CLARKSBURG, W.Va. (WBOY) — The COVID-19 pandemic left many states in need of greater aid but one study has found that West Virginia is one of the most federally dependent states in the nation.
WalletHub looked into how federally dependent each state is by examining two dimensions: State Residents’ Dependency and State Government’s Dependency. According to their study, West Virginia is the second most federally dependent state in the U.S., just behind Alaska.
Another noteworthy finding is that West Virginia is also ranked 49 in Gross Domestic Product (per Capita), above Mississippi.
Most Federally Dependent States
| Rank | State | Total Score | State Residents’ Dependency | State Government’s Dependency |
|---|---|---|---|---|
| 1 | Alaska | 83.18 | 3 | 2 |
| 2 | West Virginia | 76.02 | 1 | 9 |
| 3 | Mississippi | 71.31 | 7 | 5 |
| 4 | Kentucky | 70.95 | 5 | 10 |
| 50 | New Jersey | 8.41 | 49 | 49 |
With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the most dependent for that metric category.
Correlation Analysis
To achieve their findings, WalletHub evaluated two key dimensions using three weighted metrics.
“Each metric was graded on a 100-point scale, with a score of 100 representing the highest level of federal dependency. We then determined each state’s weighted average across all metrics to calculate its overall score,” WalletHub said.
The dimensions, and their relevant metrics, are listed below:
State Residents’ Dependency – Total Points: 50
- Return on Taxes Paid to the Federal Government: Triple Weight (~37.50 Points)
Note: This metric was calculated by dividing federal funding in U.S. dollars by IRS collections in U.S. dollars. - Share of Federal Jobs: Full Weight (~12.50 Points)
State Government’s Dependency – Total Points: 50
- Federal Funding as a Share of State Revenue: Full Weight (~50.00 Points)
Note: This metric reflects the proportion of state revenue that comes from the federal government in the form of intergovernmental aid in 2020.
