U.S. Census Bureau
operated by 17 state governments.
The insurancetrust activities consist o state medical and disabilityunds, public pensions systems or state governmentemployees, and specied government social and lieinsurance programs, such as unemployment compen-sation, workers’ compensation, and state medical anddisability unds.
STATE GOVERNMENT FINANCES SUMMARY
Finances o state governments are closely tied toprevailing economic conditions. The economic reces-sion that began in the rst quarter o 2008 and lastedthrough the second quarter o 2009 created scal stressor all levels o government. Since this time, states havebeen making a slow but steady scal recovery. Stategovernments play several roles in the intergovernmen-tal scal system, including creator and nancier o some local government services; conduit or, and redis-tributor o ederal unds; as well as providing directpublic services such as health and hospitals, publicsaety, and highways.General revenue and general expenditure compriseactual receipts and payments o a government and itsagencies (net o correcting transactions and recoveriesor reunds), excluding government-operated enterprises,utilities, and public trust unds. Transactions excludedas general revenue or general expenditure include debtissuance and debt retirement; loans and investments;agency- and private-trust transactions; and internaltransers between unds o a government. Aggregatesor groups o governments exclude intergovernmentaltransactions between the governments involved.
$1,652.6 billion in scal year 2011, an increase o 5.7 percent rom scal year 2010. General rev-enue increased 4.0 percent rom 2007 to 2008,decreased 1.0 percent rom 2008 to 2009, andincreased 4.6 percent rom 2009 to 2010. Themajor revenue sources and share o general revenuein 2011 were taxes (45.9 percent), ederal grants(34.7 percent), and service charges (11.0 percent).
totaled $1,652.9 billion, an increase o 3.7 percentrom scal year 2010. During 2011, 29.8 percent o state general expenditure was in the orm o grantsand aid to local governments (including independent
The state governments with liquor store operations are Alabama,Idaho, Iowa, Michigan, Mississippi, Montana, New Hampshire, NorthCarolina, Ohio, Oregon, Pennsylvania, Utah, Vermont, Virginia,Washington, West Virginia, and Wyoming.
For more inormation, please reer to the
Government Financeand Employment Classifcation Manual
school district governments), thereby underliningthe states’ role as a nancial resource or their sub-ordinate governments. Capital outlay accounted or7.0 percent o general expenditure. Expenditure oreducation and public welare, together, comprisedover 65.9 percent o all state government generalexpenditure, accounting or 35.8 percent and 30.1percent, respectively. Expenditure on highwayswas the next most nancially signicant activity,accounting or 6.6 percent o general expenditure.
and short term) was $1,132.5 billion at the end o 2011, an increase o 1.5 percent rom 2010. Thisaspect o state nances, however, does not havenearly the impact o the local (or ederal) govern-ment debt burdens. The state government total, orexample, was only 39.4 percent o the state andlocal government total ($2,829.1 billion in govern-ment debt or 2010).
billion in 2011. However, the states dedicated mosto this money to specic purposes, such as redemp-tion o long-term debt (13.4 percent o total cashand security holdings). The single largest portion o these assets, $2,437.0 billion, or 66.5 percent, washeld in state government-employee retirement trustsystems, making this accumulation o unds a majorsource o investment capital. Only 1.4 percent washeld or capital improvements.
STATE GOVERNMENT REVENUE
Taxes consist o compulsory contributions exacted bygovernments or public purposes—including generalrevenue and/or regulation. However, this reportingcategory excludes employer and employee paymentsor retirement and social insurance purposes (classedas insurance trust revenue) and special assessments,which are classied as nontax general revenue.Taxes were the single largest source o general rev-enues or state governments (Figure 1). In 2011, taxescomprised 45.9 percent o general revenues, totaling$757.9 billion. This was an increase o 8.0 percent rom
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Service charges, $181.1 billion in 2011, increased 6.6percent rom 2010.
Source: U.S. Census Bureau, 2011 Annual Survey o StateGovernment Finances.