showing subtotal and total classifications
As illustrated below, the visualization has three tabs, meaning three different views of data. By using the controls at the right of the visualization, you may select one or more metropolitan areas, and one or more industries. By clicking on entries in the legend, you may highlight one or more series. (Use Ctrl+click to select more than one.)

As indicated in the nearby table, some of the “industries” are actually subtotals of several industry components. The industry “All industry total” is the total GDP of all industries.

Source of data is Bureau of Economic Analysis, an agency of the United States Department of Commerce.

Click here to access this visualization.

Example from the visualization. Click for larger.
Example from the visualization. Click for larger.

From Pachyderm: Westar Energy

Voice for Liberty radio logo square 02 155x116From the Wichita Pachyderm Club: Don Sherman, Vice President Community Relations and Strategic Partners with Westar Energy introduced Jeff Beasley, Vice President of Customer Care with Westar for an informative presentation titled, “An overview of Westar Energy — Solar, Conservation, Community.”

This was recorded August 12, 2016. Click here for the audio presentation. Click here for the slides.

State of the States, 2016

What did the nation’s governors tell their constituents this year?

American Legislative Exchange Council (ALEC) has examined the “State of the State” addresses delivered this year by state governors. Its report State of the States 2016 analyzes each for proposals that will affect economic competitiveness.

The good news, according to the report? “The majority of governors seem to understand that lower tax rates and limited government give citizens and businesses a greater incentive to reside and operate in their states compared to others with higher tax rates and more regulations.”

But some states received bad news. Louisiana Governor John Bel Edwards told his state: “So, if you insist on saying that I never said I would raise taxes — that I’m going back on my word — that’s fine. Say it. Get it out of your system, and then please come back here ready to work with me to do the job we were all hired to do.”

In Minnesota — which has a budget surplus — Governor Mark Dayton told his constituents, “They say, ‘give it all back’ to the taxpayers. But that slogan is based upon a wrong premise and a wrong conclusion.”

Kansas wasn’t highlighted in this report, as Governor Brownback’s State of the State address contained little regarding economic policy.

The report is available at no charge from ALEC at State of the States 2016.

Free trade is important, but may be in peril

Robert E. Litan, a lawyer and economist and adjunct senior fellow at the Council on Foreign Relations spoke on “The Future of Trade Policy” before a luncheon at the Wichita Pachyderm Club August 5, 2016. Litan explained the importance of free trade and examined the trade policies of presidential candidates. View below, or click here to view at YouTube.

Value of of money varies by state

From the Tax Foundation, the value of $100 by state. Click to visit the study.
From the Tax Foundation, the value of $100 by state. Click to visit the study.
Based on data from the Bureau of Economic Analysis, the Tax Foundation has produced a map showing how the value of a dollar varies among the states. This difference is due to the relative price levels found in states. Kansas ranks fourteenth highest, with a benchmark $100 being worth $110.25.

To find more about the study and your state, click here.

State and local government employee and payroll

Considering all state and local government employees in proportion to population, Kansas has many, compared to other states, and especially so in education.

State and Local Government Employee and Payroll. Click for larger.
State and Local Government Employee and Payroll. Click for larger.
When considering all state and local government employees, Kansas spent $249.73 per person on payroll (March only).1 This was 15th highest among the states, District of Columbia, and nation as a whole. There were 14.9 citizens for each FTE (full-time equivalent employee), which ranks fourth highest.

In other words, Kansas has many government employees compared to other states, and these employees are costly, again compared to other states.

When considering all elementary and secondary education employees, Kansas spent $93.36 per person on payroll (March only). This was 15th highest among the states, District of Columbia, and nation as a whole. There were 33.8 citizens for each FTE (full-time equivalent employee), which ranks third highest.

In other words, Kansas has many elementary and secondary education employees compared to other states, and these employees are costly, again compared to other states.

Similar results are found for higher education employees. Fortunately, Kansas has zero employees working in state-owned liquor stores.

In the visualization you may create your own tables. Click here to access the visualization. Source of data is U.S. Census Bureau.2 Visualization created using http://www.census.gov/govs/apes/.


Notes

  1. For total payroll (both full-time and part-time employees), the Census Bureau reports a value for a single month, that being March.
  2. U.S. Census Bureau. 2014 Annual Survey of Public Employment and Payroll. www.census.gov/govs/apes/.

State and local direct general expenditures

State and Local Direct General Expenditures, Per Capita, Kansas highlighted.
State and Local Direct General Expenditures, Per Capita, Kansas highlighted.
An interactive visualization of state and local direct general expenditures, per capita. Click here to open the visualization.

Data is from State & Local Government Finance Data Query System. Available here. The Urban Institute-Brookings Institution Tax Policy Center. Data from U.S. Census Bureau, Annual Survey of State and Local Government Finances, Government Finances, Volume 4, and Census of Governments (1977-2013). Date of Access: (20-Jun-2016).

GDP by state and industry

An interactive visualization of gross domestic product by state and industry.

The Bureau of Economic Analysis, an agency of the United States Department of Commerce, has released Gross Domestic Product figures for the year 2015. I’ve gathered this data and present in it an interactive visualization using Tableau Public. This data is grouped by states and regions, and also by major categories of industry.

Source of data is Bureau of Economic Analysis, Regional Economic Accounts. Values are in current dollars.

Of note: The list of industries is not exclusive. That is, some categories such as “All industry total” and “Private industries” contain other categories. Use caution when selecting multiple categories.

Click here to access the visualization.

GDP by State and Industry example 2016-06

GDP by state and industry

An interactive visualization of gross domestic product by state and industry from the Bureau of Economic Analysis.

Composition of GDP by State, Kansas and U.S. Click for larger version.
Composition of GDP by State, Kansas and U.S. Click for larger version.
The Bureau of Economic Analysis is an agency of the United States Department of Commerce. BEA describes its role as “Along with the Census Bureau, BEA is part of the Department’s Economics and Statistics Administration. BEA produces economic accounts statistics that enable government and business decision-makers, researchers, and the American public to follow and understand the performance of the Nation’s economy. To do this, BEA collects source data, conducts research and analysis, develops and implements estimation methodologies, and disseminates statistics to the public.”

A relatively new series of data produced by BEA is gross domestic product (GDP) by state for 21 industry sectors on a quarterly basis. BEA defines GDP as “the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production.” It is the value of the final goods and services produced.

In describing this data, BEA says “These new data provide timely information on how specific industries contribute to accelerations, decelerations, and turning points in economic growth at the state level, including key information about the impact of differences in industry composition across states.” This data series starts in 2005.

I’ve gathered the data for this series for all states and present it in an interactive visualization using Tableau Public. I present the series in real dollars, meaning that BEA adjusted the numbers to account for changes in the price level, or inflation.

Click here to open the visualization.

Growth of gross domestic product of manufacturing for Kansas and the United States, illustrating volatility in Kansas. Click for larger.
Growth of gross domestic product of manufacturing for Kansas and the United States, illustrating volatility in Kansas. Click for larger.

Economic indicators in the states

During this century the Kansas economy has not kept up with the national economy and most neighboring states.

The Federal Reserve Bank of Philadelphia calculates two indexes that track and forecast economic activity in the states and the country as a whole.

Economic Indicators in the States ExampleThe coincident index is a measure of current and past economic activity for each state. This index includes four indicators: nonfarm payroll employment, the unemployment rate, average hours worked in manufacturing, and wage and salary disbursements deflated by the consumer price index (U.S. city average). July 1992 is given the value 100. 1

The leading index predicts the six-month growth rate of the state’s coincident index. In addition to the coincident index, “the models include other variables that lead the economy: state-level housing permits (1 to 4 units), state initial unemployment insurance claims, delivery times from the Institute for Supply Management (ISM) manufacturing survey, and the interest rate spread between the 10-year Treasury bond and the 3-month Treasury bill.” 2

Positive values mean the coincident index is expected to rise in the future six months, while negative values mean it is expected to fall.

I’ve created an interactive visualization of these two indexes. Examples appear nearby. Click here to open the visualization in a new window.

  1. Federal Reserve Bank of Philadelphia. State Coincident Indexes – a monthly coincident index for each of the 50 states. Philadelphiafed.org. Available at www.philadelphiafed.org/research-and-data/regional-economy/indexes/coincident.
  2. Federal Reserve Bank of Philadelphia. State Leading Indexes – current & future economic situation of 50 states with special coverage of Pennsylvania, New Jersey, & Delaware. Philadelphiafed.org. Available at www.philadelphiafed.org/research-and-data/regional-economy/indexes/leading.

Tax collections by the states

An interactive visualization of tax collections by state governments.

Each year the United States Census Bureau collects data from the states regarding tax collections in various categories. I present this data starting in 1993, in an interactive visualization.

The values are for tax collections by the state only, not local governmental entities like cities, counties, townships, improvement districts, cemetery districts, library districts, drainage districts, watershed districts, and school districts.

Of particular interest is the “State Total” tab. Here you can select a number of states and compare their tax burdens. (Probably three or four states at a time is the practical limit.)

Data is as collected from the United States Census Bureau, Annual Survey of State Government Tax Collections, and not adjusted for inflation. Visualization created using Tableau Public. Click here to access the visualization.

Using the visualization. Click for larger.
Using the visualization. Click for larger.

Spending in the states, per capita

An interactive visualization of per-capita spending in the states, by fund.

Is your state a big spender? Or is it frugal with your tax money? To see how your state compares with others in spending, use the interactive visualization below. The figures presented are per-person, and not adjusted for inflation.

The example appearing below shows general fund spending for Kansas and some surrounding states.

The visualization contains several views that present the data in different ways. Click here to open the visualization in a new window. Data is from National Association of State Budget Officers and U.S. Bureau of Economic Analysis (BEA); visualization created by myself using Tableau Public.

General fund spending per capita in Kansas and surrounding states. Click for larger.
General fund spending per capita in Kansas and surrounding states. Click for larger.