State personal income and more ...

Lenze, David G. ; Newman, Jeffrey L.

Second quarter of 2014

State personal income growth accelerated in California, Florida, and 34 smaller states in the second quarter of 2014 but slowed in New York, Texas and 8 other states. (1) Growth continued at the same pace in the second quarter as in the first quarter in two states (Colorado and Hawaii), and growth resumed in the second quarter in two states (Iowa and Nebraska) after falling in the first quarter. On average, growth accelerated to 1.5 percent from 1.2 percent in the first quarter (chart 1). Growth ranged from 2.7 percent in North Dakota and Nebraska to 1.1 percent in New York and Alaska.

Property income (dividends, interest, and rent), which grew 1.8 percent in the second quarter after growing 0.2 percent in the first quarter, accounted for most of the acceleration in second-quarter personal income growth. Net earnings grew 1.4 percent, and transfer receipts grew 1.6 percent in the second quarter, the same rates at which they grew in the first quarter.

[GRAPHIC 1 OMITTED]

Quarterly State Personal Income

The inflation rate, as measured by the national price index for personal consumption expenditures, accelerated to 0.6 percent in the second quarter from 0.3 percent in the first quarter.

Earnings by industry

Overall, earnings grew $149.0 billion (1.4 percent) in the second quarter, slightly less than the $156.2 billion (1.5 percent) growth in the first quarter (table A). Earnings grew in 22 of the 24 industries for which BEA prepares quarterly estimates with the largest nonfarm increases in health care ($17.4 billion), professional services ($17.1 billion), retail trade ($13.7 billion), and durable goods manufacturing ($12.8 billion).

Earnings in mining were up 5.5 percent in North Dakota, 2.4 percent in West Virginia, 1.9 percent in Texas and 1.5 percent in Alaska but fell 0.4 percent in Oklahoma. Despite the second-quarter decline in Oklahoma, mining earnings were up $3.2 billion over the last three years, an increase larger than every other state's except Texas'. In West Virginia, mining earnings increased after trending downward since the third quarter of 2011 (chart 2). Mining in West Virginia is dominated by coal mining, in contrast to the other states in which oil and gas extraction and support activities for mining predominate (table B).

Durable-goods manufacturing contributed the most to nonfarm earnings growth in 15 states, but in the state of Washington, durable-goods manufacturing earnings fell 2.9 percent. The decline followed a quarter in which bonuses were paid, providing an earnings lift. Even so, second-quarter earnings in Washington were above the year-ago level.

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Quarterly State Personal Income

Earnings fell 1.3 percent in the second quarter in Alaska's information industry, which is mostly telecommunications. In contrast, second-quarter information earnings grew 0.8 percent in California and 1.4 percent in the state of Washington, two of the three states with the largest information sectors. Washington's information industry is dominated by publishing industries, including software publishing, while almost half of California's information industry consists of motion pictures and other information services, which includes web search portals (table C).

Finance, the largest industry in Connecticut, Delaware, and New York, fell in the second quarter in Connecticut and New York but continued to grow in Delaware (chart 3). The industry is dominated by securities and insurance in Connecticut and New York and by credit intermediation in Delaware (table D). (2) In both Connecticut and New York, the earnings decline followed a quarter in which bonuses were paid. Still, in both cases, second-quarter earnings were above year-ago levels.

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Quarterly State Personal Income

For the second consecutive quarter, the earnings increase in Texas was larger than in every other state (table E). Earnings in Texas, which accounted for 8.9 percent of the nation's earnings, grew $19.2 billion while earnings in California, which accounted for 13.2 percent of the nation, grew $16.9 billion.

North Dakota, the fastest growing state in the second quarter (3.1 percent), had particularly large contributions to nonfarm earnings growth from its mining (including oil and gas extraction), construction, and transportation industries.

Annual State Personal Income

As is customary in September, BEA released several sets of detailed annual statistics for the previous year: tax payments by level of government; transfer receipts by major program; a decomposition of property income into imputed and monetary components; detailed farm income and expenses; and wages, compensation, earnings, and employment for three-digit North American Industry Classification System (NAICS) industries. The new estimates are based on surveys and tabulations of administrative data. In some cases they replace previously reported averages of quarterly estimates of taxes, transfers, and farm proprietors' income that were based on extrapolations of past trends.

Dividends, interest, and rent

Dividends, interest, and rent (property income) grew 2.1 percent in 2013, compared with 9.3 percent in 2012 (table F). All of the increase in 2013 was accounted for by rental income of persons, which grew 11.8 percent, while personal dividend income fell 1.0 percent and personal interest income fell 0.1 percent. Monetary rent grew 4.6 percent, and imputed rent, which accounts for the net rental income of owner-occupied housing, grew 15.4 percent.

In North Dakota, imputed rent increased 128 percent from 2009 to 2013, and monetary rent, which also includes royalties from rights to natural resources such as oil and gas, increased more than 150 percent (chart 4). Over the same period, which coincides with the state's energy boom, North Dakota's population growth has been the fastest of all states. In fact, North Dakota's population growth has accelerated every year since 2009. In 2013, it grew 3.1 percent, several times larger than the national population growth rate (0.7 percent). North Dakota has also seen the largest increase in the regional price parity index for rents, which increased 17.1 percent from 2009 to 2012. (1a)

Personal current transfer receipts

Personal current transfer receipts growth accelerated to 2.7 percent in 2013 from 1.9 percent in 2012 (table G). Income maintenance benefits, which increased 0.8 percent in 2013 after falling 4.5 percent in 2012, played a major role in the acceleration. Income maintenance benefits include assistance from programs such as Supplemental Security Income, Supplemental Nutrition Assistance, and the Earned Income Tax Credit. In contrast, the growth in retirement and disability insurance benefits slowed to 4.6 percent in 2013 from 6.6 percent in 2012. The slowdown reflected a smaller cost-of-living adjustment in 2013 (1.7 percent) than in 2012 (3.6 percent).

Personal current transfer receipts declined 2.7 percent in 2013 in Alaska, the only state with a decline. A 19.0 percent decline in Medicaid benefits to the lowest level since 2009 accounted for the decline in total transfer receipts in Alaska. Personal current transfer receipts increased 6.3 percent in Maine, the fastest pace among the states. A 20.9 percent increase in Medicaid benefits accounted for most of the increase in Maine.

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Revisions to Annual State Personal Income

The Bureau of Economic Analysis (BEA) has revised its quarterly and annual state personal income statistics. Each September, BEA typically revises the preliminary estimates released in March in order to incorporate the results of the annual revision of the national income and product accounts (NIPAs), to incorporate state source data that are more complete and more detailed than those previously available (table H on page 8), and to update the seasonal factors used for the quarterly estimates. (1b)

In general, the estimates were revised from the first quarter of 2001 to the first quarter of 2014. The annual estimates of certain components of the finance and insurance industry--but not the annual totals--were revised from 1998 to 2000. In addition, the annual estimates of monetary and imputed interest receipts--but not annual totals of personal interest income--were revised from 1958 to 2000.

Some farm income and expense source data from the United States Department of Agriculture (USDA) and Medicaid benefits source data from the Center for Medicare and Medicaid Services, which are usually incorporated at this time, were not available.

The national estimate of personal income for 2013, which controls the state estimates, was revised up 0.5 percent ($70.2 billion). (2a) Property income was revised up 3.4 percent ($87.0 billion) and more than accounted for the total revision to personal income. Nonfarm proprietors' income was also revised up 2.7 percent ($32.8 billion).

The unweighted average revision to 2013 personal income in the 50 states and the District of Columbia was 0.3 percent (table I). The average absolute revision was 1.0 percent, and the dispersion of the revisions (or standard deviation) was 1.5 percent.

The largest upward revision in 2013 was for Wyoming (3.7 percent). Most of this revision (3.4 percentage points) was accounted for by a revision to property in come due to the incorporation of new source data from the Internal Revenue Service (IRS) for dividends, interest, and rent reported on 2012 income tax returns (table J).

The largest downward revision in 2013 was for North Dakota (6.8 percent). Most of this revision (8.8 percentage points) was accounted for by a revision to farm pro prietors' income. The revision to farm proprietors' income was primarily due to the incorporation of 2013 state-level crop production data from USDA. The revisions to nonfarm proprietors' income in North and South Carolina and South Dakota were mostly in the credit intermediation industry and resulted from the incorporation of new source data from the IRS.

Personal Income in the NIPAs and State Personal Income

The level of personal income in the national income and product accounts (NIPAs) differs from the national total in the state personal income statistics because of differences in coverage and timing of the availability of source data.

The differences in coverage stem from different concepts of residence. For NIPA personal income, a U.S. resident has a center of economic interest in the country and resides, or expects to reside, in the country for a year or more. For state personal income, a resident is a participant in a U.S. regional economy, regardless of the individual's national citizenship or duration of residence. (1c)

In general, the NIPA measure of personal income is broader than state personal income. Some key coverage differences are:

* NIPA personal income includes the earnings of federal civilian and military personnel stationed abroad and the property income received by the federal retirement plans of these workers. The regional measure of personal income does not include this income. (2b)

* NIPA personal income includes all income earned by U.S. citizens living abroad for less than a year. State personal income excludes the portion earned while an individual lives abroad.

* NIPA personal income includes the income of foreign nationals only if they live and work in the United States for a year or more. State personal income includes the income of resident foreign nationals working in the United States--including migrant workers--regardless of length or residency.

The annual estimates of personal income in the NIPAs also diverge from the national totals of state personal income because of differences in the timing of the availability of source data. For example, farm proprietors' income in the NIPAs differs from state personal income, because the state estimates of farm proprietors' income incorporated revised U.S. Department of Agriculture data, which were not available until after the national estimate was released.

Both NIPA and state personal income include the income of U.S. residents employed by international organizations or by other countries while living in the United States and exclude the income of foreign nationals employed by their home governments. NIPA personal income also includes the income of foreign nationals working at international organizations in the United States. (3a) In addition, both measures exclude the income of private U.S. citizens living outside the country for a year or more.

Data Availability

The complete set of quarterly and annual state personal income and employment statistics for all states and the District of Columbia and for all years are available interactively on BEA's Web site.

In general, the estimates were revised for 2001 forward. In addition, the annual estimates of certain components of the finance and insurance industry--but not the annual totals--were revised for 1998-2000, and the annual estimates of monetary and imputed interest receipts--but not annual totals of personal interest income--were revised for 1958-2000.

The following annual estimates are available interactively on BEA's Web site.

* Personal income, per capita personal income, and population for 1929-2013

* Disposable personal income and per capita disposable personal income for 1948-2013

* State income and employment summary, 1929-2013

* Personal income by major source and earnings by industry (North American Industry Classification System (NAICS) three digit) for 1998-2013, (Standard Industrial Classification System (SIC) two digit) for 1958-2001, and (SIC division level) for 1929-57

* Compensation of employees by industry (NAICS three digit) for 1998-2013 and (SIC two digit) for 1958-2001

* Wages and salaries by industry (NAICS three digit) for 1998-2013, (SIC two digit) for 1958-2001, and (SIC division level) for 1929-57

* Full-time and part-time employment by industry (NAICS three digit) for 1998-2013 and (SIC two digit) for 1969-2001

* Full-time and part-time wage and salary employment by industry (NAICS three digit) for 1998-2013 and (SIC two digit) for 1969-2001

* State economic profiles (a selection of personal income and employment data for each state) for 1958-2013

* Personal current transfer receipts by major program for 1948-2013

* State property income for 1958-2013

* Farm income and expenses (including the major categories of gross receipts and expenses for all farms and for measures of farm income) for 1969-2013

* Personal current tax receipts by level of government and by type for 1948-2013

* BEARFACTS, a computer generated narrative with analytical charts and graphs, that describes a state's personal income using current estimates, growth rates, and a breakdown of the sources of personal income

The following quarterly estimates are also available interactively at www.bea.gov:

* Personal income for the first quarter of 1948 to the second quarter of 2014

* Quarterly income summary for the first quarter of 1948 to the second quarter of 2014

* Personal income by major source and earnings by major industry (NAICS two digit) for the first quarter of 1998 to the second quarter of 2014

* Personal income by major source and earnings by major industry (SIC division level) for the first quarter of 1948 to the fourth quarter of 2001

* Compensation of employees by industry (NAICS two digit) for the first quarter of 1998 to the second quarter of 2014

* Compensation of employees by industry (SIC division level) for the first quarter of 1958 to the fourth quarter of 2001

* Wages and salaries by major industry (NAICS two digit) for the first quarter of 1998 to the second quarter of 2014

* Wages and salaries by major industry (SIC division level) for the first quarter of 1948 to the fourth quarter of 2001

* Personal current transfer receipts for the first quarter of 1948 to the second quarter of 2014

The state personal income statistics are also available through the members of the BEA User Group, which consists of state agencies and universities that help BEA disseminate the statistics in their states. A list of the BEA user groups is available on BEA's Web site.

For more information about the statistics, contact the Regional Income Division at 202-606-5360, fax 202606-5322, or e-mail reis@bea.gov.

Acknowledgments

The annual revision of state personal income was prepared by the Regional Income Division under the direction of Mauricio Ortiz, Chief. Joel D. Platt, Associate Director for Regional Economics, provided general guidance. The preparation of the revised estimates was a division-wide effort.

The estimates of nonfarm wages and salaries, supplements to wages and salaries, and personal current tax receipts were prepared by the Compensation Branch under the supervision of John A. Rusinko, Chief. Major responsibilities were assigned to Peter Battikha, Michael L. Berry, Elizabeth P. Cologer, John D. Laffman, David G. Lenze, Paul K. Medzerian, and Joseph L. Stauffer. Contributing staff members were Terence J. Fallon, Michael W. Jadoo, Russell C. Lusher, Nathaniel R. Milhous, Michael A. Reid, and Ross A. Stepp.

The quarterly estimates of state personal income and the annual estimates of nonfarm proprietors' income, property income, personal current transfer receipts, contributions for government social insurance, and the adjustment for residence were prepared by the Regional

Income Branch, under the supervision of Lisa C. Ninomiya, Chief. Major responsibilities were assigned to Brian J. Maisano, James P. Stehle, and Matthew A. von Kerczek. Contributing staff members were Nacola A. Alexander, Suet M. Boudhraa, Andy K. Kim, Enrique B. Lopez, Toan A. Ly, W. Timothy McKeel, Linda M. Morey, and Troy P. Watson.

The estimates of farm wages and salaries, farm supplements to wages and salaries, and farm proprietors' income were prepared by the Farm Income and Employment Section under the supervision of James M. Zavrel, Assistant to the Division Chief. Major responsibilities were assigned to Carrie L. Litkowski. Contributing staff members were Daniel R. Corrin, Michelle A. Harder, and Brooke N. Pearson.

The public use tabulations and data files were assembled and the tables were prepared by the Data and Administrative Systems Group. Major responsibilities were assigned to Jeffrey L. Newman, Michael J. Paris, and Callan S. Swenson. Contributing staff members were Melanie Carrales, Monique B. Tyes, and Jonas D. Wilson.

David G. Lenze prepared this report.

(1.) State personal income, which is measured in current dollars, is the sum of net earnings by place of residence, property income, and personal current transfer receipts . Quarterly estimates in dollars are expressed at seasonally adjusted annual rates; quater-to-quarter percent changes are not annualized.

(1a.) The North Dakota regional price parity for rents represents the average rent paid by consumers in North Dakota relative to the national average. Data for 2013 are not available.

(1b.) See Stephanie H. McCulla, Alyssa E. Holdren, and Shelly Smith, "The 2014 Annual Revision of the National Income and Product Accounts," Survey of Current Business 94 (August 2014).

(1c.) See State Personal Income and Employment on BEA's Web site.

(2.) The credit intermediation industry includes, among other things, firms engaged in commercial banking and credit card issuing.

(2a.) The national components of personal income are estimated independently of the state components, oftentimes using data sources that are not available for states. To ensure that the sum of state estimates equal the national estimate, the state estimates are adjusted. In other words, the national estimate controls the sum of the state estimates.

(2b.) For a description of military coverage in state personal income, see "New Treatment of State Estimates of Military Compensation," Survey of Current Business 85 (October 2005): 116.

(3.) FAA private fixed investment is derived from NIPA private fixed investment; however there are some conceptual differences between the two sets of estimates. Reconciliation tables are available on BEA's Web site showing the relationship between these two measures. For more information on the estimation of private fixed investment, see "Private Fixed Investment" in NIPA Handbook: Concepts and Methods of the U.S. National Income and Product Accounts on BEA's Web site.

(3a.) For more information on the treatment of border workers in the residence adjustment, see State Personal Income and Employment.

Table A. U.S. Earnings by Industry

                                                     Millions of dollars
                                   Percent
                                   change            Dollar change

                                   2014              2014

                                I      II        I        II

    All industries              1.5     1.4   156,241   149,023
Private sector                  1.8     1.6   153,398   143,292
  Farm                        -11.9    17.6   -12,704    16,609
  Nonfarm                       2.0     1.5   166,103   126,683
    Forestry, fishing, and
      related activities       15.2     0.2     4,695        74
    Mining                      2.8     1.4     4,788     2,456
    Utilities                   5.9    -0.4     4,637      -326
    Construction                2.6     1.4    14,933     7,991
    Durable-goods
      manufacturing             1.9     2.0    11,987    12,835
    Nondurable-goods
      manufacturing             1.7     1.2     6,238     4,484
    Wholesale trade             2.5     2.0    13,181    10,675
    Retail trade                0.9     2.2     5,862    13,744
    Transportation and
      warehousing               0.6     0.9     2,263     3,314
    Information                -1.7     0.2    -5,768       701
    Finance and
      insurance                 2.7     0.2    20,178     1,736
    Real estate and
      rental and leasing        0.9     1.9     1,941     4,215
    Professional,
      scientific, and
      technical services        3.1     1.6    30,810    17,094
    Management of
      companies and
      enterprises               2.7     2.9     7,207     8,081
    Administrative and
      waste
      management
      services                  2.1     2.5     8,625    10,510
    Educational services        2.5     1.4     4,355     2,453
    Health care and
      social assistance         1.5     1.5    17,319    17,410
    Arts, entertainment,
      and recreation            1.1     2.6     1,238     2,976
    Accommodation and
      food services             1.5     1.7     4,697     5,589
    Other services,
      except public
      administration            1.8     0.2     6,918       669
Government sector               0.2     0.3     2,843     5,732
  Federal government,
    civilian                    0.0     0.2       -31       469
  Military                      0.1    -0.5       191      -731
  State and local
    government                  0.2     0.5     2,683     5,993

                                        Millions of dollars

                                        Level

                                        2014

                                  I            II

    All industries            10,427,287   10,576,310
Private sector                 8,687,600    8,830,892
  Farm                            94,260      110,869
  Nonfarm                      8,593,340    8,720,023
    Forestry, fishing, and
      related activities          35,587       35,661
    Mining                       174,849      177,305
    Utilities                     83,469       83,143
    Construction                 586,274      594,266
    Durable-goods
      manufacturing              642,096      654,931
    Nondurable-goods
      manufacturing              366,119      370,604
    Wholesale trade              531,032      541,707
    Retail trade                 623,967      637,712
    Transportation and
      warehousing                353,331      356,645
    Information                  343,673      344,374
    Finance and
      insurance                  754,438      756,174
    Real estate and
      rental and leasing         217,100      221,314
    Professional,
      scientific, and
      technical services       1,039,036    1,056,130
    Management of
      companies and
      enterprises                278,769      286,850
    Administrative and
      waste
      management
      services                   421,153      431,662
    Educational services         175,868      178,321
    Health care and
      social assistance        1,138,014    1,155,424
    Arts, entertainment,
      and recreation             114,843      117,819
    Accommodation and
      food services              326,225      331,814
    Other services,
      except public
      administration             387,497      388,166
Government sector              1,739,686    1,745,418
  Federal government,
    civilian                     297,116      297,585
  Military                       135,478      134,747
  State and local
    government                 1,307,093    1,313,086

Table B. Composition of Mining Earnings, 2013

[Percent of total]

                    United          North                      West
                    States  Alaska  Dakota  Oklahoma  Texas  Virginia

Oil and gas
  extraction          62.0    37.8    15.0      77.4   75.5      17.0
Mining (except
  oil and gas)        13.7    14.4     7.0       1.1    1.3      65.1
Support activities
  for mining          24.3    47.9    78.1      21.5   23.2      17.9

Table C. Composition of Information Earnings, 2013

[Percent of total]

                             United
                             States   Alaska   California   Washington

Publishing industries,
  except Internet              24.5      7.7         17.0         69.1
Motion picture and sound
  recording industries          9.7      2.3         22.3          1.2
Broadcasting, except
  Internet                     20.7     11.1         16.5          4.6
Telecommunications             25.5     76.8         12.6         14.4
Data processing, hosting,
  and related services          8.8      0.8          4.9          3.0
Other information services     10.7      1.4         26.7          7.7

Table D. Composition of Finance and Insurance Earnings, 2013

[Percent of total]
                             United                            New
                             States   Connecticut   Delaware   York
Credit intermediation and
  related activities           33.1          14.8       59.4   18.6
Securities, commodity
  contracts, investments       33.5          44.3       23.9   64.6
Insurance carriers and
  related activities           31.7          37.8       16.2   15.6
Other                           1.6           3.0        0.4    1.3

Table E. Growth of Personal Income and Earnings by State

                       Personal income         Earnings by place of work

                       Percent       Percent    Dollar change
                       change        change     (millions of dollars)

                       2014          2014              2014

                     I      II     I      II       I          II

United States        1.2    1.5    1.5    1.4    156,241    149,023
  Alabama            1.0    1.3    1.2    1.1      1,409      1,372
  Alaska             1.7    1.1    2.1    0.9        636        275
  Arizona            1.5    1.4    1.9    1.2      3,186      2,070
  Arkansas           0.8    1.9    0.9    1.9        603      1,368
  California         1.0    1.5    1.0    1.2     14,308     16,908
  Colorado           1.7    1.7    2.1    1.6      3,865      3,025
  Connecticut        1.2    1.3    1.6    1.1      2,355      1,735
  Delaware           0.9    1.7    1.2    1.6        384        533
  District of
    Columbia         1.5    1.3    1.9    0.6      1,644        512
  Florida            1.4    1.7    1.9    1.5      9,619      7,725
  Georgia            1.6    1.4    2.0    1.1      5,740      3,170
  Hawaii             1.2    1.2    1.2    1.1        537        508
  Idaho              1.7    2.5    2.3    2.6        926      1,042
  Illinois           0.9    1.4    1.3    1.3      5,784      5,898
  Indiana            0.2    1.8    0.4    1.9        638      3,545
  Iowa              -0.6    2.4   -1.2    2.8     -1,163      2,811
  Kansas             0.3    1.7    0.4    1.6        412      1,536
  Kentucky           1.4    1.5    1.5    1.4      1,672      1,642
  Louisiana          1.1    1.5    1.5    1.4      2,013      1,938
  Maine              0.6    1.5    0.7    1.4        262        502
  Maryland           0.9    1.2    1.1    1.2      2,274      2,674
  Massachusetts      1.5    1.4    2.3    1.3      6,632      3,849
  Michigan           1.6    1.5    2.2    1.4      5,829      3,839
  Minnesota          0.7    1.8    1.2    1.9      2,316      3,683
  Mississippi        0.3    1.4   -0.1    1.3        -41        868
  Missouri           0.5    1.6    0.6    1.6      1,053      2,844
  Montana            1.6    1.8    2.2    1.8        571        476
  Nebraska          -1.5    2.7   -1.9    3.0     -1,296      1,932
  Nevada             1.3    1.5    1.9    1.3      1,430      1,053
  New Hampshire      1.4    1.5    1.6    1.5        737        671
  New Jersey         0.7    1.3    0.5    1.2      1,763      4,082
  New Mexico         0.9    1.4    0.7    1.2        331        599
  New York           1.3    1.1    1.7    0.8     14,291      6,753
  North Carolina     1.2    1.6    1.7    1.5      4,799      4,088
  North Dakota       2.2    2.7    2.9    3.1        900        974
  Ohio               1.2    1.6    1.4    1.5      5,020      5,427
  Oklahoma           1.4    1.5    2.0    1.5      2,266      1,738
  Oregon             1.3    1.7    1.6    1.7      1,847      1,988
  Pennsylvania       1.2    1.5    1.6    1.5      6,704      6,373
  Rhode Island       1.9    1.4    2.1    1.4        706        481
  South Carolina     1.0    1.5    1.1    1.4      1,232      1,610
  South Dakota       0.3    2.3    0.4    2.6        114        719
  Tennessee          1.1    1.5    1.6    1.5      3,094      2,934
  Texas              2.2    2.0    2.9    2.1     26,053     19,202
  Utah               2.1    1.7    2.9    1.5      2,412      1,304
  Vermont            1.1    1.7    0.7    1.5        129        282
  Virginia           0.9    1.3    0.9    1.2      2,702      3,359
  Washington         1.9    1.4    2.5    1.1      6,041      2,824
  West Virginia      0.4    1.6   -0.2    1.8        -93        764
  Wisconsin          0.7    1.8    0.7    1.8      1,344      3,284
  Wyoming            0.8    1.5    1.2    1.1        255        233

NOTE. Earnings by place of work.

Table F. Growth of U.S. Dividends, Interest and Rent

                                                          Dollar change
                                         Percent          (millions
                                         change           of dollars)

                                     2012   2013     2,012    2,013

Dividends, interest, and rent         9.3    2.1   222,179   53,765
  Personal dividend income           22.0   -1.0   150,412   -8,136
  Personal interest income            2.0   -0.1    24,092     -955
    Imputed interest receipts (1)     1.5   -0.7    12,428   -5,862
    Monetary interest receipts        2.8    1.2    11,664    4,907
  Rental income of persons (2)        9.8   11.8    47,675   62,856
    Imputed rent                      8.9   15.4    29,188   54,762
    Monetary rent                    11.7    4.6    18,487    8,094

(1.) Consists of imputed interest received from (1) finance and
insurance companies and (2) employee pension plans.

(2.) Rental income of persons includes the capital consumption
adjustment.

Table G. Growth of Personal Current Transfer Receipts

                                                          Dollar change
                                        Percent           (Millions
                                        change            of dollars)

                                   2012    2013     2012      2013

Personal current transfer
    receipts                         1.9     2.7    42,802    63,811
  Receipts of individuals from
      governments                    2.2     2.8    49,026    64,090
    Retirement and disability
      insurance benefits             6.6     4.6    48,989    36,596
    Medical benefits                 3.3     3.9    31,618    39,067
    Income maintenance benefits     -4.5     0.8   -12,372     2,105
    Unemployment insurance
      compensation                 -21.7   -25.7   -23,435   -21,665
    Veterans benefits               10.8    12.7     6,848     8,838
    Education and training
      assistance                    -2.8    -1.5    -1,814      -949
    Other transfer receipts
      of individuals from
      governments                  -18.2     0.5      -808        18
  Receipts of individuals from
    businesses                     -25.1    -1.7    -8,897      -448
  Receipts of nonprofit
    institutions                     7.4     0.4     2,673       169

Table I. Revisions to Personal Income, by State
and the District of Columbia, 2011-2013

                                         Percent revision

                                  2011   2012   2013

United States                      0.1    1.0    0.5
  Alabama                          0.2   (L)    -0.1
  Alaska                           0.1    0.8    0.2
  Arizona                          0.2    1.0    0.4
  Arkansas                         0.2    2.8    1.7
  California                       0.1    2.1    2.2
  Colorado                        (L)     1.2    0.6
  Connecticut                     -0.3    0.9   -0.3
  Delaware                        -0.3   -0.4   -0.6
  District of Columbia            -0.4    1.8    1.1
  Florida                          0.8    0.1   -0.5
  Georgia                          0.1   -0.6   -0.9
  Hawaii                          -1.5   -0.6   -1.0
  Idaho                            0.7    1.9    2.2
  Illinois                         0.1    0.3    0.4
  Indiana                          0.1    0.1   -0.5
  Iowa                             0.4    0.2   -0.8
  Kansas                          (L)     0.8    1.1
  Kentucky                         0.1    0.6   -0.1
  Louisiana                       -0.3    1.4    1.3
  Maine                           -0.3   -0.6   -0.2
  Maryland                        -0.4   -0.3   -0.8
  Massachusetts                   (L)     1.3    0.6
  Michigan                         0.3    0.8   -0.4
  Minnesota                        0.2    1.0   -0.7
  Mississippi                     -0.3   -0.6   -1.6
  Missouri                         0.1    2.1    1.9
  Montana                          0.5    1.6    0.4
  Nebraska                         0.1    2.0    2.4
  Nevada                           0.1    2.5    0.8
  New Hampshire                    0.3    2.0    1.7
  New Jersey                      (L)    -0.1   -1.1
  New Mexico                      -0.1    0.2   -0.9
  New York                         0.1    1.6    0.7
  North Carolina                  (L)     1.6    0.6
  North Dakota                     1.4    2.9   -6.8
  Ohio                            (L)     0.5    0.4
  Oklahoma                         0.1    1.9    0.7
  Oregon                          -0.1    0.2   -1.0
  Pennsylvania                    (L)     1.1    0.6
  Rhode Island                    -0.1    0.8   (L)
  South Carolina                  -0.3    0.8    1.1
  South Dakota                    -0.9    0.7    1.1
  Tennessee                       (L)     0.6    0.6
  Texas                           -0.2    1.5    0.7
  Utah                             0.2    1.3    1.0
  Vermont                          0.1   -0.2   -0.7
  Virginia                        -0.1    0.7    0.1
  Washington                       0.3    2.2    1.5
  West Virginia                    0.4    0.2   -0.2
  Wisconsin                        0.3    0.8    0.2
  Wyoming                          0.1    3.8    3.7
Average revision                  (L)     1.0    0.3
Average absolute revision          0.3    1.1    1.0
Standard deviation of revision     0.4    1.0    1.5

(L) Less than 0.05 percent.

NOTE. The annual revisions are calculated from the March 2014
release.

Table J. Contributions to the Revision of Personal Income by
Component by State for 2013

                                            Contributions to
                                            the revision
                        Revision            (percentage points)
                        (percent)
                                     Wages     Supplements
                        Personal      and        to wages
                         income     salaries   and salaries

Alabama                     -0.05      -0.17           0.05
Alaska                       0.24      -0.01           1.07
Arizona                      0.43      -0.07           0.20
Arkansas                     1.70      -0.07          -0.54
California                   2.18       0.23           0.09
Colorado                     0.62      -0.17           0.00
Connecticut                 -0.31      -0.54          -0.52
Delaware                    -0.61       0.00          -0.24
District of Columbia         1.09       0.05           0.56
Florida                     -0.47      -0.19           0.12
Georgia                     -0.87      -0.47           0.44
Hawaii                      -0.98      -0.18          -0.06
Idaho                        2.16       0.27           0.31
Illinois                     0.43      -0.19          -0.25
Indiana                     -0.49      -0.26          -0.49
Iowa                        -0.78      -0.03          -0.63
Kansas                       1.14      -0.33           0.47
Kentucky                    -0.07      -0.12          -0.49
Louisiana                    1.27       0.11          -0.30
Maine                       -0.22      -0.15          -0.11
Maryland                    -0.80      -0.44          -0.05
Massachusetts                0.57       0.01          -0.05
Michigan                    -0.41      -0.17          -0.60
Minnesota                   -0.74      -0.42          -0.16
Mississippi                 -1.64      -0.21          -1.05
Missouri                     1.92      -0.21           0.33
Montana                      0.42       0.10           0.08
Nebraska                     2.44      -0.39          -0.52
Nevada                       0.81      -0.25          -0.94
New Hampshire                1.71      -0.13           0.31
New Jersey                  -1.08      -0.10          -0.34
New Mexico                  -0.88       0.04          -0.28
New York                     0.74       0.00           0.09
North Carolina               0.59      -0.32          -0.36
North Dakota                -6.83      -0.44          -0.29
Ohio                         0.45      -0.23           0.47
Oklahoma                     0.66      -0.18          -0.16
Oregon                      -0.96      -0.12          -0.84
Pennsylvania                 0.60      -0.19           0.13
Rhode Island                -0.05      -0.25          -0.25
South Carolina               1.07       0.13          -0.02
South Dakota                 1.06      -0.26          -0.40
Tennessee                    0.59      -0.06           0.16
Texas                        0.71      -0.36           0.14
Utah                         1.01      -0.48           0.34
Vermont                     -0.65       0.13          -0.33
Virginia                     0.14      -0.45          -0.02
Washington                   1.46       0.25           0.31
West Virginia               -0.22      -0.27           0.39
Wisconsin                    0.22      -0.11           0.54
Wyoming                      3.73       0.20           0.50
United States                0.50      -0.13          -0.01

                                       Contributions to
                                       the revision
                                       (percentage points)

                          Nonfarm          Farm       Dividends,
                        proprietors'   proprietors'   interest,
                           income         income       and rent

Alabama                         0.21           0.26        -0.11
Alaska                         -0.09          -0.02         0.02
Arizona                         0.12          -0.03         0.55
Arkansas                        0.20           0.25         2.23
California                      0.96          -0.10         1.06
Colorado                        0.01          -0.18         1.00
Connecticut                     0.07          -0.02         0.46
Delaware                        0.39          -0.19        -0.34
District of Columbia           -0.49           0.00         0.76
Florida                         0.20          -0.03        -0.41
Georgia                         0.07           0.11        -0.79
Hawaii                          0.58           0.01        -1.03
Idaho                          -0.12           0.01         1.68
Illinois                        0.00           0.94         0.28
Indiana                         0.04           0.60         0.01
Iowa                           -0.45           0.01         0.79
Kansas                         -0.24           0.87         0.58
Kentucky                       -0.18           0.48         0.37
Louisiana                       0.21           0.01         1.00
Maine                          -0.30          -0.09        -0.22
Maryland                        0.02          -0.07        -0.08
Massachusetts                   0.15          -0.01         0.62
Michigan                        0.53          -0.17         0.39
Minnesota                       0.31          -1.28         0.79
Mississippi                    -0.27           0.36        -0.45
Missouri                        0.10           0.63         1.22
Montana                         0.10          -0.66         0.94
Nebraska                        0.74           1.41         1.25
Nevada                          0.09           0.00         1.84
New Hampshire                   0.18          -0.02         1.90
New Jersey                     -0.13          -0.01         0.14
New Mexico                     -0.41          -0.23         0.41
New York                       -0.23          -0.04         1.31
North Carolina                  1.74          -0.20        -0.17
North Dakota                    0.70          -8.81         1.93
Ohio                            0.04          -0.09         0.40
Oklahoma                        0.87          -0.39         0.69
Oregon                         -0.18          -0.15         0.25
Pennsylvania                    0.20          -0.15         0.81
Rhode Island                    0.73           0.00         0.00
South Carolina                  1.08           0.07        -0.07
South Dakota                    1.25           1.27        -0.60
Tennessee                       0.26           0.10         0.26
Texas                          -0.09           0.03         1.13
Utah                            0.60           0.00         0.83
Vermont                        -0.21          -0.24        -0.05
Virginia                        0.07          -0.04         0.71
Washington                     -0.01          -0.07         1.56
West Virginia                   0.07           0.01         0.22
Wisconsin                      -0.20          -0.15         0.48
Wyoming                         0.00          -0.04         3.38
United States                   0.23          -0.01         0.62

                                   Contributions to
                                    the revision
                                   (percentage points)

                        Personal   Contributions
                        current    for government   Adjustment
                        transfer       social          for
                        receipts     insurance      residence

Alabama                    -0.32            -0.08        -0.04
Alaska                     -0.59             0.11        -0.03
Arizona                    -0.34            -0.01        -0.01
Arkansas                   -0.50            -0.10         0.02
California                  0.05             0.11         0.00
Colorado                   -0.06            -0.03        -0.01
Connecticut                -0.42             0.05         0.70
Delaware                   -0.35            -0.02         0.10
District of Columbia       -0.02             0.78         1.02
Florida                    -0.28            -0.13         0.00
Georgia                    -0.23            -0.05        -0.05
Hawaii                     -0.18             0.13         0.00
Idaho                      -0.18            -0.13         0.08
Illinois                   -0.20             0.00        -0.13
Indiana                    -0.65            -0.08         0.18
Iowa                       -0.62            -0.14         0.00
Kansas                     -0.30            -0.11         0.00
Kentucky                   -0.37            -0.10         0.14
Louisiana                   0.17            -0.07        -0.01
Maine                       0.52            -0.10         0.03
Maryland                   -0.10            -0.06        -0.14
Massachusetts              -0.18             0.02         0.06
Michigan                   -0.42            -0.04        -0.01
Minnesota                   0.00             0.02         0.04
Mississippi                -0.22            -0.24        -0.05
Missouri                   -0.28             0.00         0.14
Montana                    -0.21            -0.07         0.00
Nebraska                   -0.31            -0.13         0.14
Nevada                     -0.41            -0.44         0.03
New Hampshire              -0.15            -0.09        -0.47
New Jersey                 -0.30            -0.05        -0.39
New Mexico                 -0.47            -0.05         0.03
New York                   -0.26             0.15         0.00
North Carolina             -0.01             0.07        -0.03
North Dakota               -0.25            -0.13         0.21
Ohio                       -0.36            -0.23        -0.01
Oklahoma                   -0.30            -0.14        -0.01
Oregon                     -0.26            -0.09         0.25
Pennsylvania               -0.30             0.00         0.11
Rhode Island               -0.46            -0.17         0.01
South Carolina             -0.24             0.06         0.17
South Dakota               -0.27            -0.03         0.02
Tennessee                  -0.17            -0.03         0.01
Texas                      -0.20            -0.07         0.01
Utah                       -0.25             0.02        -0.01
Vermont                    -0.05            -0.07         0.03
Virginia                   -0.14             0.01         0.01
Washington                 -0.32             0.14        -0.13
West Virginia              -0.78            -0.24        -0.10
Wisconsin                  -0.27            -0.05        -0.12
Wyoming                    -0.12             0.17        -0.01
United States              -0.21            -0.01         0.00

Table H. Regional Source Data Used to Estimate State Personal
Income and Personal Current Taxes

Annual estimates

Wages and salaries by industry

  In general                        QCEW wage data; MEPS employee
                                      contributions for health
                                      insurance data (certain
                                      states only).

  Farm                              USDA farm labor expense data.

  Agriculture and forestry          USDA farm labor expense data.
  support activities

  Rail transportation               RRB state payroll and
                                      employment data; Journey
                                     to work data from
                                      the Census of Population.

  Educational services              CBP payroll data; Official
                                      Catholic Directory data.

  Membership associations and       CBP payroll data; RRB payroll
  organizations                       data.

  Private households                Census Bureau American
                                      Community Survey data;
                                      Census Bureau population data.

  Military                          DOD personnel data; Coast Guard
                                      personnel and payroll data.

  State and local government        Census Bureau Annual Survey of
                                      Public Employment and Payroll
                                      data; CES employment data.

Employer contributions for
  employee pension and insurance
  funds by industry

  Rail transportation               FRA casualties data.

  State and local government        Census Bureau Annual Survey of
                                      Public Pensions contributions
                                      and membership data; actuarial
                                      data from the CAFRs for a
                                      sample of state and local
                                      government retirement systems;
                                      MEPS employee contributions for
                                      health insurance data.

All other industries                NAIC earned premium data and
                                      NASI employers' cost of self
                                      insurance data; MEPS employee
                                      contributions for health
                                      insurance data.

Employer contributions for
  government social insurance by
  industry

All industries                      Census Bureau State Government
                                      Finances data; QCEW data on
                                      contributions to unemployment
                                      insurance funds; OES data on
                                      employee wage distributions;
                                      CPS industry data on hours
                                      worked.

Proprietors' income

  Farm                              USDA gross income and expense
                                      data; USDA ARMS corporate farm
                                      income data.

  Nonfarm industries                IRS data on net receipts and
                                      profits of proprietorships and
                                      partnerships.

Residence adjustment                Journey to work data from the
                                      Census of Population; Census
                                      Bureau population data; IRS
                                      wage data.

Dividends, interest, and rent       USDA gross rental value of farm
                                      dwellings data; IRS income tax
                                      data on dividends, taxable
                                      interest, S Corporation
                                      distributions, and gross rents
                                      and royalties; ACS data on the
                                      aggregate value of dwellings
                                      and mobile homes; OPM federal
                                      civilian retirement payments
                                      data and DOD military
                                      retirement payments data; SSA
                                      Social Security benefits data.

Personal current transfer           SSA data on Social Security
  receipts                            benefits and Supplemental
                                      Security Income benefits;
                                      Census Bureau state and local
                                      government finance data on
                                      disability benefits, income
                                      maintenance benefits, and
                                      education benefits; CMS and DOD
                                      medical benefits data; DVA
                                      veterans benefits data; USDA
                                      SNAP data; USDA WIC data; IRS
                                      Refundable Earned Income Tax
                                      Credits and Child Tax Credit
                                      data; PBGC benefits data; DOL
                                      unemployment benefits data; DOE
                                      Pell Grants data; ACF TANF
                                      foster care and adoption
                                      assistance data; World Trade
                                      Center Health Registry data.

Employee and self-employed          SSA Earnings and Employment
  contributions for government        Data for Workers Covered under
  social insurance                    Social Security and Medicare
                                      and other unpublished SSA data;
                                      California state temporary
                                      disability insurance data;
                                      Census Bureau state temporary
                                      disability insurance data; CMS
                                      supplemental medical insurance
                                      enrollment data; personal
                                      contributions for state
                                      unemployment insurance data
                                      from the states; DVA veterans'
                                      insurance premiums data.

Personal current taxes              IRS income tax data; Census
                                      Bureau quarterly tax
                                      collections and state tax
                                      collections data; Census Bureau
                                      state and local government
                                      finance data.

Quarterly estimates

Wages and salaries by industry

In general                          QCEW wage data; CES employment data.

Transportation and warehousing      DOT payroll data.

Military                            DOD personnel data; Coast Guard
                                      payroll data.

Proprietors' income

Farm                                USDA farm cash receipts data.

Personal current transfer           DOL unemployment benefits data;
  receipts                            CMS medical benefits data.

ACF TANF   Administration for Children and Families, Temporary
             Assistance to Needy Families
ACS        American Community Survey, Census Bureau
ARMS       Agricultural Resource Management Survey
CAFR       Comprehensive Annual Financial Report
CBP        County Business Patterns, Census Bureau
CES        Current Employment Statistics survey, Bureau of Labor
             Statistics
CMS        ConsCenters for Medicare and Medicaid Services
CPS        Current Population Survey, Census Bureau
DOD        Department of Defense
DOE        Department of Education
DOL        Department of Labor
DOT        Department of Transportation
DVA        Department of Veterans Affairs
FRA        Federal Railroad Administration
IRS        Internal Revenue Service
MEPS       Medical Expenditure Panel Survey, Agency for Healthcare
             Research and Quality
NAIC       National Association of Insurance Commissioners
NASI       National Academy of Social Insurance
OES        Occupational Employment Statistics, Bureau of Labor
             Statistics
OPM        Office of Personnel Management
PBGC       Pension Benefit Guaranty Corporation
QCEW       Quarterly Census of Employment and Wages, Bureau of
             Labor Statistics
RRB        Railroad Retirement Board
SNAP       Supplemental Nutrition Assistance Program
SSA        Social Security Administration
USDA       U.S. Department of Agriculture
WIC        Special Supplemental Nutrition Program for Women,
             Infants, and Children

State and National Estimates of Personal Income

[Billions of dollars]
                                          2011       2012       2013

Personal income in the NIPAs           13,202.0   13,887.7   14,166.9
Plus adjustments for:
Coverage differences                      -15.9      -14.9      -14.1
  Federal workers abroad                  -27.2      -26.9      -26.7
    Wages and salaries                    -18.2      -17.8      -17.8
    Supplements to wages and
      salaries (1)                         -6.2       -6.1       -5.9
    Dividends, interest, and
      rent (2)                             -4.4       -4.6       -4.8
    Less: Contributions for
      government social insurance          -1.6       -1.6       -1.8
  Rest-of-the-world difference             11.3       12.0       12.6
    Wages of private foreign
      nationals in U.S                     12.4       13.1       13.8
    Wages of private U.S. residents
      abroad                               -1.1       -1.1       -1.2
  Use of more current source data           4.7        3.3        4.9
    Wages and salaries                      0.1        0.1        0.0
    Proprietors' income                     4.6        3.2        4.9
    Personal current transfer
      receipts                            <0.1       <0.1       <0.1
Statistical discrepancy (3)                -0.9       -2.9       -6.3
Equals: State personal income          13,189.9   13,873.2   14,151.4

(1.) Employer contributions for government social insurance and
for employee pension and insur-ance funds for Federal workers
stationed abroad.

(2.) Investment income received by Federal retirement plans that
is attributed to Federal workers stationed abroad.

(3.) Includes revisions made in the NIPAs that are not yet
reflected in state personal income concerning wages of border
workers and foreign nationals working for international
organizations.