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Sunday, March 30, 2025

Colorado saw 6.1% increase in transfer dependency percentage between 1970 and 2022

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John Lettieri, President and CEO of Economic Innovation Group | Official Website

John Lettieri, President and CEO of Economic Innovation Group | Official Website

In 2022, government transfers accounted for 13.2% of total income in Colorado, a 6.1% rise from 7.1% in 1970, and a 0.6% increase over 2012’s 12.6%, according to information from the Economic Innovation Group. On a per capita basis, this equates to $10,012 per resident in 2022, up from $7,017 in 2012 and $1,798 in 1970.

Among Colorado’s counties, Sedgwick County saw the largest increase in transfer dependency over the past 10 years, surging 19.3% from 19.6% in 2012 to 38.9% in 2022, and up 31.3% from just 7.6% in 1970. In dollar terms, government transfers per capita in Sedgwick County jumped from $11,209 in 2012 to $17,119 in 2022, a stark contrast to the $1,895 recorded in 1970.

Kiowa County followed with the second-largest increase in transfer dependency, increasing 14% from 15.9% in 2012 to 29.9% in 2022, and an overall increase of 24.5% from 1970’s 5.4% transfer dependency. This trend is reflected in per capita amounts, with residents of Kiowa County receiving an average of $15,475 in transfer income in 2022, up from $9,819 in 2012 and more than double the $1,895 recorded in 1970.

Additionally, Costilla County had the highest percentage of income derived from government transfers, at 48.3% in 2022, making it the county with the highest overall transfer dependency. Crowley County and Bent County followed closely behind, with transfer dependency rates of 43.8% and 40.4% in 2022, respectively.

Compared to 1970, Costilla County increased by 21.3%, while Crowley County and Bent County have increased by 28.5% and 26.9%, respectively, showing sustained reliance on government transfers. Residents in Costilla County received an average of $19,118 in transfers per capita, with Crowley County and Bent County close behind at $9,745 and $13,317, respectively.

For comparison, the statewide average was 13.2% in 2022, showing a lower dependency than the national average of 17.6%. On a per capita level, this translates to $10,012 per resident in 2022, compared to $11,542 nationwide.

Government transfer payments are non-repayable funds provided by federal, state, or local governments to support individuals in need. These payments aim to stabilize economic conditions and provide financial support during hardships. Key programs include Social Security transfers (retirement benefits), Medicare transfers (healthcare for seniors), Medicaid transfers (healthcare for low-income individuals), and income maintenance transfers (financial assistance for basic needs).

In Colorado, reliance on government transfers was just 7.1% (or $1,798 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 13.2% (or $10,012 per capita) in 2022, reflecting a total increase of 6.1% since 1970. This shift is largely influenced by increased healthcare costs, and economic transformations that have reshaped income sources across the U.S.

In 2022, the primary government transfer programs in Colorado included:

  • Social Security: $3,086 (30.8% of total transfers)
  • Medicare: $2,140 (21.4% of total transfers)
  • Medicaid: $2,134 (21.3% of total transfers)
  • Income Maintenance Programs: $1,328 (13.3% of total transfers)

With 15.6% of the population aged 65 and older, Colorado has a significant demand for programs like Social Security and Medicare. However, counties with higher poverty rates also show elevated Medicaid and income maintenance participation.

Government transfers have long been a modest financial safety net, historically comprising only a small fraction of Americans' income. However, since the 1970s—sometimes dubbed the “Great Transfer-mation”—dependency has surged from 8.2% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,542 per capita) in 2022 nationwide. In Colorado, reliance on government transfers has similarly increased from 7.1% (or $1,798 per capita) in 1970 to 13.2% (or $10,012 per capita) in 2022.

According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.

Government Transfer Trends by County in Colorado, 2022
CountyDependency on Transfers (%)Change Since 2012Change Since 1970Per Capita Amount (2022)Per Capita Change Since 2012Per Capita Change Since 1970
Adams County15.8%0.2%9.8%$8,626$2,127$7,298
Alamosa County29.7%4.9%19.3%$12,782$3,525$11,084
Arapahoe County12.5%1.6%8.9%$9,566$2,946$8,477
Archuleta County26.1%4.7%15.1%$14,359$5,541$12,181
Baca County36.6%9.3%28%$16,728$4,745$14,657
Bent County40.4%10.2%26.9%$13,317$4,724$10,956
Boulder County9%0.5%4.1%$8,869$3,217$7,567
Broomfield County9.1%1.4%9.1%$7,937$2,476$7,937
Chaffee County19.3%-3.2%9%$12,448$3,022$10,332
Cheyenne County25.9%13.3%18.1%$13,615$5,745$11,723
Clear Creek County11.7%1%6.2%$9,031$2,623$7,562
Conejos County34.8%4.4%12.4%$15,068$4,940$12,366
Costilla County48.3%10.1%21.3%$19,118$6,482$16,171
Crowley County43.8%10.8%28.5%$9,745$2,688$6,851
Custer County30.7%5.5%19.7%$15,566$4,870$13,235
Delta County31.8%6.8%16.7%$15,151$5,614$12,316
Denver County8.3%-2.3%-0.5%$9,343$1,953$6,795
Dolores County32.6%8%18.6%$12,693$3,766$10,755
Douglas County7.5%1.6%3.2%$7,413$2,968$6,064
Eagle County5.8%-0.3%0.6%$6,538$2,998$5,372
Elbert County11.7%1.1%3.7%$8,884$3,036$7,201
El Paso County18.7%3.2%13.4%$11,388$3,581$10,020
Fremont County31.4%2.8%16.1%$13,363$3,807$10,539
Garfield County14.2%3.5%6.1%$9,334$3,805$7,482
Gilpin County14.3%2%6.4%$9,466$3,848$7,901
Grand County12.6%0.4%5.2%$8,551$2,993$7,104
Gunnison County12.9%1.8%5.9%$8,461$3,513$7,444
Hinsdale County24.1%7.3%17.5%$14,737$6,697$13,226
Huerfano County38.3%2.2%17.1%$18,915$4,401$15,573
Jackson County19.7%0.1%11.5%$12,495$3,965$11,133
Jefferson County12.9%0.7%9.2%$10,279$2,975$9,226
Kiowa County29.9%14%24.5%$15,475$5,656$13,558
Kit Carson County28.4%10.3%23.4%$12,418$4,620$10,937
Lake County16.9%-0.4%12.5%$8,758$2,527$7,823
La Plata County15.2%4.1%4.6%$10,437$4,232$8,485
Larimer County14.2%0.9%6.1%$9,605$2,965$7,968
Las Animas County39.5%7.2%19.5%$17,582$5,296$14,573
Lincoln County31.5%7.7%22%$10,939$3,137$8,911
Logan County23.7%8.4%15.8%$11,801$3,806$9,972
Mesa County23.9%5.7%12.5%$13,081$4,844$10,715
Mineral County19.7%2.3%13.9%$13,363$3,215$12,039
Moffat County26.4%10.1%16.6%$12,562$5,051$10,436
Montezuma County29.2%7.3%16.9%$14,764$5,639$12,821
Montrose County27.6%4.9%16.9%$14,051$5,160$12,105
Morgan County21.8%3.6%13%$11,054$3,143$9,101
Otero County39.9%7.5%26.2%$16,549$4,462$14,043
Ouray County13.5%-1.1%5.4%$11,899$4,104$10,092
Park County17.8%2.5%10.2%$10,909$4,107$9,026
Phillips County28.5%9.9%20.1%$13,689$4,536$11,139
Pitkin County4.3%0.4%2.1%$9,234$3,968$8,492
Prowers County31.1%8.4%20.4%$14,078$4,390$11,976
Pueblo County31.9%3.9%21%$15,055$4,374$12,795
Rio Blanco County23.1%9.8%16.8%$13,073$6,203$11,562
Rio Grande County29.2%1.9%16.8%$15,912$4,557$13,801
Routt County7.3%0.7%0.2%$8,675$3,745$6,977
Saguache County31.3%9.2%14%$11,649$4,579$9,269
San Juan County18%6.3%10.2%$9,570$3,142$8,296
San Miguel County5.2%-0.5%-3.5%$7,219$3,662$5,757
Sedgwick County38.9%19.3%31.3%$17,119$5,910$15,224
Summit County6.7%0.3%2.1%$6,351$2,542$5,519
Teller County22.1%5.9%13.7%$14,445$6,028$12,196
Washington County28%11.1%20.9%$12,085$3,969$10,314
Weld County14.3%0.3%6.2%$8,392$2,012$6,646
Yuma County24.6%10.5%16.6%$11,074$2,659$9,065

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