State Expenditure Report

This annual report examines spending in the functional areas of state budgets: elementary and secondary education, higher education, public assistance, Medicaid, corrections, transportation, and all other. It also includes data on capital spending by program area, as well as information on general fund and transportation fund revenue collections.

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Staff Contact

Brian Sigritz
202-624-8439
bsigritz@nasbo.org

Overview: Fiscal 2020-2022

In fiscal 2022, total state spending (including general funds, other state funds, bonds, and federal funds) rose 7.3 percent.
The overall increase in total state spending in fiscal 2022 was largely driven by general fund spending, which grew 18.1 percent, the highest rate in the 36-year history of the State Expenditure Report.

The increase mainly derives from states spending down surplus funds, largely for one-time purposes, following two consecutive years of strong revenue growth.

Federal funds declined by 0.2 percent in fiscal 2022, although their levels remain elevated.

The decline is due to several factors including the high baseline established in fiscal 2021, less federal fund spending from several heavily populated states, and reduced unemployment insurance benefit payments.

In fiscal 2021, total state spending grew 16.2 percent, the highest rate on record.

The large increase in total state spending, led by 37 percent growth in federal funds to states, is directly related to COVID-19 pandemic response and recovery efforts.

Among program areas, transportation spending had the highest growth rate in fiscal 2022 at 19.5 percent, while the “all other” category saw the largest gains in fiscal 2021 growing 30.3 percent.

State revenues have experienced double-digit growth two years in a row.

In fiscal 2022, state general fund revenues are estimated to have grown 15.9 percent while revenues increased 16.6 percent in fiscal 2021.

Full Report

Report Summary