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S T A T E

STATE EXPENDITURE REPORT

Founded 1945

E X P E N D I T U R E R E P O R T

E

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s tat e b u d g e t o f f i C e r s

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S tat e B u d g e t O f f i c e r s

The National Association of State Budget Officers Founded in 1945, is the instrument through which the states collectively advance state budget practices. The major functions of the organization consist of research, policy development, education, training, and technical assistance. These are achieved primarily through NASBO’s publications, membership meetings, and training sessions. Association membership is composed of the heads of state finance departments, the states’ chief budget officers, and their deputies. All other state budget office staff are associate members. NASBO is an independent professional and education association.

2013–2014 Executive Committee

2014–2015 Executive Committee

George Naughton, Oregon, President

Mike Morrissey, Texas, President

Mike Morrissey, Texas, President-Elect

Tom Mullaney, Rhode Island, President-Elect

Jason Dilges, South Dakota, Past President

George Naughton, Oregon, Past President

Tom Mullaney, Rhode Island, Member-at-Large

Brandon Sharp, Arkansas, Member-at-Large

Gerry Oligmueller, Nebraska, Member-at-Large

Michael Cohen, California, Member-at-Large

Paul Potamianos, Connecticut, Eastern Regional Director

Sarah Clark, Vermont, Eastern Regional Director

Margaret Kelly, Minnesota, Midwestern Regional Director

John Roberts, Michigan, Midwestern Regional Director

Juliette Tennert, Utah, Western Regional Director

Michael Marcelli, New Mexico, Western Regional Director

Jane Driskell, Kentucky, Southern Regional Director

Jane Driskell, Kentucky, Southern Regional Director

Michael Cohen, California, Chair, Health and

Margaret Kelly, Minnesota, Chair, Health and Human





Human Services Committee

Services Committee

Marc Nicole, Maryland, Chair, Fiscal Management and

Juliette Tennert, Utah, Chair, Fiscal Management and





Reporting Committee

Reporting Committee

Karen Rehfeld, Alaska, Chair, Critical Issue Committee on

John Guyer, Pennsylvania, Chair, Education Committee



Paul Potamianos, Connecticut, Chair, Critical Issue

Budget Processes in the States

Committee on Disaster Response & Emergency Management Marc Nicole, Maryland, Chair, Special Committee on

Governing Policies

Scott D. Pattison, Executive Director

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Table of Contents Preface....................................................................................................................................................................................... v Executive Summary...............................................................................................................................................................1

General Notes.......................................................................................................................................................................14

Chapter 1: Elementary & Secondary Education.......................................................................................................15

Elementary & Secondary Education Notes............................................................................................................................22

Chapter 2: Higher Education...........................................................................................................................................23

Higher Education Notes........................................................................................................................................................30

Chapter 3: Public Assistance...........................................................................................................................................31

Other Cash Assistance..........................................................................................................................................................34



Public Assistance Notes........................................................................................................................................................44

Chapter 4: Medicaid Expenditures................................................................................................................................45

Medicaid Notes.....................................................................................................................................................................51

Chapter 5: Corrections Expenditures...........................................................................................................................53

Corrections Notes.................................................................................................................................................................61

Chapter 6: Transportation................................................................................................................................................63

Transportation Notes.............................................................................................................................................................70

Chapter 7: All Other Expenditures................................................................................................................................71

All Other Expenditure Notes..................................................................................................................................................78

Chapter 8: Capital Expenditures....................................................................................................................................79

Capital Spending Notes........................................................................................................................................................89

Chapter 9: Revenue Sources in the General Fund...................................................................................................91

Revenue Sources in the General Fund Notes........................................................................................................................95

Appendix.................................................................................................................................................................................97

Child Health Insurance Block Grants Notes.........................................................................................................................100

Methodology.......................................................................................................................................................................102

Tables Table 1: Total State Expenditures—Capital Inclusive.......................................................................................................................8 Table 2: Annual Percentage Change in Total State Expenditures....................................................................................................9 Table 3: Comparison of Shares of State Spending With Fund Sources, Fiscal 1995 to 2014.......................................................10 Table 4: Regional Percentage Change in Total Expenditures, Fiscal 2013 and 2014.....................................................................12 Table 5: State Spending by Function As a Percent of Total State Expenditures, Fiscal 2013........................................................13 Table 6: R  egional Percentage Change in State Elementary and Secondary Education Expenditures, Fiscal 2013 and 2014.....................................................................................................................................................17 Table 7: Elementary and Secondary Education Expenditures.......................................................................................................18 Table 8: Elementary and Secondary Education Expenditures As a Percent of Total Expenditures.................................................19

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Table of Contents (continued)

Table 9: Annual Percentage Change in Elementary and Secondary Education Expenditures........................................................20 Table 10: Items Excluded from Elementary and Secondary Education Expenditures....................................................................21 Table 11: R  egional Percentage Change in State Higher Education Expenditures, Fiscal 2013 and 2014......................................24 Table 12: Higher Education Expenditures—Capital Inclusive.........................................................................................................26 Table 13: Higher Education Expenditures As a Percent of Total Expenditures...............................................................................27 Table 14: Annual Percentage Change in Higher Education Expenditures......................................................................................28 Table 15: Items Excluded from Higher Education Expenditures....................................................................................................29 Table 16: Regional Percentage Change in State Total Cash Assistance Expenditures, Fiscal 2013 and 2014..............................33 Table 17: Regional Percentage Change in State TANF Expenditures, Fiscal 2013 and 2014........................................................34 Table 18: Total Public Assistance Expenditures............................................................................................................................35 Table 19: Total Public Assistance Expenditures As a Percent of Total Expenditures......................................................................36 Table 20: Annual Percentage Change in Total Public Assistance Expenditures.............................................................................37 Table 21: Cash Expenditures under Temporary Assistance to Needy Families Expenditures (TANF) ............................................38 Table 22: TANF Expenditures for Cash Assistance As a Percent of Total Expenditures.................................................................39 Table 23: Annual Percentage Change in TANF Cash Assistance Expenditures.............................................................................40 Table 24: Other Cash Assistance Expenditures............................................................................................................................41 Table 25: Other Cash Assistance Expenditures As a Percent of Total Expenditures......................................................................42 Table 26: Annual Percentage Change in Other Cash Assistance Expenditures.............................................................................43 Table 27: Regional Percentage Change in State Medicaid Expenditures, Fiscal 2013 and 2014..................................................47 Table 28: Medicaid Expenditures..................................................................................................................................................48 Table 29: Medicaid Expenditures As a Percent of Total Expenditures...........................................................................................49 Table 30: Annual Percentage Change in Medicaid Expenditures...................................................................................................50 Table 31: Regional Percentage Change in State Corrections Expenditures, Fiscal 2013 and 2014...............................................55 Table 32: Corrections Expenditures—Capital Inclusive..................................................................................................................56 Table 33: Corrections Expenditures As a Percent of Total Expenditures.......................................................................................57 Table 34: Corrections General Fund Expenditures As a Percent of Total General Fund Expenditures..........................................58 Table 35: Annual Percentage Change in Corrections Expenditures...............................................................................................59 Table 36: Items Excluded from Corrections Expenditures.............................................................................................................60 Table 37: Regional Percentage Change in State Transportation Expenditures, Fiscal 2013 and 2014..........................................65 Table 38: Transportation Expenditures—Capital Inclusive.............................................................................................................66 Table 39: Transportation Expenditures As a Percent of Total Expenditures...................................................................................67 Table 40: Annual Percentage Change in Transportation Expenditures..........................................................................................68 Table 41: Items Excluded from Transportation Expenditures.........................................................................................................69 Table 42: Regional Percentage Change in State All Other Expenditures, Fiscal 2013 and 2014...................................................73 Table 43: All Other Expenditures—Capital Inclusive......................................................................................................................74 Table 44: All Other Expenditures As a Percent of Total Expenditures............................................................................................75 Table 45: Annual Percentage Change in All Other Expenditures...................................................................................................76 Table 46: Items Excluded from All Other Expenditures..................................................................................................................77

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Table of Contents (continued)

Table 47: Total Capital Expenditures.............................................................................................................................................82 Table 48: Higher Education Capital Expenditures.........................................................................................................................83 Table 49: Corrections Capital Expenditures..................................................................................................................................84 Table 50: Transportation Capital Expenditures..............................................................................................................................85 Table 51: Environmental Projects Capital Expenditures.................................................................................................................86 Table 52: Housing Capital Expenditures.......................................................................................................................................87 Table 53: All Other Capital Expenditures.......................................................................................................................................88 Table 54: Revenue Sources in the General Fund..........................................................................................................................93 Table 55: Items Excluded from Revenue Sources.........................................................................................................................94 Table A-1: Total State Expenditures By Fund Source (Excludes Bonds)........................................................................................98 Table A-2: Children’s Health Insurance Block Grants....................................................................................................................99 Table A-3: Medicare Part D Clawback Payments.......................................................................................................................101 Figures Figure 1: Total State Spending by Fund Source, Fiscal 1987 to 2013............................................................................................2 Figure 2: All Funds Percent Changes From Previous Fiscal Year For Major Spending Categories, Fiscal 2013 and 2014...............4 Figure 3: Total State Expenditures By Funding Source, Fiscal 2013...............................................................................................5 Figure 4: Total State Expenditures By Function, Fiscal 2013...........................................................................................................5 Figure 5: Composition of Total State Expenditures By Function, Fiscal 1987 to 2013.....................................................................6 Figure 6: General Fund Expenditures, Fiscal 2013..........................................................................................................................7 Figure 7: Percent Change in General Fund, Fiscal 2013 and 2014.................................................................................................7 Figure 8: Federal Fund Expenditures, Fiscal 2013........................................................................................................................11 Figure 9: Regional Percent Change in State Funds, Fiscal 2013 and 2014...................................................................................12 Figure 10: S  tate Expenditures for Elementary and Secondary Education by Fund Source, Fiscal 2013........................................16 Figure 11: S  tate Expenditures for Higher Education by Fund Source, Fiscal 2013........................................................................24 Figure 12: S  tate Expenditures for Total Public Assistance by Fund Source, Fiscal 2013...............................................................32 Figure 13: S  tate Expenditures for Temporary Assistance for Needy Families by Fund Source, Fiscal 2013..................................33 Figure 14: S  tate Expenditures for Medicaid by Fund Source, Fiscal 2013....................................................................................47 Figure 15: State Expenditures For Corrections by Fund Source, Fiscal 2013...............................................................................54 Figure 16: State Expenditures for Transportation by Fund Source, Fiscal 2013............................................................................64 Figure 17: State Expenditures for All Other Programs by Fund Source, Fiscal 2013.....................................................................72 Figure 18: Capital Expenditures by Type, Fiscal 1991 to 2014......................................................................................................80 Figure 19: Annual Percentage Change in Total Capital Expenditures............................................................................................81 Figure 20: Total Capital Expenditures by Funding Source, Fiscal 2013.........................................................................................81 Figure 21: Revenue Sources in the General Fund.........................................................................................................................92

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Preface Since its inception in 1987, the State Expenditure Report has

Expenditure data are detailed by program area so that trends

developed into a definitive baseline for the analysis of state

in state spending can be evaluated. The funding sources for

spending. This edition of the report includes data from actual

state expenditures also are identified. Readers are cautioned

fiscal 2012, actual fiscal 2013, and estimated fiscal 2014.

that a more complete understanding of service levels within a

Expenditures reflected in this report represent more than 99

given state would require comparisons of spending by both

percent of total state spending.

state and local governments, which is not the purpose of this report. In addition, the data are self-reported by the states. Additional information on the report’s methodology is provided in the Appendix.

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Acknowledgments The State Expenditure Report was produced by Brian Sigritz with assistance from Lauren Cummings, Stacey Mazer, Michael Streepey, and Kathryn Vesey White. In addition, the report represents substantial work by state budget office staff throughout the United States. NASBO thanks the following individuals for their assistance in providing state data for this report:

Meagan Jones, Alabama

Judy Eggen, Missouri

Julie Knight, Alabama

Ryan Evans, Montana

Karen Elliott, Alaska

Lyn Heaton, Nebraska

Michael Williams, Arizona

Alisanne Maffei, Nevada

Amanda DiPippa, Arkansas

Maud Naroll, Nevada

Kevin Vandergriff, California

Joseph Bouchard, New Hampshire

Alexis Senger, Colorado

Steven Watson, New Jersey

Matthew Pellowski, Connecticut

Michael Marcelli, New Mexico

John Nauman, Delaware

Greg Armstorng, New York

Kim Burke, Florida

Donna Cox, North Carolina

Stephanie Beck, Georgia

Lori Anderson, North Dakota

Heather Zimmerman Aquino, Georgia

Sheila Peterson, North Dakota

Terri Ohta, Hawaii

Jeff Newman, Ohio

Anita Hamann, Idaho

Brandy Manek, Oklahoma

Monica Brar, Illinois

Brian DeForest, Oregon

Zac Jackson, Indiana

Kathy Wallace, Pennsylvania

Joel Lunde, Iowa

Adam Brusseau, Rhode Island

Elaine Frisbie, Kansas

David Seigler, South Carolina

Sandy Russell, Kansas

Alex Hanson, South Dakota

John Hicks, Kentucky

Susan Irby, Tennessee

Ternisa Hutchinson, Louisiana

Joaquin Guadarrama, Texas

Jeremy McDaniel, Louisiana

Tenielle Young, Utah

Melissa Winchenbach, Maine

John Becker, Vermont

Jon Martin, Maryland

Mike Barton, Virginia

Rob Dolan, Massachusetts

Pam Davidson, Washington

Colleen Gossman, Michigan

Jane Shinn, West Virginia

Joy Thao, Minnesota

Dan Subach, Wisconsin

Gerald Joyner, Mississippi

Folbert Ware, Wyoming

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Executive Summary Overview Over the past three fiscal years, spending from states’ own revenue sources has moderately grown each year, while total

growth. State general fund spending increased 3.9 percent in fiscal 2011, 3.3 percent in fiscal 2012, 4.3 percent in fiscal 2013, and is estimated to have grown by 4.8 percent in fiscal 2014.

state expenditure levels (including all state and federal funds)

During the time that states’ general fund spending saw signifi-

have been more volatile due to the impact of federal funding

cant declines, federal funds to states experienced sizable

changes. Federal funds to states have fluctuated as a result of

increases. After growing a relatively modest 2.9 percent in fis-

both the Affordable Care Act and the Recovery Act. State funds

cal 2007 and 2.4 percent in fiscal 2008, federal fund spending

(general funds and other state funds combined, excluding

increased 19.3 percent in fiscal 2009 and 21.4 percent in fiscal

bonds) are estimated to have grown by 4.8 percent in fiscal

2010. This drastic increase in federal funds to states can be

2014, 4.1 percent in fiscal 2013, and 3.8 percent in fiscal 2012.

traced to the infusion of spending from the American Recovery

Federal funds to states, on the other hand, are estimated to

and Reinvestment Act of 2009 (ARRA), also known as the

have increased by 7.6 percent in fiscal 2014, declined by 1.8

Recovery Act or stimulus. The swift wind down of ARRA funds

percent in fiscal 2013, and decreased by 9.8 percent in fiscal

in recent years led federal fund spending to grow only 1.0 per-

2012. The increase in federal funds to states in fiscal 2014 was

cent in fiscal 2011, decline 9.8 percent in fiscal 2012 and

almost solely due to additional Medicaid dollars, mainly resulting

decrease 1.8 percent in fiscal 2013. However, federal funds

from the expansion of Medicaid in some states under the

sharply rose by 7.6 percent in fiscal 2014 as some states

Affordable Care Act. While federal Medicaid funds to states

began to receive additional Medicaid funds through the Afford-

increased $41.8 billion or 17.8 percent in fiscal 2014, all other

able Care Act.

federal funds to states are estimated to have declined $3.4 billion or 1.3 percent. In fiscal 2012 and fiscal 2013, the declines in federal funds resulted from the wind down of spending from the Recovery Act. In fact, in fiscal 2012, the combination of federal funds sharply declining and state funds slowly increasing

Overall, total state expenditures (including general funds, other state funds, bonds and federal funds) declined 1.1 percent in fiscal 2012, increased 2.2 percent in fiscal 2013, and are estimated to have grown by 5.7 percent in fiscal 2014.

led to a 1.1 percent reduction in total state expenditures, the

Not surprisingly, the Recovery Act and the Affordable Care Act

first and only nominal decline in total state expenditures in the

have also contributed to shifts in the distribution of funding

27-year history of the State Expenditure Report. In fiscal 2013,

sources for state expenditures. Over a two-year period from

total state spending grew 2.2 percent as the moderate growth

fiscal 2008 to fiscal 2010, general funds shrunk from representing

in state funds was partially offset by the continued decline in

45.9 percent of total state expenditures to 38.1 percent, while

federal funds. In fiscal 2014, it is estimated that total state

federal funds rose from 26.3 percent to 34.9 percent. However,

spending grew 5.7 percent, resulting from both modest growth

due to the expiration of ARRA funds, general funds started to

in state funds and strong growth in federal funds.

once again make up a larger component of total state expenditures. By fiscal 2013, general funds accounted for 40.9 percent

State Spending Trends State expenditures have seen numerous shifts during the recession and subsequent recovery. General fund spending, the component of state budgets that comes from revenue sources such as states’ income and sales taxes, was most

of total state expenditures, federal funds 29.8 percent, other state funds 27.3 percent, and bonds 2.1 percent. In fiscal 2014, it is estimated that federal funds will grow to 30.3 percent of total state spending due to increased Medicaid funds, while general funds will decline slightly to 40.5 percent.

negatively impacted during the recent economic downturn.

Total state expenditures grew in nearly all program areas in

After growing 8.5 percent in fiscal 2007 and 4.2 percent in

both fiscal 2013 and 2014. In fiscal 2013, elementary and

fiscal 2008, general fund spending declined 2.9 percent in fiscal

secondary education, higher education, public assistance,

2009 and an additional 6.5 percent in fiscal 2010. However, as

Medicaid, corrections and transportation all experienced

the national economy slowly improved and states’ revenues

growth, while the “all other” category slightly declined. In fiscal

began to rebound, general fund spending returned to positive

2014, all programs areas, with the exception of public assis-

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tance, experienced growth. Medicaid grew more sharply than

going from 20.5 percent in fiscal 2008 to an estimated 25.8

all other program areas in both fiscal 2013 and fiscal 2014.

percent in fiscal 2014. At the same time, elementary and

Additionally, Medicaid grew from representing 24.5 percent of

secondary education has gone from representing 22.0

total state spending in fiscal 2013 to 25.8 percent in fiscal

percent of total state spending in fiscal 2008 to an estimated

2014, with the increase largely resulting from new Affordable

19.5 percent in fiscal 2014. The reason for elementary and

Care Act funds.

secondary education representing a smaller share of total state spending is not because nominal elementary and sec-

Similar to total state expenditures, nearly all categories of gen-

ondary has declined; instead it is a result of its growth rate

eral fund spending experienced gains in fiscal 2013 and fiscal

being slower than the growth in total Medicaid spending.

2014. In fiscal 2013, elementary and secondary education,

For example, in fiscal 2014 it is estimated that total elemen-

public assistance, Medicaid, corrections, transportation, and

tary and secondary education spending grew 4.1 percent

“all other” saw spending growth, while only higher education

while total Medicaid spending grew 11.3 percent.

declined. In fiscal 2014, all general fund spending categories except for public assistance experienced spending increases.

• When looking only at general fund spending, elementary and secondary education remains the largest category

This edition of the State Expenditure Report includes data from

in fiscal 2013, representing 34.9 percent of general fund

actual fiscal 2012, actual fiscal 2013, and estimated fiscal

expenditures, with Medicaid second at 18.9 percent.

2014. The text of the report focuses on actual fiscal 2013 data,

Those two categories, combined with higher education at

with a secondary focus on estimated fiscal 2014.

9.4 percent, account for nearly two-thirds of general fund spending. In fiscal 2014, elementary and secondary edu-

Additional state expenditure details and trends, broken down

cation is estimated to represent 35.0 percent of general

by functional spending category, include:

fund expenditures, with Medicaid at 19.1 percent.

 •  Since the beginning of the recent economic downturn, Medicaid has risen as a percentage of total state spending,

•  Elementary and secondary education total expenditures increased by 3.9 percent in fiscal 2013 and increased

FIGURE 1: TOTAL STATE SPENDING BY FUND SOURCE, FISCAL 1987 TO 2013 1,800,000 Bonds 1,600,000 Other State Funds

Amount in Millions

1,400,000 1,200,000

Federal Funds

1,000,000 800,000 600,000 400,000

General Fund

200,000

19 8

7 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13

0

Fiscal Year

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by 4.1 percent in estimated fiscal 2014. While state funds

tions spending will increase 4.0 percent, mostly attributable

increased by 6.2 percent in fiscal 2013, federal funds

to increases in general fund spending.

declined by 6.0 percent due to the reduction in ARRA spending. In fiscal 2014, state funds increased 4.2 percent while federal funds grew 3.7 percent.

• Total transportation spending, representing 7.8 percent of total state expenditures, increased by 2.7 percent in fiscal 2013 and is estimated to increase by 4.2 percent in

•  Total expenditures for higher education increased by

fiscal 2014. Other state funds, which are typically ear-

only 1.0 percent in fiscal 2013 and are estimated to have

marked revenue sources such as gasoline taxes, com-

increased by 3.7 percent in fiscal 2014. State funds for

prised 53.3 percent of total transportation spending in

higher education increased by 1.9 percent in fiscal 2013

fiscal 2013, with federal funds at 32.2 percent, bonds at

and are estimated to have increased by 4.6 percent in

10.8 percent, and general funds only accounting for 3.7

fiscal 2014, while federal funds declined 3.6 percent in

percent. States and the federal government are con-

fiscal 2013 and declined by an estimated 0.4 percent in

cerned that in the long term, gas tax revenue will not be

fiscal 2014. Much of the recent growth in state funds for

sufficient to meet transportation needs as most gas taxes

higher education comes from other state funds, which

are set at fixed rates and do not rise with inflation, while at

includes tuition and fees in most states, and not from

the same time vehicle fuel economy has improved and the

general funds.

number of vehicle miles driven has also fallen. In addition

• Total public assistance increased by 3.1 percent in fiscal 2013 and declined by 1.4 percent in estimated fiscal 2014. The spending decline in fiscal 2014 is partly due to changes in California’s funding of certain public assistance programs. Public assistance, which includes cash assis-

to raising gas tax rates, other possible policy options include a shift to other revenue sources such as sales taxes, implementing a vehicle-miles traveled tax, increasing the use of toll roads and entering into public-private partnerships.

tance provided through the Temporary Assistance for

• The “all other” category of state spending declined 1.0

Needy Families (TANF) program and other public assis-

percent in fiscal 2013 as state funds grew 2.6 percent and

tance programs, represented 1.5 percent of total state

federal funds declined 9.5 percent; the decline in federal

expenditures in fiscal 2013.

funds is a result of less Recovery Act dollars. In fiscal

• In fiscal 2013, Medicaid total state expenditures increased 5.8 percent, with state funds growing 8.1 percent and federal funds increasing 4.1 percent. In fiscal 2014, states funds grew at a relatively low 2.7 percent while federal funds increased 17.8 percent due to increased Medicaid dollars provided through the Affordable Care Act. Additionally, in fiscal 2014, federal funds made up 60 percent of total state Medicaid spending, up from 56.6 percent in fiscal 2013. •  Total corrections expenditures increased by only 0.5 percent in fiscal 2013 with state funds increasing 1.3 percent and federal funds declining 25.5 percent. In recent years, states have begun controlling costs through reducing recidivism rates, implementing changes to parole and probation systems, enhancing community supervision and drug treatment programs, and enacting sentencing reforms. State funds comprised 97.7 percent of total corrections spending in fiscal 2013. Corrections accounted for 3.2 percent of total state expenditures in fiscal 2013 and 6.9 percent of general funds. In fiscal 2014 it is estimated that total correc-

2014, it is estimated that total “all other” spending will increase 3.9 percent, with state funds growing 5.5 percent and federal funds declining 3.2 percent. “All other” represented 33.0 percent of total state expenditures in fiscal 2013 and 27.7 percent of general fund expenditures. The “all other” category includes the Children’s Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, some employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing, and general aid to local governments. •  Because the nature of capital spending includes long construction timetables and unforeseen or delayed project costs, state spending on capital projects has historically fluctuated from year to year. States increased capital spending by 2.6 percent in fiscal 2012, decreased spending by 0.4 percent in fiscal 2013 and increased it by an estimated 4.2 percent in fiscal 2014. State spending on capital projects traditionally has come from non-general

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fund sources. Other state funds such as dedicated fees

once again increased in fiscal 2014, albeit at a much slow-

and fund surpluses (33.4 percent in fiscal 2013) and

er rate. Total general fund revenues increased 1.4 percent,

bonds (31.2 percent) combine to account for 64.6 percent

with sales taxes experiencing the strongest growth at 4.8

of total state spending on capital projects. Federal funds

percent, personal income taxes increasing by 1.2 percent,

(29.4 percent) and state general funds (6.0 percent) also

and corporate income taxes rising by 0.5 percent. Other

contribute to capital spending.

taxes and fees and gaming taxes both declined, at 2.5

• In total, general fund revenues increased 7.0 percent in fiscal 2013. Personal income taxes experienced the largest percentage increase at 9.8, while corporate income taxes rose 9.2 percent, sales taxes grew 5.2 percent, other taxes and fees increased 3.6 percent, and gaming taxes rose 2.3 percent. The strong growth in personal income taxes can be attributed to modest economic improvements, strong gains in the stock market, and to the impact of the federal “fiscal cliff”, in which many taxpayers shifted capital gains and other income to calendar year 2012 to avoid higher scheduled federal tax rates. State general fund revenues

percent and 5.3 percent respectively. Most states anticipated slower personal income tax growth in fiscal 2014 due to prior tax shifting brought on by the federal tax uncertainty.

Explanation of Report Data: Components of State Expenditures This report includes three years of state expenditure data: actual fiscal 2012, actual fiscal 2013, and estimated fiscal 2014. The text primarily focuses on actual fiscal 2013 with a secondary emphasis on estimated fiscal 2014 and examines the seven main functional categories of state spending: elementary and secondary education, higher education, public

FIGURE 2: ALL FUNDS PERCENT CHANGES FROM PREVIOUS FISCAL YEAR FOR MAJOR SPENDING CATEGORIES, FISCAL 2013 AND 2014

assistance, Medicaid, corrections, transportation, and “all other.” (“All other” is a broad category that includes state functions not tracked individually in this report, such as hospitals, economic development, housing, environmental programs, health programs and the Children’s Health Insurance Program (CHIP), parks and recreation, natural resources, air transporta-

E & S Education

tion, and water transport). Capital spending is included with

4.1

operating expenditures within each functional category, unless noted otherwise. Capital expenditures also have been collect-

1.0

Higher Education

Public Assistance

3.9

ed separately in the following categories: corrections, environ-

3.7

mental projects, higher education, housing, transportation, and

3.1

“all other”. It should also be noted that 21 states use a bienni-

-1.4

al budget cycle, and in many cases funds are not expended 11.3

vary among states depending on the role of local governments

4.0

in providing services. For example, in many states, the funding

2.7

Transportation

in some states from year to year. State governments have specific functional responsibilities that

0.5

Corrections

All Other

evenly in the two-year cycle. This may affect total expenditures

5.8

Medicaid

of elementary and secondary education is considered primarily

4.2

a local function. Some states are exceptions, such as Hawaii

-1.0

where state government fully funds elementary and secondary 3.9

education. A more complete understanding of programs and service levels within a given state would require comparisons

2.2

Total

of spending by both state and local government, which is not

5.7

the purpose of this report. In addition, because the data are -2

0

2012-2013

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4

6

8

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self-reported by the states, some may be incomplete. These omissions can affect aggregate and regional tables.

While state balanced budget requirements are diverse, and

trust fund would appear in the “Other State Funds” column.

governors are given significant powers to ensure a balanced

For Medicaid, other state funds include provider taxes, fees,

budget, states operate within stricter revenue/expenditure lim-

donations, assessments, and local funds.

itations than the federal government. An overwhelming majority of states require their governor to submit, and their legislature to pass, a balanced budget. States are required to make spending choices based on available resources and must either reduce spending, raise taxes, or use reserves when revenues come in below estimates. For the most part, states do not and

Bonds: Expenditures from the sale of bonds, generally for capital projects. State Funds: General funds plus other state fund spending, excluding state spending from bonds.

cannot incur operating deficits, and manage their finances in

Fiscal 2013 spending by fund source is detailed in Figure 3. In

ways to maintain or improve positive bond ratings.

fiscal 2013, general funds represent 40.9 percent of total state spending, with federal funds at 29.8 percent, other state funds

Explanation of Report Data: Definitions

closely behind at 27.3 percent, and bonds at 2.1 percent. In

General Fund: The predominant fund for financing a state’s

decline to 40.5 percent of total state spending while federal

operations. Revenues are received from broad-based state

funds will increase to 30.3 percent, with the growth in federal

taxes. However, there are differences in how specific functions

funds related to an increase in federal Medicaid dollars result-

are financed from state to state.

ing from the Affordable Care Act.

Federal Funds: Funds received directly from the federal

Figure 4 reflects total state expenditures by functional area. For

government.

fiscal 2013, total state spending shares are as follows: 24.5

Other State Funds: Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway

FIGURE 3: TOTAL STATE EXPENDITURES BY FUNDING SOURCE, FISCAL 2013

fiscal 2014, it is estimated that general funds will slightly

percent for Medicaid; 19.8 percent for elementary and secondary education; 10.3 percent for higher education; 7.8 percent for transportation; 3.2 percent for corrections; 1.5 percent for public assistance; and 33.0 percent for all other.

FIGURE 4: TOTAL STATE EXPENDITURES BY FUNCTION, FISCAL 2013

Bonds 2.1% Other State Funds 27.3%

Medicaid 24.5% General Funds 40.9%

Public Assistance 1.5%

Corrections 3.2% Transportation 7.8%

Higher Education 10.3%

Federal Funds 29.8%

Elementary & Secondary Education 19.8%

All Other 33.0%

S tat e E x p e n d i t u r e R e p o r t

5

The shares of state spending for the seven functional areas tracked in the State Expenditure Report have shifted since 1987, when the report was first published. For example, in total state spending, Medicaid surpassed higher education as the second largest state program in 1990, and in 2003 it became the largest, displacing elementary and secondary education. Since 2003, Medicaid and elementary and secondary education have alternated as the largest share of total state spending. Whereas in fiscal 2008 elementary and secondary education was the largest component, in fiscal 2009 Medicaid represented the largest share, due to increased Medicaid enrollment and spending resulting from the economic decline. In fiscal 2014 Medicaid continued to grow as a percentage of total state expenditures, representing 25.8 percent, while elementary and secondary education declined to 19.5 percent. Figure 5 documents the changes in state expenditures by

General Fund Expenditures Expenditures for elementary and secondary education continue to constitute the largest share of state general fund spending. As Figure 6 shows, in fiscal 2013, 34.9 percent of general fund spending went to elementary and secondary education. Medicaid accounted for 18.9 percent and higher education accounted for 9.4 percent of general fund spending. Figure 7 reflects the percentage change for general fund spending in each of the functional categories. In fiscal 2013, higher education was the only program area to experience a decline while in fiscal 2014, only public assistance saw a decrease in spending. Overall, general fund spending increased 4.3 percent in fiscal 2013 and is estimated to have increased 4.8 percent in fiscal 2014.

category since 1987. Table 3 reflects shares of state spending in functional areas, by fund source, from 1995 to 2014. Also, Table 5, at the end of the Executive Summary, highlights the share of each state’s budget represented by various programs in fiscal 2013 and shows the wide variation among states in their spending patterns.

FIGURE 5: COMPOSITION OF TOTAL STATE EXPENDITURES BY FUNCTION, FISCAL 1987 TO 2013

1,800,000 1,600,000

Amount in Millions

1,400,000

All Other

1,200,000 Transportation 1,000,000

Corrections

800,000

Medicaid

600,000

Public Assistance

400,000

Higher Education

200,000

E & S Education

19

87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13

0

Fiscal Year

6

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

Other State Funds Expenditures

FIGURE 6: GENERAL FUND EXPENDITURES, FISCAL 2013

Trailing only the “all other” category, higher education and transportation account for the next largest portions of other state funds spending for fiscal 2013, at 18.2 percent and 15.2

Public Assistance 1.5%

Medicaid 18.9%

percent respectively. Other state funds are expenditures from Corrections 6.9%

revenue sources which are restricted by law for particular governmental functions or activities. For transportation, these

Transportation 0.7%

Higher Education 9.4%

funds largely represent receipts from gasoline taxes earmarked for highways and other infrastructure projects, while for higher education, these funds include tuition and fees in most states (see Table 3).

All Other 27.7% Elementary & Secondary Education 34.9%

FIGURE 7: PERCENT CHANGE IN GENERAL FUND, FISCAL 2013 AND 2014

4.9 E & S Education

5.0 -1.0

Higher Education

4.7 4.2

Public Assistance

-2.6 2.8

Medicaid

5.8 3.3

Corrections

4.1 6.6

Transportation

33.4 6.7

All Other

3.8 -5

0

5

10 2012-2013

15

20

25

30

35

2013-2014

S tat e E x p e n d i t u r e R e p o r t

7

TABLE 1 TOTAL STATE EXPENDITURES—CAPITAL INCLUSIVE ($ IN MILLIONS) Actual Fiscal 2012

Actual Fiscal 2013

Estimated Fiscal 2014

General Fund

Federal Funds

Other State Funds

$18,782

$2,631

$3,439

$2,656

$27,508

$19,026

$2,613

$3,712

$2,501

$27,852

$17,045

$5,501

$3,893

$2,962

3,087

2,649

2,309

61

8,106

3,041

2,563

2,059

16

7,679

3,150

2,696

2,180

63

8,089

Massachusetts

25,826

16,157

13,303

1,827

57,113

26,771

15,530

13,459

1,781

57,541

29,018

15,135

12,734

2,173

59,060

New Hampshire

1,280

1,650

1,965

81

4,976

1,266

1,604

2,060

87

5,017

1,253

1,703

2,122

71

5,149

Rhode Island

3,110

2,599

2,000

198

7,907

3,216

2,520

1,973

157

7,866

3,289

2,543

1,970

79

7,881

Vermont

1,277

1,831

1,853

56

5,017

1,352

1,695

1,845

73

4,965

1,389

1,771

1,993

116

5,269

Delaware

3,592

1,777

3,388

185

8,942

3,659

1,783

3,281

439

9,162

3,794

1,903

3,459

452

9,608

Maryland

14,951

9,058

9,906

957

34,872

15,127

9,184

10,809

1,135

36,255

15,684

9,859

11,795

1,111

38,449

New Jersey

30,379

10,998

5,911

1,358

48,646

31,202

12,041

6,194

1,374

50,811

32,511

13,566

7,063

1,225

54,365

New York

56,489

40,311

32,843

3,861

133,504

58,960

38,574

32,305

3,258

133,097

61,243

41,171

31,672

3,440

137,526

Pennsylvania

27,031

24,177

32,159

1,379

84,746

27,717

23,945

32,916

800

85,378

28,492

23,810

33,899

1,265

87,466

Illinois

29,291

14,007

14,426

2,122

59,846

30,309

15,472

17,552

1,954

65,287

30,740

19,964

19,652

2,382

72,738

Indiana

13,579

9,272

3,344

0

26,195

14,189

10,357

3,625

0

28,171

14,553

9,978

2,729

0

27,260 51,472

Region/State

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $29,401

NEW ENGLAND Connecticut Maine

MID-ATLANTIC

GREAT LAKES

8,619

17,549

20,844

275

47,287

8,882

17,424

20,766

326

47,398

9,828

20,632

20,777

235

Ohio

26,395

13,144

16,370

2,013

57,922

27,439

12,647

15,996

2,186

58,268

28,902

13,046

17,141

2,133

61,222

Wisconsin

13,381

10,572

17,371

0

41,324

14,042

10,815

17,912

0

42,769

14,634

11,006

19,253

0

44,893 20,150

Michigan

PLAINS Iowa

6,010

6,551

6,072

229

18,862

6,299

5,727

7,398

107

19,531

6,641

6,122

7,316

71

Kansas

6,098

4,153

3,737

408

14,396

6,135

3,890

3,529

415

13,969

6,026

3,511

5,132

381

15,050

16,580

8,170

4,855

609

30,214

18,739

8,435

5,090

810

33,074

19,678

9,492

6,183

780

36,133

Minnesota Missouri

7,938

7,539

7,887

0

23,364

8,022

7,209

7,712

0

22,943

8,348

7,208

7,622

0

23,178

Nebraska

3,445

2,988

3,443

0

9,876

3,589

3,014

3,559

0

10,162

3,792

2,817

3,933

0

10,542

North Dakota

2,223

1,884

1,902

11

6,020

2,220

1,536

1,950

6

5,712

3,237

1,590

1,949

17

6,793

South Dakota

1,207

1,507

939

35

3,688

1,291

1,494

1,278

35

4,098

1,442

1,420

1,227

21

4,110

SOUTHEAST Alabama

7,380

9,439

7,455

324

24,598

7,121

9,482

7,693

224

24,520

7,835

9,288

6,770

495

24,388

Arkansas

4,582

6,278

9,693

135

20,688

4,755

6,082

10,405

203

21,445

4,865

6,511

11,212

155

22,743 74,240

Florida

23,054

24,570

13,971

1,395

62,990

24,490

24,272

14,340

869

63,971

26,690

25,416

21,445

689

Georgia

17,240

12,469

10,802

632

41,143

18,019

13,046

10,571

808

42,444

19,121

11,834

10,424

850

42,229

Kentucky

9,334

8,687

7,628

0

25,649

9,426

8,001

8,246

0

25,673

9,705

9,614

9,516

0

28,835

Louisiana

8,359

10,616

7,793

320

27,088

8,421

10,241

8,277

378

27,317

8,612

11,091

9,071

373

29,147

Mississippi

4,526

7,590

5,566

353

18,035

4,736

7,755

5,237

784

18,512

4,888

8,197

5,591

257

18,933

North Carolina

20,195

14,513

14,562

652

49,922

20,230

12,691

9,953

231

43,105

21,082

12,850

9,914

383

44,229

South Carolina

5,517

9,284

7,164

123

22,088

6,200

7,800

8,208

0

22,208

6,329

6,993

8,116

0

21,438

Tennessee

11,685

12,806

5,674

254

30,419

12,093

12,532

5,565

301

30,491

13,465

13,231

5,367

266

32,329

Virginia

16,986

9,212

15,890

1,284

43,372

18,833

9,546

16,191

1,167

45,737

18,052

9,568

17,071

908

45,599

4,144

4,064

13,611

78

21,897

4,283

4,075

13,885

77

22,320

4,256

4,412

15,142

78

23,888

Arizona

8,414

12,299

6,783

585

28,081

8,714

12,008

6,946

629

28,297

8,848

12,837

7,220

629

29,534

New Mexico

5,464

5,790

3,121

0

14,375

5,651

5,799

3,246

0

14,696

5,893

6,126

4,207

0

16,226

Oklahoma

6,575

7,122

7,088

146

20,931

6,991

6,923

7,372

144

21,430

7,101

7,425

7,620

155

22,301

44,549

32,324

14,886

1,308

93,067

42,645

30,884

18,159

1,556

93,244

49,394

34,676

15,979

1,197

101,246

Colorado

7,311

7,691

13,775

0

28,777

7,948

7,423

13,664

0

29,035

8,684

7,756

13,847

0

30,287

Idaho

2,504

2,383

1,349

33

6,269

2,691

2,648

1,342

10

6,691

2,789

2,814

1,741

28

7,372

Montana

1,764

2,131

2,024

0

5,919

1,947

2,115

1,978

0

6,040

2,041

2,149

1,998

0

6,188

Utah

4,742

3,588

3,039

453

11,822

5,011

3,446

3,734

488

12,679

5,317

3,644

3,946

481

13,388

Wyoming

2,455

1,547

1,748

0

5,750

3,709

2,354

3,069

0

9,132

3,031

2,082

2,532

0

7,645

West Virginia SOUTHWEST

Texas ROCKY MOUNTAIN

FAR WEST Alaska California

7,400

3,017

1,322

50

11,789

7,262

2,730

1,296

550

11,838

7,053

2,971

1,567

0

11,591

86,405

73,063

33,853

6,104

199,425

96,562

70,431

37,724

6,715

211,432

100,711

81,059

39,528

8,689

229,987 12,585

Hawaii

5,511

1,932

3,285

766

11,494

5,666

1,912

3,271

735

11,584

6,275

2,148

3,337

825

Nevada

3,062

2,554

1,977

29

7,622

3,182

2,918

2,756

41

8,897

3,278

2,823

2,625

19

8,745

Oregon

6,925

7,753

12,007

329

27,014

5,957

7,451

12,263

132

25,803

7,925

8,090

12,250

158

28,423

15,279

8,049

8,136

1,711

33,175

15,479

8,100

8,785

1,632

33,996

15,867

9,102

9,304

1,683

35,956

$661,932

$511,945

$444,468

$35,385

$1,653,730

$690,515

$502,737

$461,156

$35,134

$1,689,542

$723,796

$541,151

$483,034

$37,295

$1,785,276

Washington TOTAL*

Note: See General Notes at the end of this chapter.

8

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 2 ANNUAL PERCENTAGE CHANGE IN TOTAL STATE EXPENDITURES Fiscal 2012 to 2013 Region/State

General Funds

State Funds

Fiscal 2013 to 2014

Federal Funds

All Funds

General Funds

State Funds

Federal Funds

All Funds

NEW ENGLAND Connecticut Maine

1.3 %

2.3 %

-0.7 %

1.3 %

-1.5

-5.5

-3.2

-5.3

Massachusetts

3.7

2.8

-3.9

New Hampshire

-1.1

2.5

-2.8

Rhode Island

3.4

1.5

Vermont

5.9

Delaware Maryland

-10.4 %

-7.9 %

110.5 %

5.6 %

3.6

4.5

5.2

5.3

0.7

8.4

3.8

-2.5

2.6

0.8

-1.0

1.5

6.2

2.6

-3.0

-0.5

2.3

1.3

0.9

0.2

2.1

-7.4

-1.0

2.7

5.8

4.5

6.1

1.9

-0.6

0.3

2.5

3.7

4.5

6.7

4.9

1.2

4.3

1.4

4.0

3.7

5.9

7.3

6.1

New Jersey

2.7

3.0

9.5

4.5

4.2

5.8

12.7

7.0

New York

4.4

2.2

-4.3

-0.3

3.9

1.8

6.7

3.3

Pennsylvania

2.5

2.4

-1.0

0.7

2.8

2.9

-0.6

2.4

Illinois

3.5

9.5

10.5

9.1

1.4

5.3

29.0

11.4

Indiana

4.5

5.3

11.7

7.5

2.6

-3.0

-3.7

-3.2

Michigan

3.1

0.6

-0.7

0.2

10.7

3.2

18.4

8.6

Ohio

4.0

1.6

-3.8

0.6

5.3

6.0

3.2

5.1

Wisconsin

4.9

3.9

2.3

3.5

4.2

6.0

1.8

5.0

Iowa

4.8

13.4

-12.6

3.5

5.4

1.9

6.9

3.2

Kansas

0.6

-1.7

-6.3

-3.0

-1.8

15.5

-9.7

7.7

13.0

11.2

3.2

9.5

5.0

8.5

12.5

9.2

Missouri

1.1

-0.6

-4.4

-1.8

4.1

1.5

0.0

1.0

Nebraska

4.2

3.8

0.9

2.9

5.7

8.1

-6.5

3.7

North Dakota

-0.1

1.1

-18.5

-5.1

45.8

24.4

3.5

18.9

South Dakota

7.0

19.7

-0.9

11.1

11.7

3.9

-5.0

0.3 -0.5

MID-ATLANTIC

GREAT LAKES

PLAINS

Minnesota

SOUTHEAST Alabama

-3.5

-0.1

0.5

-0.3

10.0

-1.4

-2.0

Arkansas

3.8

6.2

-3.1

3.7

2.3

6.0

7.1

6.1

Florida

6.2

4.9

-1.2

1.6

9.0

24.0

4.7

16.1

Georgia

4.5

2.0

4.6

3.2

6.1

3.3

-9.3

-0.5

Kentucky

1.0

4.2

-7.9

0.1

3.0

8.8

20.2

12.3

Louisiana

0.7

3.4

-3.5

0.8

2.3

5.9

8.3

6.7

Mississippi

4.6

-1.2

2.2

2.6

3.2

5.1

5.7

2.3

North Carolina

0.2

-13.2

-12.6

-13.7

4.2

2.7

1.3

2.6

South Carolina

12.4

13.6

-16.0

0.5

2.1

0.3

-10.3

-3.5

Tennessee

3.5

1.7

-2.1

0.2

11.3

6.6

5.6

6.0

10.9

6.5

3.6

5.5

-4.1

0.3

0.2

-0.3

3.4

2.3

0.3

1.9

-0.6

6.8

8.3

7.0

Arizona

3.6

3.0

-2.4

0.8

1.5

2.6

6.9

4.4

New Mexico

3.4

3.6

0.2

2.2

4.3

13.5

5.6

10.4

Virginia West Virginia SOUTHWEST

Oklahoma

6.3

5.1

-2.8

2.4

1.6

2.5

7.3

4.1

-4.3

2.3

-4.5

0.2

15.8

7.5

12.3

8.6

Colorado

8.7

2.5

-3.5

0.9

9.3

4.3

4.5

4.3

Idaho

7.5

4.7

11.1

6.7

3.6

12.3

6.3

10.2

Texas ROCKY MOUNTAIN

Montana Utah Wyoming

10.4

3.6

-0.8

2.0

4.8

2.9

1.6

2.5

5.7

12.4

-4.0

7.2

6.1

5.9

5.7

5.6

51.1

61.3

52.2

58.8

-18.3

-17.9

-11.6

-16.3

FAR WEST Alaska

-1.9

-1.9

-9.5

0.4

-2.9

0.7

8.8

-2.1

California

11.8

11.7

-3.6

6.0

4.3

4.4

15.1

8.8

Hawaii

2.8

1.6

-1.0

0.8

10.7

7.6

12.3

8.6

Nevada

3.9

17.8

14.3

16.7

3.0

-0.6

-3.3

-1.7

Oregon

-14.0

-3.8

-3.9

-4.5

33.0

10.7

8.6

10.2

1.3

3.6

0.6

2.5

2.5

3.7

12.4

5.8

4.3 %

4.1 %

2.2 %

4.8 %

4.8 %

Washington TOTAL*

-1.8 %

7.6 %

5.7 %

Note: State funds are defined as general funds and other state funds (bonds are excluded). *See General Notes for explanation.

S tat e E x p e n d i t u r e R e p o r t

9

TABLE 3 COMPARISON OF SHARES OF STATE SPENDING WITH FUND SOURCES, FISCAL 1995 TO 2014 Fund Type & Year FY 1995: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 1996: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 1997: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 1998: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 1999: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2000: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2001: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2002: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2003: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2004: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2005: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2006: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2007: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2008: General Funds Other State Funds Federal Funds Bond Funds Total Funds

Elementary & Secondary Education

Higher Education

Public Assistance

Medicaid

Corrections

Transportation

All Other

Total

33.4 9.5 9.8 4.9 21.0

12.9 13.3 2.7 20.8 10.4

4.4 0.5 6.5 0.0 4.0

14.4 6.9 42.7 0.0 19.8

6.7 0.8 0.1 10.2 3.6

0.7 23.8 9.8 26.3 9.1

27.4 45.2 28.3 37.7 32.1

100.0 100.0 100.0 100.0 100.0

34.4 9.2 9.9 15.2 21.5

12.9 13.7 2.9 21.4 10.7

3.9 0.4 5.9 0.0 3.5

14.7 6.8 43.5 0.0 19.9

6.9 0.8 0.2 6.5 3.7

0.6 22.9 9.5 26.1 8.0

25.6 46.2 28.0 30.8 31.8

100.0 100.0 100.0 100.0 100.0

34.5 10.1 9.8 12.5 21.7

13.0 13.8 2.9 20.2 10.7

3.6 0.4 5.1 0.0 3.1

14.6 6.4 44.1 0.0 20.0

6.8 0.9 0.4 6.6 3.7

0.8 23.0 8.8 26.5 9.0

26.7 44.6 28.9 34.2 31.8

100.0 100.0 100.0 100.0 100.0

35.2 9.4 10.5 12.4 22.0

13.1 11.3 3.4 18.4 10.3

3.0 1.0 5.0 0.0 2.9

14.8 6.3 43.3 0.0 19.6

6.9 0.8 0.4 6.0 3.7

0.7 22.2 8.7 33.4 8.8

26.4 49.1 28.8 29.8 32.8

100.0 100.0 100.0 100.0 100.0

35.7 9.0 10.2 21.0 22.3

12.4 13.0 5.2 17.2 10.8

2.7 0.6 4.3 0.0 2.6

14.4 6.5 42.9 0.0 19.5

7.0 1.0 0.4 6.5 3.9

0.9 23.4 9.3 25.6 9.1

26.7 46.5 27.7 29.8 31.8

100.0 100.0 100.0 100.0 100.0

35.7 8.6 10.3 20.2 22.3

12.8 14.2 5.3 18.1 11.4

2.7 0.8 4.2 0.0 2.6

14.4 4.2 42.8 0.0 19.5

7.0 0.9 0.4 5.7 3.9

0.9 22.9 9.3 26.2 9.1

26.7 48.4 27.7 29.8 31.8

100.0 100.0 100.0 100.0 100.0

35.2 9.2 10.3 18.9 22.2

12.7 15.0 4.8 17.5 11.3

2.3 0.2 4.0 0.0 2.2

15.2 5.9 42.7 0.0 19.7

6.9 0.9 0.3 4.0 3.7

1.2 21.1 9.5 31.3 8.8

26.6 47.0 28.3 28.4 32.1

100.0 100.0 100.0 100.0 100.0

35.1 8.9 10.1 12.7 21.3

12.4 13.8 5.0 20.4 10.9

2.3 0.3 4.2 0.0 2.3

15.8 6.6 43.7 0.0 20.7

6.9 0.9 0.4 3.4 3.6

0.7 19.4 9.2 25.0 8.3

25.9 49.8 27.4 38.5 32.9

100.0 100.0 100.0 100.0 100.0

35.8 9.2 10.6 28.3 21.8

12.5 14.3 5.7 16.9 11.1

2.3 0.3 4.1 0.0 2.2

17.2 7.5 43.8 0.0 22

7.2 0.9 0.3 2.5 3.5

0.6 20 8.6 19.1 8.2

24.5 47.9 26.9 33.1 31.2

100.0 100.0 100.0 100.0 100.0

35.8 8.5 11.3 20.9 21.4

11.7 13.6 4.7 21.2 10.4

2.3 0.2 3.6 0.0 2.2

16.9 7.4 44.6 0.0 22.1

7.0 0.7 0.7 2.6 3.5

0.5 19.9 8.4 26.8 8.3

25.8 49.8 26.9 28.4 32.2

100.0 100.0 100.0 100.0 100.0

35.4 8.5 11.6 17.0 21.4

11.6 14.1 4.4 25.3 10.4

2.2 0.1 3.2 0.0 1.8

17.1 8.3 44.2 0.0 22.3

6.9 0.7 0.3 2.8 3.3

0.5 19.5 8.7 25.5 8.2

26.2 48.9 27.4 29.4 32.4

100.0 100.0 100.0 100.0 100.0

34.4 8.1 12.1 17.9 21.2

11.3 14.2 4.6 24.0 10.5

2.1 0.1 3.0 0.0 1.8

17.4 7.3 42.9 0.0 21.4

6.7 0.7 0.2 3.4 3.3

0.8 18.5 8.7 26.1 8.1

27.2 51.1 28.5 28.6 33.7

100.0 100.0 100.0 100.0 100.0

34.1 9.4 12.0 12.4 21.5

11.0 14.5 4.1 18.1 10.2

2.0 0.1 3.1 0.0 1.7

16.6 7.3 43.1 0.0 20.9

6.8 0.7 0.3 3.2 3.4

1.1 17.7 8.6 32.4 8.1

28.4 50.3 28.9 33.8 34.2

100.0 100.0 100.0 100.0 100.0

35.0 10.2 11.7 9.6 22.0

11.7 15.2 3.7 19.2 10.7

1.9 0.1 3.1 0.0 1.7

16.0 7.3 43.0 0.0 20.5

7.0 0.7 0.2 2.7 3.5

0.8 17.5 8.6 30.5 7.8

27.6 49.0 29.7 37.9 33.9

100.0 100.0 100.0 100.0 100.0

Table 3 continues on next page.

TABLE 3 (CONTINUED) COMPARISON OF SHARES OF STATE SPENDING WITH FUND SOURCES, FISCAL 1995 TO 2014 Fund Type & Year FY 2009: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2010: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2011: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2012: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2013: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 2014: General Funds Other State Funds Federal Funds Bond Funds Total Funds FY 1995-14 Combined Total: General Funds Other State Funds Federal Funds Bond Funds Total Funds

Elementary & Secondary Education

Higher Education

Public Assistance

Medicaid

Corrections

Transportation

All Other

Total

35.2 10.1 12.2 15.0 21.5

11.5 15.2 4.2 20.9 10.5

1.9 0.1 2.9 0.0 1.7

16.3 6.8 44.6 0.0 21.9

7.2 0.6 0.3 3.0 3.4

0.7 16.4 7.8 30.0 7.5

26.8 50.8 28.0 31.0 33.4

100.0 100.0 100.0 100.0 100.0

35.5 9.8 12.2 8.3 20.4

11.5 16.7 3.6 20.3 10.2

1.9 0.1 2.7 0.0 1.7

14.8 7.6 42.2 0.0 22.2

7.4 0.7 0.4 3.0 3.2

0.7 16.1 7.1 34.6 7.5

28.1 49.0 31.7 33.8 34.7

100.0 100.0 100.0 100.0 100.0

35.3 8.7 12.7 12.3 20.3

11.3 18.0 4.0 16.8 10.7

1.9 0.1 2.7 0.0 1.6

16.5 9.8 44.2 0.0 23.8

7.3 0.6 0.3 1.6 3.1

0.5 15.8 7.2 33.9 7.4

27.3 47.1 29.0 35.4 33.1

100.0 100.0 100.0 100.0 100.0

34.7 7.8 10.7 8.3 19.5

9.9 18.1 4.0 16.0 10.4

1.5 0.1 2.7 0.0 1.5

19.2 8.8 43.9 0.0 23.6

6.9 1.2 0.2 1.9 3.2

0.7 15.5 8.2 35.0 7.7

27.1 48.5 30.1 38.8 34.0

100.0 100.0 100.0 100.0 100.0

34.9 8.6 10.3 7.0 19.8

9.4 18.2 3.9 15.2 10.3

1.5 0.1 2.8 0.0 1.5

18.9 10.6 46.6 0.0 24.5

6.9 1.0 0.1 1.4 3.2

0.7 15.2 8.4 40.3 7.8

27.7 46.4 27.8 36.1 33.0

100.0 100.0 100.0 100.0 100.0

35.0 8.1 9.9 6.9 19.5

9.4 18.1 3.7 13.5 10.1

1.4 0.1 2.6 0.0 1.4

19.1 9.6 51.0 0.0 25.8

6.8 1.0 0.1 1.5 3.1

0.9 15.8 7.7 33.9 7.7

27.4 47.4 25.0 44.3 32.4

100.0 100.0 100.0 100.0 100.0

35.0 9.0 10.9 14.1 21.2

11.7 14.9 4.1 19.1 10.6

2.4 0.3 3.8 0.0 2.2

16.2 7.4 44.0 0.0 21.5

7.0 0.8 0.3 3.9 3.5

0.8 19.3 8.6 29.4 8.2

26.8 48.1 28.2 33.5 32.8

100.0 100.0 100.0 100.0 100.0

Federal Fund Expenditures As reflected in Figure 8, Medicaid accounts for the largest

FIGURE 8: FEDERAL FUND EXPENDITURES, FISCAL 2013

portion of state spending from federal funds in fiscal 2013 at 46.6 percent. Elementary and secondary education at 10.3

Medicaid 46.6%

percent and transportation at 8.4 percent are the next largest categories.

Corrections 0.1% Transportation 8.4%

Public Assistance 2.8% Higher Education 3.9%

All Other 27.8% Elementary & Secondary Education 10.3%

S tat e E x p e n d i t u r e R e p o r t

11

Regional Spending Trends

FIGURE 9: REGIONAL PERCENT CHANGE IN STATE FUNDS, FISCAL 2013 AND 2014

Table 4 shows growth rates for each region of the United States, separated by state funds (general fund plus other state funds, not including bond funds) and federal funds. The growth rate for all states increased 2.2 percent in fiscal 2013, with all

2.0

New England

eight regions recording at least moderate growth. In fiscal 2014,

0.3

total estimated state spending increased 5.7 percent, with all regions experiencing spending growth of at least 2 percent.

2.5

Mid-Atlantic

3.3

Figure 9 shows the percentage change in state spending from state funds for 2012-2013 and 2013-2014. In fiscal 2013 and

4.3

Great Lakes

4.4

estimated fiscal 2014, all eight regions recorded growth in state funds. The largest growth in fiscal 2013 was in the Rocky

6.2

Plains

Mountains, while the Plains recorded the strongest growth in

7.4

fiscal 2014. 1.7

Southeast

Total state expenditure data can be found on Tables 1-5, along

6.8

with related footnotes at the end of this chapter. 2.9

Southwest

6.6 10.8

Rocky Mountain

1.8 8.1

Far West

4.8 -6

-4

-2

2012-2013 Increases

TABLE 4 REGIONAL PERCENTAGE CHANGE IN TOTAL EXPENDITURES, FISCAL 2013 AND 2014 Fiscal 2012 to 2013 Region

State Funds

New England

2.0

Mid-Atlantic

2.5

Great Lakes Plains

Federal Funds %

-3.6

Fiscal 2013 to 2014 All Funds

%

0.3

State Funds %

0.3

Federal Funds %

10.6

All Funds %

3.5

-0.9

1.3

3.3

5.6

4.0

4.3

3.4

4.0

4.4

11.9

6.5

6.2

-4.5

2.9

7.4

2.7

5.9

Southeast

1.7

-3.1

0.0

6.8

2.8

5.2

Southwest

2.9

-3.3

0.8

6.6

9.8

7.4

10.8

3.7

8.6

1.8

2.6

2.0

Far West

8.1

-2.9

4.5

4.8

13.5

ALL STATES

4.1

Rocky Mountain

12

N at i o n a l A ss o c i at i o n

of

%

-1.8

%

S tat e B u d g e t O f f i c e r s

2.2

%

4.8

%

7.6

%

7.8 %

5.7

%

0

2

4

6

8

2013-2014 Increases

10

TABLE 5 STATE SPENDING BY FUNCTION AS A PERCENT OF TOTAL STATE EXPENDITURES, FISCAL 2013

Region/State

Elementary & Secondary Education

Higher Education

Public Assistance

Medicaid

Corrections

All Other

Transportation

Total

NEW ENGLAND Connecticut

14.1 %

1.4 %

21.8 %

2.3 %

9.7

Maine

16.9

10.6 % 3.6

2.3

32.7

1.8

8.2

%

40.2 % 34.6

100.0 % 100.0

Massachusetts

11.2

10.1

2.7

18.7

2.3

6.6

48.5

100.0

New Hampshire

23.4

2.2

1.7

25.6

2.0

10.0

35.0

100.0

Rhode Island

14.9

13.0

1.4

24.8

2.6

6.3

37.0

100.0

Vermont

32.0

1.8

2.3

28.3

2.9

10.9

21.7

100.0

MID-ATLANTIC Delaware

24.3

4.6

0.3

17.2

3.0

8.7

42.0

100.0

Maryland

19.2

14.5

3.8

21.0

4.0

10.0

27.5

100.0 100.0

New Jersey

24.9

7.9

0.9

20.4

3.1

10.0

32.8

New York

19.3

7.6

3.0

29.1

2.5

6.4

32.1

100.0

Pennsylvania

14.9

2.1

1.5

26.9

2.6

7.5

44.6

100.0

GREAT LAKES Illinois

13.3

3.7

0.3

23.8

2.1

8.4

48.4

100.0

Indiana

30.8

6.1

1.4

31.2

2.7

8.3

19.6

100.0 100.0

Michigan

27.2

4.2

0.7

26.4

4.6

7.8

29.0

Ohio

17.0

4.3

1.5

29.2

3.2

5.1

39.8

100.0

Wisconsin

16.2

14.3

0.3

17.2

2.9

6.9

42.1

100.0 100.0

PLAINS Iowa

16.4

26.0

0.5

19.8

2.1

6.8

28.3

Kansas

26.8

18.2

0.2

18.5

2.7

7.2

26.4

100.0

Minnesota

29.2

4.7

1.4

24.3

1.5

10.7

28.2

100.0

Missouri

22.8

4.8

0.7

35.8

2.7

9.4

23.8

100.0

Nebraska

14.6

23.3

0.5

17.9

2.2

7.8

33.6

100.0

North Dakota

15.0

19.0

0.1

13.7

1.9

16.1

34.2

100.0

South Dakota

14.1

22.3

0.7

19.9

2.5

15.0

25.5

100.0

SOUTHEAST Alabama

20.4

19.9

0.2

22.8

2.4

6.5

27.7

100.0

Arkansas

15.6

15.4

2.0

21.0

2.1

5.8

38.0

100.0

Florida

19.3

8.5

0.3

31.8

3.9

10.9

25.4

100.0

Georgia

24.1

19.0

0.1

21.3

3.7

5.7

26.2

100.0

Kentucky

19.6

26.7

0.9

21.9

2.4

9.8

18.8

100.0

Louisiana

19.3

10.3

0.5

25.1

3.0

6.2

35.7

100.0 100.0

Mississippi

16.4

16.1

5.9

26.1

2.0

6.7

26.7

North Carolina

24.8

12.4

0.5

30.0

4.6

10.7

17.0

100.0

South Carolina

17.6

19.5

0.4

22.0

2.7

5.4

32.4

100.0 100.0

Tennessee

17.8

13.9

0.4

30.8

2.8

6.1

28.2

Virginia

15.1

15.3

0.4

16.7

2.8

11.0

38.7

100.0

West Virginia

10.5

13.7

0.5

13.5

1.1

5.2

55.6

100.0

SOUTHWEST Arizona

18.6

14.3

1.2

29.8

3.5

5.6

27.0

100.0

New Mexico

19.5

19.3

1.0

25.0

2.0

5.7

27.4

100.0

Oklahoma

16.2

22.7

0.9

23.0

2.6

7.1

27.5

100.0

Texas

27.4

15.7

0.1

31.7

3.6

8.9

12.6

100.0

ROCKY MOUNTAIN Colorado

26.0

8.3

0.0

22.0

2.6

8.5

32.6

100.0

Idaho

24.2

8.1

0.2

28.0

3.8

9.6

25.9

100.0

Montana

15.5

10.1

0.5

17.9

3.2

11.0

41.8

100.0

Utah

23.6

11.5

0.6

17.2

2.1

10.4

34.6

100.0

Wyoming

10.9

4.8

0.0

6.6

1.4

6.4

70.0

100.0

Alaska

13.7

9.2

1.1

12.2

3.3

19.5

41.0

100.0

California

21.4

6.6

3.9

25.1

5.0

6.0

31.9

100.0

Hawaii

15.5

10.9

0.8

14.4

2.0

9.9

46.5

100.0

Nevada

22.3

8.5

0.6

22.7

3.2

7.4

35.3

100.0

FAR WEST

Oregon

14.3

1.1

0.7

21.4

3.9

6.1

52.6

100.0

Washington

23.4

14.3

0.9

11.9

2.7

8.9

38.0

100.0

19.8 %

10.3 %

1.5 %

24.5 %

3.2 %

7.8

33.0 %

100.0 %

ALL STATES

%

Note: Percentages may not add to 100.

S tat e E x p e n d i t u r e R e p o r t

13

General Notes

Tennessee: Tennessee collects personal income tax on

In reviewing the tables, please note the following:

• Small dollar amounts, when rounded, cause an aberration in the percentage increase. In these instances, the actual dollar amounts should be consulted to determine the exact percentage increase.

• “State funds” refers to general funds plus other state fund spending. State spending from bonds is excluded.

• “Total funds” refers to funding from all sources—general fund, federal funds, other state funds, and bonds.



• The report methodology is detailed in the Appendix.

All States: Medicaid reflects provider taxes, fees, assessments, donations, and local funds in Other State Funds. Alabama: Amounts shown in fiscal years 2012 and 2013 are based on actual expenditures during these years, regardless of the year appropriated. Fiscal 2014 amounts shown are equal to actual expenditures through 9 months and then annualized for the year.

14

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

income from dividends on stocks and interest on certain bonds. Tax revenue estimates do not include federal funds and other departmental revenues. However, federal funds and other departmental revenues are included in the budget as funding sources for the general fund, along with state tax revenues. Texas: Data are compiled from multiple sources, such as agency annual financial reports, Texas Comptroller publications, the General Appropriations Act, and Legislative Budget Board online resources. Methodologies employed by these sources may differ somewhat between each other and across time. In addition, the report was compiled according to NASBO methodologies. Wyoming: Part of Wyoming’s yearly variation in expenditure totals is due to the fact that the state budgets on a two year cycle.

1 CHAPTER

ELEMENTARY & SECONDARY EDUCATION

19.8% of State Expenditures

S tat e E x p e n d i t u r e R e p o r t

15

Elementary and Secondary Education Expenditures

Sources of Funding

State elementary and secondary education expenditures

years, a number of states have moved toward increasing their

totaled $334.8 billion in fiscal 2013, a 3.9 percent increase over

share of funding for elementary and secondary education by

the previous year. State funding to K-12 education increased

substituting state funds for local funds, often in order to reduce

by 6.2 percent, more than offsetting the 6.0 percent decline in

local governments’ reliance on property taxes. Funds are dis-

federal funding. The decrease in federal funds was due largely

tributed to schools both through general funds on a per-pupil

to the continued wind-down in education funds to states under

basis and as categorical grants to support specific programs

the American Recovery and Reinvestment Act of 2009 (ARRA).

or needs. The federal share serves mainly as a source of sup-

In fiscal 2013, states received $2.1 billion in ARRA funds for

plemental funding for poor school districts and also helps

elementary and secondary education, compared to $6.0 billion

cover the cost of educating children with special needs. How-

in fiscal 2012. General funds comprised 72.0 percent of state

ever, federal funds provided to states through ARRA have

elementary and secondary education spending, federal funds

mostly been used to maintain basic educational services.

comprised 15.4 percent, other state funds comprised 11.8

According to the U.S. Census Bureau’s report on public edu-

percent, and bonds comprised 0.7 percent (see Figure 10) in

cation finances, 45.5 percent of elementary and secondary

fiscal 2013.

education revenue came from states, 44.5 percent from local-

In fiscal 2014, it is estimated that overall elementary and secondary expenditures grew by 4.1 percent, with state funds

State funding systems for education vary greatly. Over the

ities, and 10.0 percent from the federal government in fiscal 2012.

increasing by 4.2 percent and federal funds increasing by 3.7 percent. States continue to restore some prior cuts to K-12 education as the economy and state revenues grow modestly. During the midst of the national recession, state funds for elementary and secondary education declined by 1.3 percent in fiscal 2009 and 5.2 percent in fiscal 2010.

FIGURE 10 STATE EXPENDITURES FOR ELEMENTARY AND SECONDARY EDUCATION BY FUND SOURCE, FISCAL 2013

While elementary and secondary education has historically Other State Funds 11.8%

been the largest category of total state spending, it was surpassed by Medicaid in fiscal 2009. In fiscal 2013, Medicaid

Bonds 0.7%

comprised 24.5 percent of total state spending and K-12 represented 19.8 percent. Elementary and secondary education remains by far the largest component of general fund spending in fiscal 2013 at 34.9 percent, compared to 18.9 percent for

Federal Funds 15.4%

Medicaid.

General Funds 72.0%

16

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

Regional Expenditures The following table shows percentage changes in expenditures for elementary and secondary education for fiscal 2012-2013 and 2013-2014 by region. In fiscal 2013, all regions except the Southwest saw a net increase in total state spending for K-12 education.

TABLE 6 REGIONAL PERCENTAGE CHANGE IN STATE ELEMENTARY AND SECONDARY EDUCATION EXPENDITURES, FISCAL 2013 AND 2014 Fiscal 2012 to 2013 Region

State Funds

Federal Funds

New England

4.3

Mid-Atlantic

4.0

-16.6

Great Lakes

%

-4.3

Fiscal 2013 to 2014 All Funds

%

3.3

State Funds %

4.3

Federal Funds %

7.7

All Funds %

5.0

0.8

2.9

8.9

3.8

2.6

-6.6

0.6

6.5

12.7

7.3

13.2

-6.4

10.1

0.8

-0.8

0.6

Southeast

6.3

-5.1

3.9

3.6

0.4

3.1

Southwest

-1.9

0.4

-1.5

7.6

-3.0

5.5

Rocky Mountain

12.0

-12.4

8.9

2.4

-0.1

2.1

Far West

12.6

0.3

10.0

4.2

2.6

Plains

ALL STATES

6.2

%

-6.0

%

3.9

%

ESEA Reauthorization & Flexibility Requests The Elementary and Secondary Education Act (ESEA), and its

4.2

%

3.7

%

4.0 %

4.1

%

Elementary and Secondary Education— Expenditure Exclusions

current reauthorization known as “No Child Left Behind”

When comparing resources spent on elementary and second-

(NCLB), continues to await a new reauthorization by Congress.

ary education, it is important to understand the types of pro-

No Child Left Behind created a series of new accountability

grams states exclude from these figures. For this report, 13

standards as well as made funding changes. Due to the delay

states wholly or partially excluded employer contributions to

in reauthorization of ESEA, the U.S. Department of Education in

teacher pensions and 15 states wholly or partially excluded

2011 began making available flexibility waivers to states that

contributions to health benefits. Additionally, other items that

develop their own rigorous accountability systems designed to

are wholly or partially excluded include: day care programs (38

focus on college- and career-readiness for students, close

states), school health care (38), Head Start (32), and libraries

achievement gaps, promote equity and improve instructional

(27). Summary expenditure data can be found in Tables 7

quality. Thirty-five of the 45 waivers granted to states and terri-

through 9, accompanied by explanatory notes. Table 10 lists

tories were set to expire after the 2013-2014 school year, and

programs excluded from the expenditure data.

all 35 states submitted requests for a waiver extension. As of October 2014, 30 extension requests were approved, two were denied, and the remaining three were still awaiting a decision.

S tat e E x p e n d i t u r e R e p o r t

17

TABLE 7 ELEMENTARY AND SECONDARY EDUCATION EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012

Region/State

General Fund

Federal Funds

Other State Funds

Actual Fiscal 2013

Bonds

Total

General Fund

Estimated Fiscal 2014

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total

NEW ENGLAND $2,769

$556

$3

$506

$3,834

$2,880

$484

$10

$563

$3,937

$3,039

$476

$2

$628

$4,145

Maine

1,046

16

0

0

1,062

1,087

202

8

0

1,297

1,150

194

30

0

1,374

Massachusetts

5,161

1,173

4

0

6,338

5,407

1,004

5

0

6,416

5,622

1,259

5

0

6,886

New Hampshire

0

208

956

7

1,171

0

199

959

14

1,172

0

178

954

1

1,133

Rhode Island

861

235

27

0

1,123

928

214

29

1

1,172

941

173

33

2

1,149

Vermont

337

137

1,077

8

1,559

357

121

1,103

8

1,589

376

116

1,173

7

1,672

Delaware

1,156

244

659

138

2,197

1,194

211

681

141

2,227

1,243

208

700

168

2,319

Maryland*

5,709

980

121

0

6,810

5,552

969

437

0

6,958

5,691

1,110

408

0

7,209

New Jersey

11,110

869

18

0

11,997

11,754

856

20

0

12,630

12,499

818

15

0

13,332

New York

18,508

4,908

3,009

17

26,442

19,070

3,407

3,164

16

25,657

19,279

3,927

3,310

17

26,533

9,258

2,430

618

0

12,306

9,705

2,423

618

0

12,746

9,971

2,507

617

0

13,095

Illinois

6,739

2,029

35

0

8,803

6,539

2,128

34

0

8,701

6,687

3,007

77

0

9,771

Indiana

7,277

1,231

135

0

8,643

7,452

1,057

171

0

8,680

7,625

980

120

0

8,725

102

1,907

10,383

0

12,392

312

1,743

10,841

0

12,896

185

1,915

11,372

0

13,472

Ohio*

6,530

2,239

814

474

10,057

6,831

2,000

751

312

9,894

7,128

1,912

1,045

201

10,286

Wisconsin

5,841

848

230

0

6,919

5,915

782

238

0

6,935

7,145

875

253

0

8,273

Iowa

2,694

435

44

0

3,173

2,731

444

31

0

3,206

2,866

460

69

0

3,395

Kansas

3,077

471

166

0

3,714

3,092

479

171

0

3,742

2,964

468

367

0

3,799

Minnesota

6,616

779

44

1

7,440

8,865

745

44

1

9,655

8,473

785

42

3

9,303

Missouri

2,770

1,086

1,425

0

5,281

2,914

957

1,358

0

5,229

2,922

943

1,426

0

5,291

Nebraska

1,047

395

66

0

1,508

1,088

328

72

0

1,488

1,142

303

77

0

1,522

North Dakota

620

154

56

0

830

660

141

57

0

858

838

113

73

0

1,024

South Dakota

358

169

3

0

530

402

173

3

0

578

401

168

5

0

574

Alabama*

3,909

969

183

0

5,061

3,773

967

273

0

5,013

4,017

1,388

187

0

5,592

Arkansas

2,000

615

765

0

3,380

2,056

519

767

0

3,342

2,103

519

815

0

3,437

Florida

8,264

2,204

767

20

11,255

9,448

2,098

787

1

12,334

10,034

1,961

841

0

12,836

Connecticut

MID-ATLANTIC

Pennsylvania GREAT LAKES

Michigan*

PLAINS

SOUTHEAST

Georgia*

7,061

2,241

331

232

9,865

7,380

2,353

334

167

10,234

7,601

2,011

318

239

10,169

Kentucky

4,129

919

32

0

5,080

4,141

846

34

0

5,021

4,202

797

35

0

5,034

Louisiana

3,341

1,104

863

0

5,308

3,370

1,042

847

0

5,259

3,526

1,115

783

0

5,424

Mississippi

1,993

795

328

0

3,116

2,011

705

324

0

3,040

2,068

760

400

0

3,228

North Carolina

7,580

1,438

549

0

9,567

8,784

1,420

502

0

10,706

9,146

1,420

502

0

11,068

South Carolina

1,995

824

690

0

3,509

2,264

890

749

0

3,903

2,416

901

735

0

4,052

Tennessee

4,046

1,261

63

0

5,370

4,160

1,165

89

0

5,414

4,359

1,258

84

0

5,701

Virginia

4,979

1,358

607

0

6,944

5,254

1,029

645

0

6,928

5,302

967

678

0

6,947

West Virginia

1,950

369

16

23

2,358

1,969

346

14

23

2,352

1,970

340

14

23

2,347

Arizona

3,375

1,169

533

89

5,166

3,465

1,123

590

88

5,266

3,621

1,078

674

87

5,460

New Mexico

2,366

421

1

0

2,788

2,455

414

1

0

2,870

2,556

414

2

0

2,972

Oklahoma

2,357

755

338

0

3,450

2,368

662

444

0

3,474

2,269

667

555

0

3,491

18,026

4,778

3,530

14

26,348

14,726

4,954

5,902

3

25,585

18,503

4,780

4,044

3

27,330

Colorado*

2,833

656

3,781

0

7,270

3,015

614

3,918

0

7,547

3,153

594

4,169

0

7,916

Idaho

1,241

293

77

0

1,611

1,299

243

80

0

1,622

1,328

237

89

0

1,654

629

173

115

0

917

697

162

77

0

936

721

163

86

0

970

2,409

469

37

0

2,915

2,534

433

30

0

2,997

2,534

481

76

0

3,091

7

98

131

0

236

2

28

964

0

994

0

3

763

0

766

SOUTHWEST

Texas ROCKY MOUNTAIN

Montana Utah Wyoming FAR WEST

1,292

233

54

0

1,579

1,364

209

43

0

1,616

1,379

228

43

0

1,650

32,102

6,261

122

1,216

39,701

37,979

6,307

127

872

45,285

38,830

6,647

79

1,060

46,616

Hawaii*

1,458

284

56

0

1,798

1,444

287

63

0

1,794

1,537

303

49

0

1,889

Nevada

1,116

251

431

0

1,798

1,214

384

382

0

1,980

1,286

259

422

0

1,967

Oregon

2,967

661

164

0

3,792

2,527

560

593

0

3,680

3,351

593

182

0

4,126

Washington

6,789

887

126

191

7,993

6,735

856

109

264

7,964

7,207

798

400

137

8,542

$229,800

$54,985

$34,583

$2,936

$322,304

$241,169

$51,683

$39,493

$2,474

$334,819

$253,206

$53,577

$39,198

$2,576

$348,557

Alaska California

TOTAL

*See notes at the end of the chapter.

18

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 8 ELEMENTARY AND SECONDARY EDUCATION EXPENDITURES AS A PERCENT OF TOTAL EXPENDITURES Region/State

Fiscal 2012

Fiscal 2013

Fiscal 2014

NEW ENGLAND Connecticut

13.9

Maine

13.1

%

14.1 16.9

%

14.1 17.0

Massachusetts

11.1

11.2

11.7

New Hampshire

23.5

23.4

22.0

Rhode Island

14.2

14.9

14.6

Vermont

31.1

32.0

31.7

Delaware

24.6

24.3

24.1

Maryland

19.5

19.2

18.7

New Jersey

24.7

24.9

24.5

New York

19.8

19.3

19.3

Pennsylvania

14.5

14.9

15.0

Illinois

14.7

13.3

13.4

Indiana

33.0

30.8

32.0

Michigan

26.2

27.2

26.2

Ohio

17.4

17.0

16.8

Wisconsin

16.7

16.2

18.4

Iowa

16.8

16.4

16.8

Kansas

25.8

26.8

25.2

Minnesota

24.6

29.2

25.7

Missouri

22.6

22.8

22.8

Nebraska

15.3

14.6

14.4

North Dakota

13.8

15.0

15.1

South Dakota

14.4

14.1

14.0

Alabama

20.6

20.4

22.9

Arkansas

16.3

15.6

15.1

Florida

17.9

19.3

17.3

Georgia

24.0

24.1

24.1

Kentucky

19.8

19.6

17.5

Louisiana

19.6

19.3

18.6

Mississippi

17.3

16.4

17.0

North Carolina

19.2

24.8

25.0

South Carolina

15.9

17.6

18.9

Tennessee

17.7

17.8

17.6

Virginia

16.0

15.1

15.2

West Virginia

10.8

10.5

9.8

Arizona

18.4

18.6

18.5

New Mexico

19.4

19.5

18.3

Oklahoma

16.5

16.2

15.7

Texas

28.3

27.4

27.0

Colorado

25.3

26.0

26.1

Idaho

25.7

24.2

22.4

Montana

15.5

15.5

15.7

Utah

24.7

23.6

23.1

4.1

10.9

10.0

Alaska

13.4

13.7

14.2

California

19.9

21.4

20.3

Hawaii

15.6

15.5

15.0

Nevada

23.6

22.3

22.5

Oregon

14.0

14.3

14.5

Washington

24.1

23.4

23.8

ALL STATES

19.5

%

MID-ATLANTIC

GREAT LAKES

PLAINS

SOUTHEAST

SOUTHWEST

ROCKY MOUNTAIN

Wyoming FAR WEST

%

19.8

%

19.5

%

S tat e E x p e n d i t u r e R e p o r t

19

TABLE 9 ANNUAL PERCENTAGE CHANGE IN ELEMENTARY AND SECONDARY EDUCATION EXPENDITURES Fiscal 2012 to 2013 State Funds

Region/State

Federal Funds

Fiscal 2013 to 2014 All Funds

State Funds

Federal Funds

All Funds

NEW ENGLAND Connecticut

4.3

Maine

4.7

%

1,162.5

-12.9

%

2.7

%

22.1

5.2

%

7.8

-1.7

%

-4.0

5.3

%

5.9

Massachusetts

4.8

-14.4

1.2

4.0

25.4

7.3

New Hampshire

0.3

-4.3

0.1

-0.5

-10.6

-3.3

Rhode Island

7.8

-8.9

4.4

1.8

-19.2

-2.0

Vermont

3.3

-11.7

1.9

6.1

-4.1

5.2

Delaware

3.3

-13.5

1.4

3.6

-1.4

4.1

Maryland

2.7

-1.1

2.2

1.8

14.6

3.6

MID-ATLANTIC

New Jersey

5.8

-1.5

5.3

6.3

-4.4

5.6

New York

3.3

-30.6

-3.0

1.6

15.3

3.4

Pennsylvania

4.5

-0.3

3.6

2.6

3.5

2.7 12.3

GREAT LAKES Illinois

-3.0

4.9

-1.2

2.9

41.3

Indiana

2.8

-14.1

0.4

1.6

-7.3

0.5

Michigan

6.4

-8.6

4.1

3.6

9.9

4.5

Ohio

3.2

-10.7

-1.6

7.8

-4.4

4.0

Wisconsin

1.4

-7.8

0.2

20.2

11.9

19.3 5.9

PLAINS Iowa

0.9

2.1

1.0

6.3

3.6

Kansas

0.6

1.7

0.8

2.1

-2.3

1.5

33.8

-4.4

29.8

-4.4

5.4

-3.6

Minnesota Missouri

1.8

-11.9

-1.0

1.8

-1.5

1.2

Nebraska

4.2

-17.0

-1.3

5.1

-7.6

2.3

North Dakota

6.1

-8.4

3.4

27.1

-19.9

19.3

South Dakota

12.2

2.4

9.1

0.2

-2.9

-0.7

SOUTHEAST Alabama

-1.1

-0.2

-0.9

3.9

43.5

11.5

Arkansas

2.1

-15.6

-1.1

3.4

0.0

2.8

13.3

-4.8

9.6

6.3

-6.5

4.1

4.4

5.0

3.7

2.7

-14.5

-0.6

Florida Georgia* Kentucky

0.3

-7.9

-1.2

1.5

-5.8

0.3

Louisiana

0.3

-5.6

-0.9

2.2

7.0

3.1

0.6

-11.3

-2.4

5.7

7.8

6.2

North Carolina

Mississippi

14.2

-1.3

11.9

3.9

0.0

3.4

South Carolina

3.8

12.2

8.0

11.2

4.6

1.2

Tennessee

3.4

-7.6

0.8

4.6

8.0

5.3

Virginia

5.6

-24.2

-0.2

1.4

-6.0

0.3

West Virginia

0.9

-6.2

-0.3

0.1

-1.7

-0.2 3.7

SOUTHWEST Arizona

3.8

-3.9

1.9

5.9

-4.0

New Mexico

3.8

-1.7

2.9

4.2

0.0

3.6

Oklahoma

4.3

-12.3

0.7

0.4

0.8

0.5

-4.3

3.7

-2.9

9.3

-3.5

6.8

Texas ROCKY MOUNTAIN Colorado

4.8

-6.4

3.8

5.6

-3.3

4.9

Idaho

4.6

-17.1

0.7

2.8

-2.5

2.0 3.6

Montana

4.0

-6.4

2.1

4.3

0.6

Utah

4.8

-7.7

2.8

1.8

11.1

3.1

600.0

-71.4

321.2

-21.0

-89.3

-22.9

Wyoming FAR WEST Alaska

4.5

-10.3

2.3

1.1

9.1

2.1

California

18.3

0.7

14.1

2.1

5.4

2.9

Hawaii

-0.5

1.1

-0.2

5.2

5.6

5.3

Nevada

3.2

53.0

10.1

7.0

-32.6

-0.7

Oregon

-0.4

-15.3

-3.0

13.2

5.9

12.1

Washington

-1.0

-3.5

-0.4

11.1

-6.8

7.3

ALL STATES

6.2

%

-6.0

Note: State funds are defined as general funds and other state funds (bonds are excluded).

20

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

%

3.9

%

4.2

%

3.7

%

4.1

%

TABLE 10 ITEMS EXCLUDED FROM ELEMENTARY AND SECONDARY EDUCATION EXPENDITURES Region/State

Employer Contributions to Pensions

Employer Contributions to Health Benefits

X

X

Head Start

Libraries

Day Care Programs

School Health Care/ Immunization

X

P

P

X

X

X

P

NEW ENGLAND Connecticut Maine Massachusetts

X

X

New Hampshire

X

X

X

Rhode Island

X

X

X

P

Vermont

X

X

X

X

MID-ATLANTIC Delaware

X

Maryland

X

New Jersey New York

P

P P

P

X

X

P

P

X

X

P

X

X

X

P

P

X

X

X

Pennsylvania GREAT LAKES Illinois Indiana

P

P

X

Michigan*

P

P

X

X

X

Ohio Wisconsin

X

PLAINS Iowa

X

Kansas

X

X

X

X

X

Minnesota

P

P

Missouri

X

X

X

X

X

X

Nebraska

P

P

X

X

X

X

X

X

X

X

X

X

North Dakota

X

South Dakota SOUTHEAST Alabama

X

X

X

P

P

X

X

Arkansas

P

Florida

X

X

Georgia

X

X X

X

Louisiana

X

X

X

Mississippi

P

Kentucky

X

X

North Carolina

X

South Carolina

X

X

Tennessee

X P

Virginia

P

X

West Virginia

X

X

X

X

SOUTHWEST Arizona

X

X

New Mexico

X P

Oklahoma

X

X

X

X

Texas

X

P

P

P

X

P

ROCKY MOUNTAIN Colorado*

P

X

Idaho Montana

X P

P

Utah

X

X X

P

X

X

X X

X

Wyoming FAR WEST Alaska

X

California Hawaii*

P

P

X

X

X

X

X

X

X

X

Nevada

X

X

X

X

Oregon

X

P

X

X

Washington

P

P

X

X

X

X

ALL STATES

13

15

32

27

38

38

Excluded=X Partially Excluded=P Not Applicable=N/A *See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

21

Elementary and Secondary Education Notes Small dollar amounts, when rounded, cause an aberration in the percentage increase. In these instances, the actual dollar

Maryland: In fiscal 2013, other state funds growth is due to the increased use of lottery funds to finance education local aid.

amounts should be consulted to determine the exact percent-

Michigan: Figures reflect K-12 education, the Michigan

age increase.

Department of Education, adult education and pre-school.

Alabama: Federal funds received directly by local school systems are not reported at the state budget level. Colorado: School personnel are paid at the school district level — state costs for employer contributions to employee pensions and health benefits only reflect Colorado Dept. of Education personnel. Funds library-related programs across the state.

Employer contributions to current employees’ pensions and health benefits are reported for Department of Education employees and partially excluded for employees of K-12 schools. Effective for fiscal 2013, state funds partially offset employer-paid retirement obligations for employees of K-12 schools. Fiscal 2012 figures are adjusted from the 2012 published survey to remove $459 million School Aid Fund revenue support for higher education spending inadvertently reported under elementary and secondary education. Actual ARRA

Georgia: Estimated federal funds expenditures in FY 2014

expenditures will be recorded with the fiscal 2014 annual finan-

reflect amounts as appropriated in the annual appropriations

cial report.

act. The Georgia State Constitution allows for federal funds to be “continuously appropriated” throughout the fiscal year and additional federal funds are amended into the budget with approval of the Governor’s Office of Planning and Budget as they become available during the fiscal year.

22

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

Ohio: Debt service appropriations for school construction is no longer included in the elementary and secondary education category.

2 CHAPTER

HIGHER EDUCATION EXPENDITURES

10.3% of State Expenditures

S tat e E x p e n d i t u r e R e p o r t

23

Higher Education Expenditures

FIGURE 11 STATE EXPENDITURES FOR HIGHER EDUCATION BY FUND SOURCE, FISCAL 2013

State higher education spending reflects financial support of public university systems, community colleges, and vocational education institutions. In fiscal 2013, states spent $173.6 billion on higher education, 10.3 percent of total state spending,

Other State Funds 48.3%

and 9.4 percent of general fund expenditures. General funds account for 37.2 percent of state spending on higher education, other state funds 48.3 percent, federal funds 11.4 per-

Federal Funds 11.4%

cent, and bonds 3.1 percent (see Figure 11 and Table 12). Overall, total state higher education spending rose by a modest 1.0 percent in fiscal 2013. State funds (general funds plus other state funds) increased by 1.9 percent, which was partially offset by a 3.6 percent decline in federal funds. The drop in federal funds is due primarily to the continued wind-down of American Recovery and Reinvestment Act (ARRA) funds, with states spending just $358 million in ARRA higher education funds in fiscal 2013, compared to $1.1 billion in fiscal

Bonds 3.1%

General Funds 37.2%

2012. In fiscal 2014, estimated total state higher education spending growth accelerated, increasing 3.7 percent, with state funds rising 4.6 percent while federal funds further declined by 0.4 percent.

TABLE 11 REGIONAL PERCENTAGE CHANGE IN STATE HIGHER EDUCATION EXPENDITURES, FISCAL 2013 AND 2014 Fiscal 2012 to 2013 Region

State Funds

Federal Funds

0.6

-4.2

0.8

5.0

2.9

4.8

Great Lakes

3.6

-4.8

1.2

3.9

-3.2

3.8

Plains

9.1

-9.6

6.8

3.3

5.8

3.0

Southeast

4.2

-5.2

3.2

4.2

1.6

3.4

Southwest

-0.4

0.2

-0.3

3.1

1.4

3.2

1.3

-5.9

0.6

-6.1

-31.3

-8.5

-7.8

-2.2

-7.2

11.7

-2.1

24

1.9

N at i o n a l A ss o c i at i o n

of

%

-3.6

%

S tat e B u d g e t O f f i c e r s

4.0

1.0

%

%

4.9

4.6

%

%

-0.5

All Funds

5.5

ALL STATES

%

Federal Funds

Mid-Atlantic

Far West

-5.9

State Funds

New England

Rocky Mountain

%

Fiscal 2013 to 2014 All Funds

-0.4

%

3.9

%

7.4 %

3.7

%

Capital Spending State expenditures for higher education-related construction, renovation and other capital projects increased slightly by 0.6 percent in fiscal 2013, and are estimated to decrease 4.9 percent in fiscal 2014 (see Table 48).

at four-year public institutions increased by 4.5 percent between the 2011-12 and 2012-13 academic years and by 2.9 percent between 2012-2013 and 2013-2014, after adjusting for inflation. These financing trends raise important questions for states about college affordability and access, especially as states

Regional Expenditures

also try to boost educational attainment and completion rates.

The following table shows regional percentage changes in

latures, and public higher education systems are aiming to

expenditures for higher education for fiscal 2012-2013 and

increase the affordability of public higher education by curbing

2013-2014 by region.

institution costs and restricting tuition increases. In spring

A growing number of initiatives led by governors, state legis-

2013, NASBO released a report entitled, Improving Postsec-

Financing Issues

ondary Education through the Budget Process: Challenges &

Higher education represents the third largest component of

higher education is financed to put it on a more fiscally sus-

total state spending, and is also the third largest component of

tainable path. The report examined recent trends in state and

general fund spending. However, as a share of general fund

institutional spending, as well as the growing demand for

spending, higher education expenditures have been shrinking,

postsecondary education. The report also presented a variety

as spending in other program areas like Medicaid has been on

of opportunities for states and institutions to work together to

the rise. For example, in fiscal 1995, higher education com-

target funding to improve student success, slow tuition and

prised 12.9 percent of general fund spending, while in fiscal

fee growth, expand access, increase productivity and efficien-

2013, higher education spending made up 9.4 percent of gen-

cy, and develop more transparent cost, spending and out-

eral fund expenditures. Accordingly, over that same period,

come information in higher education.

Opportunities, describing the need for changes in how public

general funds went from making up 58.2 percent of total state spending on higher education in fiscal 1995 to 37.2 percent in fiscal 2013. This has caused the “Other State Funds” source

Higher Education—Expenditure Exclusions

(which for the vast majority of states includes tuition and fees)

In calculating higher education expenditures for fiscal 2013, 11

to surpass the general fund as the single largest fund source for

states wholly or partially excluded tuition and fees, and 18

state spending on higher education, making up 48.3 percent of

states wholly or partially excluded student loan programs.

total state higher education expenditures.

Additionally, other items that are wholly or partially excluded

These trends reflect how an increasing share of the cost burden of higher education is being placed on students through higher tuition rates. The cost of college has been rising at rates above the rate of inflation. According to The College Board, tuition and fees continue to increase, though at a slower rate than in previous years. Average in-state tuition and fees

include: university research grants (32 states); vocational education (17); assistance to private colleges or universities (23); and employer contributions to pensions (14) and health benefits (14). Table 15 lists programs excluded from the expenditure data by state. Summary expenditure data can be found in Tables 12 through 14, accompanied by explanatory notes.

S tat e E x p e n d i t u r e R e p o r t

25

TABLE 12 HIGHER EDUCATION EXPENDITURES—CAPITAL INCLUSIVE ($ IN MILLIONS) Actual Fiscal 2012

Region/State

General Fund

Federal Funds

Other State Funds

Actual Fiscal 2013

Bonds

Total

General Fund

Estimated Fiscal 2014

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $3,093

NEW ENGLAND $661

$362

$1,485

$317

$2,825

$627

$359

$1,660

$311

$2,957

$677

$357

$1,737

$322

Maine

259

2

3

10

274

265

0

7

3

275

270

0

8

7

285

Massachusetts

933

4

4,304

267

5,508

1,000

5

4,552

250

5,807

1,113

4

4,679

197

5,993

Connecticut

New Hampshire Rhode Island Vermont

60

0

26

47

133

75

0

13

24

112

109

0

3

15

127

166

23

821

31

1,041

173

4

832

16

1,025

179

5

877

14

1,075

80

0

7

4

91

80

0

7

4

91

84

0

6

3

93

MID-ATLANTIC Delaware

223

73

95

9

400

227

65

114

12

418

235

65

124

11

435

Maryland

1,615

350

2,895

206

5,066

1,594

348

3,045

278

5,265

1,713

353

3,248

302

5,616

New Jersey

2,179

21

1,707

0

3,907

2,209

19

1,773

0

4,001

2,369

21

1,773

0

4,163

New York

3,739

317

5,207

911

10,174

3,485

297

5,303

1,082

10,167

3,004

311

6,244

941

10,500

Pennsylvania

1,622

0

59

212

1,893

1,615

0

94

45

1,754

1,621

0

106

200

1,927

Illinois

2,088

286

52

227

2,653

1,977

249

52

118

2,396

1,983

249

52

210

2,494

Indiana

1,691

13

8

0

1,712

1,696

9

8

0

1,713

1,788

2

7

0

1,797

Michigan*

1,231

116

460

146

1,953

1,353

116

398

120

1,987

1,424

118

398

141

2,081

Ohio

2,183

27

32

167

2,409

2,289

23

37

165

2,514

2,305

22

26

208

2,561

Wisconsin

1,159

1,859

2,820

0

5,838

1,349

1,794

2,988

0

6,131

1,351

1,729

3,288

0

6,368

Iowa

751

568

3,412

31

4,762

794

505

3,788

0

5,087

853

528

3,662

0

5,043

Kansas

739

673

952

64

2,428

759

623

1,108

56

2,546

755

647

1,162

56

2,620

1,275

5

25

114

1,419

1,295

5

29

216

1,545

1,392

6

36

149

1,583

Missouri

790

3

299

0

1,092

828

4

272

0

1,104

838

3

267

0

1,108

Nebraska

640

383

1,297

0

2,320

653

350

1,368

0

2,371

690

332

1,455

0

2,477

North Dakota

359

140

558

11

1,068

413

118

548

6

1,085

481

199

698

17

1,395

South Dakota

178

94

325

31

628

203

81

596

34

914

215

68

563

19

865

Alabama*

1,493

1,257

2,107

0

4,857

1,456

1,198

2,236

0

4,890

1,492

1,167

2,206

0

4,865

Arkansas

772

26

2,551

0

3,349

781

13

2,516

0

3,310

778

13

2,750

0

3,541

Florida

3,196

123

893

339

4,551

2,616

8

2,728

56

5,408

3,506

122

2,900

17

6,545

Georgia

2,055

62

5,386

188

7,691

2,098

62

5,462

431

8,053

2,241

65

5,608

407

8,321

Kentucky

1,225

920

4,457

0

6,602

1,167

954

4,733

0

6,854

1,178

888

4,858

0

6,924

Louisiana

984

172

1,507

30

2,693

995

153

1,617

43

2,808

540

125

2,136

68

2,869

Mississippi

842

183

2,052

9

3,086

777

169

2,009

29

2,984

645

179

2,267

7

3,098

North Carolina

3,553

22

2,764

4

6,343

2,573

21

2,751

0

5,345

2,629

23

2,752

0

5,404

South Carolina

571

716

3,232

123

4,642

608

621

3,106

0

4,335

599

726

3,110

0

4,435

Tennessee

1,442

226

2,151

80

3,899

1,550

209

2,289

197

4,245

1,687

256

2,273

159

4,375

Virginia

1,476

1,191

2,128

828

5,623

1,623

1,251

3,313

805

6,992

1,683

1,203

3,484

587

6,957

532

298

2,266

55

3,151

533

268

2,195

54

3,050

499

237

2,106

55

2,897

Arizona

762

785

2,028

333

3,908

757

753

2,205

339

4,054

780

783

2,426

333

4,322

New Mexico

717

657

1,365

0

2,739

758

664

1,418

0

2,840

796

673

1,442

0

2,911

Oklahoma

945

496

3,385

12

4,838

955

512

3,395

5

4,867

989

512

3,614

125

5,240

6,434

2,389

6,159

0

14,982

6,330

2,408

5,890

0

14,628

6,390

2,431

5,946

0

14,767

Colorado*

635

446

1,510

0

2,591

642

438

1,330

0

2,410

702

286

868

0

1,856

Idaho

287

5

211

6

509

312

5

222

6

545

324

6

350

6

686

Montana

188

47

347

0

582

188

51

371

0

610

209

50

383

0

642

Utah

733

17

655

0

1,405

753

16

683

0

1,452

803

8

694

0

1,505

Wyoming

246

28

59

0

333

416

1

17

0

434

286

1

12

0

299

GREAT LAKES

PLAINS

Minnesota

SOUTHEAST

West Virginia SOUTHWEST

Texas ROCKY MOUNTAIN

FAR WEST 444

159

428

50

1,081

580

130

385

0

1,095

511

154

430

0

1,095

8,815

4,908

70

201

13,994

9,014

4,868

42

90

14,014

10,454

4,776

43

116

15,389

Hawaii*

384

27

567

316

1,294

374

14

609

267

1,264

391

9

601

235

1,236

Nevada

473

3

250

15

741

473

3

276

8

760

481

3

261

7

752

Oregon*

313

49

168

136

666

204

44

24

0

272

346

40

37

0

423

1,185

75

4,833

126

6,219

1,164

46

3,386

255

4,851

1,334

16

3,577

91

5,018

$65,323

$20,606

$80,378

$5,656

$171,963

$64,656

$19,854

$83,800

$5,325

$173,635

$67,722

$19,771

$87,553

$5,025

$180,071

Alaska California

Washington TOTAL

*See notes at the end of the chapter.

26

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 13 HIGHER EDUCATION EXPENDITURES AS A PERCENT OF TOTAL EXPENDITURES Region/State

Fiscal 2012

Fiscal 2013

Fiscal 2014

NEW ENGLAND Connecticut

10.3

%

10.6

%

10.5

Maine

3.4

3.6

3.5

Massachusetts

9.6

10.1

10.1

New Hampshire

2.7

2.2

2.5

13.2

13.0

13.6

1.8

1.8

1.8

Rhode Island Vermont

%

MID-ATLANTIC Delaware

4.5

4.6

4.5

Maryland

14.5

14.5

14.6 7.7

New Jersey

8.0

7.9

New York

7.6

7.6

7.6

Pennsylvania

2.2

2.1

2.2 3.4

GREAT LAKES Illinois

4.4

3.7

Indiana

6.5

6.1

6.6

Michigan

4.1

4.2

4.0

Ohio

4.2

4.3

4.2

14.1

14.3

14.2

Iowa

25.2

26.0

25.0

Kansas

16.9

18.2

17.4

Minnesota

4.7

4.7

4.4

Missouri

4.7

4.8

4.8

Nebraska

23.5

23.3

23.5

North Dakota

17.7

19.0

20.5

South Dakota

17.0

22.3

21.0

Alabama

19.7

19.9

19.9

Arkansas

16.2

15.4

15.6

Florida

7.2

8.5

8.8

Georgia

18.7

19.0

19.7

Kentucky

25.7

26.7

24.0

Louisiana

9.9

10.3

9.8

Mississippi

17.1

16.1

16.4

North Carolina

12.7

12.4

12.2

South Carolina

21.0

19.5

20.7

Tennessee

12.8

13.9

13.5

Virginia

13.0

15.3

15.3

West Virginia

14.4

13.7

12.1

Arizona

13.9

14.3

14.6

New Mexico

19.1

19.3

17.9

Oklahoma

23.1

22.7

23.5

Texas

16.1

15.7

14.6

Colorado

9.0

8.3

6.1

Idaho

8.1

8.1

9.3

Wisconsin PLAINS

SOUTHEAST

SOUTHWEST

ROCKY MOUNTAIN

Montana

9.8

10.1

10.4

11.9

11.5

11.2

5.8

4.8

3.9

Alaska

9.2

9.2

9.4

California

7.0

6.6

6.7

Hawaii

11.3

10.9

9.8

Nevada

9.7

8.5

8.6

Oregon

2.5

1.1

1.5

Washington

18.7

14.3

14.0

ALL STATES

10.4

Utah Wyoming FAR WEST

%

10.3

%

10.1

%

S tat e E x p e n d i t u r e R e p o r t

27

TABLE 14 ANNUAL PERCENTAGE CHANGE IN HIGHER EDUCATION EXPENDITURES Fiscal 2012 to 2013 State Funds

Region/State

Federal Funds

Fiscal 2013 to 2014 All Funds

State Funds

Federal Funds

All Funds

NEW ENGLAND Connecticut

6.6

Maine

3.8

%

-100.0

-0.8

%

4.7

%

Massachusetts

6.0

25.0

New Hampshire

2.3



Rhode Island

1.8

-82.6

Vermont

0.0



Delaware

7.2

-11.0

4.5

5.3

0.0

4.1

Maryland

2.9

-0.6

3.9

6.9

1.4

6.7 4.0

0.4

5.6

%

-0.6

%

4.6

2.2



5.4

4.3

-20.0

3.2

-15.8

27.3



13.4

-1.5

5.1

25.0

4.9

0.0

3.4



2.2

%

3.6

MID-ATLANTIC

New Jersey New York Pennsylvania

2.5

-9.5

2.4

4.0

10.5

-1.8

-6.3

-0.1

5.2

4.7

3.3

1.7



-7.3

1.1



9.9 4.1

GREAT LAKES Illinois

-5.2

-12.9

-9.7

0.3

0.0

Indiana

0.3

-30.8

0.1

5.3

-77.8

4.9

Michigan

3.5

0.0

1.7

4.1

1.7

4.7

Ohio

5.0

-14.8

4.4

0.2

-4.3

1.9

Wisconsin

9.0

-3.5

5.0

7.0

-3.6

3.9

Iowa

10.1

-11.1

6.8

-1.5

4.6

-0.9

Kansas

10.4

-7.4

4.9

2.7

3.9

2.9

Minnesota

1.8

0.0

8.9

7.9

20.0

2.5

Missouri

1.0

33.3

1.1

0.5

-25.0

0.4

Nebraska

4.3

-8.6

2.2

6.1

-5.1

4.5

PLAINS

North Dakota

4.8

-15.7

1.6

22.7

68.6

28.6

South Dakota

58.8

-13.8

45.5

-2.6

-16.0

-5.4 -0.5

SOUTHEAST Alabama

2.6

-4.7

0.7

0.2

-2.6

Arkansas

-0.8

-50.0

-1.2

7.0

0.0

7.0

Florida

30.7

-93.5

18.8

19.9

1,425.0

21.0 3.3

Georgia

1.6

0.0

4.7

3.8

4.8

Kentucky

3.8

3.7

3.8

2.3

-6.9

1.0

Louisiana

4.9

-11.0

4.3

2.5

-18.3

2.2

-3.7

-7.7

-3.3

4.5

5.9

3.8

North Carolina

Mississippi

-15.7

-4.5

-15.7

1.1

9.5

1.1

South Carolina

-2.3

-13.3

-6.6

-0.1

16.9

2.3

6.8

-7.5

8.9

3.2

22.5

3.1

Virginia

37.0

5.0

24.3

4.7

-3.8

-0.5

West Virginia

-2.5

-10.1

-3.2

-4.5

-11.6

-5.0

Arizona

6.2

-4.1

3.7

8.2

4.0

6.6

New Mexico

4.5

1.1

3.7

2.8

1.4

2.5

Oklahoma

0.5

3.2

0.6

5.8

0.0

7.7

-3.0

0.8

-2.4

0.9

1.0

1.0

Tennessee

SOUTHWEST

Texas ROCKY MOUNTAIN Colorado

-8.1

-1.8

-7.0

-20.4

-34.7

-23.0

Idaho

7.2

0.0

7.1

26.2

20.0

25.9

Montana

4.5

8.5

4.8

5.9

-2.0

5.2

Utah

3.5

-5.9

3.3

4.2

-50.0

3.7

42.0

-96.4

30.3

-31.2

0.0

-31.1 0.0

Wyoming FAR WEST Alaska

10.7

-18.2

1.3

-2.5

18.5

California

1.9

-0.8

0.1

15.9

-1.9

9.8

Hawaii

3.4

-48.1

-2.3

0.9

-35.7

-2.2

Nevada

3.6

0.0

2.6

-0.9

0.0

-1.1

Oregon

-52.6

-10.2

-59.2

68.0

-9.1

55.5

Washington

-24.4

-38.7

-22.0

7.9

-65.2

3.4

ALL STATES

1.9

%

-3.6

Note: State funds are defined as general funds and other state funds (bonds are excluded).

28

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

%

1.0

%

4.6

%

-0.4

%

3.7

%

TABLE 15 ITEMS EXCLUDED FROM HIGHER EDUCATION EXPENDITURES

Region/State

Employer Contributions to Pensions

Employer Contributions to Health Benefits

Tuition and Fees

Student Loan Programs

University Research Grants

Vocational Education

X

X

X

P

P

P

P

X

Assistance To Private Colleges & Universities

NEW ENGLAND Connecticut

X

X

Maine

P

P

Massachusetts

X

X

New Hampshire

P

P

Rhode Island Vermont

P X

X

X

X

X X P

X

X

X

X

X

MID-ATLANTIC Delaware

X

X

Maryland New Jersey New York

P

P

Pennsylvania

X

X

Indiana

P

P

X

Michigan*

P

X

X

X

X

P

P

P

X

P

X

P

P

GREAT LAKES Illinois X

X

Ohio Wisconsin

P

PLAINS Iowa Kansas Minnesota

P

P

X

Missouri

X

X

X

X

Nebraska

X

X

X

X

X

X

X

X

X

North Dakota South Dakota

X

SOUTHEAST Alabama* Arkansas

P

Florida

P

Georgia

X X

X

Kentucky

P

Louisiana

X

Mississippi

P

North Carolina

X

X

South Carolina Tennessee

X

Virginia

X

West Virginia

X

P

P

SOUTHWEST Arizona

X

New Mexico

P

Oklahoma

P

P

P

P

Texas ROCKY MOUNTAIN Colorado*

X

X

X

Idaho

P

P

X

X

X

Montana

X

X

Utah

X

X

Wyoming FAR WEST Alaska

X

California Hawaii*

X P

P

Nevada Oregon

P

P

P

Washington ALL STATES

14

14

11

P

P

P

X

X

X

X

X

X

X

X

P

P

P

P

X

X

18

32

X 17

23

Excluded=X Partially Excluded=P Not Applicable=N/A *See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

29

Higher Education Notes Small dollar amounts, when rounded, cause an aberration in

this sum is very small relative to the total expenditure; as such, it is categorized as excluded for purposes of this survey.

the percentage increase. In these instances, the actual dollar

Michigan: General Fund support in fiscal 2012 and fiscal 2013

amounts should be consulted to determine the exact percent-

reflects a shift to the state School Aid Fund for operating bud-

age increase.

gets. Federal fund support reflects receipt of TANF revenue for

Alabama: Other state funds for Higher Education include tuition and fees as reported by institutions. Bonds issued and expended directly by institutions are not reported at the state budget level. Colorado: HED colleges and universities pay pension and health benefits out of their allotments, which include but are not limited to, state appropriations/requests. The College Opportunity Fund (COF) provides some (stipend) funds to students who attend private colleges and universities. However,

30

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

student financial aid: $81.3 million (fiscal 2012), $90.9 million (fiscal 2013), and $93.8 million (fiscal 2014). Effective for fiscal 2013, state general fund support partially offsets employer-paid retirement obligations. Oregon: Beginning in fiscal 2012, the Oregon University System operates as a “public corporation” and as such is no longer considered part of the state budget. The OUS continues to receive General Fund support from the state, as indicated in the survey results, but OF and FF expenditures now only reflect capital expenditures and debt.

3 CHAPTER

PUBLIC ASSISTANCE EXPENDITURES

1.5% of State Expenditures

S tat e E x p e n d i t u r e R e p o r t

31

Public Assistance Expenditures This chapter contains data on cash assistance provided through the Temporary Assistance for Needy Families (TANF) program and other public assistance programs. Spending for these categories totaled $25.1 billion in fiscal 2013 and represented 1.5 percent of total state expenditures. Public assistance spending from all funds increased by 3.1 percent from fiscal 2012 to fiscal 2013, with spending from state funds increasing by 3.9 percent and spending from federal funds increasing by 2.5 percent. Total spending on public assistance from all funds decreased by 1.4 percent from fiscal 2013 to fiscal 2014 to total $24.7 billion. State funds decreased by 2.2 percent and federal funds decreased by 0.8 percent. The primary sources of public assistance funding for fiscal 2013 are federal funds, providing 57.1 percent, followed by general funds at 41.8 percent (see

total TANF spending. States have wide flexibility under TANF to determine their own eligibility criteria, benefit levels, and the type of services and benefits available to TANF recipients. States must maintain a historical level of state spending or maintenance of effort requirement and must meet minimum work participation rate requirements. In addition, families that have received federally funded assistance under TANF for five cumulative years are not eligible for federally funded assistance, though states have considerable flexibility in determining how time limits apply to individual families. Since welfare reform was initially passed in 1996, states have focused on providing supportive services for families to achieve self-sufficiency. Since 1996, caseloads have declined significantly. The average monthly number of recipients fell from 12.8 million prior to the enactment of TANF to 3.5 million on average in 2014, a decrease of about three-quarters. Expenditure data on total cash assistance, TANF cash assis-

Figure 12). The “other cash assistance” category, which includes optional state programs for Supplemental Security Income (SSI) and General Assistance, are not funded in all states, and when funded, are relatively small programs.

tance, and other cash assistance can be found on Tables 16-26, accompanied by explanatory notes.

Fund Shares The figure below provides fund shares for fiscal 2013.

TANF The Temporary Assistance for Needy Families (TANF) program was reauthorized through September 2010 under the Deficit Reduction Act of 2005. Since then, Congress has continued

FIGURE 12 STATE EXPENDITURES FOR TOTAL PUBLIC ASSISTANCE BY FUND SOURCE, FISCAL 2013

funding the program through short-term extensions, most recently through continuing resolutions. The TANF block grant is funded at $16.6 billion each year. The program includes

Federal Funds 57.1%

specific definitions of work, work verification requirements, and penalties if states do not meet the requirements. As a result of these changes, most states have to significantly increase work participation rates. This report has information only on the changes in the cash assistance benefit levels within the programs, and does not reflect total TANF spending. Other areas of TANF spending include child care and employment programs. Cash assistance payments under TANF comprise approximately 28 percent of General Funds 41.8%

32

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

Other State Funds 1.1%

Regional Expenditures The following table shows regional percentage changes in expenditures for total cash assistance for fiscal 2012-2013 and 2013-2014 by region.

TABLE 16 REGIONAL PERCENTAGE CHANGE IN STATE TOTAL CASH ASSISTANCE EXPENDITURES, FISCAL 2013 AND 2014 Fiscal 2012 to 2013 Region

State Funds

Federal Funds

New England

-1.4

Mid-Atlantic

-0.2

5.5

Great Lakes

11.8

Plains

-6.3

Southeast

-2.4

Southwest Rocky Mountain

%

10.4

Fiscal 2013 to 2014 All Funds

%

1.2

State Funds %

0.6

Federal Funds %

-0.7

All Funds %

0.3

3.7

-10.0

11.5

4.8

-11.5

-2.9

-2.3

-7.2

-5.2

0.2

-2.6

-0.9

2.3

1.0

-2.4

-2.4

3.9

-1.6

-0.5

6.0

4.7

5.1

-7.4

-6.2

-6.6

-4.1

-29.1

-21.1

0.0

35.6

21.7

Far West

8.6

ALL STATES

3.9

6.0 %

2.5

7.3 %

3.1

-0.3 %

Expenditures for Cash Assistance under Temporary Assistance for Needy Families (TANF) Program State and federal funds for TANF cash assistance expenditures totaled $15.4 billion in fiscal 2013, an increase of 3.3 percent from 2012 to 2013 (see Table 23). State funds increased by 10.2 percent and federal funds increased by 0.9 percent from

-2.2

-13.1 %

-0.8

%

-6.4 %

-1.4

%

Fund Shares The figure below provides fund shares for 2013.

FIGURE 13 STATE EXPENDITURES FOR TEMPORARY ASSISTANCE FOR NEEDY FAMILIES BY FUND SOURCE, FISCAL 2013

fiscal 2012 to fiscal 2013. For fiscal 2014, total spending for TANF cash assistance expenditures decreased by 1.8 percent

Federal Funds 72.2%

to $15.2 billion, with federal funds declining by 1.4 percent and state spending declining by 2.8 percent. Cash assistance payments under TANF comprise approximately 28 percent of total TANF spending. States have provided funding for programs to address childcare services, subsidized employment, training and education, transportation needs, transitional rental assistance, substance abuse, job readiness and job retention training, and domestic violence. As cash assistance has declined, these supportive services have gained greater importance in the program. Expenditure data for TANF cash assistance can be found on Tables 21-23.

General Funds 26.6%

Other State Funds 1.2%

S tat e E x p e n d i t u r e R e p o r t

33

Regional Expenditures The following table shows percentage changes in expenditures for TANF cash assistance for fiscal 2012-2013 and 2013-2014 by region.

TABLE 17 REGIONAL PERCENTAGE CHANGE IN STATE TANF EXPENDITURES, FISCAL 2013 AND 2014 Fiscal 2012 to 2013 Region

State Funds

Federal Funds

-0.1

0.9

-0.5

-5.8

19.7

17.2 -6.4

Southwest

5.0

%

-1.4

%

0.8

All Funds

-11.8

Southeast

%

Federal Funds

New England

Plains

15.0

State Funds

Mid-Atlantic Great Lakes

%

Fiscal 2013 to 2014 All Funds

%

-0.6

22.3

-13.6

-2.6

-0.5

-10.0

-11.9

0.0

-3.5

-3.9

2.3

0.6

-2.8

-2.7

-2.8

2.2

-2.7

-1.9

7.6

9.3

8.9

-6.0

-5.2

-5.4

Rocky Mountain

-5.7

-29.1

-23.2

0.0

35.6

24.5

Far West

26.7

ALL STATES

10.2

5.7 %

0.9

11.6 %

3.3

-4.3 %

Expenditures for Other Cash Assistance The second component of cash assistance for public welfare is other cash assistance, including state participation in the

-2.8

-17.6 %

-1.4

%

-13.3 %

-1.8

%

rules while others simply require some form of county participation. Thirty-four states spend some amount on other cash assistance.

Supplemental Security Income (SSI) program, which pays ben-

Other cash assistance programs accounted for 0.6 percent of

efits to disabled adults and children, General Assistance (GA),

total state spending in fiscal 2013. States spent $9.7 billion for

and emergency assistance. Each state determines the struc-

other cash assistance, with 67.1 percent of that amount fund-

ture of its own program, resulting in significant variations in

ed from state funds in fiscal 2013. Expenditure data for other

programs and funding. Some have statewide uniform eligibility

cash assistance can be found on Tables 24-26.

34

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 18 TOTAL PUBLIC ASSISTANCE EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012

Actual Fiscal 2013

Estimated Fiscal 2014

General Fund

Federal Funds

Other State Funds

$380

$0

$0

$380

$378

$0

$0

$378

$384

46

71

90

207

42

47

91

180

47

Massachusetts

1,214

274

0

1,488

1,180

368

0

1,548

1,191

New Hampshire

56

40

0

96

59

27

0

86

Rhode Island

30

79

0

109

29

78

0

107

Vermont

35

67

4

106

40

66

10

Region/State

Total

General Fund

Federal Funds

Other State Funds

Total

General Fund

Other State Funds

Total

$0

$0

$384

35

90

172

379

0

1,570

50

29

0

79

30

76

0

106

116

45

63

3

111

Federal Funds

NEW ENGLAND Connecticut Maine

MID-ATLANTIC Delaware

24

0

1

25

16

7

1

24

20

2

1

23

Maryland

70

1,207

24

1,301

85

1,270

19

1,374

71

1,266

19

1,356

New Jersey New York Pennsylvania

286

159

0

445

295

163

0

458

262

167

0

429

1,267

2,520

0

3,787

1,417

2,583

0

4,000

1,246

3,168

0

4,414

527

759

1

1,287

360

878

3

1,241

355

861

2

1,218

GREAT LAKES Illinois

93

1

0

94

191

0

0

191

181

0

0

181

Indiana

66

320

0

386

65

320

0

385

66

337

0

403

Michigan*

181

176

65

422

187

101

58

346

153

66

59

278

Ohio

243

680

0

923

232

620

0

852

213

588

0

801

65

73

15

153

72

65

9

146

104

35

19

158 121

Wisconsin PLAINS Iowa

67

36

12

115

63

32

11

106

65

45

11

Kansas

20

22

0

42

8

21

0

29

3

21

0

24

172

263

0

435

164

284

0

448

166

263

0

429

Missouri

33

110

32

175

33

99

32

164

35

115

32

182

Nebraska

17

35

0

52

20

32

0

52

17

33

0

50

North Dakota

4

0

2

6

2

0

3

5

0

1

4

5

South Dakota

9

19

0

28

9

18

0

27

9

19

0

28

Minnesota

SOUTHEAST Alabama

1

48

1

50

0

46

0

46

0

41

0

41

Arkansas

154

264

17

435

156

263

18

437

144

295

45

484

Florida

209

154

44

0

198

149

61

0

210

159

50

0

Georgia*

0

49

0

49

0

48

0

48

0

48

0

48

Kentucky

72

154

0

226

76

149

0

225

73

142

0

215

Louisiana

0

168

0

168

3

141

0

144

0

140

0

140

Mississippi

34

1,026

4

1,064

34

1,059

4

1,097

34

1,026

2

1,062

North Carolina

61

185

1

247

61

171

1

233

61

171

1

233

South Carolina

32

65

0

97

28

63

0

91

28

62

0

90

Tennessee

14

108

0

122

13

97

0

110

20

97

4

121

Virginia

48

132

0

180

44

123

0

167

40

109

0

149

West Virginia

39

122

0

161

30

87

0

117

30

89

0

119

65

216

0

281

79

249

0

328

68

218

0

286

7

133

0

140

6

145

0

151

0

167

0

167

Oklahoma

78

128

0

206

78

118

0

196

78

104

0

182

Texas

66

30

0

96

66

19

0

85

66

9

0

75

Colorado

0

0

0

0

0

0

0

0

0

0

0

0

Idaho

9

7

0

16

9

7

0

16

9

7

0

16

Montana

12

20

0

32

12

19

0

31

11

18

0

29

Utah

11

76

17

104

23

47

3

73

20

74

7

101

0

0

0

0

0

0

0

0

0

0

0

0

SOUTHWEST Arizona New Mexico

ROCKY MOUNTAIN

Wyoming FAR WEST

94

12

22

128

99

9

22

130

103

19

24

146

3,887

3,729

0

7,616

4,309

3,989

0

8,298

4,284

3,444

0

7,728

Hawaii*

58

40

0

98

47

41

0

88

47

41

0

88

Nevada

26

21

0

47

25

24

0

49

25

20

0

45

Oregon

63

115

0

178

74

108

0

182

88

86

1

175

179

174

0

353

125

166

0

291

115

161

0

276

$10,069

$13,977

$308

$24,354

$10,493

$14,328

$285

$25,106

$10,216

$14,207

$324

$24,747

Alaska California

Washington TOTAL

Note: This table reflects TANF and other cash assistance expenditures. *See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

35

TABLE 19 TOTAL PUBLIC ASSISTANCE EXPENDITURES AS A PERCENT OF TOTAL EXPENDITURES Region/State

Fiscal 2012

Fiscal 2013

Fiscal 2014

NEW ENGLAND Connecticut

1.4

Maine

2.6

%

1.4

%

2.3

1.3

%

2.1

Massachusetts

2.6

2.7

2.7

New Hampshire

1.9

1.7

1.5

Rhode Island

1.4

1.4

1.3

Vermont

2.1

2.3

2.1 0.2

MID-ATLANTIC Delaware

0.3

0.3

Maryland

3.7

3.8

3.5

New Jersey

0.9

0.9

0.8

New York

2.8

3.0

3.2

Pennsylvania

1.5

1.5

1.4 0.2

GREAT LAKES Illinois

0.2

0.3

Indiana

1.5

1.4

1.5

Michigan

0.9

0.7

0.5

Ohio

1.6

1.5

1.3

Wisconsin

0.4

0.3

0.4

Iowa

0.6

0.5

0.6

Kansas

0.3

0.2

0.2

PLAINS

Minnesota

1.4

1.4

1.2

Missouri

0.7

0.7

0.8

Nebraska

0.5

0.5

0.5

North Dakota

0.1

0.1

0.1

South Dakota

0.8

0.7

0.7

SOUTHEAST Alabama

0.2

0.2

0.2

Arkansas

2.1

2.0

2.1

Florida

0.3

0.3

0.3

Georgia

0.1

0.1

0.1 0.7

Kentucky

0.9

0.9

Louisiana

0.6

0.5

0.5

Mississippi

5.9

5.9

5.6 0.5

North Carolina

0.5

0.5

South Carolina

0.4

0.4

0.4

Tennessee

0.4

0.4

0.4

Virginia

0.4

0.4

0.3

West Virginia

0.7

0.5

0.5

Arizona

1.0

1.2

1.0

New Mexico

1.0

1.0

1.0

Oklahoma

1.0

0.9

0.8

Texas

0.1

0.1

0.1

SOUTHWEST

ROCKY MOUNTAIN Colorado

0.0

0.0

0.0

Idaho

0.3

0.2

0.2

Montana

0.5

0.5

0.5

Utah

0.9

0.6

0.8

Wyoming

0.0

0.0

0.0

FAR WEST Alaska

1.1

1.1

1.3

California

3.8

3.9

3.4 0.7

Hawaii

0.9

0.8

Nevada

0.6

0.6

0.5

Oregon

0.7

0.7

0.6

Washington

1.1

0.9

0.8

ALL STATES

1.5

%

Note: This table reflects TANF and other cash assistance expenditures.

36

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

1.5

%

1.4

%

TABLE 20 ANNUAL PERCENTAGE CHANGE IN TOTAL PUBLIC ASSISTANCE EXPENDITURES Fiscal 2012 to 2013 Region/State

State Funds

Federal Funds

Fiscal 2013 to 2014 All Funds

State Funds

Federal Funds

All Funds

NEW ENGLAND Connecticut

-0.5

Maine

-2.2

%



%

Massachusetts

-2.8

34.3

4.0

0.9

3.0

1.4

New Hampshire

5.4

-32.5

-10.4

-15.3

7.4

-8.1

Rhode Island

-3.3

-1.3

-1.8

3.4

-2.6

-0.9

Vermont

28.2

-1.5

9.4

-4.0

-4.5

-4.3

-33.8

-0.5

%

-13.0

1.6

%

3.0



%

-25.5

1.6

%

-4.4

MID-ATLANTIC Delaware

-32.0



-4.0

23.5

-71.4

-4.2

Maryland

10.6

5.2

5.6

-13.5

-0.3

-1.3

3.1

2.5

2.9

-11.2

2.5

-6.3

11.8

2.5

5.6

-12.1

22.6

10.4

-31.3

15.7

-3.6

-1.7

-1.9

-1.9 -5.2

New Jersey New York Pennsylvania GREAT LAKES Illinois

105.4

-100.0

103.2

-5.2



Indiana

-1.5

0.0

-0.3

1.5

5.3

4.7

Michigan

-0.4

-42.6

-18.0

-13.5

-34.7

-19.7

Ohio

-4.5

-8.8

-7.7

-8.2

-5.2

-6.0

1.3

-11.0

-4.6

51.9

-46.2

8.2

-6.3

-11.1

-7.8

2.7

40.6

14.2

-60.0

-4.5

-31.0

-62.5

0.0

-17.2

Wisconsin PLAINS Iowa Kansas Minnesota Missouri Nebraska

-4.7

8.0

3.0

1.2

-7.4

-4.2

0.0

-10.0

-6.3

3.1

16.2

11.0

17.6

-8.6

0.0

-15.0

3.1

-3.8

North Dakota

-16.7



-16.7

-20.0



0.0

South Dakota

0.0

-5.3

-3.6

0.0

5.6

3.7

Alabama

-100.0

-4.2

-8.0



-10.9

-10.9

Arkansas

1.8

-0.4

0.5

8.6

12.2

10.8

Florida

-3.2

38.6

6.1

6.7

-18.0

-0.5

Georgia



-2.0

-2.0



0.0

0.0

Kentucky

5.6

-3.2

-0.4

-3.9

-4.7

-4.4

Louisiana



-16.1

-14.3

-100.0

-0.7

-2.8

Mississippi

0.0

3.2

3.1

-5.3

-3.1

-3.2

North Carolina

0.0

-7.6

-5.7

0.0

0.0

0.0

South Carolina

-12.5

-3.1

-6.2

0.0

-1.6

-1.1

Tennessee

-7.1

-10.2

-9.8

84.6

0.0

10.0

Virginia

-8.3

-6.8

-7.2

-9.1

-11.4

-10.8

-23.1

-28.7

-27.3

0.0

2.3

1.7

SOUTHEAST

West Virginia SOUTHWEST Arizona

21.5

15.3

16.7

-13.9

-12.4

-12.8

-14.3

9.0

7.9

-100.0

15.2

10.6

Oklahoma

0.0

-7.8

-4.9

0.0

-11.9

-7.1

Texas

0.0

-36.7

-11.5

0.0

-52.6

-11.8

New Mexico

ROCKY MOUNTAIN Colorado













Idaho

0.0

0.0

0.0

0.0

0.0

0.0

Montana Utah Wyoming

0.0

-5.0

-3.1

-8.3

-5.3

-6.5

-7.1

-38.2

-29.8

3.8

57.4

38.4













FAR WEST Alaska

4.3

-25.0

1.6

5.0

111.1

12.3

10.9

7.0

9.0

-0.6

-13.7

-6.9

Hawaii

-19.0

2.5

-10.2

0.0

0.0

0.0

Nevada

-3.8

14.3

4.3

0.0

-16.7

-8.2

California

17.5

-6.1

2.2

20.3

-20.4

-3.8

Washington

Oregon

-30.2

-4.6

-17.6

-8.0



-5.2

ALL STATES

3.9

%

2.5

%

3.1

%

-2.2

%

-0.8

%

-1.4

%

Notes: State funds are defined as general funds and other state funds (bonds are excluded). This table reflects TANF and other cash assistance expenditures.

S tat e E x p e n d i t u r e R e p o r t

37

TABLE 21 CASH EXPENDITURES UNDER TEMPORARY ASSISTANCE TO NEEDY FAMILIES EXPENDITURES (TANF) ($ IN MILLIONS) Actual Fiscal 2012

Actual Fiscal 2013

Estimated Fiscal 2014

General Fund

Federal Funds

Other State Funds

$268

$0

$0

$268

$267

$0

$0

$267

$267

22

51

89

162

22

37

90

149

23

Massachusetts

392

274

0

666

381

368

0

749

380

New Hampshire

35

40

0

75

43

27

0

70

0

40

0

40

0

39

0

19

22

4

45

23

20

2

Region/State

Total

General Fund

Federal Funds

Other State Funds

Total

General Fund

Other State Funds

Total

$0

$0

$267

29

89

141

378

0

758

34

29

0

63

39

0

36

0

36

45

20

23

3

46

Federal Funds

NEW ENGLAND Connecticut Maine

Rhode Island Vermont MID-ATLANTIC Delaware

20

0

1

21

11

7

1

19

15

2

1

18

Maryland

25

120

14

159

38

100

10

148

24

117

10

151

New Jersey

42

70

0

112

77

45

0

122

64

61

0

125

New York

64

2,520

0

2,584

0

2,583

0

2,583

0

3,168

0

3,168

224

350

1

575

205

354

3

562

209

351

2

562

Pennsylvania GREAT LAKES Illinois

93

1

0

94

191

0

0

191

181

0

0

181

Indiana

29

168

0

197

28

168

0

196

29

173

0

202

Michigan

83

161

56

300

96

85

49

230

63

50

48

161

151

680

0

831

151

620

0

771

152

588

0

740

48

40

6

94

55

34

0

89

84

5

10

99

Iowa

50

36

12

98

48

32

11

91

48

45

11

104

Kansas

20

22

0

42

8

21

0

29

3

21

0

24

Minnesota

86

263

0

349

76

284

0

360

76

263

0

339

Missouri

8

110

0

118

8

99

0

107

10

115

0

125

Nebraska

11

33

0

44

13

29

0

42

10

30

0

40

North Dakota

4

0

2

6

2

0

3

5

0

1

4

5

South Dakota

9

19

0

28

9

18

0

27

9

19

0

28

Alabama

1

48

1

50

0

46

0

46

0

41

0

41

Arkansas

14

60

1

75

16

60

1

77

18

65

1

84

135

32

0

167

131

44

0

175

141

35

0

176

Ohio Wisconsin PLAINS

SOUTHEAST

Florida Georgia*

0

49

0

49

0

48

0

48

0

48

0

48

Kentucky

72

154

0

226

76

149

0

225

73

142

0

215

Louisiana

0

168

0

168

3

141

0

144

0

140

0

140

Mississippi

34

1,026

4

1,064

34

1,059

4

1,097

34

1,026

2

1,062

North Carolina

61

185

1

247

61

171

1

233

61

171

1

233

South Carolina

4

31

0

35

5

27

0

32

2

28

0

30

Tennessee

14

108

0

122

13

97

0

110

20

97

4

121

Virginia

48

56

0

104

43

54

0

97

39

47

0

86

West Virginia

33

122

0

155

23

87

0

110

24

89

0

113

65

216

0

281

79

249

0

328

68

218

0

286

1

133

0

134

0

145

0

145

0

167

0

167

Oklahoma

39

60

0

99

39

67

0

106

39

61

0

100

Texas

66

30

0

96

66

19

0

85

66

9

0

75

Colorado

0

0

0

0

0

0

0

0

0

0

0

0

Idaho

0

7

0

7

0

7

0

7

0

7

0

7

12

20

0

32

12

19

0

31

11

18

0

29

Utah

6

76

17

99

18

47

3

68

15

74

7

96

Wyoming

0

0

0

0

0

0

0

0

0

0

0

0

SOUTHWEST Arizona New Mexico

ROCKY MOUNTAIN

Montana

FAR WEST 16

11

2

29

18

8

2

28

15

17

2

34

1,157

3,094

0

4,251

1,545

3,301

0

4,846

1,478

2,684

0

4,162

Hawaii

29

40

0

69

23

41

0

64

23

41

0

64

Nevada

26

21

0

47

25

24

0

49

25

20

0

45

Oregon

63

108

0

171

74

102

0

176

88

80

1

169

Washington

75

173

0

248

46

166

0

212

27

160

0

187

$3,674

$11,048

$211

$14,933

$4,102

$11,148

$180

$15,430

$3,968

$10,989

$196

$15,153

Alaska California

TOTAL

*See notes at the end of the chapter.

38

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 22 TANF EXPENDITURES FOR CASH ASSISTANCE AS A PERCENT OF TOTAL EXPENDITURES Region/State

Fiscal 2012

Fiscal 2013

Fiscal 2014

NEW ENGLAND Connecticut

1.0

Maine

2.0

%

1.0

%

0.9

1.9

1.7 1.3

Massachusetts

1.2

1.3

New Hampshire

1.5

1.4

1.2

Rhode Island

0.5

0.5

0.5

Vermont

0.9

0.9

0.9

%

MID-ATLANTIC Delaware

0.2

0.2

0.2

Maryland

0.5

0.4

0.4

New Jersey

0.2

0.2

0.2

New York

1.9

1.9

2.3

Pennsylvania

0.7

0.7

0.6

GREAT LAKES Illinois

0.2

0.3

0.2

Indiana

0.8

0.7

0.7

Michigan

0.6

0.5

0.3

Ohio

1.4

1.3

1.2

Wisconsin

0.2

0.2

0.2

PLAINS Iowa

0.5

0.5

0.5

Kansas

0.3

0.2

0.2 0.9

Minnesota

1.2

1.1

Missouri

0.5

0.5

0.5

Nebraska

0.4

0.4

0.4

North Dakota

0.1

0.1

0.1

South Dakota

0.8

0.7

0.7 0.2

SOUTHEAST Alabama

0.2

0.2

Arkansas

0.4

0.4

0.4

Florida

0.3

0.3

0.2 0.1

Georgia

0.1

0.1

Kentucky

0.9

0.9

0.7

Louisiana

0.6

0.5

0.5

Mississippi

5.9

5.9

5.6

North Carolina

0.5

0.5

0.5 0.1

South Carolina

0.2

0.1

Tennessee

0.4

0.4

0.4

Virginia

0.2

0.2

0.2

West Virginia

0.7

0.5

0.5

SOUTHWEST Arizona

1.0

1.2

1.0

New Mexico

0.9

1.0

1.0

Oklahoma

0.5

0.5

0.4

Texas

0.1

0.1

0.1 0.0

ROCKY MOUNTAIN Colorado

0.0

0.0

Idaho

0.1

0.1

0.1

Montana

0.5

0.5

0.5

Utah

0.8

0.5

0.7

Wyoming

0.0

0.0

0.0

Alaska

0.2

0.2

0.3

California

2.1

2.3

1.8

FAR WEST

Hawaii

0.6

0.6

0.5

Nevada

0.6

0.6

0.5

Oregon

0.6

0.7

0.6

Washington

0.7

0.6

0.5

ALL STATES

0.9

%

0.9

%

0.8

%

S tat e E x p e n d i t u r e R e p o r t

39

TABLE 23 ANNUAL PERCENTAGE CHANGE IN TANF CASH ASSISTANCE EXPENDITURES Fiscal 2012 to 2013 State Funds

Region/State

Federal Funds

Fiscal 2013 to 2014 All Funds

State Funds

Federal Funds

All Funds

NEW ENGLAND Connecticut

-0.4

Maine

%

0.9



%

-0.4

-27.5

-8.0

%

0.0

%

0.0



%

-21.6

0.0

%

-5.4

Massachusetts

-2.8

34.3

12.5

-0.3

2.7

1.2

New Hampshire

22.9

-32.5

-6.7

-20.9

7.4

-10.0

Rhode Island



-2.5

-2.5



-7.7

-7.7

Vermont

8.7

-9.1

0.0

-8.0

15.0

2.2 -5.3

MID-ATLANTIC Delaware

-42.9



-9.5

33.3

-71.4

Maryland

23.1

-16.7

-6.9

-29.2

17.0

2.0

New Jersey

83.3

-35.7

8.9

-16.9

35.6

2.5

New York

-100.0

2.5

0.0



22.6

22.6

-7.6

1.1

-2.3

1.4

-0.8

0.0

105.4

-100.0

103.2

-5.2



-5.2

-3.4

0.0

-0.5

3.6

3.0

3.1

Michigan

4.3

-47.2

-23.3

-23.4

-41.2

-30.0

Ohio

0.0

-8.8

-7.2

0.7

-5.2

-4.0

Wisconsin

1.9

-15.0

-5.3

70.9

-85.3

11.2

Pennsylvania GREAT LAKES Illinois Indiana

PLAINS Iowa

-4.8

-11.1

-7.1

0.0

40.6

14.3

Kansas

-60.0

-4.5

-31.0

-62.5

0.0

-17.2

Minnesota

-11.6

8.0

3.2

0.0

-7.4

-5.8

0.0

-10.0

-9.3

25.0

16.2

16.8 -4.8

Missouri Nebraska

18.2

-12.1

-4.5

-23.1

3.4

North Dakota

-16.7



-16.7

-20.0



0.0

South Dakota

0.0

-5.3

-3.6

0.0

5.6

3.7

Alabama

-100.0

-4.2

-8.0



-10.9

-10.9

Arkansas

13.3

0.0

2.7

11.8

8.3

9.1

Florida

-3.0

37.5

4.8

7.6

-20.5

0.6

Georgia



-2.0

-2.0



0.0

0.0

Kentucky

5.6

-3.2

-0.4

-3.9

-4.7

-4.4

Louisiana



-16.1

-14.3

-100.0

-0.7

-2.8

Mississippi

0.0

3.2

3.1

-5.3

-3.1

-3.2

North Carolina

0.0

-7.6

-5.7

0.0

0.0

0.0

South Carolina

25.0

-12.9

-8.6

-60.0

3.7

-6.3

SOUTHEAST

Tennessee

-7.1

-10.2

-9.8

84.6

0.0

10.0

Virginia

-10.4

-3.6

-6.7

-9.3

-13.0

-11.3

West Virginia

-30.3

-28.7

-29.0

4.3

2.3

2.7

SOUTHWEST Arizona

21.5

15.3

16.7

-13.9

-12.4

-12.8

-100.0

9.0

8.2



15.2

15.2

Oklahoma

0.0

11.7

7.1

0.0

-9.0

-5.7

Texas

0.0

-36.7

-11.5

0.0

-52.6

-11.8

New Mexico

ROCKY MOUNTAIN Colorado













Idaho



0.0

0.0



0.0

0.0

Montana

0.0

-5.0

-3.1

-8.3

-5.3

-6.5

-8.7

-38.2

-31.3

4.8

57.4

41.2













Alaska

11.1

-27.3

-3.4

-15.0

112.5

21.4

California

33.5

6.7

14.0

-4.3

-18.7

-14.1

Utah Wyoming FAR WEST

Hawaii

-20.7

2.5

-7.2

0.0

0.0

0.0

Nevada

-3.8

14.3

4.3

0.0

-16.7

-8.2

17.5

-5.6

2.9

20.3

-21.6

-4.0

Washington

Oregon

-38.7

-4.0

-14.5

-41.3

-3.6

-11.8

ALL STATES

10.2

%

0.9

Notes: State funds are defined as general funds and other state funds (bonds are excluded).

40

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

%

3.3

%

-2.8

%

-1.4

%

-1.8

%

TABLE 24 OTHER CASH ASSISTANCE EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012

Actual Fiscal 2013

Estimated Fiscal 2014

General Fund

Federal Funds

Other State Funds

$112

$0

$0

$112

$111

$0

$0

$111

$117

$0

$0

24

20

1

45

21

10

1

32

24

6

1

31

Massachusetts

822

0

0

822

799

0

0

799

811

1

0

812

New Hampshire

21

0

0

21

16

0

0

16

16

0

0

16

Rhode Island

30

39

0

69

29

39

0

68

30

40

0

70

Vermont

16

45

0

61

17

46

8

71

25

40

0

65

Region/State

Total

General Fund

Federal Funds

Other State Funds

Total

General Fund

Federal Funds

Other State Funds

Total $117

NEW ENGLAND Connecticut Maine

MID-ATLANTIC Delaware

4

0

0

4

5

0

0

5

5

0

0

5

Maryland

45

1,087

10

1,142

47

1,170

9

1,226

47

1,149

9

1,205

244

89

0

333

218

118

0

336

198

106

0

304

1,203

0

0

1,203

1,417

0

0

1,417

1,246

0

0

1,246

303

409

0

712

155

524

0

679

146

510

0

656

New Jersey New York Pennsylvania GREAT LAKES Illinois

0

0

0

0

0

0

0

0

0

0

0

0

Indiana

37

152

0

189

37

152

0

189

37

164

0

201

Michigan*

98

15

9

122

91

16

9

116

90

16

11

117

Ohio

92

0

0

92

81

0

0

81

62

0

0

62

Wisconsin

17

33

9

59

17

31

9

57

20

30

9

59

17

0

0

17

15

0

0

15

17

0

0

17

0

0

0

0

0

0

0

0

0

0

0

0

Minnesota

86

0

0

86

88

0

0

88

90

0

0

90

Missouri

25

0

32

57

25

0

32

57

25

0

32

57

Nebraska

7

2

0

9

7

2

0

9

7

3

0

10

North Dakota

0

0

0

0

0

0

0

0

0

0

0

0

South Dakota

0

0

0

0

0

0

0

0

0

0

0

0

PLAINS Iowa Kansas

SOUTHEAST Alabama

0

0

0

0

0

0

0

0

0

0

0

0

Arkansas

140

204

16

360

140

203

17

360

126

230

44

400

Florida

19

12

0

31

18

17

0

35

18

15

0

33

Georgia

0

0

0

0

0

0

0

0

0

0

0

0

Kentucky

0

0

0

0

0

0

0

0

0

0

0

0

Louisiana

0

0

0

0

0

0

0

0

0

0

0

0

Mississippi

0

0

0

0

0

0

0

0

0

0

0

0

North Carolina

0

0

0

0

0

0

0

0

0

0

0

0

South Carolina

60

28

34

0

62

23

36

0

59

26

34

0

Tennessee

0

0

0

0

0

0

0

0

0

0

0

0

Virginia

1

76

0

77

1

69

0

70

1

62

0

63

West Virginia

6

0

0

6

7

0

0

7

6

0

0

6

Arizona

0

0

0

0

0

0

0

0

0

0

0

0

New Mexico

6

0

0

6

6

0

0

6

0

0

0

0

39

68

0

107

39

51

0

90

39

43

0

82

0

0

0

0

0

0

0

0

0

0

0

0

Colorado

0

0

0

0

0

0

0

0

0

0

0

0

Idaho

9

0

0

9

9

0

0

9

9

0

0

9

Montana

0

0

0

0

0

0

0

0

0

0

0

0

Utah

5

0

0

5

5

0

0

5

5

0

0

5

Wyoming

0

0

0

0

0

0

0

0

0

0

0

0

SOUTHWEST

Oklahoma Texas ROCKY MOUNTAIN

FAR WEST 78

1

20

99

81

1

20

102

88

2

22

112

2,730

636

0

3,366

2,764

688

0

3,452

2,806

760

0

3,566

Hawaii

29

0

0

29

24

0

0

24

24

0

0

24

Nevada

0

0

0

0

0

0

0

0

0

0

0

0

Oregon

0

7

0

7

0

6

0

6

0

6

0

6

104

1

0

105

79

0

0

79

88

1

0

89

$6,397

$2,930

$97

$9,424

$6,392

$3,179

$105

$9,676

$6,249

$3,218

$128

$9,595

Alaska California

Washington TOTAL

*See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

41

TABLE 25 OTHER CASH ASSISTANCE EXPENDITURES AS A PERCENT OF TOTAL EXPENDITURES Region/State

Fiscal 2012

Fiscal 2013

Fiscal 2014

NEW ENGLAND Connecticut

0.4

Maine

0.6

%

0.4 0.4

%

0.4 0.4

Massachusetts

1.4

1.4

1.4

New Hampshire

0.4

0.3

0.3

Rhode Island

0.9

0.9

0.9

Vermont

1.2

1.4

1.2

Delaware

0.0

0.1

0.1

Maryland

3.3

3.4

3.1

New Jersey

0.7

0.7

0.6

New York

0.9

1.1

0.9

Pennsylvania

0.8

0.8

0.8

Illinois

0.0

0.0

0.0

Indiana

0.7

0.7

0.7

Michigan

0.3

0.2

0.2

Ohio

0.2

0.1

0.1

Wisconsin

0.1

0.1

0.1

Iowa

0.1

0.1

0.1

Kansas

0.0

0.0

0.0

Minnesota

0.3

0.3

0.2

Missouri

0.2

0.2

0.2

Nebraska

0.1

0.1

0.1

North Dakota

0.0

0.0

0.0

South Dakota

0.0

0.0

0.0

Alabama

0.0

0.0

0.0

Arkansas

1.7

1.7

1.8

Florida

0.0

0.1

0.0

Georgia

0.0

0.0

0.0

Kentucky

0.0

0.0

0.0

Louisiana

0.0

0.0

0.0

Mississippi

0.0

0.0

0.0

North Carolina

0.0

0.0

0.0

South Carolina

0.3

0.3

0.3

Tennessee

0.0

0.0

0.0

Virginia

0.2

0.2

0.1

West Virginia

0.0

0.0

0.0

Arizona

0.0

0.0

0.0

New Mexico

0.0

0.0

0.0

Oklahoma

0.5

0.4

0.4

Texas

0.0

0.0

0.0

Colorado

0.0

0.0

0.0

Idaho

0.1

0.1

0.1

Montana

0.0

0.0

0.0

Utah

0.0

0.0

0.0

Wyoming

0.0

0.0

0.0

Alaska

0.8

0.9

1.0

California

1.7

1.6

1.6

Hawaii

0.3

0.2

0.2

Nevada

0.0

0.0

0.0

Oregon

0.0

0.0

0.0

Washington

0.3

0.2

0.2

ALL STATES

0.6

%

MID-ATLANTIC

GREAT LAKES

PLAINS

SOUTHEAST

SOUTHWEST

ROCKY MOUNTAIN

FAR WEST

42

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

%

0.6

%

0.5

%

TABLE 26 ANNUAL PERCENTAGE CHANGE IN OTHER CASH ASSISTANCE EXPENDITURES Fiscal 2012 to 2013 Region/State

State Funds

Federal Funds

Fiscal 2013 to 2014 All Funds

State Funds

Federal Funds

All Funds

NEW ENGLAND Connecticut Maine

-0.9

%

-12.0



%

-50.0

-0.9

%

-28.9

5.4

%

13.6



%

5.4

-40.0

-3.1

Massachusetts

-2.8



-2.8

1.5



1.6

New Hampshire

-23.8



-23.8

0.0



0.0

Rhode Island

-3.3

0.0

-1.4

3.4

2.6

2.9

Vermont

56.3

2.2

16.4

0.0

-13.0

-8.5

%

MID-ATLANTIC Delaware

25.0



25.0

0.0



0.0

Maryland

1.8

7.6

7.4

0.0

-1.8

-1.7

-10.7

32.6

0.9

-9.2

-10.2

-9.5

17.8



17.8

-12.1



-12.1

-48.8

28.1

-4.6

-5.8

-2.7

-3.4

New Jersey New York Pennsylvania GREAT LAKES Illinois













Indiana

0.0

0.0

0.0

0.0

7.9

6.3

Michigan Ohio Wisconsin

-6.5

6.7

-4.9

1.0

0.0

0.9

-12.0



-12.0

-23.5



-23.5

0.0

-6.1

-3.4

11.5

-3.2

3.5 13.3

PLAINS -11.8



-11.8

13.3



Kansas

Iowa













Minnesota

2.3



2.3

2.3



2.3

Missouri

0.0



0.0

0.0



0.0

Nebraska

0.0

0.0

0.0

0.0

50.0

11.1

North Dakota













South Dakota













SOUTHEAST Alabama













Arkansas

0.6

-0.5

0.0

8.3

13.3

11.1

Florida

-5.3

41.7

12.9

0.0

-11.8

-5.7

Georgia













Kentucky













Louisiana













Mississippi













North Carolina













South Carolina

-17.9

5.9

-4.8

13.0

-5.6

1.7

Tennessee













Virginia

0.0

-9.2

-9.1

0.0

-10.1

-10.0

16.7



16.7

-14.3



-14.3

West Virginia SOUTHWEST Arizona













New Mexico

0.0



0.0

-100.0



-100.0

Oklahoma

0.0

-25.0

-15.9

0.0

-15.7

-8.9

Texas













ROCKY MOUNTAIN Colorado













Idaho

0.0



0.0

0.0



0.0

Montana













Utah

0.0



0.0

0.0



0.0

Wyoming













FAR WEST Alaska

3.1

0.0

3.0

8.9

100.0

9.8

California

1.2

8.2

2.6

1.5

10.5

3.3

Hawaii

-17.2



-17.2

0.0



0.0

Nevada













Oregon



-14.3

-14.3



0.0

0.0

Washington

-24.0

-100.0

-24.8

11.4



12.7

ALL STATES

0.0

%

8.5

%

2.7

%

-1.8

%

1.2

%

-0.8

%

Notes: State funds are defined as general funds and other state funds (bonds are excluded).

S tat e E x p e n d i t u r e R e p o r t

43

Public Assistance Notes Small dollar amounts, when rounded, cause an aberration in the percentage increase. In these instances, the actual dollar amounts should be consulted to determine the exact percentage increase. Georgia: TANF funds reflect only TANF funds used for cash assistance. Michigan: Figures for fiscal 2012 and 2013 include expenditures for cash assistance litigation payments made to families who remained temporarily eligible for assistance while Michigan’s time limit policy was under legal review. Effective for fiscal 2014, litigation payments were no longer issued as Michigan’s time limit policy went into effect prior to the beginning of the fiscal year. Litigation expenditures total $30.0 million in fiscal 2012; and $14.4 million in fiscal 2013. “Other Cash Assistance” figures do not include expenditures for child development and care programs, a large part of Michigan’s public assistance program. Child development and care expenditures total $156.4 million in fiscal 2012; $134.4 million in fiscal 2013; and an estimated $141.6 million in fiscal 2014.

44

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of

S tat e B u d g e t O f f i c e r s

4 CHAPTER

MEDICAID EXPENDITURES

24.5% of State Expenditures

S tat e E x p e n d i t u r e R e p o r t

45

Medicaid Expenditures Medicaid, a means-tested entitlement program financed by the states and the federal government, provides comprehensive and long-term medical care for more than 68 million low-income individuals. Total Medicaid spending in fiscal 2013 was $413.7 billion, excluding administrative costs, which represents a 5.8 percent increase over fiscal 2012. State funds increased by 8.1 percent and federal funds increased by 4.1 percent over fiscal 2012 amounts. In fiscal 2013, federal funds comprised 56.6 percent of total Medicaid spending, general funds 31.6 percent, and other state funds 11.8 percent. Total Medicaid spending for fiscal 2014 is estimated at $460.5 billion, an increase of 11.3 percent over fiscal 2013. State funds increased by an estimated 2.7 percent while federal funds increased by 17.8 percent over fiscal 2013 amounts. The rate of growth in federal funds exceeds state funds since costs for those newly eligible for coverage in states implementing the Medicaid expansion under the Affordable Care Act are fully federally funded in calendar years 2014, 2015, and 201. Federal funding will phase down to 90 percent by 2020 and beyond. Increased participation among those currently eligible is funded at the states regular Medicaid matching rate. Also included in Medicaid spending are Medicare Part D “clawback” payments, statutorily known as the phased down state contribution. Beginning in January 2006, prescription drug costs for individuals eligible for both Medicare and Medicaid were no longer part of the Medicaid program. Instead these costs are now included in Medicare Part D. States finance these benefits by providing a payment to the federal Medicare trust fund—commonly known as “clawback” payments. As shown in Appendix Table A-3, these “clawback” payments totaled $7.8 billion in fiscal 2012, $8.4 billion in fiscal 2013, and are estimated at $8.4 billion for fiscal 2014. Medicaid spending accounted for 24.5 percent of total state spending in fiscal 2013, the single largest component of total state expenditures, and 18.9 percent of general fund expenditures. In fiscal 2014, it is estimated to be 25.8 percent of total state spending, with the growth largely resulting from an increase in federal Medicaid funds, and 19.1 percent of general fund expenditures.

growth is projected to average 8.3 percent across all states and is projected to rise by 13.2 percent in fiscal 2015. These increases in enrollment take into account those states that have expanded Medicaid under the Affordable Care Act as well as enrollment increases among those currently eligible in states that have not expanded Medicaid. The implementation of the Affordable Care Act has greatly increased the number of individuals served in the Medicaid program in 2014 and thereafter. According to the Centers for Medicare and Medicaid Services’ Office of the Actuary, the Affordable Care Act’s Medicaid eligibility expansion option will add approximately 18.3 million individuals by 2021. Medicaid Program Changes. In contrast to previous years, and especially with the end of the federally enhanced matching funds through the American Recovery and Reinvestment Act (ARRA), state actions are broader and are aimed at controlling costs, selectively increasing payments and benefits, and changing delivery methods to improve care. The proportion of Medicaid benefits through a managed care plan is expected to increase with both the coverage of newly eligible enrollees and the expanded use of managed care to cover aged and disabled enrollees and long-term care services. States also continue moving in the direction of home-and community-based care and away from institutional settings. Additionally, states expressed concern about high-cost specialty drugs, such as Sovaldi, used to treat hepatitis C and almost all states are concerned about the potential future fiscal impact of new and emerging specialty drug therapies, according to the Kaiser Commission on Medicaid and the Uninsured Annual Budget survey. Affordable Care Act. The Supreme Court’s ruling in June 2012 upheld the constitutionality of the Affordable Care Act and affected states by making the expansion of Medicaid effectively a state option. The Supreme Court ruled that the Medicaid expansion is constitutional though the federal government could not withhold existing Medicaid funding for states that opted not to participate in the expansion. Beginning January 1, 2014, state Medicaid programs had the option to expand to cover non-pregnant, non-elderly individuals with incomes up to 138 percent federal of the poverty level. The cost for those newly eligible for coverage are fully federally funded in calendar years 2014, 2015, and 2016 with federal financing phasing down to 90 percent by 2020 and beyond. As

Medicaid Enrollment. Enrollment growth averaged 1.5 per-

of October 2014, 27 states and the District of Columbia have

cent in fiscal 2013, according to the Kaiser Commission on

expanded Medicaid while a number of other states continue to

Medicaid and the Uninsured. For fiscal 2014, enrollment

debate the issue.

46

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

Fund Shares

Long-Term Health Care Spending. Medicaid spending, similar to health care spending, has historically increased faster

The figure below provides fund shares for 2013.

than the economy as a whole. The Centers for Medicare and Medicaid Services’ (CMS) Office of the Actuary released the 2013 Actuarial Report on the Financial Outlook for Medicaid.

FIGURE 14 STATE EXPENDITURES FOR MEDICAID BY FUND SOURCE, FISCAL 2013

The projected annual average growth rate of Medicaid expenditures from 2013 to 2022 is projected to be 7.1 percent, notably faster than the projection of average annual GDP growth of 5.1 percent, according to the analysis.

Federal Funds 56.6%

General Funds 31.6%

Other State Funds 11.8%

Regional Expenditures The following table shows percentage changes in expenditures for Medicaid for fiscal 2012-2013 and 2013-2014 by region. Additional expenditure data on Medicaid can be found on Tables 28-30, accompanied by explanatory notes.

TABLE 27 REGIONAL PERCENTAGE CHANGE IN STATE MEDICAID EXPENDITURES, FISCAL 2013 AND 2014 Fiscal 2012 to 2013 Region

State Funds

Federal Funds

New England

4.4

Mid-Atlantic

4.1

-1.5

Great Lakes

7.3

Plains

0.7

Southeast Southwest Rocky Mountain Far West ALL STATES

%

3.9

Fiscal 2013 to 2014 All Funds

%

4.2

State Funds %

-10.8

Federal Funds %

34.9

All Funds %

10.0

0.9

2.8

8.7

6.2

10.4

8.8

10.7

21.2

15.9

-2.3

-0.9

7.4

11.9

9.8

2.4

5.9

4.6

6.9

7.6

7.3

-0.4

1.7

0.9

-0.1

20.2

12.4

5.2

9.1

7.3

7.0

14.2

10.9

37.0

7.4

19.2

-5.1

39.5

8.1

%

4.1

%

5.8

%

2.7

%

17.8

%

19.1 %

11.3

%

S tat e E x p e n d i t u r e R e p o r t

47

TABLE 28 MEDICAID EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012 General Fund

Region/State

Federal Funds

Actual Fiscal 2013

Other State Funds

Total

General Fund

Federal Funds

Estimated Fiscal 2014

Other State Funds

Total

General Fund

Federal Funds

Other State Funds

Total $6,630

NEW ENGLAND $5,887

$0

$0

$5,887

$6,060

$0

$0

$6,060

$3,638

$2,992

$0

661

1,443

230

2,334

737

1,517

255

2,509

747

1,767

267

2,781

Massachusetts

3,679

6,752

0

10,431

3,782

6,998

0

10,780

4,668

7,244

0

11,912

New Hampshire

470

584

133

1,187

511

605

169

1,285

546

660

175

1,381

Rhode Island

919

995

10

1,924

939

1,004

11

1,954

1,013

1,214

12

2,239

Vermont*

242

716

309

1,267

295

775

334

1,404

281

830

333

1,444 1,663

Connecticut* Maine*

MID-ATLANTIC 637

784

0

1,421

707

870

0

1,577

662

1,001

0

Maryland*

2,740

3,617

826

7,183

2,758

3,893

974

7,625

2,897

4,816

860

8,573

New Jersey*

3,777

5,667

1,074

10,518

3,718

5,546

1,092

10,356

3,904

6,888

1,050

11,842

New York

9,783

24,478

4,996

39,257

10,602

23,421

4,769

38,792

10,981

24,237

4,754

39,972

Pennsylvania

7,620

12,245

2,364

22,229

7,945

12,372

2,632

22,949

8,253

13,174

2,829

24,256

Illinois

4,372

6,189

2,390

12,951

4,811

7,620

3,098

15,529

4,833

9,635

3,337

17,805

Indiana

1,717

4,716

745

7,178

1,883

5,950

956

8,789

1,815

6,225

679

8,719

Michigan*

2,324

8,198

2,016

12,538

2,330

8,194

1,990

12,514

2,278

9,829

2,174

14,281

11,686

4,269

790

16,745

12,030

4,102

878

17,010

13,571

6,317

2,053

21,941

1,954

4,070

797

6,821

2,144

4,435

762

7,341

2,411

4,709

1,044

8,164

Delaware

GREAT LAKES

Ohio* Wisconsin PLAINS

903

2,068

733

3,704

987

2,140

749

3,876

1,157

2,450

665

4,272

Kansas

1,122

1,510

51

2,683

1,100

1,425

58

2,583

1,209

1,627

52

2,888

Minnesota

4,163

4,422

68

8,653

4,007

4,032

7

8,046

4,276

4,962

233

9,471

Missouri

1,719

4,245

2,224

8,188

1,664

4,238

2,308

8,210

1,834

4,378

2,270

8,482

Nebraska

683

935

31

1,649

784

1,003

35

1,822

817

1,006

34

1,857

North Dakota

306

419

5

730

355

421

6

782

392

458

7

857

South Dakota

287

487

0

774

316

500

0

816

351

515

0

866

Alabama*

575

3,795

1,257

5,627

595

3,820

1,171

5,586

638

3,932

1,126

5,696

Arkansas

630

3,142

652

4,424

736

3,180

595

4,511

818

3,802

404

5,024

Florida

4,010

10,929

4,330

19,269

4,721

11,823

3,788

20,332

5,277

13,562

4,272

23,111

Georgia*

2,641

5,599

335

8,575

2,755

5,915

363

9,033

2,853

5,700

386

8,939

Kentucky

1,319

4,090

373

5,782

1,267

3,923

436

5,626

1,267

5,042

449

6,758

Louisiana

1,289

4,474

588

6,351

1,425

4,721

704

6,850

1,726

4,700

848

7,274

73

3,182

1,050

4,305

316

3,627

891

4,834

468

3,427

743

4,638

3,517

7,535

1,172

12,224

3,404

8,433

1,093

12,930

3,689

8,433

1,100

13,222

Iowa

SOUTHEAST

Mississippi North Carolina

640

3,426

719

4,785

688

3,519

683

4,890

746

3,909

773

5,428

Tennessee*

2,792

6,007

534

9,333

2,787

6,121

491

9,399

3,213

6,548

300

10,061

Virginia

3,569

3,465

0

7,034

3,862

3,772

0

7,634

3,934

3,961

0

7,895

543

1,978

243

2,764

375

2,143

490

3,008

518

2,612

404

3,534

2,078

5,782

576

8,436

2,069

5,756

606

8,431

2,019

6,160

650

8,829

849

2,562

229

3,640

868

2,560

250

3,678

864

3,010

263

4,137

1,205

2,924

605

4,734

1,343

2,931

646

4,920

1,420

3,095

695

5,210

10,686

16,987

1,654

29,327

10,190

17,483

1,845

29,518

10,880

22,263

1,011

34,154

South Carolina

West Virginia SOUTHWEST Arizona New Mexico Oklahoma Texas ROCKY MOUNTAIN

1,693

2,591

1,686

5,970

1,844

2,805

1,736

6,385

2,092

3,492

1,626

7,210

Idaho

399

1,063

242

1,704

467

1,241

168

1,876

475

1,335

214

2,024

Montana

230

675

91

996

235

736

110

1,081

255

714

86

1,055

Utah

380

1,356

329

2,065

380

1,435

369

2,184

316

1,597

620

2,533

Wyoming

259

294

19

572

272

309

23

604

287

317

24

628

Colorado*

FAR WEST 566

798

5

1,369

605

836

7

1,448

677

966

10

1,653

15,228

26,446

1,378

43,052

15,008

28,507

9,608

53,123

16,726

39,991

5,920

62,637

Alaska California Hawaii*

606

807

0

1,413

796

877

0

1,673

844

1,090

0

1,934

Nevada*

535

1,008

392

1,935

546

1,165

310

2,021

555

1,452

299

2,306

Oregon

1,219

3,094

598

4,911

923

3,476

1,111

5,510

1,331

4,592

788

6,711

Washington*

1,951

2,162

111

4,224

1,764

1,993

280

4,037

1,899

3,330

327

5,556

$127,133

$224,980

$38,960

$391,073

$130,706

$234,168

$48,857

$413,731

$138,321

$275,966

$46,166

$460,453

ALL STATES

*See notes at the end of the chapter.

48

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 29 MEDICAID EXPENDITURES AS A PERCENT OF TOTAL EXPENDITURES Region/State

Fiscal 2012

Fiscal 2013

Fiscal 2014

NEW ENGLAND Connecticut

21.4

Maine

28.8

%

21.8 32.7

%

22.6 34.4

Massachusetts

18.3

18.7

20.2

New Hampshire

23.9

25.6

26.8

Rhode Island

24.3

24.8

28.4

Vermont

25.3

28.3

27.4

Delaware

15.9

17.2

17.3

Maryland

20.6

21.0

22.3

New Jersey

21.6

20.4

21.8

New York

29.4

29.1

29.1

Pennsylvania

26.2

26.9

27.7

Illinois

21.6

23.8

24.5

Indiana

27.4

31.2

32.0

Michigan

26.5

26.4

27.7

Ohio

28.9

29.2

35.8

Wisconsin

16.5

17.2

18.2

Iowa

19.6

19.8

21.2

Kansas

18.6

18.5

19.2

Minnesota

28.6

24.3

26.2

Missouri

35.0

35.8

36.6

Nebraska

16.7

17.9

17.6

North Dakota

12.1

13.7

12.6

South Dakota

21.0

19.9

21.1

Alabama

22.9

22.8

23.4

Arkansas

21.4

21.0

22.1

Florida

30.6

31.8

31.1

Georgia

20.8

21.3

21.2

Kentucky

22.5

21.9

23.4

Louisiana

23.4

25.1

25.0

Mississippi

23.9

26.1

24.5

North Carolina

24.5

30.0

29.9

South Carolina

21.7

22.0

25.3

Tennessee

30.7

30.8

31.1

Virginia

16.2

16.7

17.3

West Virginia

12.6

13.5

14.8

Arizona

30.0

29.8

29.9

New Mexico

25.3

25.0

25.5

Oklahoma

22.6

23.0

23.4

Texas

31.5

31.7

33.7

Colorado

20.7

22.0

23.8

Idaho

27.2

28.0

27.5

Montana

16.8

17.9

17.0

Utah

17.5

17.2

18.9

9.9

6.6

8.2

Alaska

11.6

12.2

14.3

California

21.6

25.1

27.2

Hawaii

12.3

14.4

15.4

Nevada

25.4

22.7

26.4

Oregon

18.2

21.4

23.6

Washington

12.7

11.9

15.5

ALL STATES

23.6

%

MID-ATLANTIC

GREAT LAKES

PLAINS

SOUTHEAST

SOUTHWEST

ROCKY MOUNTAIN

Wyoming FAR WEST

%

24.5

%

25.8

%

S tat e E x p e n d i t u r e R e p o r t

49

TABLE 30 ANNUAL PERCENTAGE CHANGE IN MEDICAID EXPENDITURES Fiscal 2012 to 2013 State Funds

Region/State

Federal Funds

Fiscal 2013 to 2014 All Funds

State Funds

Federal Funds

All Funds

NEW ENGLAND Connecticut

2.9

Maine

%

11.3



%

5.1

2.9

%

-40.0

7.5

2.2

%



%

9.4

16.5

10.8 10.5

Massachusetts

2.8

3.6

3.3

23.4

3.5

New Hampshire

12.8

3.6

8.3

6.0

9.1

7.5

2.3

0.9

1.6

7.9

20.9

14.6

14.2

8.2

10.8

-2.4

7.1

2.8

Delaware

11.0

11.0

11.0

-6.4

15.1

5.5

Maryland

4.7

7.6

6.2

0.7

23.7

12.4

Rhode Island Vermont

%

MID-ATLANTIC

New Jersey

-0.8

-2.1

-1.5

3.0

24.2

14.3

New York

4.0

-4.3

-1.2

2.4

3.5

3.0

Pennsylvania

5.9

1.0

3.2

4.8

6.5

5.7 14.7

GREAT LAKES Illinois

17.0

23.1

19.9

3.3

26.4

Indiana

15.3

26.2

22.4

-12.2

4.6

-0.8

Michigan

-0.5

0.0

-0.2

3.1

20.0

14.1

Ohio

3.5

-3.9

1.6

21.0

54.0

29.0

Wisconsin

5.6

9.0

7.6

18.9

6.2

11.2

PLAINS 6.1

3.5

4.6

5.0

14.5

10.2

Kansas

Iowa

-1.3

-5.6

-3.7

8.9

14.2

11.8

Minnesota

-5.1

-8.8

-7.0

12.3

23.1

17.7

Missouri

0.7

-0.2

0.3

3.3

3.3

3.3

Nebraska

14.7

7.3

10.5

3.9

0.3

1.9

North Dakota

16.1

0.5

7.1

10.5

8.8

9.6

South Dakota

10.1

2.7

5.4

11.1

3.0

6.1

SOUTHEAST Alabama

-3.6

0.7

-0.7

-0.1

2.9

2.0

Arkansas

3.8

1.2

2.0

-8.2

19.6

11.4 13.7

Florida

2.0

8.2

5.5

12.2

14.7

Georgia

4.8

5.6

5.3

3.9

-3.6

-1.0

Kentucky

0.7

-4.1

-2.7

0.8

28.5

20.1

Louisiana

13.4

5.5

7.9

20.9

-0.4

6.2

Mississippi

7.5

14.0

12.3

0.3

-5.5

-4.1

North Carolina

-4.1

11.9

5.8

6.5

0.0

2.3

South Carolina

0.9

2.7

2.2

10.8

11.1

11.0

Tennessee Virginia West Virginia

-1.4

1.9

0.7

7.2

7.0

7.0

8.2

8.9

8.5

1.9

5.0

3.4

10.1

8.3

8.8

6.6

21.9

17.5

SOUTHWEST Arizona

0.8

-0.4

-0.1

-0.2

7.0

4.7

New Mexico

3.7

-0.1

1.0

0.8

17.6

12.5

Oklahoma Texas

9.9

0.2

3.9

6.3

5.6

5.9

-2.5

2.9

0.7

-1.2

27.3

15.7 12.9

ROCKY MOUNTAIN Colorado Idaho Montana

5.9

8.3

7.0

3.9

24.5

-0.9

16.7

10.1

8.5

7.6

7.9

7.5

9.0

8.5

-1.2

-3.0

-2.4

Utah

5.6

5.8

5.8

25.0

11.3

16.0

Wyoming

6.1

5.1

5.6

5.4

2.6

4.0

FAR WEST Alaska

7.2

4.8

5.8

12.3

15.6

14.2

California

48.2

7.8

23.4

-8.0

40.3

17.9

Hawaii

31.4

8.7

18.4

6.0

24.3

15.6

Nevada

-7.7

15.6

4.4

-0.2

24.6

14.1

Oregon

11.9

12.3

12.2

4.2

32.1

21.8

Washington

-0.9

-7.8

-4.4

8.9

67.1

37.6

ALL STATES

8.1

%

4.1

Notes: State funds are defined as general funds and other state funds (bonds are excluded).

50

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

%

5.8

%

2.7

%

17.8

%

11.3

%

Medicaid Notes States were asked to report Medicaid expenditures as follows: General funds: all general funds appropriated to the Medicaid agency and any other agency which are used for direct Medicaid matching purposes under Title XIX. Other state funds: other funds and revenue sources used as Medicaid match, such as local funds and provider taxes, fees, donations, assessments (as defined by the Centers for Medicare and Medicaid Services). Federal Funds: all federal matching funds provided pursuant to Title XIX.

Michigan: Fiscal 2012 general fund spending includes Medicare Part D payments of $178 million inadvertently excluded for the 2013 survey. Increased spending in fiscal 2014 is primarily due to implementation of the Healthy Michigan Plan. Other state funds include local funds of $73.0 million and provider taxes of $959.0 million for fiscal 2012; local funds of $96.5 million and provider taxes of $948.0 million for fiscal 2013; and local funds of $99.6 million and provider taxes of $833.3 million for fiscal 2014. Federal revenue support includes federal ARRA/FMAP funding of $31.5 million for fiscal 2012. Actual ARRA expenditures will be recorded with the fiscal 2014 annual financial report. Public health and community

The states were asked to separately detail the amount of pro-

and institutional care for mentally and developmentally dis-

vider taxes, fees, donations, assessments and local funds

abled persons are partially reported in the Medicaid totals.

reported as Other State Funds.

Nevada: CHIP medical expenditures are included in Medicaid

Alabama: Fiscal 2012 through fiscal 2014 Other State Funds

totals. Starting in 2014, CHIP staff is included in All Other

includes provider taxes in the amounts of $342 million, $356

Expenditures. Before 2014, CHIP staff was included in Medic-

million, and $382 million, respectively.

aid totals as well.

Colorado: CHIP is included in “Medicaid” expenditures, all

New Jersey: Medicaid Other State Funds: FY12/FY13/FY14

part of the Department of Health Care Policy and Financing

(in millions): Nursing Home Provider Tax $121/$134/$126;

Connecticut: In fiscal 2012 and fiscal 2013, Medicaid was “gross funded” with federal funds deposited directly to the

Other Assessments/Taxes/Fees $572/$571/$559. Beginning in FFY14, CHIP parents were moved to Medicaid (Title XIX).

State Treasury. Beginning in fiscal 2014, the Medicaid appro-

Ohio: Previously Medicaid totals only included expenditures by

priation in the Department of Social Services (DSS) is “net

the Department of Job and Family Services; however, now the

funded” while other Medicaid expenditures remain gross fund-

category includes expenditures from other agencies.

ed. With the exception of enhanced FMAP available for certain populations and services, Connecticut’s FMAP is 50%. Includes Medicaid expenditures for administrative services organizations and fiscal intermediaries in DSS. Excludes state portion of Qualified Medicare Beneficiaries and School Based Child Health as those expenditures are netted out of federal Medicaid reimbursement. Also excludes provider taxes, which are deposited directly to the State Treasury.

Tennessee: Regarding premium revenue: fiscal 2012 totals $291 million, fiscal 2013 totals $302 million, and fiscal 2014 totals $368 million. Certified Public Expenditures – Local fund from Hospitals: fiscal 2012 totals $374 million, fiscal 2013 totals $378 million, and fiscal 2014 totals $275 million. Nursing Home Tax: fiscal 2012 totals $82 million, fiscal 2013 totals $83 million, and fiscal 2014 totals $82 million. ICF/MR 6 percent Gross Receipts Tax: fiscal 2012 totals $11 million, fiscal 2013

Georgia: State general funds paid by other agencies to the

totals $14 million, and fiscal 2014 totals $11 million. Intergov-

state Medicaid agency are reflected as state general funds

ernmental Transfers: fiscal 2012 totals $70 million, fiscal 2013

rather than other funds.

totals $70 million, and fiscal 2014 totals $100 million.

Maine: Medicaid Other State Funds provider taxes are: fiscal

Vermont: The breakdown of local funds, etc. included in Other

2012 $151.2 million; fiscal 2013 $153.3 million; fiscal 2014

State Funds is as follows for fiscal 2012: provider tax

$168.1 million.

$144,415,197; employee assessment $11,168,000; local

Maryland: There was a slight change in the methodology used to calculate Medicaid compared to prior years. The CHIP figures for this year are slightly higher due to CHIP expenditures being accounted for in all State agencies, not just the Medical Care Programs Administration.

match provided by schools $16,151,589; tobacco litigation settlement funds $36,978,473; other $100,859,035. The breakdown is as follows for fiscal 2013: provider tax $148,638,656; employee assessment $11,886,600; local match provided by schools $17,758,156; tobacco litigation settlement funds

S tat e E x p e n d i t u r e R e p o r t

51

$31,343,693, other $124,012,725. The breakdown is as follows for estimated fiscal 2014: provider tax $154,109,028; employee assessment $12,995,400; local match provided by schools $19,206,889; tobacco litigation settlement funds $35,975,693, other $110,272,870. Washington: Declines in general fund Medicaid spending is partly attributable to Medicaid caseloads falling below previous levels in recent years, however there is an expectation that with the Affordable Care Act, caseloads will increase because of efforts to insure as many citizens as possible.

52

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

5 CHAPTER

CORRECTIONS EXPENDITURES

3.2% of State Expenditures

S tat e E x p e n d i t u r e R e p o r t

53

Corrections Expenditures State spending on corrections reflects the costs to build and operate prison systems and may include spending on juvenile justice programs and alternatives to incarceration such as probation and parole. State spending for corrections totaled $53.3 billion in fiscal 2013, compared to $53.1 billion in fiscal 2012, a 0.5 percent increase. The slight increase in the overall growth rate is partly due to recent efforts states have taken to control corrections spending. Over the past several years, states have begun targeting criminal justice reforms to address the cost drivers of corrections expenditures. According to a September

In fiscal 2013, corrections spending represented 3.2 percent of total state spending and 6.9 percent of general fund spending. General fund dollars are the primary source for state corrections and account for $47.4 billion, or 88.9 percent, of all fiscal 2013 state corrections spending. State funds (general funds and other state funds combined, but excluding bonds) accounted for 97.7 percent of total state corrections spending in fiscal 2013. Federal funds accounted for 1.4 percent and bonds accounted for 1.0 percent. Federal funds for corrections declined by 25.5 percent in fiscal 2013, as American Recovery and Reinvestment Act (ARRA) funds expired.

2013 NASBO issue brief, states have begun controlling costs

State spending on corrections in fiscal 2014 is estimated to

through reducing recidivism rates, implementing changes to

total $55.5 billion, a 4.0 percent increase from fiscal 2013.

parole and probation systems, enhancing community supervi-

State funds are estimated to increase by 4.0 percent, while

sion and drug treatment programs, and enacting sentencing

federal funds are estimated to increase by 4.3 percent.

reforms.

Data on capital expenditures for corrections are displayed in Chapter Eight (Table 49).

FIGURE 15 STATE EXPENDITURES FOR CORRECTIONS BY FUND SOURCE, FISCAL 2013

Other State Funds 8.8%

Bonds 1.0%

Federal Funds 1.4%

General Funds 88.9%

54

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

Regional Expenditures

Corrections—Expenditures Exclusions

Table 31 shows changes in corrections expenditures by region

Some states exclude certain items when reporting corrections

between fiscal 2012 and fiscal 2013 and between fiscal 2013

expenditures. Nineteen states wholly or partially excluded juve-

and estimated fiscal 2014.

nile delinquency counseling from their corrections figures and 16 states wholly or partially excluded spending on juvenile institutions. Some states wholly or partially excluded spending on drug abuse rehabilitation centers (18), institutions for the criminally insane (37), and aid to local governments for jails (20). For details, see Table 36.

TABLE 31 REGIONAL PERCENTAGE CHANGE IN STATE CORRECTIONS EXPENDITURES, FISCAL 2013 AND 2014 Fiscal 2012 to 2013 Region

State Funds

New England

1.1

Mid-Atlantic

3.9

Great Lakes Plains

Federal Funds %

-8.3

Fiscal 2013 to 2014 All Funds

%

1.3

State Funds %

4.1

4.4

1.5

0.8

0.8

-8.4

0.8

1.2

-37.5

1.7

Southeast

1.6

-22.1

Southwest

1.5

Rocky Mountain Far West ALL STATES

Federal Funds %

18.2

All Funds %

5.7

-16.9

1.1

3.7

-1.7

3.4

7.4

20.0

6.3

0.5

3.6

7.7

3.6

-27.5

1.4

2.4

5.4

2.9

3.2

-91.1

-5.6

10.0

0.0

9.9

-0.4

-7.3

-0.3

5.8

37.3

1.3

%

-25.5

%

0.5

%

4.0

%

4.3

%

5.6 %

4.0

%

S tat e E x p e n d i t u r e R e p o r t

55

TABLE 32 CORRECTIONS EXPENDITURES—CAPITAL INCLUSIVE ($ IN MILLIONS) Actual Fiscal 2012

Region/State

Actual Fiscal 2013

Estimated Fiscal 2014

General Fund

Federal Funds

Other State Funds

$671

$4

$0

$19

$694

$636

$4

$0

$5

$645

$678

$4

$0

$4

133

1

7

0

141

133

2

5

0

140

154

2

4

0

160

1,225

5

3

21

1,254

1,268

3

3

42

1,316

1,310

5

3

85

1,403 105

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $686

NEW ENGLAND Connecticut Maine* Massachusetts

95

0

5

3

103

95

0

5

2

102

99

0

5

1

Rhode Island

185

2

3

0

190

184

2

18

0

204

187

2

5

0

194

Vermont

129

0

8

1

138

135

0

9

1

145

141

0

8

1

150

New Hampshire

MID-ATLANTIC 262

1

6

0

269

265

1

5

1

272

273

1

5

3

282

Maryland*

1,294

40

102

17

1,453

1,307

41

104

8

1,460

1,361

36

111

30

1,538

New Jersey

1,474

16

88

0

1,578

1,505

15

79

0

1,599

1,572

16

83

0

1,671

New York

2,648

102

81

240

3,071

2,918

110

73

192

3,293

2,747

86

68

231

3,132

Pennsylvania*

2,098

22

100

137

2,357

2,110

22

105

0

2,237

2,218

18

100

0

2,336

1,326

0

81

7

1,414

1,280

0

79

19

1,378

1,390

0

87

14

1,491

694

5

53

0

752

687

5

58

0

750

714

4

51

0

769

Michigan*

2,034

107

70

2

2,213

2,030

98

68

0

2,196

2,094

99

77

0

2,270

Ohio

1,661

17

77

24

1,779

1,727

15

73

26

1,841

1,741

13

82

20

1,856

Wisconsin

1,083

2

109

0

1,194

1,138

2

105

0

1,245

1,168

2

108

0

1,278

Iowa

354

4

53

1

412

361

0

17

37

415

375

2

110

2

489

Kansas

332

8

18

9

367

352

2

22

7

383

352

7

24

7

390

Minnesota

444

6

17

14

481

469

3

15

8

495

481

4

17

19

521

Missouri

577

6

35

0

618

589

5

32

0

626

604

3

36

0

643

Nebraska

197

2

25

0

224

198

2

22

0

222

233

2

24

0

259

North Dakota

79

4

33

0

116

82

3

25

0

110

78

3

12

0

93

South Dakota

80

10

8

0

98

86

10

8

0

104

92

9

8

0

109

Alabama

470

26

101

0

597

452

19

112

0

583

486

21

114

0

621

Arkansas

391

1

63

0

455

385

1

63

0

449

401

2

70

0

473

Florida

2,375

77

118

60

2,630

2,291

70

113

18

2,492

2,467

91

144

0

2,702

Georgia*

1,414

9

60

27

1,510

1,458

11

73

13

1,555

1,480

3

19

28

1,530

Kentucky

533

14

58

0

605

558

13

46

0

617

546

15

48

0

609

Louisiana*

709

2

80

1

792

710

2

94

3

809

724

2

87

5

818

Mississippi

311

2

26

0

339

312

0

49

0

361

335

0

27

0

362

North Carolina

1,645

155

150

0

1,950

1,694

108

178

0

1,980

1,741

110

180

0

2,031

South Carolina

465

9

120

0

594

492

6

104

0

602

512

6

101

0

619

Tennessee

769

1

52

0

822

819

0

49

0

868

929

0

80

0

1,009

1,136

21

96

17

1,270

1,174

17

76

23

1,290

1,151

16

73

21

1,261

214

0

2

0

216

230

0

6

0

236

226

0

7

0

233

Arizona

963

18

50

0

1,031

947

8

44

0

999

972

10

57

0

1,039

New Mexico

257

1

22

0

280

266

3

22

0

291

271

0

23

0

294

Oklahoma

398

3

121

0

522

459

2

102

0

563

474

2

104

0

580

3,140

29

87

31

3,287

3,195

24

81

40

3,340

3,254

27

84

66

3,431

Colorado*

668

7

98

0

773

670

5

88

0

763

695

5

199

0

899

Idaho

191

5

34

0

230

211

7

37

0

255

221

7

40

0

268

Montana

170

1

12

0

183

178

1

12

0

191

182

1

12

0

195

Utah

237

1

1

0

239

239

1

29

0

269

240

1

30

0

271

Wyoming

126

144

10

0

280

123

0

9

0

132

127

0

10

0

137

Delaware

GREAT LAKES Illinois Indiana

PLAINS

SOUTHEAST

Virginia* West Virginia SOUTHWEST

Texas ROCKY MOUNTAIN

FAR WEST 315

5

38

0

358

346

4

37

0

387

372

7

33

0

412

7,723

79

2,874

0

10,676

8,490

77

2,088

1

10,656

9,208

106

2,132

3

11,449

Hawaii*

218

2

10

0

230

218

0

13

0

231

209

2

11

0

222

Nevada

239

3

29

4

275

238

3

29

12

282

249

3

35

4

291

Oregon

817

16

207

14

1,054

802

16

176

17

1,011

885

18

20

3

926

Washington

898

5

8

29

940

873

2

11

33

919

921

4

15

6

946

$45,867

$1,000

$5,509

$678

$53,054

$47,385

$745

$4,671

$508

$53,309

$49,340

$777

$4,783

$553

$55,453

Alaska California

TOTAL

*See notes at the end of the chapter.

56

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 33 CORRECTIONS EXPENDITURES AS A PERCENT OF TOTAL EXPENDITURES Region/State

Fiscal 2012

Fiscal 2013

Fiscal 2014

NEW ENGLAND Connecticut

2.5

Maine

1.7

%

2.3

%

1.8

2.3

%

2.0

Massachusetts

2.2

2.3

2.4

New Hampshire

2.1

2.0

2.0

Rhode Island

2.4

2.6

2.5

Vermont

2.8

2.9

2.8 2.9

MID-ATLANTIC Delaware

3.0

3.0

Maryland

4.2

4.0

4.0

New Jersey

3.2

3.1

3.1

New York

2.3

2.5

2.3

Pennsylvania

2.8

2.6

2.7 2.0

GREAT LAKES Illinois

2.4

2.1

Indiana

2.9

2.7

2.8

Michigan

4.7

4.6

4.4

Ohio

3.1

3.2

3.0

Wisconsin

2.9

2.9

2.8

Iowa

2.2

2.1

2.4

Kansas

2.5

2.7

2.6

PLAINS

Minnesota

1.6

1.5

1.4

Missouri

2.6

2.7

2.8

Nebraska

2.3

2.2

2.5

North Dakota

1.9

1.9

1.4

South Dakota

2.7

2.5

2.7

SOUTHEAST Alabama

2.4

2.4

2.5

Arkansas

2.2

2.1

2.1

Florida

4.2

3.9

3.6

Georgia

3.7

3.7

3.6 2.1

Kentucky

2.4

2.4

Louisiana

2.9

3.0

2.8

Mississippi

1.9

2.0

1.9 4.6

North Carolina

3.9

4.6

South Carolina

2.7

2.7

2.9

Tennessee

2.7

2.8

3.1

Virginia

2.9

2.8

2.8

West Virginia

1.0

1.1

1.0

Arizona

3.7

3.5

3.5

New Mexico

1.9

2.0

1.8

Oklahoma

2.5

2.6

2.6

Texas

3.5

3.6

3.4

SOUTHWEST

ROCKY MOUNTAIN Colorado

2.7

2.6

3.0

Idaho

3.7

3.8

3.6

Montana

3.1

3.2

3.2

Utah

2.0

2.1

2.0

Wyoming

4.9

1.4

1.8

FAR WEST Alaska

3.0

3.3

3.6

California

5.4

5.0

5.0 1.8

Hawaii

2.0

2.0

Nevada

3.6

3.2

3.3

Oregon

3.9

3.9

3.3

Washington

2.8

2.7

2.6

ALL STATES

3.2

%

3.2

%

3.1

%

S tat e E x p e n d i t u r e R e p o r t

57

TABLE 34 CORRECTIONS GENERAL FUND EXPENDITURES AS A PERCENT OF TOTAL GENERAL FUND EXPENDITURES Region/State

Fiscal 2012

Fiscal 2013

Fiscal 2014

NEW ENGLAND Connecticut

3.6

Maine

4.3

%

3.3

%

4.4

4.0

Massachusetts

4.7

4.7

4.5

New Hampshire

7.4

7.5

7.9

Rhode Island Vermont

%

4.9

5.9

5.7

5.7

10.1

10.0

10.2

MID-ATLANTIC Delaware

7.3

7.2

7.2

Maryland

8.7

8.6

8.7 4.8

New Jersey

4.9

4.8

New York

4.7

4.9

4.5

Pennsylvania

7.8

7.6

7.8

GREAT LAKES Illinois

4.5

4.2

4.5

Indiana

5.1

4.8

4.9

Michigan

23.6

22.9

21.3

Ohio

6.3

6.3

6.0

Wisconsin

8.1

8.1

8.0

PLAINS Iowa

5.9

5.7

5.6

Kansas

5.4

5.7

5.8

Minnesota

2.7

2.5

2.4

Missouri

7.3

7.3

7.2

Nebraska

5.7

5.5

6.1

North Dakota

3.6

3.7

2.4

South Dakota

6.6

6.7

6.4

SOUTHEAST Alabama

6.4

6.3

6.2

Arkansas

8.5

8.1

8.2 9.2

Florida

10.3

9.4

Georgia

8.2

8.1

7.7

Kentucky

5.7

5.9

5.6

Louisiana

8.5

8.4

8.4

Mississippi

6.9

6.6

6.9 8.3

North Carolina

8.1

8.4

South Carolina

8.4

7.9

8.1

Tennessee

6.6

6.8

6.9

Virginia

6.7

6.2

6.4

West Virginia

5.2

5.4

5.3

SOUTHWEST Arizona

11.4

10.9

11.0

New Mexico

4.7

4.7

4.6

Oklahoma

6.1

6.6

6.7

Texas

7.0

7.5

6.6 8.0

ROCKY MOUNTAIN Colorado

9.1

8.4

Idaho

7.6

7.8

7.9

Montana

9.6

9.1

8.9

Utah

5.0

4.8

4.5

Wyoming

5.1

3.3

4.2

Alaska

4.3

4.8

5.3

California

8.9

8.8

9.1

Hawaii

4.0

3.8

3.3

FAR WEST

58

N at i o n a l A ss o c i at i o n

of

Nevada

7.8

7.5

7.6

Oregon

11.8

13.5

11.2

Washington

5.9

5.6

5.8

ALL STATES

6.9

S tat e B u d g e t O f f i c e r s

%

6.9

%

6.8

%

TABLE 35 ANNUAL PERCENTAGE CHANGE IN CORRECTIONS EXPENDITURES Fiscal 2012 to 2013 Region/State

State Funds

Federal Funds

Fiscal 2013 to 2014 All Funds

State Funds

Federal Funds

All Funds

NEW ENGLAND Connecticut

-5.2

Maine

-1.4

%

100.0

0.0

%

-7.1

%

-0.7

6.6

%

0.0

14.5

0.0

%

6.4

%

14.3

Massachusetts

3.5

-40.0

4.9

3.3

66.7

6.6

New Hampshire

0.0

---

-1.0

4.0

---

2.9

Rhode Island

7.4

0.0

7.4

-5.0

0.0

-4.9

Vermont

5.1

---

5.1

3.5

---

3.4

MID-ATLANTIC Delaware

0.7

0.0

1.1

3.0

0.0

3.7

Maryland

1.1

2.5

0.5

4.3

-12.2

5.3

New Jersey

1.4

-6.3

1.3

4.5

6.7

4.5

New York

9.6

7.8

7.2

-5.9

-21.8

-4.9

Pennsylvania

0.8

0.0

-5.1

4.7

-18.2

4.4

GREAT LAKES Illinois

-3.4

---

-2.5

8.7

---

8.2

Indiana

-0.3

0.0

-0.3

2.7

-20.0

2.5

Michigan

-0.3

-8.4

-0.8

3.5

1.0

3.4

Ohio

3.6

-11.8

3.5

1.3

-13.3

0.8

Wisconsin

4.3

0.0

4.3

2.7

0.0

2.7 17.8

PLAINS -7.1

-100.0

0.7

28.3

---

Kansas

Iowa

6.9

-75.0

4.4

0.5

250.0

1.8

Minnesota

5.0

-50.0

2.9

2.9

33.3

5.3

Missouri

1.5

-16.7

1.3

3.1

-40.0

2.7

Nebraska

-0.9

0.0

-0.9

16.8

0.0

16.7

North Dakota

-4.5

-25.0

-5.2

-15.9

0.0

-15.5

South Dakota

6.8

0.0

6.1

6.4

-10.0

4.8

SOUTHEAST Alabama

-1.2

-26.9

-2.3

6.4

10.5

6.5

Arkansas

-1.3

0.0

-1.3

5.1

100.0

5.3

Florida

-3.6

-9.1

-5.2

8.6

30.0

8.4

Georgia*

3.9

22.2

3.0

-2.1

-72.7

-1.6

Kentucky

2.2

-7.1

2.0

-1.7

15.4

-1.3

Louisiana

1.9

0.0

2.1

0.9

0.0

1.1

Mississippi

7.1

-100.0

6.5

0.3

---

0.3 2.6

North Carolina

4.3

-30.3

1.5

2.6

1.9

South Carolina

1.9

-33.3

1.3

2.9

0.0

2.8

Tennessee

5.7

-100.0

5.6

16.2

---

16.2

Virginia

1.5

-19.0

1.6

-2.1

-5.9

-2.2

West Virginia

9.3

---

9.3

-1.3

---

-1.3 4.0

SOUTHWEST Arizona

-2.2

-55.6

-3.1

3.8

25.0

New Mexico

3.2

200.0

3.9

2.1

-100.0

1.0

Oklahoma

8.1

-33.3

7.9

3.0

0.0

3.0

Texas

1.5

-17.2

1.6

1.9

12.5

2.7

Colorado

-1.0

-28.6

-1.3

17.9

0.0

17.8

Idaho

10.2

40.0

10.9

5.2

0.0

5.1

4.4

0.0

4.4

2.1

0.0

2.1

ROCKY MOUNTAIN

Montana Utah

12.6

0.0

12.6

0.7

0.0

0.7

Wyoming

-2.9

-100.0

-52.9

3.8

---

3.8 6.5

FAR WEST Alaska California Hawaii

8.5

-20.0

8.1

5.7

75.0

-0.2

-2.5

-0.2

7.2

37.7

7.4

1.3

-100.0

0.4

-4.8

---

-3.9

Nevada

-0.4

0.0

2.5

6.4

0.0

3.2

Oregon

-4.5

0.0

-4.1

-7.5

12.5

-8.4

Washington

-2.4

-60.0

-2.2

5.9

100.0

2.9

ALL STATES

1.3

%

-25.5

%

0.5

%

4.0

%

4.3

%

4.0

%

Notes: State funds are defined as general funds and other state funds (bonds are excluded).

S tat e E x p e n d i t u r e R e p o r t

59

TABLE 36 ITEMS EXCLUDED FROM CORRECTIONS EXPENDITURES

Region/State

Employer Contributions to Pensions

Employer Contributions to Health Benefits

X

X

X

X

Juvenile Delinquency Counseling

Juvenile Institutions

Aid to Local Govts. for Jails

Drug Abuse Rehab. Centers

Institutions for the Criminally Insane

X

P

X

NEW ENGLAND Connecticut Maine

X

Massachusetts

X

New Hampshire

X

X

X

Rhode Island

X

X

X

Vermont

X

X

X

X X

P

X

X

X

MID-ATLANTIC Delaware

X

Maryland* New Jersey

X

New York

P

P

P

X

X

X

Pennsylvania GREAT LAKES Illinois Indiana

X

Michigan*

P

P

X

X

X

P

X

P

X

X

X

Ohio Wisconsin PLAINS Iowa Kansas Minnesota

P

Missouri

X

X

X

X X

Nebraska

N/A

North Dakota

X

South Dakota

X

X

X

X

SOUTHEAST Alabama Arkansas

X

X

Florida

X X

P

X

Georgia

X

Kentucky

X

Louisiana* Mississippi

X

X

North Carolina

X X

South Carolina Tennessee

X

X

P

X

X

X

Arizona

X

X

X

New Mexico

X

X

X

Oklahoma

X

X

Virginia West Virginia

X

X

X

SOUTHWEST

Texas

P

X

X X X

X

X X

ROCKY MOUNTAIN Colorado*

X

P

P

Idaho

X

Montana Utah

P

X

X

X

X

P

X

X

X

X

Wyoming FAR WEST Alaska California Hawaii*

P

P

Nevada

X

X

X

X

X

X

Oregon Washington ALL STATES

6

6

Excluded=X Partially Excluded=P Not Applicable=N/A *See notes at the end of the chapter.

60

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

19

16

X X P

X

X

X

X

20

18

37

Corrections Notes Small dollar amounts, when rounded, cause an aberration in the percentage increase. In these instances, the actual dollar

Maine: Previous surveys omitted the Board of Corrections from the corrections expenditure category. Fiscal 2014 includes that data.

amounts should be consulted to determine the exact percent-

Maryland: Responsibility for education at the three Depart-

age increase.

ment of Juvenile Services (DJS) facilities were transferred to the

Colorado: Juvenile delinquent counseling programs are funded in the Colorado Department of Human Services, Division of Youth Corrections (DYC). Funding for the Youthful Offender System (youths convicted as adults) is in the Colorado Dept. of Corrections. Regarding institutions for the criminally insane, San Carlos services significantly mentally ill inmates, but note that the Colorado Dept of Human Services Forensics Institute serves mentally ill people including those found not guilty by reason of insanity. Georgia: Estimated federal funds expenditures in FY 2014

Maryland State Department of Education during fiscal 2013. Fiscal 2012 numbers (and forward) were updated from last year to reflect the elimination of counting Maryland’s e-911 system (a non corrections-related program) in the total, which is budgeted in Public Safety and was counted last year. Fiscal 2012 numbers (and forward) were updated from last year to reflect the addition of counting DJS’ substance abuse general administration. Michigan: Figures include adult inmate and juvenile justice expenditures.

reflect amounts as appropriated in the annual appropriations

Pennsylvania: Beginning in fiscal 2013, the commonwealth

act. The Georgia State Constitution allows for federal funds to

no longer has a program in which capital funds are dedicated

be “continuously appropriated” throughout the fiscal year and

strictly for the DOC and its needs.

additional federal funds are amended into the budget with approval of the Governor’s Office of Planning and Budget as they become available during the fiscal year.

Virginia: The decline in corrections spending in fiscal 2013 is partly the result of the consolidation of the Department of Correctional Education in the Department of Corrections.

Louisiana: Funding is provided to local governments/jails on a per-offender basis for the housing of state offenders.

S tat e E x p e n d i t u r e R e p o r t

61

62

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

6 CHAPTER

TRANSPORTATION EXPENDITURES

7.8% of State Expenditures

S tat e E x p e n d i t u r e R e p o r t

63

Transportation Expenditures Transportation expenditures totaled $131.6 billion in fiscal 2013, 7.8 percent of total state spending and an increase of 2.7 percent over the previous year. State funds (general funds and other state funds combined, excluding bonds) for transportation increased 2.0 percent in fiscal 2013, while federal funds grew 0.6 percent. In fiscal 2014, total state expenditures for transportation are estimated to grow by 4.2 percent, with state funds increasing 10.2 percent and federal funds declining 1.4 percent. The slight decline in federal funds in fiscal 2014 is partly related to less American Recovery and Reinvestment Act (ARRA) funds.

extensions since SAFETEA-LU expired in 2009. MAP-21 covered highway programs through September 2014 at current spending levels and restructured programs to offer more flexibility to states to decide how to allocate funds. MAP-21 funded surface transportation programs at over $105 billion for federal fiscal years 2013 and 2014. In August 2014, the Highway and Transportation Funding Act of 2014 (P.L. 113-159) was signed into law, which temporarily extended spending authority for surface transportation programs under MAP 21 through May 2015. As part of that legislation, the Highway Trust Fund (HTF) received a one-time cash infusion to avert insolvency through May 31, 2015, but the HTF will need additional resources to fulfill its funding obligations after this date, as projected HTF

Approximately 53.3 percent of fiscal 2013 transportation expenditures are funded from earmarked revenues placed in special transportation trust funds, captured in the “Other State Funds” category in this report. The largest earmarked revenue source is states’ motor fuel excise taxes. While “Other State Funds” account for the majority of transportation spending, federal funds also play a large role. In fiscal 2013, federal funds accounted for 32.2 percent of total transportation spending, with bonds (10.8 percent) and general funds (3.7 percent) comprising the remaining amount.

Federal Transportation Funding

obligations exceed anticipated revenues credited to the fund. States are concerned that in the long term, federal and state gas tax revenue will not be able to meet transportation needs as most gas taxes are set at fixed rates and do not rise with inflation, and vehicle miles traveled have fallen over time. In addition to raising gas tax rates, other possible policy options include a shift to other revenue sources such as sales taxes, implementing a vehicle-miles traveled tax, increasing the use of toll roads and public-private partnerships.

Fund Shares The figure below provides fund shares for fiscal 2013.

On July 6, 2012, President Obama signed into law the Moving Ahead for Progress in the 21st Century Act (MAP-21). The legislation (P.L. 112-141) marked the first long-term reauthorization for surface transportation programs passed since the 2005 Safe, Accountable, Flexible, Efficient Transportation Equi-

FIGURE 16 STATE EXPENDITURES FOR TRANSPORTATION BY FUND SOURCE, FISCAL 2013

ty Act: A Legacy for Users (SAFETEA-LU). Federal-aid highway programs had been operating under a series of temporary

General Funds 3.7% Bonds 10.8%

Other State Funds 53.3%

64

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

Federal Funds 32.2%

Regional Expenditures Table 37 shows percentage changes in transportation expenditures by region between fiscal 2012 and fiscal 2013 and between fiscal 2013 and estimated fiscal 2014.

TABLE 37 REGIONAL PERCENTAGE CHANGE IN STATE TRANSPORTATION EXPENDITURES, FISCAL 2013 AND 2014 Fiscal 2012 to 2013 Region

State Funds

New England

4.9

Mid-Atlantic

3.4

Great Lakes Plains

Federal Funds %

-7.5

Fiscal 2013 to 2014 All Funds

%

-0.4

8.8

4.5

1.3

3.5

5.5

-10.8

Southeast

-8.2

Southwest

21.0

Rocky Mountain

37.7

Far West

-2.3

ALL STATES

2.0

%

4.3

Federal Funds %

-8.8

All Funds %

4.4

9.4

3.6

1.7

0.6

-14.2

-3.4

1.6

20.3

-6.3

12.3

12.7

-0.1

25.2

-13.3

9.1

-5.6

9.1

10.4

8.1

4.2

1.3

22.4

-18.1

2.3

-11.0

-17.0 %

State Funds

0.6

0.1 %

2.7

1.2 %

10.2

28.3 %

-1.4

%

6.5

0.6 %

4.2

%

Transportation—Expenditure Exclusions Thirty-seven states wholly or partially exclude state police and highway patrols from the transportation expenditures contained within the report. Additionally, 38 states wholly or partially exclude port authority operations, 21 states exclude truck enforcement regulation programs, 20 states omit motor vehicle licensing, and 13 states exclude gasoline tax and fee collections. For details, see Table 41.

S tat e E x p e n d i t u r e R e p o r t

65

TABLE 38 TRANSPORTATION EXPENDITURES—CAPITAL INCLUSIVE ($ IN MILLIONS) Actual Fiscal 2012

Actual Fiscal 2013

Estimated Fiscal 2014

General Fund

Federal Funds

Other State Funds

$0

$741

$1,276

$687

$2,704

$0

$744

$1,228

$717

$2,689

$0

$650

$1,340

$823

0

239

435

25

699

0

242

379

5

626

0

221

370

38

629

Massachusetts

1,143

771

652

1,045

3,611

1,192

698

853

1,031

3,774

1,515

547

623

1,342

4,027

New Hampshire

0

152

349

0

501

1

170

333

0

504

1

215

286

0

502

Rhode Island

0

292

87

133

512

0

272

136

90

498

0

260

171

41

472

Vermont

0

415

225

1

641

4

287

245

6

542

0

307

255

9

571

Delaware

0

209

585

0

794

0

216

580

0

796

0

200

543

0

743

Maryland

0

921

2,535

0

3,456

0

852

2,764

0

3,616

0

865

3,406

0

4,271

Region/State

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $2,813

NEW ENGLAND Connecticut Maine

MID-ATLANTIC

1,344

1,325

570

1,229

4,468

1,091

1,737

986

1,264

5,078

1,428

1,614

1,141

1,225

5,408

New York

99

1,500

5,762

969

8,330

99

1,497

5,956

908

8,460

119

1,722

6,188

920

8,949

Pennsylvania

16

1,858

4,129

250

6,253

17

2,020

4,056

295

6,388

8

2,146

4,185

220

6,559

New Jersey

GREAT LAKES Illinois

21

136

4,308

1,170

5,635

21

137

4,181

1,147

5,486

21

103

4,076

1,331

5,531

Indiana

41

1,048

1,369

0

2,458

41

1,000

1,288

0

2,329

241

711

663

0

1,615

0

1,273

1,889

83

3,245

11

1,430

2,100

169

3,710

337

1,199

2,084

12

3,632

Ohio

10

1,611

1,091

269

2,981

9

1,637

1,126

188

2,960

13

1,527

1,354

210

3,104

Wisconsin

26

811

2,006

0

2,843

140

847

1,982

0

2,969

174

792

2,004

0

2,970

Michigan*

PLAINS 0

602

786

0

1,388

0

485

835

2

1,322

0

442

702

5

1,149

Kansas

16

464

575

208

1,263

16

414

393

181

1,004

16

365

1,285

176

1,842

Minnesota

62

346

2,137

259

2,804

63

360

2,759

363

3,545

135

527

3,134

307

4,103

Missouri

9

163

2,249

0

2,421

9

143

2,008

0

2,160

14

100

1,883

0

1,997

Nebraska

0

303

436

0

739

0

364

427

0

791

4

256

545

0

805

North Dakota

2

533

452

0

987

96

353

469

0

918

624

278

233

0

1,135

South Dakota

4

380

209

0

593

0

371

243

0

614

9

366

218

0

593

Alabama

0

855

612

0

1,467

0

912

654

38

1,604

0

749

574

130

1,453

Arkansas

3

576

534

81

1,194

2

563

607

81

1,253

2

538

746

98

1,384

Iowa

SOUTHEAST

0

2,071

4,701

164

6,936

4

2,105

4,578

267

6,954

0

2,349

6,642

430

9,421

Georgia*

713

1,291

141

6

2,151

826

1,504

77

0

2,407

863

1,211

7

3

2,084

Kentucky

5

827

1,456

0

2,288

5

769

1,741

0

2,515

6

712

2,026

0

2,744

Louisiana

0

951

839

127

1,917

0

864

660

169

1,693

0

697

620

135

1,452

Mississippi

0

678

659

42

1,379

0

616

602

27

1,245

0

530

570

19

1,119

North Carolina

0

1,266

3,126

231

4,623

0

1,331

3,189

78

4,598

0

1,468

3,134

77

4,679

South Carolina

3

866

588

0

1,457

1

635

561

0

1,197

60

644

720

0

1,424

Tennessee*

0

1,041

912

0

1,953

0

984

881

0

1,865

0

965

772

81

1,818

136

1,151

3,601

28

4,916

41

2,817

2,175

8

5,041

42

1,364

4,103

4

5,513

6

475

793

0

1,274

5

477

675

0

1,157

12

542

743

0

1,297

Arizona

0

805

641

163

1,609

0

730

645

202

1,577

0

726

651

209

1,586

New Mexico

0

419

419

0

838

0

403

432

0

835

0

407

457

0

864

Oklahoma

0

924

477

110

1,511

0

784

617

116

1,517

0

695

645

5

1,345

71

2,853

3,199

1,161

7,284

81

2,804

4,041

1,411

8,337

160

3,274

4,509

1,049

8,992

Colorado*

1

616

926

0

1,543

1

722

1,739

0

2,462

0

757

958

0

1,715

Idaho

0

294

386

0

680

0

270

372

0

642

0

300

471

0

771

Montana

8

457

286

0

751

7

391

269

0

667

8

430

268

0

706

Utah

3

460

619

0

1,082

1

398

919

0

1,318

2

202

851

0

1,055

92

114

369

0

575

134

185

261

0

580

161

323

314

0

798

Florida

Virginia West Virginia SOUTHWEST

Texas ROCKY MOUNTAIN

Wyoming FAR WEST

684

869

423

0

1,976

906

695

387

321

2,309

487

799

465

0

1,751

83

4,859

5,051

2,595

12,588

83

3,869

4,606

4,133

12,691

81

5,469

5,240

2,706

13,496

Hawaii*

0

211

848

90

1,149

0

199

858

90

1,147

0

226

861

104

1,191

Nevada

0

467

458

0

925

0

351

310

0

661

0

325

220

0

545

Oregon

1

62

1,676

69

1,808

1

52

1,471

54

1,578

3

47

1,721

27

1,798

Washington

1

608

1,157

1,175

2,941

1

710

1,516

793

3,020

1

672

1,179

896

2,748

$4,603

$42,159

$69,009

$12,370

$128,141

$4,909

$42,416

$70,170

$14,154

$131,649

$6,547

$41,834

$76,156

$12,632

$137,169

Alaska California

TOTAL

*See notes at the end of the chapter.

66

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 39 TRANSPORTATION EXPENDITURES AS A PERCENT OF TOTAL EXPENDITURES Region/State

Fiscal 2012

Fiscal 2013

Fiscal 2014

NEW ENGLAND Connecticut

9.8

Maine

8.6

%

9.7

%

9.6

8.2

7.8 6.8

Massachusetts

6.3

6.6

New Hampshire

10.1

10.0

9.7

6.5

6.3

6.0

12.8

10.9

10.8

Rhode Island Vermont

%

MID-ATLANTIC Delaware

8.9

8.7

7.7

Maryland

9.9

10.0

11.1

New Jersey

9.2

10.0

9.9

New York

6.2

6.4

6.5

Pennsylvania

7.4

7.5

7.5

GREAT LAKES Illinois

9.4

8.4

7.6

Indiana

9.4

8.3

5.9

Michigan

6.9

7.8

7.1

Ohio

5.1

5.1

5.1

Wisconsin

6.9

6.9

6.6

PLAINS Iowa

7.4

6.8

5.7

Kansas

8.8

7.2

12.2 11.4

Minnesota

9.3

10.7

Missouri

10.4

9.4

8.6

Nebraska

7.5

7.8

7.6

North Dakota

16.4

16.1

16.7

South Dakota

16.1

15.0

14.4

SOUTHEAST Alabama

6.0

6.5

6.0

Arkansas

5.8

5.8

6.1

Florida

11.0

10.9

12.7

Georgia

5.2

5.7

4.9

Kentucky

8.9

9.8

9.5 5.0

Louisiana

7.1

6.2

Mississippi

7.6

6.7

5.9

North Carolina

9.3

10.7

10.6

South Carolina

6.6

5.4

6.6

Tennessee

6.4

6.1

5.6

11.3

11.0

12.1

5.8

5.2

5.4

Arizona

5.7

5.6

5.4

New Mexico

5.8

5.7

5.3

Virginia West Virginia SOUTHWEST

Oklahoma

7.2

7.1

6.0

Texas

7.8

8.9

8.9

ROCKY MOUNTAIN 5.4

8.5

5.7

Idaho

Colorado

10.8

9.6

10.5

Montana

12.7

11.0

11.4

9.2

10.4

7.9

10.0

6.4

10.4

16.8

19.5

15.1

6.3

6.0

5.9

Hawaii

10.0

9.9

9.5

Utah Wyoming FAR WEST Alaska California Nevada

12.1

7.4

6.2

Oregon

6.7

6.1

6.3

Washington

8.9

8.9

7.6

ALL STATES

7.7

%

7.8

%

7.7

%

S tat e E x p e n d i t u r e R e p o r t

67

TABLE 40 ANNUAL PERCENTAGE CHANGE IN TRANSPORTATION EXPENDITURES Fiscal 2012 to 2013 State Funds

Region/State

Federal Funds

Fiscal 2013 to 2014 All Funds

State Funds

Federal Funds

All Funds

NEW ENGLAND Connecticut

-3.8

Maine

%

-12.9

0.4

%

1.3

-0.6

%

-10.4

9.1

%

-12.6

-2.4

-8.7

%

4.6

%

0.5

Massachusetts

13.9

-9.5

4.5

4.5

-21.6

6.7

New Hampshire

-4.3

11.8

0.6

-14.1

26.5

-0.4

Rhode Island

56.3

-6.8

-2.7

25.7

-4.4

-5.2

Vermont

10.7

-30.8

-15.4

2.4

7.0

5.4

MID-ATLANTIC Delaware

-0.9

3.3

0.3

-6.4

-7.4

-6.7

Maryland

9.0

-7.5

4.6

23.2

1.5

18.1

New Jersey

8.5

31.1

13.7

23.7

-7.1

6.5

New York

3.3

-0.2

1.6

4.2

15.0

5.8

-1.7

8.7

2.2

2.9

6.2

2.7

Pennsylvania GREAT LAKES Illinois

-2.9

0.7

-2.6

-2.5

-24.8

0.8

Indiana

-5.7

-4.6

-5.2

-32.0

-28.9

-30.7

Michigan

-2.1

11.8

12.3

14.3

14.7

-16.2

Ohio

3.1

1.6

-0.7

20.4

-6.7

4.9

Wisconsin

4.4

4.4

4.4

2.6

-6.5

0.0

PLAINS Iowa

6.2

-19.4

-4.8

-15.9

-8.9

-13.1

-30.8

-10.8

-20.5

218.1

-11.8

83.5

28.3

4.0

26.4

15.8

46.4

15.7

Missouri

-10.7

-12.3

-10.8

-5.9

-30.1

-7.5

Nebraska

-2.1

20.1

7.0

28.6

-29.7

1.8

North Dakota

24.4

-33.8

-7.0

51.7

-21.2

23.6

South Dakota

14.1

-2.4

3.5

-6.6

-1.3

-3.4

Kansas Minnesota

SOUTHEAST Alabama

6.9

6.7

9.3

-12.2

-17.9

-9.4

Arkansas

13.4

-2.3

4.9

22.8

-4.4

10.5

Florida

-2.5

1.6

0.3

45.0

11.6

35.5

5.7

16.5

11.9

-3.7

-19.5

-13.4

Georgia* Kentucky

19.5

-7.0

9.9

16.4

-7.4

9.1

Louisiana

-21.3

-9.1

-11.7

-6.1

-19.3

-14.2

Mississippi

-10.1

-8.6

-9.1

-9.7

-5.3

-14.0

North Carolina

2.0

5.1

-0.5

-1.7

10.3

1.8

South Carolina

-4.9

-26.7

-17.8

38.8

1.4

19.0 -2.5

Tennessee

-3.4

-5.5

-4.5

-12.4

-1.9

Virginia

-40.7

144.7

2.5

87.0

-51.6

9.4

West Virginia

-14.9

0.4

-9.2

11.0

13.6

12.1

SOUTHWEST Arizona

0.6

-9.3

-2.0

0.9

-0.5

0.6

New Mexico

3.1

-3.8

-0.4

5.8

1.0

3.5

Oklahoma

29.4

-15.2

0.4

4.5

-11.4

-11.3

Texas

26.1

-1.7

14.5

13.3

16.8

7.9

Colorado

87.7

17.2

59.6

-44.9

4.8

-30.3

Idaho

-3.6

-8.2

-5.6

26.6

11.1

20.1

Montana

-6.1

-14.4

-11.2

0.0

10.0

5.8

Utah

47.9

-13.5

21.8

-7.3

-49.2

-20.0

-14.3

62.3

0.9

20.3

74.6

37.6

Alaska

16.8

-20.0

16.9

-26.4

15.0

-24.2

California

-8.7

-20.4

0.8

13.5

41.4

6.3

Hawaii

1.2

-5.7

-0.2

0.3

13.6

3.8

Nevada

-32.3

-24.8

-28.5

-29.0

-7.4

-17.5

Oregon

-12.2

-16.1

-12.7

17.1

-9.6

13.9

Washington

31.0

16.8

2.7

-22.2

-5.4

-9.0

ALL STATES

2.0

ROCKY MOUNTAIN

Wyoming FAR WEST

%

0.6

Notes: State funds are defined as general funds and other state funds (bonds are excluded).

68

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

%

2.7

%

10.2

%

-1.4

%

4.2

%

TABLE 41 ITEMS EXCLUDED FROM TRANSPORTATION EXPENDITURES Motor Vehicle Licensing

State Police/ Highway Patrol

X

X

X

X

X

X

X

X

Port Authority Operations

Gasoline Tax & Fee Collections

Truck Enforcement Reg. Programs

Connecticut

X

X

Maine

P

Region/State

Employer Contributions to Pensions

Employer Contributions to Health Benefits

Train/Railroad Subsidy Programs

Road Assist. Subsidy Prog. for Local Govts.

NEW ENGLAND

Massachusetts

X

X

X

X

New Hampshire Rhode Island

X

Vermont

X

X

X

X

MID-ATLANTIC Delaware

X

Maryland

X

New Jersey New York

X P

P

Pennsylvania

X

N/A

X

X

P

P

X

GREAT LAKES Illinois Indiana

X

X

Michigan

X

X

Ohio Wisconsin

X

PLAINS Iowa

X

Kansas

X

Minnesota

X

Missouri

X X

Nebraska

X

N/A

P

North Dakota

X

X

South Dakota

X

X

Alabama

X

P

Arkansas

X

Florida

X

X

Georgia

X

X

Kentucky

X

Louisiana

X

X

X

X

X X X

X

X

X

X

X

X

X

X

X

X

X

X

SOUTHEAST

Mississippi X

South Carolina

X

Tennessee

X

X

X P X

North Carolina

X

X

X

X

X

X

X

X

X

X X

X

X

X

N/A

X

X

X

Virginia West Virginia

P

N/A

X

SOUTHWEST Arizona

P

New Mexico

X

Oklahoma

X

X

Texas

P P

X

X

P

X

X

X

X

X

X

X

X

ROCKY MOUNTAIN Colorado*

X

X

Idaho

X

X

X

X

Montana

X

X

X

Utah

X

P

X

X

X X

P

X

Wyoming FAR WEST Alaska

X

California

X

Hawaii*

X

X

X

Nevada

X

X

X

Oregon

X

Washington

X

ALL STATES

3

2

38

X X X

X

X

X X

X 13

21

X 12

11

20

37

Excluded=X Partially Excluded=P Not Applicable=N/A *See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

69

Transportation Notes Small dollar amounts, when rounded, cause an aberration in the percentage increase. In these instances, the actual dollar amounts should be consulted to determine the exact percentage increase. Colorado: Port authority operations, gasoline tax and fee collections, and motor vehicle licensing are at Dept. of Revenue, not Transportation. State police/highway patrol is funded at the Dept. of Public Safety.

reflect amounts as appropriated in the annual appropriations

N at i o n a l A ss o c i at i o n

be “continuously appropriated” throughout the fiscal year and additional federal funds are amended into the budget with approval of the Governor’s Office of Planning and Budget as they become available during the fiscal year. Michigan: General fund support mitigates shortfalls in restricted revenue funds needed to match federal transit grants and additional funding for infrastructure projects. Actual ARRA expenditures will be recorded with the fiscal 2014 annual financial report.

Georgia: Estimated federal funds expenditures in FY 2014

70

act. The Georgia State Constitution allows for federal funds to

of

S tat e B u d g e t O f f i c e r s

Tennessee: Bond estimates represent bond authorizations, while actual bonds represent bond proceeds utilized.

7 CHAPTER

ALL OTHER EXPENDITURES

33.0% of State Expenditures

S tat e E x p e n d i t u r e R e p o r t

71

All Other Expenditures The “All Other” category reflects a substantial amount of state spending not included in the categories described in previous chapters. “All Other” spending in states includes the Children’s Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing, and general aid to local governments (a list of the items excluded from the “All Other” category is displayed in Table 46). The “All Other” category of expenditures totaled $557.3 billion for fiscal 2013, or 33.0 percent of total state spending. Total spending in the “All Other” category declined by 1.0 percent in fiscal 2013 and increased by an estimated 3.9 percent in fiscal 2014. In fiscal 2013, state funds (general funds and other state funds combined) increased by 2.6 percent while federal funds declined by 9.5 percent. The large decline in federal funds for the “All Other” category can be traced to a reduction in American Recovery and Reinvestment Act (ARRA) funds. States

to qualify for Medicaid but too low to afford private insurance. SCHIP’s original ten-year authorization ran through September 30, 2007. Legislation was signed in January 2008 that extended SCHIP until March 2009 at levels that would provide coverage for the current enrollment population. In February 2009, the Children’s Health Insurance Program Reauthorization Act (CHIPRA) was signed into law. Along with renaming the program, the reauthorization act expanded children’s coverage and added $33 billion in federal funds through 2013, financed mostly by increased federal tobacco taxes. In 2010, the Affordable Care Act extended CHIP funding until October 1, 2015 and maintained CHIP eligibility standards through 2019. According to the Centers for Medicare and Medicaid Services (CMS), approximately 8.15 million children were enrolled under CHIP during fiscal 2012. As shown in Appendix Table A-2, total spending for CHIP was $11.1 billion in fiscal 2012, $11.3 billion in fiscal 2013, and is estimated at $11.7 billion in fiscal 2014.

Fund Shares The figure below illustrates fund shares for fiscal 2012.

reported $11.6 billion in “All Other” ARRA spending in fiscal 2012 and $3.3 billion in fiscal 2013.

Children’s Health Insurance Program

FIGURE 17 STATE EXPENDITURES FOR ALL OTHER PROGRAMS BY FUND SOURCE, FISCAL 2013

Enacted as part of the Balanced Budget Act of 1997, the State Children’s Health Insurance Program (SCHIP) expanded health care coverage for previously uninsured children. The program is targeted toward children from families with incomes too high General Funds 34.3%

Federal Funds 25.0%

Bonds 2.3% Other State Funds 38.4%

72

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

Regional Expenditures The following table shows percentage changes for “All Other” expenditures for fiscal 2012-2013 and 2013-2014 by region.

TABLE 42 REGIONAL PERCENTAGE CHANGE IN STATE ALL OTHER EXPENDITURES, FISCAL 2013 AND 2014 Fiscal 2012 to 2013 Region

State Funds

Federal Funds %

New England

-0.6

Mid-Atlantic

1.3

3.8

Great Lakes

5.0

-0.3

4.1

Plains

2.3

-4.4

-0.3

Southeast

-0.8

-20.6

-7.1

Southwest

14.9

-17.6

Rocky Mountain

10.9

Far West

3.0

ALL STATES

2.6

%

-10.2

Fiscal 2013 to 2014 All Funds

%

-3.2

State Funds %

1.0

%

-9.4

%

-0.4 2.1

1.2

6.9

2.6

12.5

-7.4

6.2

7.2

1.8

5.0

1.1

15.2

-5.4

7.9

7.1

9.5

5.7

-5.1

2.4

-11.7

-2.2

8.5

-9.7

%

-1.0

2.9

All Funds

-3.7

-9.5

1.1

Federal Funds

%

5.5

%

-3.2

%

5.9 %

3.9

%

S tat e E x p e n d i t u r e R e p o r t

73

TABLE 43 ALL OTHER EXPENDITURES—CAPITAL INCLUSIVE ($ IN MILLIONS) Actual Fiscal 2012

Actual Fiscal 2013

Other State Funds

Bonds

Total

General Fund

Federal Funds

Estimated Fiscal 2014

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total

$1,022

$814

$1,185

$11,651

478

1,410

19

2,689

13,599

5,697

7,424

549

27,269

1,756

448

621

699

54

1,822

2,908

939

813

872

22

2,646

54

1,078

462

455

215

96

1,228 4,141

General Fund

Federal Funds

$8,414

$968

$675

$1,127

$11,184

$8,445

$1,022

$814

$905

$11,186

$8,630

942

877

1,544

26

3,389

778

554

1,314

8

2,654

782

Massachusetts

12,471

7,178

8,340

494

28,483

12,943

6,454

8,046

458

27,901

New Hampshire

599

666

496

24

1,785

525

603

581

47

Rhode Island

949

973

1,052

34

3,008

963

946

949

50

Vermont

454

496

223

42

1,215

441

446

137

Region/State NEW ENGLAND Connecticut Maine*

MID-ATLANTIC Delaware

1,290

466

2,042

38

3,836

1,250

413

1,900

285

3,848

1,361

426

2,086

268

Maryland

3,523

1,943

3,403

734

9,603

3,831

1,811

3,466

849

9,957

3,951

1,413

3,743

779

9,886

New Jersey

10,209

2,941

2,454

129

15,733

10,630

3,705

2,244

110

16,689

10,477

4,042

3,001

0

17,520

New York*

20,445

6,486

13,788

1,724

42,443

21,369

7,259

13,040

1,060

42,728

23,867

7,720

11,108

1,331

44,026

5,890

6,863

24,888

780

38,421

5,965

6,230

25,408

460

38,063

6,066

5,104

26,060

845

38,075 35,463

Pennsylvania GREAT LAKES Illinois

14,652

5,366

7,560

718

28,296

15,489

5,338

10,108

670

31,605

15,645

6,969

12,022

827

Indiana

2,093

1,939

1,034

0

5,066

2,365

2,016

1,144

0

5,525

2,304

1,719

1,209

0

5,232

Michigan*

2,747

5,773

5,961

44

14,525

2,658

5,741

5,310

37

13,746

3,359

7,407

4,613

82

15,461

Ohio

4,082

4,302

13,565

1,079

23,028

4,321

4,251

13,131

1,495

23,198

3,932

2,668

12,580

1,494

20,674

Wisconsin

3,253

2,909

11,392

0

17,554

3,285

2,890

11,829

0

18,004

2,282

2,864

12,536

0

17,682 5,681

PLAINS 1,241

2,838

1,032

197

5,308

1,363

2,121

1,967

68

5,519

1,325

2,195

2,097

64

792

1,005

1,975

127

3,899

808

926

1,777

171

3,682

727

376

2,242

142

3,487

Minnesota

3,848

2,349

2,564

221

8,982

3,876

3,006

2,236

222

9,340

4,755

2,945

2,721

302

10,723

Missouri

Iowa Kansas

2,040

1,926

1,623

0

5,589

1,985

1,763

1,702

0

5,450

2,101

1,666

1,708

0

5,475

Nebraska

862

937

1,589

0

3,388

847

935

1,635

0

3,417

888

885

1,799

0

3,572

North Dakota

853

634

796

0

2,283

612

500

842

0

1,954

824

538

922

0

2,284

South Dakota

291

348

394

4

1,037

275

341

428

1

1,045

365

275

433

2

1,075

SOUTHEAST Alabama*

932

2,489

3,194

324

6,939

845

2,520

3,247

186

6,798

1,202

1,990

2,563

365

6,120

Arkansas

632

1,654

5,111

54

7,451

639

1,543

5,839

122

8,143

619

1,342

6,382

57

8,400

Florida

5,055

9,122

3,162

812

18,151

5,261

8,107

2,346

527

16,241

5,247

7,281

6,646

242

19,416

Georgia*

3,356

3,219

4,549

180

11,304

3,503

3,155

4,262

198

11,118

4,083

2,797

4,087

173

11,140

Kentucky

2,051

1,763

1,252

0

5,066

2,212

1,347

1,256

0

4,815

2,433

2,018

2,100

0

6,551

Louisiana

2,036

3,745

3,916

162

9,859

1,918

3,318

4,355

163

9,754

2,096

4,312

4,597

165

11,170

Mississippi

1,272

1,725

1,448

302

4,747

1,286

1,580

1,357

728

4,951

1,339

2,275

1,582

232

5,428

North Carolina

3,839

3,912

6,800

417

14,968

3,715

1,208

2,239

153

7,315

3,816

1,225

2,245

306

7,592

South Carolina

1,811

3,378

1,815

0

7,004

2,119

2,066

3,005

0

7,190

1,968

745

2,677

0

5,390

Tennessee

2,622

4,162

1,962

174

8,920

2,764

3,956

1,766

104

8,590

3,257

4,107

1,854

26

9,244

Virginia

5,642

1,895

9,458

411

17,406

6,836

537

9,982

332

17,687

5,901

1,948

8,733

295

16,877

860

822

10,291

0

11,973

1,141

754

10,505

0

12,400

1,001

592

11,868

0

13,461

Arizona

1,171

3,524

2,955

0

7,650

1,397

3,389

2,856

0

7,642

1,388

3,862

2,762

0

8,012

New Mexico

1,268

1,597

1,085

0

3,950

1,298

1,611

1,123

0

4,032

1,407

1,455

2,021

0

4,883

Oklahoma

1,592

1,892

2,162

24

5,670

1,788

1,914

2,168

23

5,893

1,871

2,350

2,007

25

6,253

Texas

6,126

5,258

257

102

11,743

8,057

3,192

400

102

11,751

10,141

1,892

385

79

12,497

West Virginia SOUTHWEST

ROCKY MOUNTAIN 1,481

3,373

5,774

0

10,628

1,777

2,840

4,852

0

9,469

2,042

2,622

6,027

0

10,691

Idaho

377

716

399

27

1,519

393

876

463

4

1,736

432

922

577

22

1,953

Montana

527

758

1,173

0

2,458

630

755

1,139

0

2,524

655

773

1,163

0

2,591

Utah

969

1,209

1,381

453

4,012

1,081

1,116

1,701

488

4,386

1,402

1,281

1,668

481

4,832

1,725

869

1,160

0

3,754

2,762

1,831

1,795

0

6,388

2,170

1,438

1,409

0

5,017

Colorado*

Wyoming FAR WEST

4,005

941

352

0

5,298

3,362

847

415

229

4,853

3,524

798

562

0

4,884

18,566

26,780

24,358

2,092

71,796

21,679

22,814

21,253

1,619

67,365

21,128

20,626

26,114

4,804

72,672

Hawaii*

2,787

561

1,804

360

5,512

2,787

494

1,728

378

5,387

3,247

477

1,815

486

6,025

Nevada*

673

801

417

10

1,901

686

988

1,449

21

3,144

682

761

1,388

8

2,839

Oregon

1,545

3,755

9,194

109

14,603

1,426

3,195

8,888

61

13,570

1,921

2,714

9,501

129

14,265

Washington

4,276

4,138

1,901

190

10,505

4,817

4,327

3,483

287

12,914

4,390

4,121

3,806

553

12,870

$179,136

$154,241

$215,720

$13,745

$562,842

$191,203

$139,551

$213,880

$12,675

$557,309

$198,451

$135,022

$228,853

$16,509

$578,835

Alaska California

TOTAL

*See notes at the end of the chapter.

74

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 44 ALL OTHER EXPENDITURES AS A PERCENT OF TOTAL EXPENDITURES Region/State

Fiscal 2012

Fiscal 2013

Fiscal 2014

NEW ENGLAND Connecticut

40.7

Maine

41.8

%

40.2 34.6

%

39.6 33.2

Massachusetts

49.9

48.5

46.2

New Hampshire

35.9

35.0

35.4

Rhode Island

38.0

37.0

33.6

Vermont

24.2

21.7

23.3

Delaware

42.9

42.0

43.1

Maryland

27.5

27.5

25.7

New Jersey

32.3

32.8

32.2

New York

31.8

32.1

32.0

Pennsylvania

45.3

44.6

43.5

Illinois

47.3

48.4

48.8

Indiana

19.3

19.6

19.2

Michigan

30.7

29.0

30.0

Ohio

39.8

39.8

33.8

Wisconsin

42.5

42.1

39.4

Iowa

28.1

28.3

28.2

Kansas

27.1

26.4

23.2

Minnesota

29.7

28.2

29.7

Missouri

23.9

23.8

23.6

Nebraska

34.3

33.6

33.9

North Dakota

37.9

34.2

33.6

South Dakota

28.1

25.5

26.2

Alabama

28.2

27.7

25.1

Arkansas

36.0

38.0

36.9

Florida

28.8

25.4

26.2

Georgia

27.5

26.2

26.4

Kentucky

19.8

18.8

22.7

Louisiana

36.4

35.7

38.3

Mississippi

26.3

26.7

28.7

North Carolina

30.0

17.0

17.2

South Carolina

31.7

32.4

25.1

Tennessee

29.3

28.2

28.6

Virginia

40.1

38.7

37.0

West Virginia

54.7

55.6

56.4

Arizona

27.2

27.0

27.1

New Mexico

27.5

27.4

30.1

Oklahoma

27.1

27.5

28.0

Texas

12.6

12.6

12.3

Colorado

36.9

32.6

35.3

Idaho

24.2

25.9

26.5

Montana

41.5

41.8

41.9

Utah

33.9

34.6

36.1

Wyoming

65.3

70.0

65.6

Alaska

44.9

41.0

42.1

California

36.0

31.9

31.6

Hawaii

48.0

46.5

47.9

Nevada

24.9

35.3

32.5

Oregon

54.1

52.6

50.2

Washington

31.7

38.0

35.8

ALL STATES

34.0

%

MID-ATLANTIC

GREAT LAKES

PLAINS

SOUTHEAST

SOUTHWEST

ROCKY MOUNTAIN

FAR WEST

%

33.0

%

32.4

%

S tat e E x p e n d i t u r e R e p o r t

75

TABLE 45 ANNUAL PERCENTAGE CHANGE IN ALL OTHER EXPENDITURES Fiscal 2012 to 2013 State Funds

Region/State

Federal Funds

Fiscal 2013 to 2014 All Funds

State Funds

Federal Funds

All Funds

NEW ENGLAND Connecticut

1.9

Maine

%

5.6

-15.8

-36.8

Massachusetts

0.9

New Hampshire

1.0

%

0.0

%

2.0

%

0.0

%

4.2

-21.7

4.8

-13.7

1.3

-10.1

-2.0

0.2

-11.7

-2.3

-9.5

-1.6

3.7

3.0

3.8

-4.4

-2.8

-3.3

-5.3

-14.1

-9.0

-14.6

-10.1

-11.3

17.1

2.0

13.9

Delaware

-5.5

-11.4

0.3

9.4

3.1

7.6

Maryland

5.4

-6.8

3.7

5.4

-22.0

-0.7 5.0

Rhode Island Vermont

%

MID-ATLANTIC

New Jersey

1.7

26.0

6.1

4.7

9.1

New York

0.5

11.9

0.7

1.6

6.4

3.0

Pennsylvania

1.9

-9.2

-0.9

2.4

-18.1

0.0 12.2

GREAT LAKES Illinois

15.2

-0.5

11.7

8.1

30.6

Indiana

12.2

4.0

9.1

0.1

-14.7

-5.3

Michigan

-8.5

-0.6

-5.4

0.1

29.0

12.5

Ohio

-1.1

-1.2

0.7

-5.4

-37.2

-10.9

3.2

-0.7

2.6

-2.0

-0.9

-1.8

Wisconsin PLAINS Iowa

46.5

-25.3

4.0

2.8

3.5

2.9

Kansas

-6.6

-7.9

-5.6

14.9

-59.4

-5.3

Minnesota

14.8

-4.7

28.0

4.0

22.3

-2.0

Missouri

0.7

-8.5

-2.5

3.3

-5.5

0.5

Nebraska

1.3

-0.2

0.9

8.3

-5.3

4.5

North Dakota

-11.8

-21.1

-14.4

20.1

7.6

16.9

South Dakota

2.6

-2.0

0.8

13.5

-19.4

2.9 -10.0

SOUTHEAST Alabama

-0.8

1.2

-2.0

-8.0

-21.0

Arkansas

12.8

-6.7

9.3

8.1

-13.0

3.2

Florida

-7.4

-11.1

-10.5

56.3

-10.2

19.5

Georgia*

-1.8

-2.0

-1.6

5.2

-11.3

0.2

Kentucky

5.0

-23.6

-5.0

30.7

49.8

36.1

Louisiana

5.4

-11.4

-1.1

6.7

30.0

14.5

Mississippi

-2.8

-8.4

4.3

10.5

44.0

9.6

North Carolina

-44.0

-69.1

-51.1

1.8

1.4

3.8 -25.0

South Carolina

41.3

-38.8

2.7

-9.3

-63.9

Tennessee

-1.2

-4.9

-3.7

12.8

3.8

7.6

Virginia

11.4

-71.7

1.6

-13.0

262.8

-4.6

4.4

-8.3

3.6

10.5

-21.5

8.6

Arizona

3.1

-3.8

-0.1

-2.4

14.0

4.8

New Mexico

2.9

0.9

2.1

41.6

-9.7

21.1

West Virginia SOUTHWEST

Oklahoma

5.4

1.2

3.9

-2.0

22.8

6.1

32.5

-39.3

0.1

24.5

-40.7

6.3

Colorado

-8.6

-15.8

-10.9

21.7

-7.7

12.9

Idaho

10.3

22.3

14.3

17.9

5.3

12.5

4.1

-0.4

2.7

2.8

2.4

2.7

Utah

18.4

-7.7

9.3

10.4

14.8

10.2

Wyoming

58.0

110.7

70.2

-21.5

-21.5

-21.5 0.6

Texas ROCKY MOUNTAIN

Montana

FAR WEST Alaska

-13.3

-10.0

-8.4

8.2

-5.8

0.0

-14.8

-6.2

10.0

-9.6

7.9

Hawaii

-1.7

-11.9

-2.3

12.1

-3.4

11.8 -9.7

California Nevada

95.9

23.3

65.4

-3.0

-23.0

Oregon

-4.0

-14.9

-7.1

10.7

-15.1

5.1

Washington

34.4

4.6

22.9

-1.3

-4.8

-0.3

ALL STATES

2.6

%

-9.5

Notes: State funds are defined as general funds and other state funds (bonds are excluded).

76

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

%

-1.0

%

5.5

%

-3.2

%

3.9

%

TABLE 46 ITEMS EXCLUDED FROM ALL OTHER EXPENDITURES

Region/State

Employers Contribution to Pensions

Employer Contributions to Health Benefits

Child Health Insurance Program

Public Health

Community and Institutional for Mental Health

Community and Institutional for Dev. Disabled

P

P

X

P

P

P

Environmental Programs

Parks and Recreation

Housing

General Aid to Local Government

NEW ENGLAND Connecticut Maine Massachusetts New Hampshire Rhode Island

X

Vermont MID-ATLANTIC Delaware Maryland New Jersey New York*

P

P

Pennsylvania GREAT LAKES Illinois Indiana Michigan* Ohio Wisconsin PLAINS Iowa

X

Kansas

N/A

N/A

Minnesota Missouri

X

Nebraska

X

North Dakota South Dakota

X

SOUTHEAST Alabama

P

P

Arkansas Florida

X

Georgia Kentucky Louisiana

X

X

X

X

Mississippi

X

North Carolina South Carolina Tennessee

X

Virginia West Virginia SOUTHWEST Arizona New Mexico Oklahoma Texas

X

P

P

X

X

P

ROCKY MOUNTAIN Colorado* Idaho Montana Utah Wyoming FAR WEST Alaska California Hawaii*

P

P

Nevada*

P

X

Oregon Washington ALL STATES

P 3

2

2

5

X 4

3

1

0

9

7

Excluded=X Partially Excluded=P Not Applicable=N/A *See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

77

All Other Expenditure Notes Small dollar amounts, when rounded, cause an aberration in the percentage increase. In these instances, the actual dollar

Maine: Prizes paid to lottery winners were excluded as follows: fiscal 2012 $144.0 million; fiscal 2013 $143.9 million; fiscal 2014 $144.9 million.

amounts should be consulted to determine the exact percent-

Michigan: Public health and community and institutional care

age increase.

for mentally and developmentally disabled persons are partially

Alabama: All Other State Expenditures for estimated fiscal 2014 includes a $260 million repayment to the Rainy Day

be recorded with the fiscal 2014 annual financial report. Nevada: CHIP medical expenditures are included in Medicaid

Account. Colorado: CHIP is included in “Medicaid” expenditures, all part of the Department of Health Care Policy and Financing. Georgia: Estimated federal funds expenditures in FY 2014 reflect amounts as appropriated in the annual appropriations act. The Georgia State Constitution allows for federal funds to be “continuously appropriated” throughout the fiscal year and additional federal funds are amended into the budget with approval of the Governor’s Office of Planning and Budget as they become available during the fiscal year. Capital expenditures for debt service are included under All Other State expenditures.

78

reported in the Medicaid totals. Actual ARRA expenditures will

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

totals. Starting in 2014, CHIP staff is included in All Other Expenditures. Before 2014, CHIP staff was included in Medicaid totals as well. New York: New York budgets most employer contributions to employees’ benefits and pensions centrally. The portion of employer contributions to employees’ benefits not distributed to an expenditure category has been included in the All Other Expenditures category.

8 CHAPTER

CAPITAL EXPENDITURES

S tat e E x p e n d i t u r e R e p o r t

79

Capital Expenditures

Total Capital Expenditures

Capital expenditures are made for new construction, infrastructure, major repairs and improvements, land purchases and the acquisition of major equipment and existing structures. Minor repairs and routine maintenance are reported as operating expenses. Given the long-term nature of capital projects, states often find it difficult to report capital expenditures for one specific fiscal year. This is because the amount of money appropriated when a project initially is undertaken usually will not be the amount spent in a single year. For greater detail on states’ capital spending practices, see NASBO’s recently updated report Capital Budgeting in the States, available at www.nasbo.org in the publications and data section. The report contains information on defining capital and maintenance expenditures, the organization of the capital budget, capital budget development and execution, capital financing and debt management, and capital asset management.

Because the nature of capital spending includes long construction timetables and unforeseen or delayed project costs, state spending on capital projects has historically fluctuated from year-to-year. States increased capital spending by 2.6 percent in fiscal 2012, decreased spending by 0.4 percent in fiscal 2013 and increased it by an estimated 4.2 percent in fiscal 2014. Overall, state capital spending totaled $88.7 billion in fiscal 2012, $88.3 billion in fiscal 2013, and is estimated to total $92.0 billion in fiscal 2014.

The following chapter includes capital expenditures for higher education, corrections, transportation, environmental projects, housing, and “all other”. Due to differences in states’ reporting capabilities, or expenditures for items not easily classified, capital expenditures not included in these categories are included in the “All Other” category. Tables 47-53 display capital expenditure data.

Capital Fund Sources State spending on capital projects traditionally has come from non-general fund sources. Other state funds such as dedicated fees and fund surpluses (33.4 percent in fiscal 2013) and bonds (31.2 percent) combine to account for 64.6 percent of total state spending on capital projects. In recent years, bonds have represented a greater share of total capital spending than other state funds. The slight shift is partly due to below average debt issuance in the majority of states. Federal funds (29.4 percent) and state general funds (6.0 percent) also contribute to capital spending.

Capital Funds by Use Comprising 61.2 percent ($54.0 billion) of all capital expendi-

FIGURE 18: CAPITAL EXPENDITURES BY TYPE, FISCAL 1991 TO 2014 65,000 60,000

Higher Education

55,000

Corrections

50,000

Transportation Environment

Millions $

45,000

Housing

40,000

All Other

35,000 30,000 25,000 20,000 15,000 10,000 5,000

01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14

20

99 20 00

98

19

97

19

95

96

19

19

94

19

19

93

92

19

19

19

91

0

Fiscal Year

80

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

tures in fiscal 2013, transportation is the largest category of state capital expenditures. Capital spending for transportation increased by 1.7 percent in fiscal 2013, and is expected to increase by 3.7 percent in fiscal 2014.

other categories. Examples of expenditures in the “all other” category may include items such as public school facilities, zoo improvements, health care infrastructure, or sports facilities. In fiscal 2014, “all other” capital spending is estimated to increase by 5.5 percent to $17.4 billion.

Higher education capital expenditures declined by 0.9 percent in fiscal 2013, totaling $8.4 billion, and accounting for 9.6 percent of total state capital outlays. In fiscal 2014, higher education capital spending is estimated to decrease by 4.9 percent.

FIGURE 20 TOTAL CAPITAL EXPENDITURES BY FUNDING SOURCE, FISCAL 2013

State capital spending for environmental purposes in fiscal 2013 totaled $4.8 billion, 5.4 percent of total capital spending and a 6.3 percent decrease from fiscal 2012. Environmental capital expenditures are estimated to increase 25.3 percent in fiscal 2014, mostly driven by a large spending increase in California.

Federal Funds 29.4%

General Funds 6.0%

Housing capital expenditures account for just 1.2 percent of total fiscal 2013 capital spending, at approximately $1.1 billion. Housing capital spending decreased by 11.0 percent in fiscal 2013, and is estimated to decrease by 20.7 percent in fiscal 2013, falling to $0.9 billion. Corrections capital spending experienced a decline of 2.6 percent in fiscal 2013, totaling $3.5 billion. Corrections accounted for 4.0 percent of total state capital expenditures. Fiscal 2014 estimates indicate spending of $3.7 billion, a 5.6 percent increase.

Bonds 31.2%

State spending for “all other” purposes totaled $16.5 billion in fiscal 2013, or 18.6 percent of total capital spending. This includes capital expenditures not easily classified into one of the

Other State Funds 33.4%

FIGURE 19: ANNUAL PERCENTAGE CHANGE IN TOTAL CAPITAL EXPENDITURES 25% 20% 15% 10% 5% 0% -5%

13

12

14 20

20

11

20

10

20

20

09 20

08

07

20

20

05

06 20

04

20

20

02

03 20

01

20

20

99

00 20

98

19

19

97

96

19

19

95

94

93

19

19

19

92 19

19

91

-10%

Fiscal Year

S tat e E x p e n d i t u r e R e p o r t

81

TABLE 47 TOTAL CAPITAL EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012

Region/State

General Fund

Federal Funds

Other State Funds

Actual Fiscal 2013

Bonds

Total

General Fund

Estimated Fiscal 2014

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $3,421

NEW ENGLAND $0

$524

$29

$2,612

$3,165

$0

$509

$36

$2,501

$3,046

$0

$433

$26

$2,962

Maine

0

171

130

26

327

1

176

131

8

316

5

147

90

35

277

Massachusetts

0

671

26

2,167

2,864

0

476

17

2,106

2,599

0

464

3

2,544

3,011

New Hampshire

0

16

128

80

224

0

18

145

87

250

0

10

195

73

278

Rhode Island

3

179

58

198

438

3

131

67

157

358

2

176

68

79

325

Vermont

0

270

40

56

366

1

239

36

73

349

3

342

46

116

507

Delaware

0

209

227

185

621

0

212

215

225

652

0

200

178

271

649

Maryland

48

987

1,244

957

3,236

1

930

1,245

1,135

3,311

32

855

1,595

1,111

3,593

Connecticut

MID-ATLANTIC

1,280

1,383

121

1,358

4,142

1,315

1,781

314

1,374

4,784

1,423

1,601

34

1,225

4,283

New York

0

1,824

2,151

3,861

7,836

0

1,860

2,422

3,258

7,540

0

2,027

2,284

3,440

7,751

Pennsylvania

0

0

0

1,379

1,379

0

0

0

800

800

0

0

0

1,265

1,265 4,732

New Jersey*

GREAT LAKES 0

124

2,608

2,122

4,854

0

123

2,411

1,954

4,488

0

90

2,260

2,382

Indiana

158

0

51

0

209

151

0

50

0

201

269

0

55

0

324

Michigan*

241

1,599

765

251

2,857

247

1,549

720

311

2,827

255

1,177

341

235

2,008

Ohio

0

1,392

569

1,280

3,241

0

1,407

585

1,015

3,007

0

1,303

897

947

3,148

Wisconsin

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Illinois

PLAINS Iowa Kansas

0

468

302

177

947

0

396

520

42

958

29

423

353

10

815

47

533

558

162

1,300

34

428

142

168

772

39

375

992

172

1,578 1,931

4

37

649

609

1,299

10

22

996

810

1,838

4

78

1,069

780

Missouri

88

11

33

0

132

70

11

27

0

108

21

19

45

0

85

Nebraska

15

329

379

0

723

15

400

425

0

840

19

279

537

0

834

North Dakota

84

474

359

11

928

157

293

293

6

749

542

244

162

17

965

South Dakota

11

7

65

35

118

15

24

44

35

118

3

38

62

21

124

Alabama*

7

436

289

323

1,055

3

399

283

223

908

3

418

177

495

1,093

Arkansas*

0

306

361

54

721

1

269

375

98

743

0

274

406

41

721

Florida

161

2,363

5,246

1,395

9,165

145

2,395

5,701

869

9,110

208

2,611

7,982

689

11,490

Georgia*

340

866

23

632

1,861

279

1,048

28

808

2,163

310

1,103

101

850

2,364

Kentucky

0

0

876

0

876

0

0

697

0

697

0

0

583

0

583

Louisiana

125

871

698

320

2,015

54

720

721

378

1,873

28

571

589

373

1,561

Mississippi

36

496

422

354

1,308

30

430

422

784

1,666

31

289

365

257

942

6

1,169

1,310

652

3,137

28

1,198

1,496

231

2,953

14

1,313

1,473

326

3,126

Minnesota

SOUTHEAST

North Carolina South Carolina*

29

25

159

123

336

0

18

164

0

182

0

0

0

0

0

Tennessee*

83

1,057

455

254

1,849

150

1,004

516

301

1,971

165

968

426

266

1,825

3

21

165

1,067

1,255

3

14

117

900

1,034

4

5

93

650

752

35

573

964

50

1,622

20

552

880

54

1,506

53

593

943

55

1,644

Arizona

0

731

139

161

1,030

23

672

64

200

958

2

664

438

209

1,312

New Mexico

0

0

0

266

266

0

410

111

366

887

0

0

0

396

396

Oklahoma

4

1,074

644

146

1,868

5

863

614

144

1,626

4

786

576

135

1,501

215

304

2,671

53

3,243

155

339

2,859

145

3,498

184

302

2,918

12

3,416

104

0

409

0

513

111

0

172

0

283

291

0

220

0

511

13

263

87

33

396

12

243

96

10

360

9

266

206

28

508

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Utah

60

434

480

453

1,427

117

373

1,003

488

1,981

203

166

1,248

481

2,098

Wyoming

89

51

153

0

293

62

72

101

0

235

66

80

112

0

258

1,661

1,096

158

50

2,965

2,072

901

160

550

3,683

1,310

929

256

0

2,495

27

2,344

662

1,590

4,623

34

1,648

441

2,391

4,515

111

2,730

576

2,783

6,200

Hawaii*

0

203

273

766

1,242

0

193

247

735

1,175

0

221

242

825

1,288

Nevada

0

472

270

29

771

0

373

122

41

536

5

321

107

19

452

Oregon

0

24

30

329

383

0

16

33

132

181

0

20

29

158

207

Washington

0

726

803

1,711

3,240

0

825

1,219

1,632

3,676

0

767

902

1,683

3,352

$4,976

$27,113

$28,240

$28,336

$88,666

$5,324

$25,959

$29,482

$27,546

$88,311

$5,646

$25,677

$32,259

$28,416

$91,998

Virginia West Virginia SOUTHWEST

Texas* ROCKY MOUNTAIN Colorado Idaho Montana

FAR WEST Alaska California

TOTAL*

*See notes at the end of the chapter.

82

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 48 HIGHER EDUCATION CAPITAL EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012

Region/State

General Fund

Federal Funds

Other State Funds

Actual Fiscal 2013

Bonds

Total

General Fund

Estimated Fiscal 2014

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $322

NEW ENGLAND $0

$0

$0

$317

$317

$0

$0

$0

$311

$311

$0

$0

$0

$322

Maine

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Massachusetts

0

0

0

267

267

0

0

0

250

250

0

0

0

197

197

New Hampshire

0

0

0

47

47

0

0

0

24

24

0

0

0

15

15

Rhode Island

3

20

26

31

80

2

0

32

16

50

2

0

41

14

57

Vermont

0

0

0

4

4

0

0

0

4

4

0

0

0

3

3

Connecticut

MID-ATLANTIC Delaware

0

0

0

9

9

0

0

0

12

12

0

0

0

11

11

Maryland

0

0

27

206

233

0

0

32

278

310

0

0

32

302

334

New Jersey

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

New York

0

0

135

911

1,046

0

0

186

1,082

1,268

0

0

166

941

1,107

Pennsylvania

0

0

0

212

212

0

0

0

45

45

0

0

0

200

200

Illinois

0

0

0

227

227

0

0

0

118

118

0

0

0

210

210

Indiana

0

0

0

0

0

0

0

0

0

0

136

0

0

0

136

135

0

0

146

281

138

0

0

120

258

148

0

0

141

289

Ohio

0

0

0

167

167

0

0

0

165

165

0

0

0

208

208

Wisconsin

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

GREAT LAKES

Michigan*

PLAINS Iowa

0

0

6

10

16

0

0

41

0

41

15

0

44

0

59

Kansas

1

22

79

22

124

1

2

110

32

145

1

0

102

33

136

Minnesota

0

0

0

114

114

0

0

0

216

216

0

0

0

149

149

Missouri

0

0

2

0

2

0

0

1

0

1

0

0

0

0

0

Nebraska

12

4

129

0

145

13

13

173

0

199

15

4

203

0

222

North Dakota

37

0

33

11

81

49

0

13

6

68

50

0

21

17

88

South Dakota

0

0

24

31

55

0

0

13

34

47

0

0

20

19

39

SOUTHEAST Alabama*

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Arkansas

0

0

16

0

16

0

0

13

0

13

0

0

36

0

36

Florida

23

0

84

339

446

10

0

233

56

299

4

0

230

17

251

Georgia

0

0

0

188

188

0

0

0

431

431

0

0

0

407

407

Kentucky

0

0

329

0

329

0

0

210

0

210

0

0

285

0

285

Louisiana

46

43

99

30

218

15

1

281

43

340

5

2

260

68

335

Mississippi

26

3

122

9

160

25

3

72

29

129

24

3

75

7

109

North Carolina

0

0

0

4

4

4

0

0

0

4

3

0

0

0

3

South Carolina

12

11

144

123

290

0

0

123

0

123

0

0

0

0

0

Tennessee

20

0

0

80

100

84

0

61

197

342

116

0

35

159

310

Virginia

0

1

78

794

873

0

0

70

765

835

0

0

65

535

600

West Virginia

0

0

585

50

635

0

0

621

54

675

0

0

621

55

676

SOUTHWEST Arizona

0

0

0

0

0

0

0

0

0

0

2

0

0

0

2

New Mexico

0

0

0

129

129

0

0

0

136

136

0

0

0

150

150

Oklahoma

0

9

324

12

345

0

8

240

5

253

0

0

75

125

200

Texas*

0

65

8

0

73

0

51

5

0

56

0

37

5

0

42

Colorado

11

0

177

0

188

13

0

33

0

46

44

0

23

0

67

Idaho

11

0

7

6

24

10

0

10

6

26

8

0

28

6

42

Montana

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Utah

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Wyoming

1

0

0

0

1

9

0

0

0

9

7

0

0

0

7

ROCKY MOUNTAIN

FAR WEST 80

30

0

50

160

197

0

2

0

199

126

0

1

0

127

California

0

0

0

199

199

0

0

0

89

89

0

0

0

113

113

Hawaii

0

0

0

316

316

0

0

-4

267

263

0

0

0

235

235

Nevada

0

0

3

15

18

0

0

4

8

12

0

0

3

7

10

Oregon

0

0

0

136

136

0

0

0

0

0

0

0

0

0

0

Washington

0

0

124

126

250

0

0

168

255

423

0

0

147

91

238

$418

$208

$2,561

$5,338

$8,525

$570

$78

$2,743

$5,054

$8,445

$706

$46

$2,518

$4,757

$8,027

Alaska

TOTAL

*See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

83

TABLE 49 CORRECTIONS CAPITAL EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012

Region/State

General Fund

Federal Funds

Other State Funds

Actual Fiscal 2013

Bonds

Total

General Fund

Estimated Fiscal 2014

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $4

NEW ENGLAND $0

$0

$0

$19

$19

$0

$0

$0

$5

$5

$0

$0

$0

$4

Maine

0

0

0

0

0

1

0

0

0

1

3

0

0

0

3

Massachusetts

0

0

0

21

21

0

0

0

42

42

0

0

0

85

85

Connecticut

New Hampshire

0

0

0

3

3

0

0

0

2

2

0

0

0

1

1

Rhode Island

0

0

3

0

3

0

0

3

0

3

0

0

1

0

1

Vermont

0

0

0

1

1

0

0

0

1

1

1

0

0

1

2

MID-ATLANTIC Delaware

0

0

0

0

0

0

0

0

0

0

0

0

0

3

3

Maryland

0

0

0

17

17

0

8

0

8

16

0

0

0

30

30

11

7

1

0

19

9

4

0

0

13

5

0

0

0

5

New York

0

0

0

240

240

0

0

0

192

192

0

0

0

231

231

Pennsylvania

0

0

0

137

137

0

0

0

0

0

0

0

0

0

0

New Jersey

GREAT LAKES Illinois

0

0

0

7

7

0

0

0

19

19

0

0

0

14

14

Indiana

56

0

13

0

69

56

0

14

0

70

55

0

14

0

69

Michigan

37

0

0

2

39

37

0

0

0

37

38

0

0

0

38

Ohio

0

0

0

24

24

0

0

0

26

26

0

0

0

20

20

Wisconsin

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

PLAINS Iowa

0

0

4

106

110

0

0

34

37

71

11

0

43

2

56

Kansas

2

0

4

6

12

4

0

3

4

11

2

0

7

5

14

Minnesota

2

0

3

14

19

4

1

4

8

17

1

1

1

19

22

Missouri

0

0

1

0

1

0

0

0

0

0

0

0

6

0

6

Nebraska

1

0

1

0

2

1

0

0

0

1

1

0

0

0

1

North Dakota

4

0

24

0

28

2

0

14

0

16

2

0

2

0

4

South Dakota

3

0

1

0

4

8

0

2

0

10

1

0

1

0

2

Alabama

0

8

2

0

10

0

0

5

0

5

0

0

4

0

4

Arkansas

0

0

2

0

2

1

0

1

0

2

0

0

0

0

0

Florida

1

0

0

60

61

4

0

0

18

22

7

0

0

0

7

Georgia

0

0

0

27

27

0

0

0

13

13

0

0

0

28

28

Kentucky

0

0

27

0

27

0

0

18

0

18

0

0

12

0

12

Louisiana

0

0

0

1

1

0

0

1

3

4

0

0

0

5

5

Mississippi

1

0

1

0

2

1

0

1

0

2

0

0

4

0

4

SOUTHEAST

North Carolina

0

0

0

0

0

10

0

0

0

10

3

0

0

0

3

South Carolina

1

1

1

0

3

0

0

3

0

3

0

0

0

0

0

Tennessee

0

0

35

0

35

0

0

33

0

33

0

0

61

0

61

Virginia

0

3

3

17

23

1

0

0

23

24

1

1

2

21

25

West Virginia

6

0

6

0

12

5

0

9

0

14

11

0

7

0

18

Arizona

0

0

3

0

3

20

0

5

0

25

0

0

13

0

13

New Mexico

0

0

0

4

4

0

0

2

2

4

0

0

0

2

2

Oklahoma

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

21

84

2,422

0

2,527

23

86

2,558

0

2,667

21

87

2,583

0

2,691 134

SOUTHWEST

Texas ROCKY MOUNTAIN

20

0

4

0

24

18

0

2

0

20

22

0

112

0

Idaho

2

0

1

0

3

2

1

3

0

6

1

1

2

0

4

Montana

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Colorado

Utah

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Wyoming

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Alaska

14

0

0

0

14

10

0

0

0

10

18

0

0

0

18

California

12

0

0

0

12

19

0

0

1

20

54

0

0

3

57

Hawaii*

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Nevada

0

0

0

4

4

0

0

0

12

12

5

0

0

4

9

Oregon

0

0

0

14

14

0

0

0

17

17

0

0

0

3

3

Washington

0

0

0

29

29

0

0

0

33

33

0

0

0

6

6

$194

$103

$2,562

$753

$3,612

$236

$100

$2,715

$466

$3,517

$263

$90

$2,875

$487

$3,715

FAR WEST

TOTAL

*See notes at the end of the chapter.

84

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 50 TRANSPORTATION CAPITAL EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012

Region/State

General Fund

Federal Funds

Other State Funds

Actual Fiscal 2013

Bonds

Total

General Fund

Federal Funds

Estimated Fiscal 2014

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $1,282

NEW ENGLAND $0

$524

$29

$687

$1,240

$0

$509

$36

$717

$1,262

$0

$433

$26

$823

Maine

0

161

122

22

305

0

160

121

3

284

0

144

84

34

262

Massachusetts

0

671

26

1,045

1,742

0

476

17

1,031

1,524

0

464

3

1,342

1,809

New Hampshire

0

16

128

0

144

0

18

145

0

163

0

10

195

0

205

Rhode Island

0

156

4

133

293

0

129

3

90

222

0

168

13

41

222

Vermont

0

270

39

1

310

0

225

36

6

267

0

246

40

9

295

Delaware

0

209

227

0

436

0

212

215

0

427

0

200

178

0

378

Maryland

0

829

909

0

1,738

0

780

863

0

1,643

0

768

1,280

0

2,048

Connecticut

MID-ATLANTIC

957

1,304

89

1,229

3,579

971

1,714

296

1,264

4,245

1,161

1,585

12

1,225

3,983

New York

0

1,437

1,492

969

3,898

0

1,433

1,634

908

3,975

0

1,666

1,445

920

4,031

Pennsylvania

0

0

0

250

250

0

0

0

295

295

0

0

0

220

220 3,364

New Jersey*

GREAT LAKES Illinois

0

115

2,183

1,170

3,468

0

116

2,056

1,147

3,319

0

82

1,951

1,331

Indiana

0

0

14

0

14

0

0

14

0

14

0

0

13

0

13

Michigan

0

1,202

628

59

1,889

0

1,360

586

154

2,100

0

1,155

188

12

1,355

Ohio

0

1,392

529

269

2,190

0

1,406

545

188

2,139

0

1,298

719

210

2,227

Wisconsin

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

PLAINS 0

468

256

24

748

0

344

364

0

708

0

338

193

0

531

16

464

181

110

771

9

414

3

107

533

9

365

874

103

1,351

Minnesota

0

9

608

259

876

0

10

938

363

1,311

0

22

973

307

1,302

Missouri

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Nebraska

0

302

208

0

510

0

363

214

0

577

0

255

305

0

560

North Dakota

0

444

210

0

654

47

279

230

0

556

420

218

82

0

720

South Dakota

0

2

22

0

24

0

0

16

0

16

0

0

25

0

25

Alabama

0

428

170

0

598

0

399

180

38

617

0

418

121

130

669

Arkansas*

0

283

305

40

628

0

250

346

46

642

0

264

297

41

602

Iowa Kansas

SOUTHEAST

0

2,071

3,962

164

6,197

4

2,105

3,868

267

6,244

0

2,349

5,863

430

8,642

Georgia*

340

866

23

6

1,235

279

1,048

28

0

1,355

310

1,103

101

3

1,517

Kentucky

0

0

18

0

18

0

0

22

0

22

0

0

20

0

20

Louisiana

0

807

447

127

1,381

0

682

319

169

1,170

0

558

209

135

902

Mississippi

0

465

253

42

760

0

372

261

27

660

0

256

155

19

430

North Carolina

0

1,169

1,310

231

2,710

0

1,198

1,496

78

2,772

0

1,313

1,473

20

2,806

Florida

South Carolina

0

0

1

0

1

0

0

15

0

15

0

0

0

0

0

Tennessee

0

1,041

419

0

1,460

0

984

407

0

1,391

0

965

330

81

1,376

Virginia

0

0

11

38

49

0

0

18

8

26

0

0

13

4

17

West Virginia

3

464

266

0

733

2

466

198

0

666

5

529

269

0

803

Arizona

0

731

136

161

1,028

0

672

59

200

931

0

664

425

209

1,298

New Mexico

0

0

0

35

35

0

354

88

1

443

0

0

0

2

2

Oklahoma

0

896

142

110

1,148

0

756

160

116

1,032

0

644

330

5

979

Texas*

0

0

108

0

108

0

0

105

0

105

0

0

167

0

167

SOUTHWEST

ROCKY MOUNTAIN Colorado

1

0

1

0

2

1

0

19

0

20

0

0

0

0

0

Idaho

0

263

48

0

311

0

242

60

0

302

0

265

139

0

404

Montana

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Utah

3

432

360

0

795

1

370

618

0

989

2

153

603

0

758

76

45

146

0

267

51

71

100

0

222

57

78

111

0

246

Wyoming FAR WEST

392

867

81

0

1,340

602

692

44

321

1,659

203

794

104

0

1,101

California

0

2,223

550

1,265

4,038

0

1,592

439

2,180

4,211

0

2,655

502

1,333

4,490

Hawaii

0

190

81

90

361

0

180

80

90

350

0

206

43

104

353

Nevada

0

456

266

0

722

0

338

117

0

455

0

315

100

0

415

Oregon

0

2

0

69

71

0

2

0

54

56

0

1

0

27

28

Washington

0

579

311

1,175

2,065

0

671

645

793

2,109

0

636

317

896

1,849

$1,788

$24,253

$17,319

$9,780

$53,140

$1,967

$23,392

$18,024

$10,661

$54,044

$2,167

$23,583

$20,291

$10,016

$56,057

Alaska

TOTAL

*See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

85

TABLE 51 ENVIRONMENTAL PROJECTS CAPITAL EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012

Region/State

General Fund

Federal Funds

Other State Funds

Actual Fiscal 2013

Bonds

Total

General Fund

Estimated Fiscal 2014

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $342

NEW ENGLAND $0

$0

$0

$374

$374

$0

$0

$0

$106

$106

$0

$0

$0

$342

Maine

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Massachusetts

0

0

0

155

155

0

0

0

142

142

0

0

0

189

189 10

Connecticut

New Hampshire

0

0

0

9

9

0

0

0

10

10

0

0

0

10

Rhode Island

0

3

5

19

27

0

1

2

14

17

0

4

3

3

10

Vermont

0

0

0

8

8

0

0

0

10

10

0

0

0

13

13

MID-ATLANTIC Delaware

0

0

0

1

1

0

0

0

4

4

0

0

0

11

11

Maryland

0

59

288

260

607

0

48

324

224

596

0

50

257

172

479

109

20

19

70

218

82

42

2

75

201

91

0

5

0

96

New York

0

291

223

171

685

0

278

259

201

738

0

303

266

247

816

Pennsylvania

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Illinois

0

9

423

62

494

0

7

349

60

416

0

8

303

35

346

Indiana

18

0

2

0

20

17

0

2

0

19

32

0

2

0

34

2

13

45

30

90

5

10

46

16

77

2

19

79

49

149

New Jersey

GREAT LAKES

Michigan Ohio

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Wisconsin

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

PLAINS 0

0

4

12

16

0

0

34

1

35

0

0

26

0

26

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

Minnesota

0

3

35

23

61

1

3

49

51

104

0

5

90

20

115

Missouri

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Nebraska

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

North Dakota

17

17

82

0

116

19

5

27

0

51

3

2

32

0

37

South Dakota

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Alabama*

0

0

40

0

40

0

0

63

0

63

0

0

25

0

25

Arkansas

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Florida

44

292

307

435

1,078

46

290

286

433

1,055

92

262

357

187

898

Georgia

0

0

0

56

56

0

0

0

50

50

0

0

0

24

24

Kentucky

0

0

41

0

41

0

0

28

0

28

0

0

26

0

26

Louisiana

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Mississippi

0

6

9

2

17

0

4

10

24

38

0

3

8

1

12

Iowa Kansas

SOUTHEAST

North Carolina

5

0

0

0

5

12

0

0

0

12

6

0

0

0

6

South Carolina

2

0

1

0

3

0

0

0

0

0

0

0

0

0

0

12

0

0

5

17

14

0

4

11

29

5

0

0

0

5

Virginia

0

4

0

0

4

0

3

6

13

22

0

1

2

4

7

West Virginia

0

25

15

0

40

0

32

12

0

44

0

32

8

0

40

Tennessee

SOUTHWEST Arizona

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

New Mexico

0

0

0

9

9

0

11

2

14

27

0

0

0

54

54

Oklahoma

1

6

131

10

148

2

3

142

10

157

1

0

66

0

67

Texas

3

0

7

0

10

3

1

13

0

17

3

0

11

0

14 0

ROCKY MOUNTAIN Colorado

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Idaho

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Montana

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Utah

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Wyoming

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

FAR WEST 31

42

7

0

80

45

1

51

0

97

33

43

4

0

80

California

3

20

6

126

155

0

24

-14

121

131

28

59

59

1,327

1,473 12

Alaska Hawaii*

0

0

0

11

11

0

0

0

10

10

0

0

0

12

Nevada

0

0

0

0

0

0

0

0

1

1

0

0

0

1

1

Oregon

0

0

0

33

33

0

0

0

29

29

0

0

0

38

38

Washington

0

81

247

134

462

0

109

198

125

432

0

72

216

231

519

$247

$891

$1,937

$2,015

$5,090

$246

$872

$1,895

$1,755

$4,768

$296

$863

$1,845

$2,970

$5,974

TOTAL

*See notes at the end of the chapter.

86

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

TABLE 52 HOUSING CAPITAL EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012

Region/State

General Fund

Federal Funds

Other State Funds

Actual Fiscal 2013

Bonds

Total

General Fund

Estimated Fiscal 2014

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $91

NEW ENGLAND $0

$0

$0

$88

$88

$0

$0

$0

$58

$58

$0

$0

$0

$91

Maine

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Massachusetts

0

0

0

185

185

0

0

0

183

183

0

0

0

182

182

Connecticut

New Hampshire

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Rhode Island

0

0

0

0

0

0

0

0

0

0

0

0

0

13

13

Vermont

0

0

0

4

4

0

0

0

2

2

0

0

0

0

0

MID-ATLANTIC Delaware

0

0

0

3

3

0

0

0

8

8

0

0

0

2

2

Maryland

0

27

20

29

76

0

24

26

51

101

3

19

26

54

102

New Jersey

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

New York

0

2

0

125

127

0

1

0

121

122

0

3

0

114

117

Pennsylvania

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Illinois

0

0

0

34

34

0

0

0

24

24

0

0

0

56

56

Indiana

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Michigan

0

382

80

11

473

0

175

70

13

258

0

0

57

11

68

GREAT LAKES

Ohio

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Wisconsin

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

PLAINS Iowa Kansas

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A 0

Minnesota

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Missouri

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Nebraska

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

North Dakota

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

South Dakota

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

SOUTHEAST Alabama

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Arkansas

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0 0

Florida

0

0

0

0

0

60

0

55

0

115

0

0

0

0

Georgia

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Kentucky

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0 0

Louisiana

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Mississippi

0

0

0

1

1

0

0

0

0

0

0

0

0

0

0

North Carolina

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

South Carolina

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Tennessee

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Virginia

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

West Virginia

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

SOUTHWEST Arizona

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

New Mexico

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Oklahoma

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Texas

0

0

0

49

49

0

0

0

125

125

0

0

0

0

0

ROCKY MOUNTAIN Colorado

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Idaho

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Montana

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Utah

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Wyoming

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0 103

FAR WEST 138

14

1

0

153

36

10

1

22

69

89

14

0

0

California

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Hawaii*

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0 0

Alaska

Nevada

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Oregon

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Washington

0

0

5

28

33

0

0

0

26

26

0

0

0

131

131

$138

$425

$106

$557

$1,226

$96

$210

$152

$633

$1,091

$92

$36

$83

$654

$865

TOTAL

*See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

87

TABLE 53 ALL OTHER CAPITAL EXPENDITURES ($ IN MILLIONS) Actual Fiscal 2012

Region/State

General Fund

Federal Funds

Other State Funds

Actual Fiscal 2013

Bonds

Total

General Fund

Estimated Fiscal 2014

Federal Funds

Other State Funds

Bonds

Total

General Fund

Federal Funds

Other State Funds

Bonds

Total $1,380

NEW ENGLAND $0

$0

$0

$1,127

$1,127

$0

$0

$0

$1,305

$1,305

$0

$0

$0

$1,380

Maine

0

10

8

4

22

0

16

10

5

31

1

3

5

1

10

Massachusetts

0

0

0

494

494

0

0

0

458

458

0

0

0

549

549

New Hampshire

0

0

0

21

21

0

0

0

51

51

0

0

0

47

47

Rhode Island

0

0

20

15

35

1

1

27

37

66

0

4

10

8

22

Vermont

0

0

1

38

39

1

14

0

50

65

2

96

6

90

194

Connecticut

MID-ATLANTIC Delaware

0

0

0

172

172

0

0

0

201

201

0

0

0

244

244

Maryland

48

72

0

445

565

1

70

0

574

645

29

18

0

553

600

203

52

12

59

326

253

21

16

35

325

166

16

17

0

199

New York

0

94

301

1,445

1,840

0

148

343

754

1,245

0

55

407

987

1,449

Pennsylvania

0

0

0

780

780

0

0

0

460

460

0

0

0

845

845

Illinois

0

0

2

622

624

0

0

6

586

592

0

0

6

736

742

Indiana

84

0

22

0

106

78

0

20

0

98

46

0

26

0

72

Michigan

67

3

13

4

87

68

5

18

7

98

67

4

18

22

111

Ohio

0

0

40

820

860

0

0

40

637

677

0

5

178

509

692

Wisconsin

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0 143

New Jersey

GREAT LAKES

PLAINS 0

0

32

25

57

0

52

47

4

103

3

85

47

8

28

47

294

24

393

20

12

26

25

83

27

10

9

31

77

2

25

3

199

229

5

8

5

172

190

3

50

5

285

343

Missouri

88

11

30

0

129

70

11

26

0

107

21

19

39

0

79

Nebraska

2

23

42

0

67

1

24

39

0

64

3

19

30

0

52

North Dakota

26

13

10

0

49

40

9

9

0

58

67

24

25

0

116

South Dakota

8

5

18

4

35

7

24

13

1

45

2

38

16

2

58 395

Iowa Kansas Minnesota

SOUTHEAST Alabama*

7

0

77

323

407

3

0

35

185

223

3

0

27

365

Arkansas

0

23

38

14

75

0

19

15

52

86

0

10

73

0

83

93

0

893

397

1,383

21

0

1,259

95

1,375

105

0

1,532

55

1,692

Georgia*

0

0

0

356

356

0

0

0

315

315

0

0

0

388

388

Kentucky

0

0

461

0

461

0

0

419

0

419

0

0

240

0

240

Louisiana

79

21

152

162

414

39

37

120

163

359

23

11

120

165

319

Mississippi

9

23

37

300

369

4

52

80

704

840

7

27

124

231

389

North Carolina

1

0

0

417

418

2

0

0

153

155

2

0

0

306

308

South Carolina

14

13

12

0

39

0

18

23

0

41

0

0

0

0

0

Tennessee

51

16

1

169

237

52

20

11

93

176

44

3

0

26

73

2

13

74

218

307

2

10

23

93

128

3

3

11

85

102

26

84

92

0

202

13

54

40

0

107

37

32

38

0

107

Florida

Virginia West Virginia SOUTHWEST Arizona

0

0

0

0

0

3

0

0

0

3

0

0

0

0

0

New Mexico

0

0

0

89

89

0

45

19

213

277

0

0

0

188

188

3

163

47

14

227

3

96

72

13

184

3

142

105

5

255

191

155

126

4

476

129

201

178

20

528

160

178

152

12

502

Oklahoma Texas ROCKY MOUNTAIN

73

0

227

0

300

79

0

120

0

199

225

0

85

0

310

Idaho

0

0

31

27

58

0

0

23

4

27

0

0

37

22

59

Montana

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Utah

57

2

120

453

632

116

3

385

488

992

201

13

645

481

1,340

Wyoming

12

6

7

0

25

2

1

1

0

4

2

2

1

0

5

1,006

143

69

0

1,218

1,182

198

62

207

1,649

841

78

147

0

1,066

12

101

106

0

219

15

32

16

0

63

29

16

15

7

67

Hawaii

0

13

192

349

554

0

13

171

368

552

0

15

199

475

689

Nevada

0

16

1

10

27

0

35

1

20

56

0

6

4

7

17

Oregon

0

22

30

76

128

0

14

33

32

79

0

19

29

91

139

Washington

0

66

116

219

401

0

45

208

400

653

0

59

222

328

609

$2,192

$1,235

$3,757

$9,895

$17,079

$2,210

$1,308

$3,959

$8,980

$16,457

$2,122

$1,060

$4,650

$9,533

$17,365

Colorado

FAR WEST Alaska California

TOTAL*

88

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

Capital Spending Notes Alabama: Capital expenditures for higher education are not

Michigan: Higher education capital expenditures made from non-state funds are excluded.

captured/available at the state budget level. Capital expendi-

New Jersey: Transportation Bond Funds: fiscal 2012 actual

tures for Environmental and All Other from Federal and Other

revised compared to prior year survey for consistency.

State Funds are not reported separately, combined amounts are included in the Other State Funds. Arkansas: Transportation amounts now reflect all highway capital expenditures based on clarification of capital project reporting requirements. Georgia: Capital expenditures for debt service are included under All Other State expenditures. Motor fuel funds are now being reported under General Funds rather than Other State

Tennessee: Bond estimates represent bond authorizations, while actual bonds represent bond proceeds utilized. Texas: Transportation figures do not include highway construction. Higher education figures include amounts for community colleges. South Carolina: Fiscal 2013 and fiscal 2014 bond fund numbers not available at this time.

Funds. In fiscal 2013, the Georgia Department of Transportation began spending its obligation authority with the federal government within one year. Therefore, beginning in fiscal 2013, General Fund expenditures decreased while Federal Fund expenditures increased.

S tat e E x p e n d i t u r e R e p o r t

89

90

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

9 CHAPTER

REVENUE SOURCES IN THE GENERAL FUND

S tat e E x p e n d i t u r e R e p o r t

91

Revenue Sources in the General Fund General fund revenue, the source of most state expenditures and the most discretionary, totaled $719.7 billion in fiscal 2013. The three main sources of general fund revenue—personal income taxes, sales and compensating use taxes, and corpo-

income taxes can be attributed to modest economic improvements, strong gains in the stock market, and to the impact of the federal “fiscal cliff”, in which many taxpayers shifted capital gains and other income to calendar year 2012 to avoid higher scheduled federal tax rates.

rate income taxes—accounted for 78.4 percent of general fund

State general fund revenues once again increased in fiscal 2014,

collections. Specifically, personal income taxes accounted for

albeit at a much slower rate. Total general fund revenues

42.4 percent of the total, sales and compensating use taxes for

increased 1.4 percent, with sales taxes experiencing the stron-

29.8 percent, and corporate income taxes for 6.2 percent of

gest growth at 4.8 percent, personal income taxes increasing by

total general fund revenues in 2013. Other taxes and fees repre-

1.2 percent, and corporate income taxes rising by 0.5 percent.

sented 20.9 percent of general fund revenues, while gaming

Other taxes and fees and gaming taxes both declined, at 2.5

taxes were 0.6 percent. The major sources of general fund rev-

percent and 5.3 percent respectively. Most states anticipated

enues are displayed by state in Table 54, while information on

slower personal income tax growth in fiscal 2014 compared to

items excluded from revenue sources can be found in Table 55.

fiscal 2013 due to prior tax shifting brought on by the federal tax

Depending on the state, “other taxes and fees” may include cigarette and tobacco taxes, alcoholic beverage taxes, insurance premiums, severance taxes, licenses and fees for permits, inheritances taxes, and charges for state-provided services.

uncertainty. However, the drop off was more significant than a number of states predicated, and some saw revenues come in below projections in the spring of 2014. The Rockefeller Institute of Government found that personal income taxes increased by 5.1 and 0.3 percent in the first two quarters of fiscal 2014, but declined by 1.2 and 7.1 percent respectively in the last two

States use a variety of taxes and fees to finance programs, not all of which are reflected in the general fund. These include some gaming taxes, lottery proceeds, and motor vehicle fees,

quarters. It is expected that most of the effects of the federal fiscal cliff will subside in fiscal 2015, and personal income taxes will return to modest growth.

which often are earmarked for special purposes or specific funds, such as education or roads. Table 55 illustrates the major items that are excluded from

FIGURE 21 REVENUE SOURCES IN THE GENERAL FUND, FISCAL 2013

general fund revenue sources. For example, property taxes are a mainstay of local government finance and the majority of states exclude them from both their general funds and their revenue bases. However, many states use aid to local governments or other subsidies to help reduce the amount of proper-

Corporate Income Tax 6.2%

Gaming Tax 0.6%

Other Taxes & Fees 20.9%

ty taxes local governments collect.

State Tax Collection Trends Following two straight years of revenue declines in fiscal 2009 and fiscal 2010, general fund revenues increased for the third consecutive year in fiscal 2013. In total, general fund revenues increased 7.0 percent in fiscal 2013 compared to fiscal 2012. Personal income taxes experienced the largest increase at 9.8, while corporate income taxes rose 9.2 percent, sales taxes grew 5.2 percent, other taxes and fees increased 3.6 percent, and gaming taxes rose 2.3 percent. The strong growth in personal

92

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

Personal Income Tax 42.4%

Sales Tax 29.8%

TABLE 54 REVENUE SOURCES IN THE GENERAL FUND ($ IN MILLIONS) Actual Fiscal 2012

Region/state

Sales Tax

Personal Corporate Income Income Tax Tax

Actual Fiscal 2013

Gaming Tax

Other Taxes & Fees

Total

Sales Tax

Personal Corporate Income Income Tax Tax

Estimated Fiscal 2014

Gaming Tax

Other Taxes & Fees

Total

Sales Tax

Personal Corporate Income Income Tax Tax

Gaming Tax

Other Taxes & Fees

Total

$17,140

NEW ENGLAND $3,830

$8,311

$717

$658

$5,046

$18,562

$3,897

$8,719

$743

$612

$5,434

$19,405

$4,102

$8,670

$778

$603

$2,987

Maine*

1,030

1,434

232

0

320

3,016

1,037

1,522

172

0

364

3,094

1,158

1,381

170

0

365

3,074

Massachusetts*

5,059

11,911

1,771

0

14,552

33,294

5,164

12,831

1,822

0

15,453

35,270

5,496

13,202

2,049

0

16,512

37,259 2,173

Connecticut*

0

0

516

4

1,670

2,190

0

0

552

4

1,720

2,276

0

0

549

3

1,621

Rhode Island

851

1,060

123

1

1,235

3,271

879

1,086

132

1

1,226

3,324

907

1,103

117

1

1,288

3,416

Vermont

229

593

84

0

293

1,199

231

661

95

0

302

1,289

230

671

95

0

332

1,328

New Hampshire

MID-ATLANTIC Delaware Maryland*

0

1,042

119

0

2,198

3,359

0

1,084

206

0

2,440

3,730

0

1,027

176

0

2,370

3,573

4,039

7,115

646

0

2,457

14,257

4,068

7,691

818

0

2,308

14,885

4,143

7,774

761

0

2,428

15,106 31,229

8,100

11,128

2,143

972

7,276

29,619

8,455

12,109

2,536

1,107

7,225

31,432

8,856

12,050

2,640

986

6,697

11,126

38,767

5,760

17

2,398

58,068

11,232

40,227

6,253

18

2,461

60,191

11,786

42,961

6,046

17

2,826

63,636

8,772

10,801

2,022

95

5,988

27,678

8,894

11,371

2,423

89

5,870

28,647

9,194

11,717

2,572

97

5,536

29,116

Illinois

7,226

15,512

2,461

340

8,258

33,797

7,355

16,538

3,177

345

8,913

36,328

7,676

16,642

3,164

321

8,965

36,768

Indiana

6,622

4,766

959

614

1,164

14,125

6,796

4,978

968

555

1,165

14,462

6,926

4,899

1,054

474

1,049

14,402

Michigan*

1,875

4,817

1,263

0

1,292

9,247

1,842

5,931

680

0

1,130

9,583

2,227

5,836

308

0

1,119

9,490

Ohio*

8,087

8,433

117

0

10,549

27,186

8,445

9,508

262

0

11,344

29,559

9,166

8,065

-11

0

12,014

29,233

Wisconsin

4,289

7,042

907

0

1,278

13,516

4,410

7,497

925

0

1,254

14,086

4,628

7,061

967

0

1,292

13,948

New Jersey New York Pennsylvania GREAT LAKES

PLAINS Iowa

2,052

3,030

426

142

661

6,311

2,087

3,440

428

123

691

6,769

2,221

3,314

419

88

640

6,682

Kansas

2,462

2,908

284

0

759

6,413

2,525

2,931

371

0

514

6,341

2,455

2,525

410

0

596

5,986 19,090

Minnesota*

4,669

7,972

1,044

41

2,700

16,426

4,760

9,013

1,281

37

2,855

17,946

5,007

9,466

1,337

41

3,239

Missouri

1,845

4,914

341

0

241

7,341

1,872

5,489

415

0

307

8,083

1,925

5,404

396

0

278

8,003

Nebraska

1,437

1,823

234

1

201

3,696

1,475

2,102

276

1

199

4,052

1,525

2,061

307

1

224

4,117

North Dakota

1,154

430

199

6

731

2,520

1,296

616

187

5

532

2,636

1,315

511

235

4

819

2,884

South Dakota

744

0

0

1

537

1,282

776

0

0

1

587

1,364

823

0

0

1

652

1,476

SOUTHEAST Alabama*

2,028

2,919

379

2

2,060

7,388

1,920

3,103

349

2

2,035

7,409

1,947

3,143

355

2

2,189

7,636

Arkansas

2,111

2,895

435

31

451

5,923

2,125

3,144

431

39

475

6,214

2,173

3,111

440

42

476

6,242

17,422

0

2,011

171

4,015

23,619

18,418

0

2,081

245

4,571

25,315

19,682

0

2,128

254

4,241

26,306

5,304

8,142

591

0

3,233

17,270

5,277

8,772

797

0

3,449

18,296

5,053

9,005

817

0

4,045

18,920

Florida Georgia* Kentucky

3,052

3,512

374

0

2,153

9,091

3,022

3,723

401

0

2,202

9,348

3,131

3,749

475

0

2,107

9,462

Louisiana

2,840

2,486

374

387

1,978

8,066

2,874

2,754

336

390

1,924

8,278

2,911

2,812

280

392

1,922

8,316

Mississippi

2,071

1,489

505

152

552

4,769

2,145

1,650

524

140

546

5,005

2,201

1,667

677

128

577

5,250

North Carolina

5,258

10,272

1,133

0

2,870

19,533

5,294

10,953

1,192

0

3,101

20,540

5,567

10,272

1,357

0

2,951

20,147

South Carolina

2,354

2,592

212

0

700

5,858

2,448

2,844

351

0

732

6,375

2,514

2,911

302

0

737

6,464

Tennessee*

6,500

120

1,003

0

3,520

11,143

6,608

170

1,082

0

3,590

11,450

6,854

169

1,059

0

3,672

11,754

Virginia

3,122

10,613

860

0

1,253

15,847

3,249

11,093

821

0

1,259

16,421

3,066

11,253

757

0

1,334

16,411

West Virginia

1,178

1,647

174

0

1,017

4,016

1,197

1,722

249

0

982

4,150

1,204

1,767

230

0

935

4,136

SOUTHWEST Arizona

3,655

3,092

648

0

833

8,228

3,842

3,398

662

0

832

8,734

4,054

3,610

598

0

790

9,052

New Mexico

2,428

1,151

281

68

1,889

5,817

2,398

1,241

267

71

1,732

5,709

2,487

1,212

279

73

1,814

5,864

2,004

2,044

343

15

1,158

5,565

2,087

2,114

452

15

936

5,604

2,156

2,085

307

15

1,065

5,628

22,504

0

0

0

16,661

39,165

26,702

0

0

0

20,624

47,326

27,583

0

0

0

20,714

48,297

Oklahoma Texas* ROCKY MOUNTAIN Colorado*

2,093

5,012

487

20

124

7,736

2,212

5,596

636

12

98

8,555

2,373

5,699

721

11

125

8,929

Idaho

1,027

1,206

187

0

167

2,587

1,110

1,284

199

0

158

2,750

1,148

1,320

194

0

147

2,808 2,077

Montana Utah Wyoming

62

899

128

54

728

1,871

62

1,048

177

57

734

2,078

63

1,063

148

57

746

1,583

2,459

269

0

548

4,859

1,616

2,852

338

0

523

5,329

1,651

2,782

291

0

534

5,258

498

0

0

0

706

1,204

481

0

0

0

900

1,381

504

0

0

0

552

1,056

FAR WEST Alaska California*

0

0

667

8

8,810

9,485

0

0

547

9

6,376

6,932

0

0

552

8

4,744

5,304

18,658

54,261

7,233

1

6,633

86,786

20,482

64,484

7,783

1

6,652

99,402

22,759

66,522

8,107

1

4,796

102,185 6,096

Hawaii*

2,698

1,541

73

0

1,349

5,661

2,945

1,736

101

0

1,452

6,234

2,825

1,745

87

0

1,439

Nevada

876

0

0

686

1,520

3,082

923

0

0

711

1,499

3,133

970

0

0

727

1,426

3,124

Oregon

0

5,853

431

0

657

6,941

0

6,268

453

0

492

7,213

0

6,634

472

0

469

7,575

7,225

0

0

0

7,649

14,874

7,687

0

0

0

8,062

15,749

8,205

0

0

0

8,079

16,284

$204,048 $278,014

$41,165

$4,488 $145,038

$672,754

$214,619 $305,292

$44,950

$4,590 $150,230

$719,681

$224,847 $308,869

$45,172

$4,347 $146,475

$729,710

Washington* ALL STATES

*See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

93

TABLE 55 ITEMS EXCLUDED FROM REVENUE SOURCES Region/State

Sales and Compensating Use Taxes

Personal Income Taxes

Corporate Income Taxes

Gaming Taxes

Lottery Funds

Cigarette and Tobacco Taxes

Motor Fuel Taxes

Alcoholic Beverage Taxes

Insurance Premium Taxes

Property Taxes

Utility Taxes

Severance Taxes

Federal Funds

Licenses and Fees

Other

NEW ENGLAND Connecticut*

X

Maine*

P

X

X

P

P

X

X

X

X

X

X

X

X

X

P

X

X

P

Massachusetts* New Hampshire

X

X

X

Rhode Island Vermont

P

P

X

X

X

P

MID-ATLANTIC Delaware

X

Maryland New Jersey

P

P

New York

P

P

Pennsylvania

P

X

X

X

X

X

X

P

X

X

X

X

P

X

P

X

X

X

P

P X

P

P

X

P

X

X

P X

X

P

X

P

X

P

P

X

X

P

P

X

P

X

X

X

P

X

X

X

X

X

X

X

X

X

X

X

GREAT LAKES Illinois Indiana Michigan

P

P

Ohio*

X

Wisconsin

X P

P

X

X

X

P

P

P

X

X

P

PLAINS Iowa

P

Kansas

P

Minnesota* Missouri

P P

X

X

X

P

X

P

X

P

P

X

X

X

P

P P

X

X

X

X

P

P

X X

P

P

P

P

Nebraska North Dakota South Dakota

N/A

N/A

P

X

X

X

X

X

X

X

X

SOUTHEAST Alabama

X

Arkansas

X

Florida

X

X

Georgia*

X

Kentucky

N/A

P

X

P

X X

X

X P

X

X

X

X X

X X

X

X

Louisiana North Carolina

P

Tennessee*

X

P

Virginia

X

X

West Virginia

N

P

X

P

X

P

X

Mississippi South Carolina

P

X

X

X

X

X

X

X

P

X

X

X

X

X

X

X

P

P

X

X P

X X

X

X

X

P X

SOUTHWEST Arizona

X

New Mexico Oklahoma

P X

P

Texas*

X

X

P

P

X

P

P

P

X

X

X

P

P

P

P

P

X

P

X

X

X

P

X

X

X

P

P

P

X

X

X

X

P

X

X

P

P

P

X

ROCKY MOUNTAIN Colorado* Idaho Montana

P

X

Utah Wyoming

X

X

X

X

X

X

P

X

X

X

X

X

P

P

X

P

P

X

X

P

X

X

FAR WEST Alaska

X

X

California*

P

P

Hawaii*

P

Nevada Oregon

X

ALL STATES

X

13

X

X

X

P

X

P

X

X

X

X

P

P

N/A

N/A

P

X

P

N/A

P

N/A

P

P

P

X

X

X

P

P

X

X

X

X

X

N/A

Washington

X

P

X

P

X

X

X

X

X

P

X

12

10

28

32

19

36

Excluded=X Partially Excluded=P Not Applicable=N/A *See notes at the end of the chapter.

94

X

X

N at i o n a l A ss o c i at i o n

of

S tat e B u d g e t O f f i c e r s

P

9

8

39

24

X

X

P

28

39

23

14

Revenue Sources in the General Fund Alabama: Fiscal 2012 Other Taxes and Fees includes $266 million from prior year capital gains errors in Alabama Trust Fund. Fiscal 2013 Other Taxes and Fees includes $145M transfer from Alabama Trust Fund per Constitutional Amendment 856. California: Horse racing is partially excluded under gaming taxes. Colorado: The source of fiscal 2011 revenue figures is Table 2 of June 2012 OSPB forecast, while the source for fiscal 2012 and fiscal 2013 is Table 2 of June 2013 OSPB forecast. This “other taxes” area reflects cigarette, tobacco, liquor, estate, insurance, interest income, pari-mutuel, court receipts, and other income. This income is offset by a diversion to the State Education Fund of one-third of 1% of Colorado taxable income, which is required by the Colorado Constitution to be transferred. This sum reduces the amount of “other taxes and fees” by its inclusion in this category. The SEF diversion was estimated at $407.5M in FY 11-12, was $393.9M in FY 10-11, and $372.1M in FY 09-10. Regarding personal income taxes

Massachusetts: Data provides the gross tax revenue figures, before accounting for statutorily required transfers to off-budget funds. Figures do not represent the true discretionary amount available to state budget writers. The statutorily required transfers totaled $3.043 billion in fiscal 2013, including: $786.9 million for the Massachusetts Bay Transportation Authority (MBTA); $682.0 million for the School Building Authority (SBA); $1.552 billion for the pension fund transfer, which represents full funding of the scheduled pension contribution for fiscal 2014; and $22.2 million for the Workforce Training Fund. Michigan: Actual fiscal 2011 and fiscal 2012 amounts reflect general fund non-dedicated revenue as contained in the respective State of Michigan Comprehensive Annual Financial Reports. Revenue figures have been adjusted to put them on a basis comparable to the consensus estimates. Fiscal 2013 estimates are the May 2013 consensus revenue estimates. Ohio: Ohio deposits federal reimbursements for Medicaid expenditures made from the General Revenue Fund into the General Revenue Fund.

and corporate income taxes, one-third of 1% of Colorado tax-

Tennessee: Tennessee collects personal income tax on

able income is required to be transferred to a special fund for

income from dividends on stocks and interest on certain

education each year. Thus, not all income tax revenue is cred-

bonds. Tax revenue estimates do not include federal funds

ited to the General Fund.

and other departmental revenues. However, federal funds

Maine: The December 2012 Revenue Forecast was used to report revenue on the Spring Fiscal Survey of the States for fiscal year 2012-13. The most recent forecast, May 2013, was

and other departmental revenues are included in the budget as funding sources for the general fund, along with state tax revenues.

used to complete this survey for fiscal year 2012-13. Maine

Texas: Texas has no personal/corporate income tax, gaming

historically reports Gaming Revenue in Other Taxes and Fees.

taxes, or statewide property tax.

Maryland: Fiscal 2013 General Fund revenue includes $276.5

Washington: Fiscal 2011 totals are based on the June 2012

million in Budget Restoration Funds used to restore fiscal

revenue forecast document while fiscal 2012 and estimated

reductions, including $247.3 million from individual income

fiscal 2013 are based on the June 2013 revenue forecast

taxes, $7.4 million in corporate income taxes, and $21.8 million

document.

in other sources. Fiscal 2013 General Fund revenue also includes extraordinary revenues of $32.9 million from a GAAP transfer. Motor fuel taxes were partially excluded last year and are fully excluded this year.

S tat e E x p e n d i t u r e R e p o r t

95

96

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S tat e B u d g e t O f f i c e r s

APPENDIX

S tat e E x p e n d i t u r e R e p o r t

97

TABLE A-1 TOTAL STATE EXPENDITURES BY FUND SOURCE (EXCLUDES BONDS) ($ IN MILLIONS) Actual Fiscal 2012

Region/State

Actual Fiscal 2013

Estimated Fiscal 2014

State Funds

Federal Funds

State & Federal Funds

$22,221

$2,631

$24,852

$22,738

$2,613

$25,351

$20,938

$5,501

5,396

2,649

8,045

5,100

2,563

7,663

5,330

2,696

8,026

39,129

16,157

55,286

40,230

15,530

55,760

41,752

15,135

56,887

State Funds

Federal Funds

State & Federal Funds

State Funds

Federal Funds

State & Federal Funds $26,439

NEW ENGLAND Connecticut Maine Massachusetts New Hampshire

3,245

1,650

4,895

3,326

1,604

4,930

3,375

1,703

5,078

Rhode Island

5,110

2,599

7,709

5,189

2,520

7,709

5,259

2,543

7,802

Vermont

3,130

1,831

4,961

3,197

1,695

4,892

3,382

1,771

5,153

Delaware

6,980

1,777

8,757

6,940

1,783

8,723

7,253

1,903

9,156

Maryland

24,857

9,058

33,915

25,936

9,184

35,120

27,479

9,859

37,338

MID-ATLANTIC

New Jersey

36,290

10,998

47,288

37,396

12,041

49,437

39,574

13,566

53,140

New York

89,332

40,311

129,643

91,265

38,574

129,839

92,915

41,171

134,086

Pennsylvania

59,190

24,177

83,367

60,633

23,945

84,578

62,391

23,810

86,201

Illinois

43,717

14,007

57,724

47,861

15,472

63,333

50,392

19,964

70,356

Indiana

16,923

9,272

26,195

17,814

10,357

28,171

17,282

9,978

27,260

GREAT LAKES

Michigan

29,463

17,549

47,012

29,648

17,424

47,072

30,605

20,632

51,237

Ohio

42,765

13,144

55,909

43,435

12,647

56,082

46,043

13,046

59,089

Wisconsin

30,752

10,572

41,324

31,954

10,815

42,769

33,887

11,006

44,893

12,082

6,551

18,633

13,697

5,727

19,424

13,957

6,122

20,079

9,835

4,153

13,988

9,664

3,890

13,554

11,158

3,511

14,669 35,353

PLAINS Iowa Kansas Minnesota

21,435

8,170

29,605

23,829

8,435

32,264

25,861

9,492

Missouri

15,825

7,539

23,364

15,734

7,209

22,943

15,970

7,208

23,178

Nebraska

6,888

2,988

9,876

7,148

3,014

10,162

7,725

2,817

10,542

North Dakota

4,125

1,884

6,009

4,170

1,536

5,706

5,186

1,590

6,776

South Dakota

2,146

1,507

3,653

2,569

1,494

4,063

2,669

1,420

4,089

Alabama

14,835

9,439

24,274

14,814

9,482

24,296

14,605

9,288

23,893

Arkansas

14,275

6,278

20,553

15,160

6,082

21,242

16,077

6,511

22,588

Florida

37,025

24,570

61,595

38,830

24,272

63,102

48,135

25,416

73,551 41,379

SOUTHEAST

Georgia

28,042

12,469

40,511

28,590

13,046

41,636

29,545

11,834

Kentucky

16,962

8,687

25,649

17,672

8,001

25,673

19,221

9,614

28,835

Louisiana

16,152

10,616

26,768

16,698

10,241

26,939

17,683

11,091

28,774

Mississippi

10,092

7,590

17,682

9,973

7,755

17,728

10,479

8,197

18,676

North Carolina

34,757

14,513

49,270

30,183

12,691

42,874

30,996

12,850

43,846

South Carolina

12,681

9,284

21,965

14,408

7,800

22,208

14,445

6,993

21,438

Tennessee

17,359

12,806

30,165

17,658

12,532

30,190

18,832

13,231

32,063

Virginia

32,876

9,212

42,088

35,024

9,546

44,570

35,123

9,568

44,691

West Virginia

17,755

4,064

21,819

18,168

4,075

22,243

19,398

4,412

23,810

15,197

12,299

27,496

15,660

12,008

27,668

16,068

12,837

28,905

8,585

5,790

14,375

8,897

5,799

14,696

10,100

6,126

16,226

SOUTHWEST Arizona New Mexico Oklahoma

13,663

7,122

20,785

14,363

6,923

21,286

14,721

7,425

22,146

Texas

59,435

32,324

91,759

60,804

30,884

91,688

65,373

34,676

100,049

ROCKY MOUNTAIN 21,086

7,691

28,777

21,612

7,423

29,035

22,531

7,756

30,287

Idaho

3,853

2,383

6,236

4,033

2,648

6,681

4,530

2,814

7,344

Montana

3,788

2,131

5,919

3,925

2,115

6,040

4,039

2,149

6,188

Utah

7,781

3,588

11,369

8,745

3,446

12,191

9,263

3,644

12,907

Wyoming

4,203

1,547

5,750

6,778

2,354

9,132

5,563

2,082

7,645

Colorado

FAR WEST 8,722

3,017

11,739

8,558

2,730

11,288

8,620

2,971

11,591

120,258

73,063

193,321

134,286

70,431

204,717

140,239

81,059

221,298 11,760

Alaska California Hawaii

8,796

1,932

10,728

8,937

1,912

10,849

9,612

2,148

Nevada

5,039

2,554

7,593

5,938

2,918

8,856

5,903

2,823

8,726

Oregon

18,932

7,753

26,685

18,220

7,451

25,671

20,175

8,090

28,265

Washington

23,415

8,049

31,464

24,264

8,100

32,364

25,171

9,102

34,273

$1,106,400

$511,945

$1,618,345

$1,151,671

$502,737

$1,654,408

$1,206,830

$541,151

$1,747,981

TOTAL

Note: State funds are defined as general funds and other state funds (bonds are excluded).

98

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S tat e B u d g e t O f f i c e r s

TABLE A-2 CHILDREN’S HEALTH INSURANCE BLOCK GRANTS ($ IN MILLIONS) Actual Fiscal 2012

Actual Fiscal 2013

General Fund

Other State Funds

Federal Funds

Total

$24

$0

$0

10

0

28

Massachusetts

0

0

New Hampshire

8

Estimated Fiscal 2014

General Fund

Other State Funds

Federal Funds

Total

General Fund

Other State Funds

Federal Funds

Total

$24

$26

$0

$0

$26

$29

$0

$0

$29

38

10

0

30

40

3

0

9

13

0

0

0

0

0

0

0

0

0

0

0

14

22

5

0

10

15

4

0

8

12

17

0

34

51

19

0

38

57

15

0

28

43

3

0

9

12

3

0

12

15

3

0

13

16

Delaware

1

6

16

23

2

6

17

25

8

0

18

26

Maryland*

70

6

141

217

77

7

156

240

84

5

165

254

220

111

615

946

245

117

595

957

90

122

368

580

0

350

507

857

0

372

525

897

0

406

604

1010

102

34

310

446

105

32

302

439

118

28

326

472

102

11

210

323

164

10

321

495

136

11

273

419

0

37

84

121

0

37

84

121

0

37

128

165 103

Region/State NEW ENGLAND Connecticut* Maine*

Rhode Island Vermont MID-ATLANTIC

New Jersey* New York Pennsylvania GREAT LAKES Illinois Indiana

20

0

64

84

30

0

98

128

24

0

79

335

0

0

335

365

0

0

365

375

0

0

375

28

3

90

121

33

3

97

133

35

22

144

201

Iowa

34

7

86

127

37

8

91

136

41

8

99

148

Kansas

16

5

48

69

17

4

50

71

16

10

62

88

7

0

22

29

6

0

19

25

8

0

28

36 179

Michigan* Ohio Wisconsin* PLAINS

Minnesota Missouri

28

16

129

173

28

18

126

172

30

16

133

Nebraska

7

9

38

54

13

7

46

67

17

7

53

77

North Dakota

4

0

9

13

4

0

9

13

5

0

9

14

South Dakota

7

0

18

25

8

0

18

26

8

0

18

26

Alabama

35

5

166

206

35

5

159

199

35

5

127

167

Arkansas

25

0

99

124

17

4

81

102

20

0

75

95

Florida

51

105

326

482

46

107

335

488

38

110

326

474

Georgia

78

0

251

329

87

0

285

372

102

0

322

424

Kentucky

36

0

141

177

35

0

135

170

35

0

137

172

Louisiana

50

7

153

210

3

56

162

221

67

0

178

245

Mississippi

36

0

164

200

38

0

165

203

41

0

177

218

North Carolina

78

3

256

337

79

10

236

326

59

1

187

246

South Carolina

25

0

98

123

25

0

98

123

27

0

106

133

Tennessee*

56

6

175

237

63

2

196

261

51

3

162

216

Virginia

72

16

167

256

87

14

189

291

91

14

199

304

West Virginia

12

0

46

58

12

0

45

57

11

0

44

55 41

SOUTHEAST

SOUTHWEST 7

0

27

34

5

11

54

69

3

6

32

New Mexico

32

0

120

153

31

0

111

142

19

0

70

89

Oklahoma

29

2

93

124

38

3

120

161

38

3

124

165

348

0

851

1199

355

0

886

1241

391

0

963

1354 185

Arizona

Texas ROCKY MOUNTAIN

29

36

117

182

13

72

98

183

19

46

121

Idaho

9

0

37

46

11

0

42

53

12

0

45

57

Montana

2

15

55

72

3

18

67

88

3

20

76

100

Utah

5

11

58

74

2

15

56

73

3

15

55

73

Wyoming

5

0

10

15

5

0

10

15

5

0

9

14

Colorado

FAR WEST 10

0

20

30

10

0

20

30

11

0

20

31

468

174

1385

2027

389

144

1074

1607

666

54

1461

2181

Hawaii

15

0

29

44

11

0

21

32

18

0

34

52

Nevada*

10

2

24

36

9

2

25

36

10

1

27

38

Oregon*

29

16

129

174

-3

56

155

208

19

40

206

265

Washington

15

1

25

41

14

1

29

44

15

2

32

49

$2,611

$993

$7,495

$11,099

$2,617

$1,141

$7,497

$11,256

$2,858

$991

$7,880

$11,729

Alaska California

TOTAL

*See notes at the end of the chapter.

S tat e E x p e n d i t u r e R e p o r t

99

Children's Health Insurance Block Grants Connecticut: CHIP appropriation is “gross funded” -- federal funds are deposited directly to the State Treasury. Connecticut’s FMAP is currently at 65% of CHIP benefit costs. Maine: Data for the fiscal 2012 amount includes Medicaid expansion of $17.2 million federal, $6.0 million state, CHIP of $9.4 million federal, $3.2 million state, and administrative expenditures of $2.7 million federal, $1.0 million. Data for the

SCHIP funding. As of January 1, 2010, the ABW program was converted to a Medicaid (Title XIX) financed program. Fiscal 2012 through fiscal 2014 expenditures reflect MiChild expenditures only. Nevada: CHIP medical expenditures are included in Medicaid totals. Starting in 2014, CHIP staff is included in All Other Expenditures. Before 2014, CHIP staff was included in Medicaid totals as well.

fiscal 2013 amount includes CHIP of $10.2 million federal, $3.6

New Jersey: Beginning in FFY14, CHIP parents were moved

million state, and administrative expenditures of $1.5 million

to Medicaid (Title XIX).

federal, $.6 million state. Data for the fiscal 2014 amount includes CHIP of $9.4 million federal and $3.4 million state. Maryland: The CHIP figures for this year are slightly higher due to CHIP expenditures being accounted for in all State agencies, not just the Medical Care Programs Administration. Michigan: Prior to January 2010, Child Health Insurance expenditures were for the traditional SCHIP program for children (“MiChild”) and for the Adult Benefits Waiver (ABW). ABW is a program to provide health care to childless adults using

100

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Oregon: The general fund is -$3 million for SFY 2013. This is the result of the fiscal 11-13 biennial adjustment and the Tobacco Tax application that was applied at the end of the biennium. Tennessee: Tennessee began receiving funds for the Child Health Insurance Block Grant in fiscal 2007. Wisconsin: The actuals for fiscal 2012 and fiscal 2013 have been changed from previous submittals.

TABLE A-3 MEDICARE PART D CLAWBACK PAYMENTS ($ IN MILLIONS) Actual Fiscal 2012

Actual Fiscal 2013

General Fund

Other State Funds

Total

General Fund

Other State Funds

Total

General Fund

Other State Funds

Total

$135

$0

$135

$142

$0

$142

$141

$0

$141

50

0

50

51

0

51

54

0

54

Massachusetts

0

0

0

0

0

0

0

0

0

New Hampshire

34

0

34

35

0

35

32

0

32

Rhode Island

47

0

47

50

0

50

51

0

51

Vermont

24

0

24

26

0

26

26

0

26

Delaware

15

0

15

15

0

15

14

0

14

Maryland

117

0

117

123

0

123

127

0

127

New Jersey

335

0

335

348

0

348

345

0

345

New York

818

0

818

1007

0

1007

949

0

949

Pennsylvania

486

0

486

511

0

511

527

0

527

Illinois

473

0

473

466

0

466

459

0

459

Indiana

92

0

92

102

0

102

106

0

106

Michigan

178

0

178

187

0

187

186

0

186

Ohio

262

0

262

293

293

296

0

296

Wisconsin

160

0

160

160

160

178

0

178

Region/State

Estimated Fiscal 2014

NEW ENGLAND Connecticut Maine

MID-ATLANTIC

GREAT LAKES

0

PLAINS 80

0

80

85

0

85

88

0

88

4

51

55

0

58

58

5

52

57

Minnesota

173

0

173

182

0

182

182

0

182

Missouri

186

0

186

193

0

193

200

0

200

Nebraska

47

0

47

51

0

51

52

0

52

North Dakota

12

1

13

14

1

15

14

1

15

South Dakota

15

0

15

16

0

16

18

0

18

Alabama

15

52

67

9

59

68

42

25

67

Arkansas

39

3

42

41

3

44

44

4

48

Florida

441

0

441

486

0

486

501

0

501

Georgia

131

Iowa Kansas

SOUTHEAST

142

0

142

133

0

133

131

0

Kentucky

0

78

78

0

86

86

0

93

93

Louisiana

91

0

91

105

0

105

115

0

115

Mississippi North Carolina

43

0

43

49

0

49

49

0

49

212

0

212

282

0

282

268

0

268

73

0

73

80

0

80

80

0

80

Tennessee

164

0

164

170

0

170

168

0

168

Virginia

191

0

191

192

0

192

192

0

192

34

0

34

36

0

36

37

0

37

South Carolina

West Virginia SOUTHWEST

100

0

100

81

0

81

86

0

86

New Mexico

24

0

24

25

0

25

26

0

26

Oklahoma

75

0

75

78

0

78

77

0

77

343

0

343

376

0

376

369

0

369

Colorado

63

31

94

52

50

102

67

39

106

Idaho

23

0

23

23

0

23

23

0

23

Montana

15

0

15

16

0

16

16

0

16

Arizona

Texas ROCKY MOUNTAIN

Utah

29

0

29

28

0

28

29

0

29

Wyoming

12

0

12

10

0

10

11

0

11

22

0

22

22

0

22

29

0

29

1367

0

1367

1455

0

1455

1476

0

1476 34

FAR WEST Alaska California Hawaii

28

0

28

33

0

33

34

0

Nevada

28

0

28

29

0

29

20

0

20

Oregon

71

0

71

77

0

77

65

0

65

181

0

181

188

0

188

190

0

190

$7,568

$216

$7,783

$8,134

$257

$8,390

$8,194

$214

$8,408

Washington TOTAL

S tat e E x p e n d i t u r e R e p o r t

101

Methodology

Spending for public assistance, which is examined in chapter

The Fiscal Year 2013 State Expenditure Report reflects three years of data: actual fiscal year 2012, actual fiscal year 2013, and estimated fiscal year 2014. The text of this report focuses on actual fiscal year 2013 data, with a secondary focus on estimated fiscal 2014. Expenditure data are detailed by program area and funding source so that trends in state spending

three, includes expenditures for cash assistance under the Temporary Assistance for Needy Families (TANF) program and other cash assistance (i.e., state supplements to the Supplemental Security Income program, general or emergency assistance). States were asked to exclude administrative costs from reported expenditures.

can be evaluated. Readers are cautioned that a more complete

Medicaid spending amounts, highlighted in chapter four,

understanding of service levels within a given state would

exclude administrative costs, but include spending from state

require comparisons of spending by both state and local gov-

funds, federal matching funds and other funds and revenue

ernments, which is not the purpose of this report. In addition,

sources used as a Medicaid match such as provider taxes,

the data are self-reported by the states.

fees, assessments, donations, and local funds. Medicare Part

This report documents state expenditures in six functional categories: elementary and secondary education, higher educa-

D clawback payments are included in a state’s overall Medicaid expenditures, and are also listed separately in the Appendix.

tion, public assistance including Temporary Assistance for

For corrections, states were asked to include, where applica-

Needy Families and other cash assistance, Medicaid, correc-

ble, expenditures for capital construction, aid to local govern-

tions, and transportation. All other expenditures make up a

ments for jails, parole programs, prison industries, and

seventh category. The report includes expenditures from four

community corrections, as well as expenditures made for

fund sources, including general funds, federal funds, other

juvenile correction programs. States were asked to exclude

state funds, and bonds. States were asked to include spend-

expenditures for drug abuse rehabilitation programs and insti-

ing from the American Recovery and Reinvestment Act of 2009

tutions for the criminally insane. Corrections data can be found

(ARRA) in the federal funds totals for the seven categories.

in chapter five.

Data for each category typically include employer contributions to current employees’ pensions and to employee health benefits for employees.

Transportation figures, detailed in chapter six, include capital and operating expenditures for highways, mass transit, and airports. States were also asked to include expenditures for

Elementary and secondary education spending, detailed in

road assistance to local governments, the administration of the

chapter one, includes state and federal fund expenditures only,

Department of Transportation, truck and train/railroad pro-

and excludes local funds raised for education purposes. States

grams, motor vehicle licensing, and gas tax and fee collection.

also were asked to include, where applicable, state expendi-

The data exclude spending for port authorities, state police

tures that support the state’s Department of Education, trans-

and highway patrol.

portation of school children, adult literacy programs, handicapped education programs, programs for other special populations (i.e., gifted and talented programs), anti-drug programs, and vocational education. States were asked to exclude spending for day care programs in the school system and spending for school health and immunization programs.

The “all other” expenditure category includes all remaining programs not captured in the functional categories previously described, including the Children’s Health Insurance Program and any debt service for other state programs (i.e., environmental projects, housing). States with lotteries were asked to exclude prizes paid to lottery winners. States were also asked

For higher education, states were requested to include expen-

to exclude expenditures for state-owned utilities and liquor

ditures made for capital construction, community colleges,

stores. “All other” expenditure data can be found in chapter

vocational education, law, medical, veterinary, nursing and

seven.

technical schools, and assistance to private colleges and universities, as well as tuition, fees and student loan programs. Higher education expenditures exclude federal research grants and endowments to universities. Higher education data can be found in chapter two.

102

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Capital spending is included with operating expenditures within each functional category, unless otherwise noted. Capital expenditures have also been collected separately in the following categories:

corrections, environmental projects, higher

education, housing, and transportation. Capital expenditure data can be found in Chapter Eight.

Definitions General Fund: predominant fund for financing a state’s oper-

Chapter Nine illustrates the major sources of state revenue

ations. Revenues are received from broad-based state taxes.

including sales taxes, personal income taxes, corporate

There are differences in how specific functions are financed

income taxes, gaming taxes, and other taxes and fees. This

from state to state, however.

chapter only contains information on general fund revenue. Tables included in four of the functional categories reflect expenditures that states have excluded from their reported data. Each table underscores the observation that state-tostate expenditure comparisons in any functional category can be misleading. For example, one state may have included its juvenile institutions in its corrections budget, while another state may have included them in its human resources budget. Comparisons for one state over time, however, should prove accurate. All years reported are state fiscal years unless otherwise indicated. In 46 states the fiscal year begins on July 1 and ends on June 30. The exceptions are as follows: in Texas, the fiscal year begins on September 1; in Alabama and Michigan the

Federal Funds: funds received directly from the federal government. Other State Funds: expenditures from revenue sources, which are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the “Other State Funds” column (Note: For Medicaid, other state funds include provider taxes, fees, donations, assessments and local funds). Bonds: expenditures from the sale of bonds, generally for capital projects. State Funds: general fund plus other state fund spending, excluding state spending from bonds.

fiscal year begins on October 1; and in New York, the fiscal year begins on April 1. Additionally, the length of budget cycles vary among states, with more than half of the states budgeting annually and the remainder enacting biennial budgets.

S tat e E x p e n d i t u r e R e p o r t

103

C o p y r i g h t © 201 4

by the

N at i o n a l A s s o c i at i o n

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of

S tat e B u d g e t O f f i c e r s

S T A T E

STATE EXPENDITURE REPORT

Founded 1945

E X P E N D I T U R E R E P O R T

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of

s tat e b u d g e t o f f i C e r s

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F i s c a l Ye a r 2 0 13

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