Arizona finished fourth in a study by the Tax Foundation examining which states rely most on federal aid funding as a percentage of their general-fund revenue.

What the state received in funding from the federal government amounted to 41.2 percent of Arizona’s general revenues, which include all tax revenues but not such items as investment income from state retirement funds or revenue received for providing utility services, according to the analysis.

Aid provided to states can come in the form of competitive federal grants, or the federal funds can be allocated based on formulas established by statute, the Tax Foundation study says. Those states receiving a greater share of federal funds tend to have more low-income residents and below-average lower tax collections, according to the foundation.

The states most dependent on federal funds were Mississippi, Louisiana and New Mexico. The study used fiscal-year 2016 data, which was the most recent available.

---

Which States Are Most Dependant on Federal Aid?

State	% of Federal Aid	Ranking (Most to Least)
Mississippi	43.3%	1
Louisiana	42.7%	2
New Mexico	41.2%	3
Arizona	41.2%	4
Kentucky	40.9%	5
Montana	40.6%	6
Tennessee	38.6%	7
Wyoming	38.1%	8
Alaska	37.3%	9
Missouri	37.3%	10
Alabama	37.1%	11
West Virginia	37.1%	12
Arkansas	36.3%	13
Indiana	35.8%	14
Oregon	35.6%	15
Ohio	35.1%	16
Vermont	34.9%	17
Georgia	34.3%	18
Maine	34.1%	19
South Dakota	34.0%	20
Oklahoma	33.9%	21
New York	33.9%	22
Michigan	33.8%	23
Florida	33.7%	24
Texas	33.5%	25
Rhode Island	33.2%	26
Idaho	33.1%	27
Pennsylvania	32.6%	28
California	32.2%	29
New Hampshire	31.9%	30
Iowa	31.4%	31
Nevada	31.3%	32
South Carolina	30.9%	33
North Carolina	30.7%	34
Colorado	30.6%	35
Nebraska	30.5%	36
Maryland	30.4%	37
Washington	30.2%	38
Massachusetts	28.9%	39
Illinois	28.8%	40
New Jersey	28.4%	41
Connecticut	27.9%	42
Delaware	27.2%	43
Minnesota	26.7%	44
Wisconsin	26.3%	45
Utah	25.7%	46
North Dakota	23.8%	47
Kansas	23.0%	48
Hawaii	22.7%	49
Virginia	21.1%	50

Source: Tax Foundation; U.S. Census Bureau