The States Doling Out the Best (and Worst) Benefits

The States Doling Out the Best Benefits

10. Minnesota
> Average pension benefits: $16,650 (15th lowest)
> Total per pupil spending: $10,685 (21st highest)
> Medicaid payments per enrollee: $8,206 (6th highest)
> Pct. of weekly wages covered by unemployment benefits: 38.4% (tied for 14th highest)
> No. of months of TANF received: 40.9 (12th highest)
> Avg. TANF cash assistance per month: $350 (23rd highest)

The median household income in Minnesota in 2011 was $56,954, the 11th highest in the U.S. and significantly greater than the national figure of $50,502. Meanwhile, the cost of living in the state was cheaper than 35 other states. Only 8.8% of the population went without health insurance, the fourth-lowest proportion of all states. Medicaid payments per beneficiary were $8,206 in 2009, the sixth-highest of all states. Minnesota’s record of public education spending is somewhat strong, too. Although Minnesota spent only the 21st highest amount of all states per pupil in fiscal 2010, it spent among the lowest amounts on different support services, meaning that more education money was spent directly on the students.

9. New Jersey
> Average pension benefits: $17,467 (16th lowest)
> Total per pupil spending: $16,841 (2nd highest)
> Medicaid payments per enrollee: $8,268 (5th highest)
> Pct. of weekly wages covered by unemployment benefits: 35.4% (24th lowest)
> No. of months of TANF received: 38.7 (14th highest)
> Avg. TANF cash assistance per month: $318 (24th lowest)

In 2009, New Jersey spent the fifth-highest amount per enrollee on Medicaid, at $8,268. This was also well above the national rate of $5,527. In addition to its high spending on health, New Jersey also spent the nation’s second-highest amount on education, at $16,841 in 2010. But because these services are quite costly, in 2010 the state had the nation’s second-highest state and local tax burden. Governor Chris Christie has spent much of his tenure championing education reform and in August passed a law allowing school districts to more easily fire ineffective teachers, even if they are tenured.

Also Read: States with the Highest (and Lowest) Taxes

8. Connecticut
> Average pension benefits: $30,247 (4th highest)
> Total per pupil spending: $14,906 (6th highest)
> Medicaid payments per enrollee: $9,577 (the highest)
> Pct. of weekly wages covered by unemployment benefits: 28.2% (8th lowest)
> No. of months of TANF received: 26.0 (14th lowest)
> Avg. TANF cash assistance per month: $445 (12th highest)

Connecticut has been a top spender in a number of different programs in recent years. In 2010, the state was the sixth-highest spender on education per pupil, while individuals receiving pension benefits from the Connecticut State Employee Retirements System averaged $30,247 in pension benefits — more than all but three other comparable state pension programs. In 2009, Medicaid spending per beneficiary was higher in Connecticut than anywhere else in the U.S. However, such spending often comes with a price. In October, state Comptroller Kevin Lembo issued a statement projecting the state would face a budget deficit next year. He noted “our deficit projection is driven by the spending side, where the rising Medicaid caseload continues to grow and will likely run $100 million over budget.”

7. Maine
> Average pension benefits: $19,366 (23rd highest)
> Total per pupil spending: $12,259 (13th highest)
> Medicaid payments per enrollee: $6,895 (13th highest)
> Pct. of weekly wages covered by unemployment benefits: 38.4% (tied for 14th highest)
> No. of months of TANF received: 36.2 (tied-22nd highest)
> Avg. TANF cash assistance per month: $382 (17th highest)

In recent years, Maine has outspent benchmark national figure on numerous services that help spread wealth and resources. In 2009, Medicaid payments per beneficiary in Maine reached nearly $6,900 versus just $5,527 nationwide. In 2010, the state spent over $1,600 more per pupil on education than the U.S. average. But the state may have trouble outspending other states in the near future. Last year, Maine’s median household income was just over $46,000 — down significantly from $49,868 in 2007, before the housing crisis. Partially due to limited income taxes, the state revised revenue estimates significantly downward in November.

6. Massachusetts
> Average pension benefits: $18,777 (20th lowest)
> Total per pupil spending: $14,350 (7th highest)
> Medicaid payments per enrollee: $7,579 (8th highest)
> Pct. of weekly wages covered by unemployment benefits: 33.6% (20th lowest)
> No. of months of TANF received: 44.3 (7th highest)
> Avg. TANF cash assistance per month: $470 (7th highest)

Few states do more to help disadvantaged residents than Massachusetts. Families eligible for cash assistance from TANF received, on average, $470 for 44.3 months in 2010 — both among the highest figures in the nation. Much of this spending has been questioned recently. In July, in an attempt to combat welfare program fraud, Governor Deval Patrick signed a law banning the use of Electronic Benefit Transfer (EBT) cards in casinos, strip clubs and jewelry stores. The state was also a leading Medicaid provider in 2009, when per enrollee spending was $7,579, one of the nation’s highest. Massachusetts also spent $14,350 per pupil, more than all but six other states.