Though taxes are the most common and recognizable source of state government revenues, it's important to remember that they're not the only source. In fact, state governments received 32.8 percent of their total general revenues from transfers from the federal government in the 2012 fiscal year.
That number varies for specific states, however. For example, Mississippi obtains 45.8 percent of its total state general revenues from federal transfers (the largest share in the country). Also on the high end are Louisiana (44.3 percent), South Dakota (41.5 percent), Tennessee (41.3 percent), and Missouri (40.8 percent). On the other end of the spectrum, Alaska receives the smallest share from this revenue source at 20.0 percent. Rounding out the rest of the bottom five are North Dakota (21.0 percent), Hawaii (23.6 percent), Connecticut (23.7 percent), and Virginia (24.8 percent).
