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Friday, April 4, 2025

Pima County saw 18.0% increase in transfer dependency percentage since 1970 as of 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 made up 26.2% of total income in Pima County, Arizona—an alarming 18% surge from 8.2% in 1970 and a 4.4% increase from 2012’s 21.8%. This marks the eighth largest increase among all Arizona counties over the past decade, according to information from the Economic Innovation Group.

On a per capita basis, this translates to $14,288 per resident in 2022, up from $9,724 in 2012 and $1,966 in 1970, ranking Pima County as the 10th fastest-growing in per capita government transfers among Arizona counties over the past 10 years.

Meanwhile, Pima County had the third smallest share of income derived from government transfers, making it one of the smallest dependent counties in the state.

Among Arizona's counties, Apache County saw the largest increase in transfer dependency over the past 10 years, surging 13% from 39.6% in 2012 to 52.6% in 2022, and up 38.1 percentage points from just 14.5% in 1970. In dollar terms, government transfers per capita in Apache County jumped from $13,346 in 2012 to $24,021 in 2022, contrasting to the $2,311 recorded in 1970.

For comparison, the statewide average was 20.7% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $12,093 per resident, 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 Pima County, reliance on government transfers was just 8.2% (or $1,966 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to a total of 18.0% 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 Pima County included:

  • Social Security: $4,419 per capita (30.9% of total transfers)
  • Medicare: $2,882 per capita (20.2% of total transfers)
  • Medicaid: $4,178 per capita (29.2% of total transfers)
  • Income Maintenance Programs: $1,177 per capita (8.2% of total transfers)

With 21.5% of the population aged 65 and older, Pima County has a significant demand for 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.

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 Arizona, 2022
CountyDependency on Transfers (%)Change Since 2012Change Since 1970Per Capita Amount (2022)Per Capita Since 2012Per Capita Since 1970
Apache County52.6%+13%+38.1%$24,021$10,675$21,710
Navajo County47.8%+9%+33%$20,129$7,829$18,123
Gila County44.9%+5.9%+35.8%$22,675$7,469$21,106
La Paz County41.9%+6.3%-$22,615$9,950-
Graham County40.2%+7.7%+30.5%$16,472$5,852$14,819
Cochise County38%+10.8%+32%$19,084$7,553$17,640
Mohave County34.4%+0.5%+25.5%$15,357$4,397$13,328
Yavapai County31.6%+0.8%+18.7%$16,352$4,571$13,449
Greenlee County27.8%+2%+22.9%$15,060$5,198$13,902
Santa Cruz County27.5%+5%+19.6%$13,158$4,722$11,505
Pinal County27.3%+1.3%+19.5%$12,560$4,201$11,094
Yuma County27.3%+3.9%+20.9%$12,236$4,117$10,808
Pima County26.2%+4.4%+18%$14,288$4,565$12,322
Coconino County20.8%+3.1%+11.8%$12,264$4,230$10,533
Maricopa County16.3%-0.3%+9.3%$10,359$2,385$8,591

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