Government Greenbacks Project 2006

When Charles Dunham receives his monthly Social Security check, he's not surprised that it is part of a stream of hundreds of millions of dollars in retirement insurance headed to Greene County.

In the 2004 federal fiscal year, the government issued nearly $280 million in Social Security retirement insurance to county residents.

“I'm surprised that's all it was because we have a lot of elderly people here,” he said.

But Dunham and others might be surprised at the much bigger sum of all federal money that flows into the local economy on an annual basis. In Greene County, it amounted to more than $1.35 billion in fiscal year 2004, the most recent period for which figures are available, according to U.S. Census Bureau data.

(The federal fiscal year starts on Oct. 1 and ends on Sept. 30, and it is identified by the year in which it ends.)

The exact amount of federal spending in Greene County that year was $1,351,428,199, an average of about $5,400 for each of the approximately 250,000 residents of the county.

That federal money makes for some serious economic activity.

In federal FY 2004, the “gross metro product,” or the value of all goods and services produced, totaled $13.5 billion in the Springfield Metropolitan Statistical Area, which comprises Greene, Christian, Dallas, Polk and Webster counties, according to a report prepared by Global Insight Inc. for the U.S. Conference of Mayors.

Federal spending in the MSA was nearly $2 billion, which comparatively speaking is the equivalent of a hefty 15 percent of the gross metro product.

New dollars

The injection of federal dollars on the local level has grown significantly over the past two decades, too, according to government figures. Since 1985, the amount of federal money pumped into the MSA has increased a whopping 247 percent. In the past 10 years, it has grown nearly 71 percent.

In Greene County, federal funding has grown 234 percent since 1985. It has risen 62 percent in the past 10 years, and 31 percent in the past five.

What are the reasons for that phenomenal growth?

Ordinary inflation is part of it. Inflation accounted for 10 percent of the county's funding growth in the past five years, for instance.

While it's hard to get precise answers, local officials point to population growth in the region, which has prompted new programs and increased spending on public goods and services.

In recent years, shrinking state funds have caused local government and economic interests to turn to federal sources for help. In the past five years, Greene County government, Missouri State University and the city of Springfield have employed lobbyists to help get money from Washington.

Greene County, for instance, hired the Washington firm of Fierce, Isakowitz and Blalock about four years ago, which has helped secure about $11 million for projects, some of which are in partnership with the city, state and other local governments, said Jeff Reinold, budget director for the Greene County Commission.

The county's increased attention to the federal government for help is driven by a decline in state money previously used for various services, Reinold said.

Missouri State University received $11 million during the past few years to build the new parking deck at Grand Street and Holland Avenue, which was completed in early January.

In addition, Missouri State obtained $11.8 million in federal money in 2005 for various grants and contracts for research programs, which was a 21 percent increase compared with the year before.

“We've gotten a lot more aggressive in the past three or four years looking for earmarked funds,” said Paul Kincaid, MSU chief of staff and assistant to the president, referring to the money obtained through specially sought congressional appropriations.

Four years ago MSU hired The Livingston Group, a Washington lobbying company, to help it obtain more federal funds, Kincaid added.

An example of recent success is the $27 million carved out for the development of the university's Jordan Valley Innovation Center, which will involve a collaboration of private firms for research, development and production of technology for the defense, security and medical industries.

In the five years that will include the current fiscal year, federal money received by the city of Springfield and the airport has ranged from $8.6 million to $16.7 million and increased nearly every year, according to figures provided by Economic Development Director Mary Lilly Smith.

And that doesn't include other project moneys that overlap with the state department of transportation, City Utilities earmarks and various other recipients, she said.

Convergence of factors

Sandy Howard, public affairs manager at the Springfield Area Chamber of Commerce, said a convergence of better joint planning and advocacy on the part of local entities, more high-dollar projects, such as JVIC, Springfield airport expansion and highway work have resulted in a spurt of recent substantial funding packages out of Washington.

Additionally, the political leadership of two key Missouri congressional members has helped local efforts. The rising status of local House member Roy Blunt, the majority whip who is seeking the majority leader post, and the seniority and committee status of Sen. Kit Bond, who has been in the Senate for 19 years, have been instrumental in the Republican-controlled Congress's moving more funds back to the folks in southwest Missouri.

“Bond and Blunt have really delivered,” Springfield Mayor Tom Carlson said.

He credits Bond's status on Senate transportation and appropriations committees as key factors, along with Blunt's leadership status in the House. One example is how the two were able to get a size rule changed that helped get more federal money for the proposed $118 million expansion of the Springfield airport.

Carlson said the city also has worked more diligently in seeking federal money. “The city made a conscious effort a few years ago in pursuing federal dollars,” he said, pointing to the development of Jordan Valley Park as a high-profile beneficiary of some of the money.

Blunt acknowledges his leadership status and Bond's seniority as factors in helping fund many of these projects, but he preferred to cite “the extra level of cooperation among various interests in southwest Missouri” in doing their homework and making a case for the projects for which they want money. That makes the jobs easier for the members of the congressional delegation, he said.

$900M to individuals

But the bulk of federal expenditures locally is in the form of entitlements and ongoing programs. In the Census Bureau's 2004 Consolidated Federal Funds Report for Greene County, the government's “direct expenditures and obligations” are broken down into six large categories. Payments to individuals total about $900 million, including retiree Dunham. They primarily involve Social Security and other retirement and disability payments, Medicare, food stamps and various education assistance programs.

Salaries and wages of federal employees account for $168 million, and various grants, from housing and transportation to the school lunch program to Medicaid add up to $232.3 million.

The report lists dozens of subcategories of payments, ranging from less than $1,000 each for three agriculture subsidy payments to the $280 million in Social Security retirement dollars.

Editor's Note:

Mike Schilling teaches journalism and political science at Missouri State and Drury universities. He served four terms in the Missouri House of Representatives, 1993-2000.

FY 2004 Federal Spending

By Entity:

City of Springfield

o nearly $12.5 million

Greene County

o $1.35 billion

Springfield MSA

o nearly $2 billion

By Project:

$27M

Jordan Valley Innovation Center

$15.87M

Springfield Branson National Airport

$11M

Missouri State parking deck

$7.57M

Jordan Valley Park

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