Factors Affecting States’ Ability to Respond to Federal Medicaid Cuts and Caps: Which States Are Most At Risk?
Issue Brief
KFF analysis of the March 2016 Current Population Survey, Annual Social and Economic Supplement.
KFF estimates based on analysis of data from the FFY 2014 Medicaid Statistical Information System (MSIS) and Urban Institute estimates from CMS-64 reports.
Personal income is the income that is received by persons from all sources. It is calculated as the sum of wage and salary disbursements, supplements to wages and salaries, proprietors' income with inventory valuation and capital consumption adjustments, rental income of persons with capital consumption adjustment, personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance. This measure of income is calculated as the personal income of the residents of a given area divided by the resident population of the area. BEA uses the Census Bureau's annual midyear population estimates. http://www.bea.gov/regional/definitions/nextpage.cfm?key=Per%20capita%20personal%20income%20%28dollars%29.
Items excluded from person income include profits retained for investment purposes by corporations or other business entities and business or commuter income earned in the state by out of state residents, which can be influential in areas with large commuter populations, i.e. New York and New Jersey.
TTR estimates are currently used to allocate funds for the Community Mental Health Services and Substance Abuse Prevention and Treatment block grants.
Total Taxable Resources (TTR) for the District of Columbia was calculated to be over $101,000. However, because the District of Columbia does not have the same legal right as the states to tax certain resources, using the same methodology to derive TTR estimates for the District of Columbia is flawed. http://www.treasury.gov/resource-center/economic-policy/Documents/wpnewm.pdf.
U.S. Census Bureau, 2014 State & Local Government Finance, 2014.