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F F I C E R S

Published Fall 2008

Founded 1945

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. Association
membership is organized into four standing committees—Health,
Human Services, and Justice; Financial Management, Systems, and Data
Reporting; Tax, Commerce, Physical Resources, and Transportation;
and Training, Education, and Human Resources Management.
NASBO is an independent professional and educational association
and is also an affiliate of the National Governors Association.
2007-2008 Executive Committee

2008-2009 Executive Committee

F. Mike Stormes, Arkansas, President

Richard Brown, Virginia, President

Donald Hill, New Hampshire, Past President

F. Mike Stormes, Arkansas, Past President

Richard Brown, Virginia, President-Elect

Bill Newton, Alabama, President-Elect

Georgina Kawamura, Hawaii, Member-at-Large

Georgina Kawamura, Hawaii, Member-at-Large

Bill Newton, Alabama, Member-at-Large

John Hicks, Kentucky, Member-at-Large

Rosemary Booth Gallogly, Rhode Island, Eastern Regional Director

Jennifer Davis, Delaware, Eastern Regional Director

Tom Hanson, Minnesota, Midwestern Regional Director

J. Pari Sabety, Ohio, Midwestern Regional Director

John Nixon, Utah, Western Regional Director

John Nixon, Utah, Western Regional Director

John Hicks, Kentucky, Southern Regional Director

David Treasure, Maryland, Southern Regional Director

Mike Genest, California, Chair, Health, Human Services, and

Dannette Burch, New Mexico, Chair, Health, Human Services, and

Justice Committee
Dave Goetz, Tennessee, Chair, Financial Management, Systems, and
Data Reporting Committee
Andrew Clinger, Nevada, Chair, Tax, Commerce, Physical Resources, and
Transportation Committee
David McCoy, North Carolina, Chair, Training, Education, and
Human Resources Management Committee
Michael Masch, Pennsylvania, Chair, Performance Management
Liaison Committee

Scott D. Pattison, Executive Director

Copyright © 2008 by the National Association of State Budget Officers.
National Association of State Budget Officers
444 North Capitol Street, NW, Suite 642
Washington, DC 20001-1511
Tel: (202) 624-5382 • Fax: (202) 624-7745
www.nasbo.org
Price: $40.00

Justice Committee
Jim Schowalter, Minnesota, Chair, Financial Management, Systems, and
Data Reporting Committee
George Naughton, Oregon, Chair, Tax, Commerce, Physical Resources, and
Transportation Committee
Andrew Clinger, Nevada, Chair, Training, Education, and
Human Resources Management Committee

TA B L E O F C O N T E N T S
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
General Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
Elementary & Secondary Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
Elementary & Secondary Education Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
Higher Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Higher Education Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Public Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
Other Cash Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
Public Assistance Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
Medicaid Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
Medicaid Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
Corrections Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53
Corrections Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
Transportation Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
All Other Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
All Other Expenditure Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77
Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .79
Capital Spending Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .89
Revenue Sources in the General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .91
Revenue Sources in the General Fund Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97
Child Health Insurance Block Grants Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100
Medicare Part D Clawback Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102
Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103

TABLES
1. Total State Expenditures – Capital Inclusive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
2. Annual Percentage Change in Total State Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
3. Comparison of Shares of State Spending With Fund Sources, Fiscal 1995 to 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
4. Regional Percentage Change in Total Expenditures, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
5. State Spending by Function As a Percent of Total State Expenditures, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
6. Regional Percentage Change in State Elementary and
Secondary Education Expenditures, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

2007 STATE EXPENDITURE REPORT [III]

TA B L E

OF

CONTENTS (CONTINUED)

7. Elementary and Secondary Education Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
8. Elementary and Secondary Education Expenditures As
a Percent of Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
9. Annual Percentage Change in Elementary and Secondary Education Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
10. Items Excluded from Elementary and Secondary Education Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
11. Regional Percentage Change in State Higher Education
Expenditures, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
12. Higher Education Expenditures – Capital Inclusive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
13. Higher Education Expenditures As a Percent of Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
14. Annual Percentage Change in Higher Education Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
15. Items Excluded from Higher Education Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
16. Regional Percentage Change in State Total Public Assistance
Expenditures, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
17. Regional Percentage Change in State TANF Expenditures, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
18. Total Public Assistance Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
19. Total Public Assistance Expenditures As a Percent of Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
20. Annual Percentage Change in Total Public Assistance Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
21. Cash Expenditures under Temporary Assistance to Needy Families
Expenditures (TANF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
22. TANF Expenditures for Cash Assistance As a Percent of Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
23. Annual Percentage Change in TANF Cash Assistance Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
24. Other Cash Assistance Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
25. Other Cash Assistance Expenditures As a Percent of Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
26. Annual Percentage Change in Other Cash Assistance Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
27. Regional Percentage Change in State Medicaid Expenditures, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
28. Medicaid Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47
29. Medicaid Expenditures As a Percent of Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48
30. Annual Percentage Change in Medicaid Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
31. Regional Percentage Change in State Corrections Expenditures, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
32. Corrections Expenditures – Capital Inclusive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56
33. Corrections Expenditures As a Percent of Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
34. Corrections General Fund Expenditures As a Percent of
Total General Fund Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58
35. Annual Percentage Change in Corrections Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
36. Items Excluded from Corrections Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60
37. Regional Percentage Change in State Transportation Expenditures, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
38. Transportation Expenditures – Capital Inclusive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66

[IV] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

TA B L E

OF

CONTENTS (CONTINUED)

39. Transportation Expenditures As a Percent of Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67
40. Annual Percentage Change in Transportation Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
41. Items Excluded from Transportation Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
42. Regional Percentage Change in State All Other Expenditures, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
43. All Other Expenditures – Capital Inclusive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
44. All Other Expenditures As a Percent of Total Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .74
45. Annual Percentage Change in All Other Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
46. Items Excluded from All Other Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .76
47. Total Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82
48. Higher Education Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .83
49. Corrections Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84
50. Transportation Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
51. Environmental Projects Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .86
52. Housing Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87
53. All Other Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88
54. Revenue Sources in the General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93
55. Items Excluded from Revenue Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94
A-1. Total State Expenditures By Fund Source (Excludes Bonds) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98
A-2. Child Health Insurance Block Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
A-3. Medicare Part D Clawback Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101

FIGURES
1. Total State Spending by Fund Source, Fiscal 1987 to 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
2. All Funds Percent Changes From Previous Fiscal Year For Major Spending
Categories, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
3. Total State Expenditures By Funding Source, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
4. Total State Expenditures By Function, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
5. Composition of Total State Expenditures By Function, Fiscal 1987 to 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
6. General Fund Expenditures, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
7. Percent Change in General Fund, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
8. Federal Fund Expenditures, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
9. Regional Percent Change in State Funds, Fiscal 2007 and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
10. State Expenditures for Elementary and Secondary Education
by Fund Source, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
11. State Expenditures for Higher Education by Fund Source, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
12. State Expenditures for Total Public Assistance by Fund Source, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

2007 STATE EXPENDITURE REPORT [V]

TA B L E

OF

CONTENTS (CONTINUED)

13. State Expenditures for Temporary Assistance for Needy Families
by Fund Source, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
14. Actual and Projected Total Medicaid Spending, 1970 to 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
15. Actual and Projected State Medicaid Spending, 1970 to 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
16. State Expenditures for Medicaid by Fund Source, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46
17. State Expenditures For Corrections by Fund Source, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54
18. State Expenditures for Transportation by Fund Source, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64
19. State Expenditures for All Other Programs by Fund Source, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
20. Capital Expenditures by Type, Fiscal 1991 to 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
21. Annual Percentage Change in Total Capital Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
22. Total Capital Expenditures by Funding Source, Fiscal 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81
23. Revenue Sources in the General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92

[VI] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

P R E FAC E
Since its inception in 1987, the State Expenditure Report has
developed into a definitive baseline for the analysis of state
spending. This edition of the report includes data from actual fiscal
2006, actual fiscal 2007, and estimated fiscal 2008. Expenditures
reflected in this report represent more than 99 percent of total
state spending.
Expenditure data are detailed by program area so that trends in
state spending can be evaluated. The funding sources for state
expenditures also are identified. Readers are cautioned that a more
complete understanding of service levels within a given state would
require comparisons of spending by both state and local
governments, which is not the purpose of this report. In addition,
the data are self-reported by the states. Further information on the
report’s methodology is provided in the Appendix.

2007 STATE EXPENDITURE REPORT [VII]

A C K N OW L E D G E M E N T S
The State Expenditure Report was produced by Brian Sigritz with
assistance from Lauren Cummings, Ben Husch, and Stacey Mazer. In
addition, the report represents substantial work by state budget office
staff throughout the United States. NASBO thanks these individuals for
their assistance in providing state data for this report:
Ann Franklin, Alabama

Amy Sassano, Montana

Barbara Towne, Alaska

Lyn Heaton, Nebraska

Norm Selover, Arizona

Reese Tietje, Nevada

Josh Joyner, Arkansas

Joseph Bouchard, New Hampshire

Heather White, California

Gary Brune, New Jersey

Luke Huwar, Colorado

Cathy Nonamaker, New Jersey

Alexis Senger, Colorado

Dannette Burch, New Mexico

Gregg Blackstone, Connecticut

Christopher Warner, New York

John Nauman, Delaware

Julie Mitchel, North Carolina

Jeanine Mathis, Florida

Sheila Peterson, North Dakota

Robert Giacomini, Georgia

Jeff Newman, Ohio

Karen Matsunaga, Hawaii

Brandy Manek, Oklahoma

Keith Shimada, Hawaii

Linda Ames, Oregon

Anita Hamann, Idaho

Ann Bertolino, Pennsylvania

Gladyse Taylor, Illinois

Daniel Orgel, Rhode Island

Adam Horst, Indiana

Lindsay Moon, South Carolina

Christina Miller, Indiana

David Seigler, South Carolina

Joel Lunde, Iowa

Tamara Darnall, South Dakota

Elaine Frisbie, Kansas

Jim Terwilliger, South Dakota

Sandy Russell, Kansas

Susan Irby, Tennessee

John Hicks, Kentucky

Jackie King, Texas

Ternisa Hutchinson, Louisiana

Michael Sparks, Texas

Tom Cusick, Maine

Stephen Jardine, Utah

Kurt Stolzenbach, Maryland

Karen Jaquish, Vermont

Rob Dolan, Massachusetts

Mike Barton, Virginia

Colleen Gossman, Michigan

Emily Ward, Virginia

Nancy Rooney, Minnesota

Pam Davidson, Washington

Gerald Joyner, Mississippi

Angela Leshon, West Virginia

Katherine Connor, Missouri

Caitlin Morgan Fredrick, Wisconsin

Marty Drewel, Missouri

Folbert Ware, Wyoming

[VIII] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

E X E C U T I V E S U M M A RY

Founded 1945

S t a t e S p e n d i n g Tr e n d s , F i s c a l 2 0 0 7

Both Medicaid and elementar y and secondar y education
accounted for 21.2 percent of total state expenditures in fiscal

Similar to fiscal 2005 and 2006, states experienced stable

2007. This represents a change from fiscal 2006 when total

expenditure and revenue growth in fiscal 2007. States continued

Medicaid spending, at 21.4 percent, was slightly greater than

their revenue recovery from the slowdown of the early 2000’s, and

elementary and secondary education spending, at 21.2 percent.

were able to increase spending in areas that had been neglected

Medicaid growth has slowed slightly in recent years. In fiscal 2007,

during the fiscal downturn. Both spending and revenue totals

total Medicaid spending increased 6.1 percent, compared to total

increased for states in almost all categories. Total state spending

K-12 spending which increased 7.3 percent.

in fiscal 2007 was more than $1.4 trillion, including both operating
and capital expenditures. Compared to the previous year, that figure

When looking only at general fund spending, elementary and

reflects a 7.1 percent increase in state spending from all sources,

secondary education remains the largest category at 34.5 percent,

with state funds growing by 7.8 percent and federal funds by

with Medicaid second at 16.9 percent. Those two categories,

3.3 percent (see Tables 1 and 2). Estimates for fiscal 2008 reflect an

combined with higher education at 11.2 percent, account for nearly

8.2 percent increase in total state expenditures, with state funds up

two-thirds of general fund spending.

by 7.3 percent and federal funds 10.6 percent higher. Since 1987,
total state expenditures have increased by an average of 6.5 percent.
It should be noted that twenty-one states use a biennial budget

Other details of state expenditures include:

General funds accounted for 45.4 percent of total fiscal 2007

cycle, and in many cases funds are not expended evenly in the

state spending, federal funds were 26.5 percent, other state

two-year cycle. This may affect total expenditures in some states

funds were 25.5 percent, and bonds reflected 2.7 percent of

from year to year.

the total. Figure 1 displays state spending by source from fiscal
1987 through fiscal 2007.

Total general fund revenues grew by 5.2 percent in fiscal 2007,
totaling nearly $642 billion. This was less than the 8.9 revenue

Higher education experienced stable growth in fiscal 2007.

growth of fiscal 2006. Corporate income tax revenues saw the

Total expenditures grew 6.6 percent in fiscal 2007 and are

largest growth in fiscal 2007 at 11.4 percent, while personal income

estimated to grow 6.2 percent in fiscal 2008.

tax revenues grew at 7.6 percent, and sales tax revenue grew at
3.6 percent. General fund revenue growth is estimated to slow to

Total public assistance spending decreased by 0.3 percent in

2.6 percent in fiscal 2008. Furthermore, the economic events of the

fiscal 2007, but is estimated to increase by 3.4 percent in fiscal

second-half of calendar year 2008 indicate that both state

2008. Public assistance represented 1.7 percent of total state

expenditure and revenue growth will likely slow in the coming years.

expenditures in fiscal 2007.

Figure 1
ToTal STaTe SpendIng by Fund Source,
FIScal 1987 To 2007

Total corrections expenditures rose by 9.7 percent in fiscal
2007, and reflects 3.4 percent of total state spending.


1,600,000

Transportation spending—8.4 percent of total state
expenditures—increased by 11.2 percent in fiscal 2007. State

Bonds

spending for transportation comes mostly from “other state

1,400,000

Amount in Millions

funds,” which in fiscal 2007 comprised 55 percent of the total.
1,200,000

General funds reflect only 5.6 percent of state transportation

Other
State
Funds

1,000,000

expenditures.

800,000
Federal Funds

State spending on capital projects grew by 16.1 percent in
fiscal 2007, and is estimated to grow by 8.1 percent in 2008.
This follows a period of little or no capital growth during the

600,000

fiscal downturn of the early 2000’s.
400,000
General Fund

200,000

99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07

19

97

98

19

95
19
96

19

19

93

94

19

19

91

92

19

89
19
90

19

19

19

87
19
88

0
Fiscal Year
[2] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Figure 2
all FundS percenT changeS From preVIouS FIScal year
For major SpendIng caTegorIeS, FIScal 2007 and 2008

Higher Education

6.6

within a given state would require comparisons of spending by both

6.2

state and local government, which is not the purpose of this report.
In addition, because the data are self-reported by the states, some

3.4

may be incomplete. These omissions can affect aggregate and
regional tables.

6.1
5.5

Medicaid

While state balanced budget requirements are diverse, and

9.7

Corrections

governors are given significant powers to ensure a balanced budget,

8.1

states operate within stricter revenue/expenditure limitations than

11.2

Transportation

the federal government. An overwhelming majority of states

3.7

require their governor to submit, and their legislature to pass, a

6.8

All Other

12.9

Total
0

3

6

9

balanced budget. States are required to make spending choices
within available resources and must either reduce spending, raise

7.1
8.2
-3

function. Some states, such as Hawaii, are exceptions; in Hawaii the
A more complete understanding of programs and service levels

-0.3

Public Assistance

elementary and secondary education is considered primarily a local
state government fully funds elementary and secondary education.

7.3
6.5

E & S Education

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

taxes, or use reserves when revenues come in below estimates. For
12

15

the most part, states cannot incur a deficit, and must monitor their
debt financing in order to avoid jeopardizing their bond ratings.

2006-2007

2007-2008

Definitions
Components of State Expenditures
General funds: The predominant fund for financing a state’s
This report includes three years of state expenditure data: actual

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

fiscal 2006, actual fiscal 2007, and estimated fiscal 2008. The text

There are differences in how specific functions are financed from

focuses on actual fiscal 2007 and examines the seven main

state to state, however.

functional categories of state spending: elementary and secondary
education, higher education, public assistance, Medicaid, corrections,

Federal funds: Funds received directly from the federal

transportation, and “all other.” (“All other” is a broad category that

government.

includes state functions not tracked individually in this report, such
as hospitals, economic development, housing, environmental
programs, health programs and the State Child Health Insurance
Program, parks and recreation, natural resources, air transportation,
and water transport). Capital spending is included with operating
expenditures within each functional category, unless noted
otherwise. Capital expenditures also have been collected separately

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 trust fund
would appear in the “Other State Funds” column. For Medicaid,
other state funds include provider taxes, fees, donations,
assessments, and local funds.

in the following categories: corrections, environmental projects,

Bonds: Expenditures from the sale of bonds, generally for capital

higher education, housing, transportation, and “all other”.

projects.

State governments have specific functional responsibilities that vary

State funds: General funds plus other state fund spending,

among states depending on the role of local governments in

excluding state spending from bonds.

2007 STATE EXPENDITURE REPORT [3]

Fiscal 2007 spending by fund source is detailed in Figure 3. Spending
from state general funds was 44.7 percent of total expenditures
in fiscal 2006, 45.4 percent in fiscal 2007, and is estimated to be

Figure 5
compoSITIon oF ToTal STaTe expendITureS by FuncTIon,
FIScal 1987 To 2007

44.3 percent of total spending in fiscal 2008. The share of state
spending from federal funds was 27.4 percent of total spending

1,600,000

in fiscal 2006, 26.5 percent in fiscal 2007, and is estimated at
1,400,000

27.1 percent in fiscal 2008.

All Other

Figure 3
ToTal STaTe expendITureS by FundIng Source,
FIScal 2007

Other State Funds
25.5%
Federal Funds
26.5%
Bonds
2.7%

Amount In Millions

1,200,000
1,000,000

Transportation
Corrections

800,000

Medicaid
600,000
400,000

Public Assistance
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

0
Fiscal Year

The shares of state spending for the seven functional areas tracked
General Funds 45.5%

in the State Expenditure Report have shifted since 1987, when it was
first published. For example, Medicaid surpassed higher education
as the second largest state program in 1990, and in 2003 it became
the largest, displacing elementary and secondary education. In fiscal

Figure 4 reflects total state expenditures by functional areas. For

2007, total spending on Medicaid equaled that of elementary and

fiscal 2007, state spending shares are as follows: 21.2 percent for

secondary education. Figure 5 documents the changes in state

Medicaid; 21.2 percent for elementary and secondary education;

expenditures by category since 1987. Table 3 reflects shares of state

10.5 percent for higher education; 8.4 percent for transportation;

spending on functional areas, by fund source, from 1995 to 2008.

3.4 percent for corrections; 1.7 percent for public assistance; and

Also, Table 5, at the end of the Executive Summary, highlights the

33.6 percent for all other.

share of each state’s budget represented by various programs in
fiscal 2007 and shows the wide variation among states in their
spending patterns.

Figure 4
ToTal STaTe expendITureS by FuncTIon,
FIScal 2007
Medicaid
21.2%
Corrections
3.4%
Transportation
8.4%

All Other
33.6%

[4] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Public Assistance
1.7%
Higher Education
10.5%

Elementary
& Secondary Education
21.2%

General Fund Expenditures

Figure 7 reflects the percentage change for general fund spending
in each of the functional categories. It should be noted that while

Expenditures for elementary and secondary education continue

the percent change in general fund transportation expenditures

to constitute the largest share of the general fund. As Figure 6

for fiscal 2007 is rather large (34.9 percent), total transportation

shows, in fiscal 2007, 34.5 percent of general fund spending went

expenditures (capital inclusive) increased by a more modest 11.2

to elementary and secondary education. Medicaid accounted for

percent. The difference is because general funds only account for a

16.9 percent and higher education accounted for 11.2 percent of

relatively minor 5.6 percent of total transportation expenditures in

general fund spending.

fiscal 2007 (see Table 38).

Figure 6
general Fund expendITureS,
FIScal 2007

Other State Funds Expenditures
At 18.2 percent, transportation accounts for the second largest

Medicaid
16.9%

Public Assistance
1.9%
Higher Education

portion of other state funds spending for fiscal 2007, second only
to the “all other” category. For transportation, these funds largely

11.2%

represent receipts from gasoline taxes earmarked for highways.
Corrections
6.7%

Significant portions of spending from other state funds also includes
elementary and secondary education at 8.4 percent and higher

Transportation
1.0%

education at 14.5 percent (see Table 3).

All Other
27.7%

Elementary &
Secondary Education
34.5%

Figure 7
percenT change In general Fund,
FIScal 2007 and 2008

8.8
E & S Education

5.6
7.3

Higher Education

8.2
0.9

Public Assistance

-0.3
5.4

Medicaid

5.8
9.5

Corrections

7.8
34.9

Transportation

-20.5
10.8

All Other

5.2
-25

-20

-15

-10

-5

0

2006-2007

5

10

15

20

25

30

35

2007-2008
2007 STATE EXPENDITURE REPORT [5]

Table 1
ToTal STaTe expendITureS—capITal IncluSIVe ($ In mIllIonS)

General
Fund

Region/State

Actual Fiscal 2006
Other
Federal
State
Funds
Funds Bonds

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$14,502
2,824
25,601
1,346
3,073
1,136

$1,189
2,361
2,466
1,415
1,981
1,214

$3,182
1,845
9,430
1,620
1,453
2,553

$1,609
70
1,682
90
133
43

$20,482
7,100
39,179
4,471
6,640
4,946

$15,294
3,024
27,586
1,391
3,218
1,200

$1,540
2,190
2,557
1,409
1,864
1,250

$3,876
1,912
9,853
1,682
1,468
2,661

$2,088
70
1,780
58
182
37

$22,798
7,196
41,776
4,540
6,732
5,148

$16,340
3,110
27,278
1,480
3,370
1,229

$1,684
2,501
2,388
1,420
2,040
1,281

$3,495
1,769
10,175
1,690
1,615
2,662

$1,926
138
1,349
75
274
49

$23,445
7,518
41,190
4,665
7,299
5,221

3,193
12,356
28,033
46,495
24,665

1,029
6,214
8,420
34,618
17,305

3,121
7,618
4,791
21,373
11,262

222
680
1,060
1,855
680

7,565
26,868
42,304
104,341
53,912

3,390
14,204
30,284
51,591
26,298

1,174
6,368
8,751
35,453
17,820

3,160
8,184
4,991
23,476
11,906

224
713
1,367
2,244
898

7,948
29,469
45,393
112,764
56,922

3,281
14,462
32,638
53,385
27,206

1,169
6,673
9,609
34,680
18,474

3,411
8,832
5,258
26,122
13,446

210
841
1,584
1,869
737

8,071
30,808
49,089
116,056
59,863

19,470
11,911
9,248
24,866
12,386

10,685
6,683
11,499
8,616
7,166

12,373
2,844
20,535
18,536
13,930

894
192
447
1,430
0

43,422
21,630
41,729
53,448
33,482

20,846
12,247
9,186
23,766
13,106

11,398
7,107
11,853
9,181
7,246

13,372
3,406
20,906
18,807
13,904

599
37
625
1,414
0

46,215
22,797
42,570
53,168
34,256

22,165
12,730
9,898
24,623
13,446

12,091
7,818
14,040
8,832
7,536

13,198
3,380
19,726
20,653
15,109

369
161
175
753
0

47,823
24,089
43,839
54,861
36,091

4,989
5,139
16,117
7,126
2,915
966
1,006

3,922
3,265
5,628
5,539
2,303
1,263
1,177

5,680
2,821
3,518
6,641
2,755
1,017
776

78
208
494
383
0
49
20

14,669
11,433
25,757
19,689
7,973
3,295
2,979

5,363
5,608
16,517
7,800
3,126
1,012
1,058

3,959
3,131
5,965
5,333
2,366
1,239
1,200

5,678
2,985
3,911
7,034
2,670
1,050
791

69
245
709
863
0
68
10

15,069
11,969
27,102
21,030
8,162
3,369
3,059

5,859
6,112
17,864
8,449
3,491
1,202
1,147

4,467
3,582
6,394
6,361
2,804
1,180
1,367

5,953
3,122
3,981
7,725
3,279
1,158
866

86
281
695
445
0
62
18

16,365
13,097
28,934
22,980
9,574
3,602
3,398

12,859
3,783
25,904
15,632
8,333
7,750
3,654
17,196
5,640
9,421
14,512
3,559

10,344
4,602
18,750
9,775
6,767
8,166
5,828
10,163
6,521
9,137
5,960
3,277

10,240
6,859
15,274
8,191
5,392
6,891
3,285
7,237
5,680
4,563
10,557
13,354

232
59
1,651
923
0
189
245
370
119
257
893
213

33,675
15,303
61,579
34,521
20,492
22,996
13,012
34,966
17,960
23,378
31,922
20,403

14,807
4,026
27,680
16,880
8,781
9,327
3,900
18,662
6,565
10,182
16,546
3,714

10,399
4,594
18,849
10,664
7,051
11,151
7,424
11,069
6,680
9,211
6,244
3,263

10,935
7,439
16,282
8,831
6,448
8,820
3,551
9,136
6,633
4,906
10,946
11,342

278
54
3,301
999
0
175
427
803
111
461
1,097
223

36,419
16,113
66,112
37,374
22,280
29,473
15,302
39,670
19,989
24,760
34,833
18,542

16,535
4,346
28,063
18,565
9,444
9,713
4,163
20,376
7,406
12,196
16,523
3,857

12,377
6,219
19,615
10,012
7,690
19,836
8,598
17,316
7,345
9,637
6,336
3,489

13,948
8,413
19,371
9,071
8,436
10,623
3,768
9,353
6,527
5,166
11,606
11,297

563
210
3,311
1,031
0
281
198
200
0
296
848
277

43,423
19,188
70,360
38,679
25,570
40,453
16,727
47,245
21,278
27,295
35,313
18,920

8,676
5,415
5,322
34,866

8,289
4,098
5,336
24,710

7,933
2,894
5,441
10,384

478
490
277
3,410

25,376
12,897
16,376
73,370

10,478
5,966
5,949
39,002

9,207
4,226
5,690
24,485

7,220
3,428
7,363
11,665

536
844
325
5,871

27,441
14,464
19,327
81,023

10,059
6,016
7,000
43,595

10,083
4,588
5,593
26,330

8,107
2,964
7,667
15,994

388
673
628
3,731

28,637
14,241
20,888
89,650

6,291
2,217
1,558
4,223
1,883

3,571
1,811
1,528
2,401
1,366

5,771
993
1,384
2,275
2,361

0
9
0
5
0

15,633
5,030
4,470
8,904
5,610

6,815
2,589
1,657
4,711
3,098

3,776
1,804
1,544
2,369
457

6,121
1,054
1,502
2,794
1,550

0
9
0
111
0

16,712
5,456
4,703
9,985
5,105

7,240
2,844
1,972
5,784
3,132

3,987
2,138
1,768
2,471
475

6,766
1,438
1,905
3,223
1,350

0
9
0
1,100
0

17,993
6,429
5,645
12,578
4,957

3,145
91,592
4,679
2,891
6,085
13,623

2,856
53,569
1,539
1,745
4,504
6,097

3,336
22,716
2,854
2,707
9,424
6,880

304
5,304
403
230
209
1,239

9,641
173,181
9,475
7,573
20,222
27,839

4,335
101,413
5,381
2,903
5,646
14,144

3,002
52,935
1,645
1,861
4,419
6,326

3,910
22,554
3,153
3,079
9,983
7,723

299
6,001
474
354
246
1,750

11,546
182,903
10,653
8,197
20,294
29,943

5,080
103,542
5,360
3,195
7,223
14,601

2,862
58,669
1,947
1,503
5,087
6,799

4,536
28,719
4,508
2,635
10,888
8,720

26
12,767
844
409
198
2,225

12,504
203,697
12,659
7,742
23,396
32,345

$600,072

$368,668

$344,550

$29,828 $1,343,118

$652,272

$380,699

$366,051

$39,049

$1,438,071

$688,595

$421,161

$403,624

$42,310

$1,555,690

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL*

Note: See General Notes at the end of this chapter.
Source: National Association of State Budget Officers, 2007 State Expenditure Report

[6] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 2
annual percenTage change In ToTal STaTe expendITureS
Fiscal 2006 to 2007
Region/State

State
Funds

Federal
Funds

Fiscal 2007 to 2008
All
Funds

State
Funds

Federal
Funds

All
Funds

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

8.4 %
5.7
6.9
3.6
3.5
4.7

29.5 %
-7.2
3.7
-0.4
-5.9
3.0

11.3 %
1.4
6.6
1.5
1.4
4.1

3.5 %
-1.2
0.0
3.2
6.4
0.8

9.4 %
14.2
-6.6
0.8
9.4
2.5

2.8 %
4.5
-1.4
2.8
8.4
1.4

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania

3.7
12.1
7.5
10.6
6.3

14.1
2.5
3.9
2.4
3.0

5.1
9.7
7.3
8.1
5.6

2.2
4.0
7.4
5.9
6.4

-0.4
4.8
9.8
-2.2
3.7

1.5
4.5
8.1
2.9
5.2

7.5
6.1
1.0
-1.9
2.6

6.7
6.3
3.1
6.6
1.1

6.4
5.4
2.0
-0.5
2.3

3.3
2.9
-1.6
6.3
5.7

6.1
10.0
18.5
-3.8
4.0

3.5
5.7
3.0
3.2
5.4

3.5
8.0
4.0
7.8
2.2
4.0
3.8

0.9
-4.1
6.0
-3.7
2.7
-1.9
2.0

2.7
4.7
5.2
6.8
2.4
2.2
2.7

7.0
7.5
6.9
9.0
16.8
14.5
8.9

12.8
14.4
7.2
19.3
18.5
-4.8
13.9

8.6
9.4
6.8
9.3
17.3
6.9
11.1

11.4
7.7
6.8
7.9
11.0
23.9
7.4
13.8
16.6
7.9
9.7
-11.0

0.5
-0.2
0.5
9.1
4.2
36.6
27.4
8.9
2.4
0.8
4.8
-0.4

8.1
5.3
7.4
8.3
8.7
28.2
17.6
13.5
11.3
5.9
9.1
-9.1

18.4
11.3
7.9
7.5
17.4
12.1
6.4
6.9
5.6
15.1
2.3
0.7

19.0
35.4
4.1
-6.1
9.1
77.9
15.8
56.4
10.0
4.6
1.5
6.9

19.2
19.1
6.4
3.5
14.8
37.3
9.3
19.1
6.4
10.2
1.4
2.0

6.6
13.1
23.7
12.0

11.1
3.1
6.6
-0.9

8.1
12.2
18.0
10.4

2.6
-4.4
10.2
17.6

9.5
8.6
-1.7
7.5

4.4
-1.5
8.1
10.6

7.2
13.5
7.4
15.5
9.5

5.7
-0.4
1.0
-1.3
-66.5

6.9
8.5
5.2
12.1
-9.0

8.3
17.5
22.7
20.0
-3.6

5.6
18.5
14.5
4.3
3.9

7.7
17.8
20.0
26.0
-2.9

27.2
8.4
13.3
6.9
0.8
6.7

5.1
-1.2
6.9
6.6
-1.9
3.8

19.8
5.6
12.4
8.2
0.4
7.6

16.6
6.7
15.6
-2.5
15.9
6.6

-4.7
10.8
18.4
-19.2
15.1
7.5

8.3
11.4
18.8
-5.6
15.3
8.0

GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL*

7.8 %

3.3 %

7.1 %

7.3 %

10.6 %

8.2 %

Note: State funds are defined as general funds and other state funds (bonds are excluded).
*See General Notes for explanation.
Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [7]

Table 3
comparISon oF ShareS oF STaTe SpendIng WITh Fund SourceS, FIScal 1995 To 2008
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
2.2

17.2
7.5
43.8
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

34.5
8.4
11.9
11.3
21.2

11.2
14.5
4.0
22.6
10.5

1.9
0.1
2.9
0.0
1.7

16.9
7.4
44.1
0.0
21.2

6.7
0.7
0.2
3.1
3.4

1.0
18.2
9.5
29.6
8.4

27.7
50.7
27.4
33.4
33.6

100.0
100.0
100.0
100.0
100.0

34.5
8.9
11.2
10.9
20.9

11.5
14.5
3.2
20.5
10.3

1.8
0.1
2.8
0.0
1.6

16.9
6.9
42.2
0.0
20.7

6.9
0.7
0.2
3.7
3.4

0.8
18.0
8.6
26.7
8.1

27.6
50.9
31.8
38.2
35.1

100.0
100.0
100.0
100.0
100.0

35.0
9.0
10.7
16.0
21.6

12.3
13.8
4.2
20.3
10.7

2.7
0.4
4.2
0.0
2.5

15.8
6.7
43.4
0.0
20.6

6.9
0.8
0.3
4.8
3.6

0.8
20.9
9.0
26.7
8.5

26.5
48.3
28.1
32.2
32.5

100.0
100.0
100.0
100.0
100.0

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
FY 1995-08 Combined Total
General Funds
Other State Funds
Federal Funds
Bond Funds
Total Funds

Source: National Association of State Budget Officers, 2007 State Expenditure Report

[8] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Federal Fund Expenditures

Figure 9 shows the percentage change in state spending from state
funds for 2006-2007 and 2007-2008. The Great Lakes region

As reflected in Figure 8, Medicaid accounts for the largest portion

experienced the smallest spending growth in state funds from fiscal

of state spending from federal funds at 44.1 percent. Elementary

2006 to fiscal 2007 at 2.4 percent, while the Southwest had the

and secondary education at 11.9 percent, and transportation at 9.5

largest growth at 12.5 percent. In 2007-2008, it is estimated that

percent are the next largest categories.

the New England region will have the smallest spending growth
in state funds at 1.4 percent, while the Rocky Mountain region will

Figure 8
Federal Fund expendITureS,
FIScal 2007

have the largest growth at 11.8 percent. Total state expenditure
data can be found in Tables 1-5, along with related footnotes at
the end of this chapter.

All Other
27.4%

Figure 9
regIonal percenT change In STaTe FundS,
FIScal 2007 and 2008

8
6
4
2

-4
-6

Table 4 shows growth rates for each region of the United States,

Far West

-2

Rocky Mountain

0
Southwest

R e g i o n a l S p e n d i n g Tr e n d s

10

Southeast

Medicaid
44.1%

12

Plains

Public Assistance
2.9%

14

Great Lakes

Percent Change From Previous Year

Higher Education
4.0%

Corrections
0.2%

Mid-Atlantic

Transportation
9.5%

New England

Elementary &
Secondary Education
11.9%

Region

separated by state funds (general fund plus other state funds, not
including bond funds) and federal funds. The 2006-2007 growth

2006-2007 Increases

rate for all states was 7.1 percent in fiscal 2007. At 2.7 percent, the

2007-2008 Increases

Great Lakes region had the lowest growth rate in total spending,
while the Southwest had the highest at 11.1 percent.
Table 4
regIonal percenTage change In ToTal expendITureS,
FIScal 2007 and 2008
Fiscal 2006 to 2007
Region
New England
Mid-Atlantic
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West
ALL STATES

State
Funds

Federal
Funds

Fiscal 2007 to 2008

All
Funds

State
Funds

Federal
Funds

All
Funds

6.7 %
8.9
2.4
5.1
9.1
12.5
10.1
8.4

1.7 %
2.9
4.8
0.4
7.4
2.8
-6.8
-0.2

6.5 %
7.4
2.7
4.6
9.3
11.1
5.8
6.3

1.4 %
5.9
3.6
8.7
9.1
11.3
11.8
8.0

4.7 %
1.5
7.5
12.8
20.5
6.8
8.9
9.5

1.3 %
4.5
3.9
9.1
12.1
7.8
13.4
10.9

7.8 %

3.3 %

7.1 %

7.3 %

10.6 %

8.2 %

Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [9]

Table 5
STaTe SpendIng by FuncTIon aS a percenT oF ToTal STaTe expendITureS, FIScal 2007

Region/State

Elementary
& Secondary
Education

Higher
Education

Public
Assistance

Medicaid

Corrections Transportation

All
Other

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

14.9 %
18.9
13.9
22.5
16.0
26.2

11.9 %
3.6
9.7
4.6
11.5
1.9

2.1 %
2.3
3.1
1.8
2.5
1.6

17.2 %
30.2
18.1
25.9
24.4
18.3

2.8 %
2.0
2.7
2.1
2.5
2.4

7.2 %
7.5
6.0
12.0
5.9
7.5

43.9 %
35.5
46.6
31.1
37.3
42.1

100.0 %
100.0
100.0
100.0
100.0
100.0

24.1
18.7
24.7
20.1
18.9

4.5
14.0
7.5
7.0
4.1

0.2
1.7
0.9
3.0
2.1

12.3
18.5
20.0
28.7
30.7

3.2
4.4
3.6
3.0
3.4

8.0
12.0
9.3
5.2
9.5

47.6
30.8
34.1
33.0
31.1

100.0
100.0
100.0
100.0
100.0

20.1
24.0
30.8
21.3
19.1

6.2
7.3
5.0
5.4
13.1

0.3
1.7
1.3
0.7
0.3

27.2
21.9
21.7
24.0
13.9

2.9
3.2
5.3
3.8
3.4

8.9
10.5
8.1
8.0
6.6

34.4
31.5
27.8
36.8
43.5

100.0
100.0
100.0
100.0
100.0

18.1
27.7
26.5
23.6
15.2
14.7
16.2

25.1
17.1
10.5
5.2
21.3
23.8
17.3

0.8
0.6
1.5
0.8
0.8
0.3
1.0

17.4
18.6
22.2
35.5
18.7
14.7
20.9

2.7
3.1
2.0
2.9
2.4
1.9
3.0

7.4
11.3
9.9
11.2
7.4
13.1
16.2

28.6
21.6
27.5
20.9
34.2
31.6
25.3

100.0
100.0
100.0
100.0
100.0
100.0
100.0

13.8
19.0
19.7
25.1
20.1
15.6
19.9
22.0
18.2
17.3
19.0
11.7

10.7
16.2
8.9
7.1
20.6
9.5
10.3
15.1
20.2
13.8
15.3
9.2

0.1
2.7
0.2
1.4
0.8
0.1
0.2
0.5
0.3
0.5
0.5
0.4

12.3
19.9
21.7
19.8
20.3
17.6
21.7
26.5
22.4
28.6
14.5
11.6

1.5
2.2
4.4
2.9
2.4
2.1
2.0
3.2
2.9
2.9
4.0
1.0

3.4
5.6
11.7
10.3
9.7
5.3
10.1
8.4
8.2
7.1
10.0
5.2

58.2
34.4
33.3
33.4
26.1
49.8
35.8
24.3
27.8
29.8
36.6
60.8

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

20.7
19.2
18.8
27.4

13.8
20.9
22.5
12.8

0.5
0.8
1.2
0.1

23.7
19.0
17.2
25.4

3.6
1.8
2.6
3.7

6.5
7.8
8.5
14.1

31.3
30.5
29.3
16.5

100.0
100.0
100.0
100.0

23.1
28.8
17.6
25.2
21.1

14.1
8.8
10.4
11.9
1.0

1.2
0.3
0.9
1.0
0.0

15.6
20.5
15.3
14.9
8.9

3.8
4.3
3.1
3.5
0.0

6.7
11.4
12.6
13.3
11.2

35.5
25.9
40.0
30.2
57.8

100.0
100.0
100.0
100.0
100.0

11.2
24.6
23.2
16.8
17.1
23.6

7.3
9.7
9.8
10.1
11.5
13.5

0.9
5.4
1.0
0.6
0.7
1.3

9.2
18.3
10.0
15.2
15.9
19.0

2.4
4.8
2.0
3.8
3.9
3.5

19.2
6.2
9.3
9.7
7.9
8.4

49.8
31.0
44.8
43.8
43.1
30.7

100.0
100.0
100.0
100.0
100.0
100.0

21.2 %

10.5 %

1.7 %

21.2 %

3.4 %

33.6 %

100.0 %

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Note: Percentages may not add to 100
Source: National Association of State Budget Officers, 2007 State Expenditure Report

[10] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

8.4 %

General Notes

Missouri: Total expenditures exclude refunds. Fiscal 2006
expenditures exclude refunds of $1,186 million, including $1,129

In reviewing the tables, please note the following:

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

million general revenue. Fiscal 2007 expenditures exclude
refunds of $1,258 million, including $1,208 million general
revenue. Fiscal 2008 estimates exclude refunds of $1,348 million,
including $1,300 million general revenue. Other funds include
federal reimbursements received by the Department of Highways
and Transportation and the Department of Conservation which

“State funds” refers to general funds plus other state fund

have constitutionally created funds. Federal and other funds for

spending. State spending from bonds is excluded.

FY 2008 represent appropriations available to state agencies.
These appropriations establish ceilings on what agencies may

“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.

spend. The appropriations are often established at higher levels
to provide agencies with appropriation authority in the event
that revenues are available for various programs. Final
expenditures will be lower.

All States: Medicaid reflects provider taxes, fees, assessments,
donations, and local funds in Other State Funds.

Montana: Fiscal 2006 expenditures include a one-time-only
general fund transfer to state retirement programs of $125 million.

Alabama: Amounts shown in fiscal years 2005-06 and 2006-07

Other one-time-only general fund appropriations for fiscal 2006

are based on the actual expenditures during these years, regardless

total approximately $43 million. Fiscal 2007 expenditures include a

of the year appropriated. Fiscal 2007-08 amounts shown are equal

one-time-only general fund transfer to state retirement programs

to appropriations for the year, except for bond proceeds, which are

of $50 million and over $100 million in other one-time-only general

estimated. It is assumed that some level of appropriations will not

fund expenditures. Fiscal 2008 appropriations include over $400

be expended this fiscal year.

million in one-time-only general fund revenue to address one-time-

Colorado: Total expenditures are equivalent to final annual
appropriations for FY 2005-06 and FY 2006-07. The FY 2007-08
total expenditures is the appropriation as of the end of the 2008
legislative session (May 2008). This is essentially the most recent
estimate of FY 2007-08 expenditures. “Other State Funds” includes
Cash Funds and Cash Funds Exempt.
Connecticut: Bonds data is based on bond allocations by the
State Bond Commission.
Michigan: Fiscal 2007 expenditures are artificially low and fiscal 2008
estimated spending is artificially high, distorting year-to-year
comparisons. Partial fiscal 2007 payments to higher education
institutions are deferred to fiscal 2008, and fiscal 2007 use of restricted
revenue is replaced with General Fund revenue in fiscal 2008. Adjusting
for these one-time actions results in nominal expenditure changes

only expenditures. Other funds shown in fiscal 2008 include
increased distributions of revenue to local governments from Oil
and Gas taxes as well as one-time-only investments in
infrastructure. Principal and interest payments on bonds are
included in Total Expenditures. Capital expenditures are not
reported separately but are included in Total Expenditures.
Nebraska: Fiscal 2007-08 amounts shown are equal to
appropriations for the year. It is assumed that some level of
appropriations will not be expended.
New Jersey: Totals include pension, post retirement medical, debt
service on pension bonds, payroll taxes, and health benefits
expenditures which total $1.35 billion in State General Fund in fiscal
2007 and $1.48 billion in fiscal 2008 spread across Education,
Corrections, Transportation and All Other.

of 1.8% (Total Funds) and 2.2% (General Fund) from fiscal 2007.

2007 STATE EXPENDITURE REPORT [11]

New Mexico: Source of fiscal 2006 and fiscal 2007 federal funds

New York: New York budgets most employer contributions to

numbers is the combined annual financial report (governmental

employees’ benefits and pensions centrally.The portion of employer

funds and proprietary funds) for the state of New Mexico; excludes

contributions to employees’ benefits not distributed to an

community colleges. Source of fiscal 2006 and fiscal 2007 other

expenditure category has been included in the All Other

state funds numbers is the combined annual financial report

Expenditures category.

(governmental and proprietary funds) for the state of New Mexico,
less GF revenue, federal revenue and two trust funds; excludes
community colleges. Source of the fiscal 2008 other state funds
numbers is the state agency budget requests; excludes community

South Carolina: Estimated capital expenditures are no longer
collected. Therefore, no capital expenditure data is included for
estimated fiscal 2008.

colleges. Source of the fiscal 2006 and fiscal 2007 bond funds is the

Tennessee: Tennessee collects personal income tax on income

combined annual financial report (governmental and proprietary

from dividends on stocks and interest on certain bonds. Tax

funds); excludes community colleges. New Mexico is unable to

revenue estimates do not include federal funds and other

accurately break out capital outlay by revenue source from total

departmental revenues. However, federal funds and other

expenditures for federal funds and other state funds.

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

[12] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

CHAPTER ONE
ELEMENTARY &
SECONDARY EDUCATION
21.2% of State Expenditures

Founded 1945

State elementary and secondary education expenditures totaled

allowing states to establish graduation rate goals and targets to

$305.2 billion in fiscal 2007, a 7.3 percent increase over the

be used for accountability purposes starting in the 2011-2012

previous year. While historically the largest category of total state

school year.

spending, K-12 education and Medicaid now represent a roughly
equal share. In both fiscal 2006 and fiscal 2007, elementary and
secondary education comprised 21.2 percent of total state spending

Sources of Funding

(Medicaid was 21.4 percent in fiscal 2006 and 21.2 percent in

State funding systems for education vary greatly. A number of

fiscal 2007).

states have moved toward increasing their share of funding for

General funds comprise 73.7 percent of state elementary and
secondary education spending, federal funds comprise 14.8 percent,
other states funds comprise 10.1 percent, and bonds comprise
1.4 percent.

elementary and secondary education by substituting state funds
for local funds, often in order to reduce the reliance on local
property taxes. Funds are distributed to schools both as general
funds on a per-pupil basis and as categorical grants to support
specific programs or needs. The federal share is a source of

Besides maintaining basic educational services, states dedicate

supplemental funding for poor school districts and also helps pay

substantial portions of education funding to teacher training,

the cost of educating special needs children.

reduction of classroom size, technology training, as well as facility
construction, renovation and repair.

N o C h i l d L e f t B e h i n d L aw ( N C L B )

Fund Shares
Relative fund shares for 2007 are shown in the figure below.

The No Child Left Behind Act (NCLB) was signed into law on

Figure 10

January 8, 2002, and will be brought up for reauthorization during

STaTe expendITureS For elemenTary and Secondary

the 111th Congress, which convenes in January 2009. Although

educaTIon by Fund Source, FIScal 2007

the law increases federal resources to states to help improve
education standards, some areas of the law have been

Federal Funds
14.8%

controversial. Among its provisions, the act requires that states
provide public school choice and supplemental services to
students in failing schools; integrate scientifically-based reading
research into comprehensive reading instruction for young
children; set and monitor annual progress based on baseline

Other State Funds
10.1%
Bonds
1.4%

2001-2002 data; issue annual report cards on school performance
and statewide test results; implement annual standards-based
assessments in reading and math for grades 3-8; assure that all
classes are taught by qualified teachers; and ensure that all
students achieve a proficient level of education by the 2014-2015
school year. Recently, the Department of Education approved
final rules for establishing a uniform graduation rate as well as

[14] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

General Funds
73.7%

Regional Expenditures

Elementary and Secondary
Education-Expenditure Exclusions

The following table shows percentage changes in expenditures
for elementary and secondary education for fiscal 2006-2007

When comparing resources spent on elementary and secondary

and 2007-2008 by region. In 2006-2007, the Rocky Mountain

education, it is important to understand the types of programs

region saw the greatest percentage increase in elementary and

states include in these figures. For this report, 11 states wholly or

secondary education at 14.9 percent, while the Plains region

partially excluded employer contributions to teacher pensions, and

grew by smallest amount, at 1.8 percent. However, for 2008 it is

14 states wholly or partially excluded contributions to health

estimated that the Southwest region will experience the largest

benefits. Additionally, other items that are wholly or partially

growth rate at 13.3 percent, while the Great Lakes region will

excluded include: day care programs (44 states), school health care

experience the smallest growth rate at 2.2 percent.

(39), Head Start (32), and libraries (25). Summary expenditure data
can be found in Tables 7 through 9, accompanied by explanatory
notes. Table 10 lists programs excluded from the expenditure data.

Table 6
regIonal percenTage change In STaTe elemenTary and Secondary
educaTIon expendITureS, FIScal 2007 and 2008
Fiscal 2006 to 2007

Fiscal 2007 to 2008

Region

State
Funds

Federal
Funds

All
Funds

State
Funds

Federal
Funds

All
Funds

New England
Mid-Atlantic
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West

6.4 %
9.4
6.2
1.6
8.8
17.6
17.0
8.3

0.2 %
0.4
0.6
2.4
4.4
0.7
3.2
0.4

4.6 %
8.1
4.9
1.8
8.5
14.1
14.9
5.0

6.5 %
8.4
2.9
6.2
7.3
14.7
6.0
4.8

-3.7 %
-1.8
6.1
6.7
6.5
5.2
2.7
3.1

5.3 %
6.9
2.2
6.3
7.1
13.3
5.6
5.4

8.9 %

1.6 %

7.3 %

7.0 %

3.8 %

6.5 %

ALL STATES

2007 STATE EXPENDITURE REPORT [15]

Table 7
elemenTary and Secondary educaTIon expendITureS ($ In mIllIonS)

Actual Fiscal 2006
Other
State
General Federal
Fund
Funds
Funds
Bonds

Region/State

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds
Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$2,233
1,044
4,142
0
834
22

$414
182
840
159
180
111

$4
2
479
844
4
1,127

$741
14
0
3
3
7

$3,392
1,242
5,461
1,006
1,021
1,267

$2,312
1,170
4,414
0
888
38

$416
185
828
166
174
120

$4
4
549
844
5
1,191

$672
0
0
10
7
2

$3,404
1,359
5,791
1,020
1,074
1,351

$2,558
1,221
4,675
0
906
46

$422
182
749
161
189
117

$4
2
607
899
9
1,236

$726
2
0
8
11
10

$3,710
1,407
6,031
1,068
1,115
1,409

1,016
4,129
9,438
14,992
8,132

142
867
811
3,687
1,904

461
10
29
2,390
15

207
0
0
5
0

1,826
5,006
10,278
21,074
10,051

1,088
4,644
10,347
16,282
8,804

136
867
834
3,655
1,945

486
10
17
2,735
18

205
0
0
45
0

1,915
5,521
11,198
22,717
10,767

1,050
5,325
11,053
17,946
9,375

140
945
799
3,404
2,016

475
11
18
2,910
12

205
0
0
17
0

1,870
6,281
11,870
24,277
11,403

6,730
4,558
82
6,861
5,669

1,952
781
1,464
1,620
660

40
17
11,279
1,060
68

193
0
0
578
0

8,915
5,356
12,825
10,119
6,397

7,360
4,638
43
7,159
5,812

1,873
826
1,483
1,660
671

30
18
11,573
1,909
70

33
0
0
596
0

9,296
5,482
13,099
11,324
6,553

8,190
4,801
45
6,933
5,974

2,124
870
1,580
1,647
688

29
36
11,400
2,251
85

30
0
0
56
0

10,373
5,707
13,025
10,887
6,747

2,191
2,594
6,871
2,566
894
322
339

378
381
590
852
250
125
147

0
107
36
1,334
29
37
3

0
0
7
0
0
0
0

2,569
3,082
7,504
4,752
1,173
484
489

2,329
2,830
6,478
2,793
938
332
341

385
386
641
832
263
127
153

12
99
40
1,334
39
36
3

0
0
14
0
0
0
0

2,726
3,315
7,173
4,959
1,240
495
497

2,521
3,079
6,842
2,849
1,000
367
370

395
401
650
956
293
127
152

18
97
39
1,433
42
38
5

0
0
22
0
0
0
0

2,934
3,577
7,553
5,238
1,335
532
527

3,513
1,701
9,467
6,602
3,595
2,600
1,837
6,867
2,046
3,136
5,030
1,684

838
464
2,413
1,594
677
970
776
1,143
684
834
570
337

155
743
464
0
14
332
336
177
735
37
130
44

0
0
0
134
0
0
7
0
0
0
0
72

4,506
2,908
12,344
8,330
4,286
3,902
2,956
8,187
3,465
4,007
5,730
2,137

4,061
1,771
9,967
7,380
3,769
2,754
1,975
7,377
2,189
3,379
5,686
1,704

797
472
2,491
1,559
697
1,216
715
1,161
682
839
827
338

150
811
584
0
19
635
355
191
765
61
121
40

0
0
0
442
0
0
7
0
0
0
0
84

5,008
3,054
13,042
9,381
4,485
4,605
3,052
8,729
3,636
4,279
6,634
2,166

4,502
1,912
9,957
7,995
4,078
3,371
2,213
7,977
2,460
3,816
5,367
1,715

1,159
694
2,598
1,500
727
1,016
647
1,450
690
906
826
346

159
1,265
641
0
23
516
356
36
722
50
618
43

0
0
0
454
0
0
7
0
0
0
0
88

5,820
3,871
13,196
9,949
4,828
4,903
3,223
9,463
3,872
4,772
6,811
2,192

3,380
2,290
2,175
13,107

865
415
563
4,013

696
47
642
1,772

0
0
0
39

4,941
2,752
3,380
18,931

4,267
2,380
2,369
16,502

885
384
566
4,061

515
6
691
1,613

0
0
0
0

5,667
2,770
3,626
22,176

4,063
2,517
2,820
16,597

892
530
600
4,183

806
19
369
5,332

0
0
1
68

5,761
3,066
3,790
26,180

2,719
1,019
539
1,873
8

460
186
145
372
104

484
50
74
50
491

0
0
0
0
0

3,663
1,255
758
2,295
603

2,882
1,316
630
2,111
12

523
195
144
372
73

456
60
56
32
993

0
0
0
0
0

3,861
1,571
830
2,515
1,078

3,023
1,392
688
2,519
12

497
242
154
376
73

437
71
64
63
793

0
0
0
0
0

3,957
1,705
906
2,958
878

879
34,321
1,844
824
2,525
5,373

193
5,819
210
200
529
682

102
-133
177
161
266
566

0
3,132
137
0
0
56

1,174
43,139
2,368
1,185
3,320
6,677

990
37,026
2,028
988
2,610
5,656

184
5,838
241
218
509
672

118
-10
199
173
361
679

0
2,217
0
0
0
70

1,292
45,071
2,468
1,379
3,480
7,077

1,013
38,189
2,150
1,120
2,902
5,905

213
6,052
269
157
516
696

116
331
77
94
404
934

0
2,832
0
0
0
87

1,342
47,404
2,496
1,371
3,822
7,622

$206,613

$44,553

$27,987

$5,335

$284,488

$224,819

$45,285

$30,700

$4,404

$305,208

$237,399

$47,016

$35,995

$4,624

$325,034

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama*
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona*
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah*
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Elementary and Secondary Education Notes for explanation

[16] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 8
elemenTary and Secondary educaTIon expendITureS
aS a percenT oF ToTal expendITureS
Region/State

Fiscal
2006

Fiscal
2007

Fiscal
2008

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

16.6 %
17.5
13.9
22.5
15.4
25.6

14.9 %
18.9
13.9
22.5
16.0
26.2

15.8 %
18.7
14.6
22.9
15.3
27.0

24.1
18.6
24.3
20.2
18.6

24.1
18.7
24.7
20.1
18.9

23.2
20.4
24.2
20.9
19.0

20.5
24.8
30.7
18.9
19.1

20.1
24.0
30.8
21.3
19.1

21.7
23.7
29.7
19.8
18.7

17.5
27.0
29.1
24.1
14.7
14.7
16.4

18.1
27.7
26.5
23.6
15.2
14.7
16.2

17.9
27.3
26.1
22.8
13.9
14.8
15.5

13.4
19.0
20.0
24.1
20.9
17.0
22.7
23.4
19.3
17.1
18.0
10.5

13.8
19.0
19.7
25.1
20.1
15.6
19.9
22.0
18.2
17.3
19.0
11.7

13.4
20.2
18.8
25.7
18.9
12.1
19.3
20.0
18.2
17.5
19.3
11.6

19.5
21.3
20.6
25.8

20.7
19.2
18.8
27.4

20.1
21.5
18.1
29.2

23.4
25.0
17.0
25.8
10.7

23.1
28.8
17.6
25.2
21.1

22.0
26.5
16.0
23.5
17.7

12.2
24.9
25.0
15.6
16.4
24.0

11.2
24.6
23.2
16.8
17.1
23.6

10.7
23.3
19.7
17.7
16.3
23.6

21.2 %

21.2 %

20.9 %

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [17]

Table 9
annual percenTage change In elemenTary and Secondary educaTIon expendITureS

Region/State

State
Funds

Fiscal 2006 to 2007
Federal
Funds

All
Funds

State
Funds

Fiscal 2007 to 2008
Federal
Funds

All
Funds

3.5 %
12.2
7.4
0.0
6.6
7.0

0.5 %
1.6
-1.4
4.4
-3.3
8.1

0.4 %
9.4
6.0
1.4
5.2
6.6

10.6 %
4.2
6.4
6.5
2.5
4.3

1.4 %
-1.6
-9.5
-3.0
8.6
-2.5

9.0 %
3.5
4.1
4.7
3.8
4.3

6.6
12.4
9.5
9.4
8.3

-4.2
0.0
2.8
-0.9
2.2

4.9
10.3
9.0
7.8
7.1

-3.1
14.7
6.8
9.7
6.4

2.9
9.0
-4.2
-6.9
3.7

-2.3
13.8
6.0
6.9
5.9

9.2
1.8
2.2
14.5
2.5

-4.0
5.8
1.3
2.5
1.7

4.3
2.4
2.1
11.9
2.4

11.2
3.9
-1.5
1.3
3.0

13.4
5.3
6.5
-0.8
2.5

11.6
4.1
-0.6
-3.9
3.0

6.8
8.4
-5.6
5.8
5.9
2.5
0.6

1.9
1.3
8.6
-2.3
5.2
1.6
4.1

6.1
7.6
-4.4
4.4
5.7
2.3
1.6

8.5
8.4
5.6
3.8
6.7
10.1
9.0

2.6
3.9
1.4
14.9
11.4
0.0
-0.7

7.6
7.9
5.3
5.6
7.7
7.5
6.0

14.8
5.6
6.2
11.8
5.0
15.6
7.2
7.4
6.2
8.4
12.5
0.9

-4.9
1.7
3.2
-2.2
3.0
25.4
-7.9
1.6
-0.3
0.6
45.1
0.3

11.1
5.0
5.7
12.6
4.6
18.0
3.2
6.6
4.9
6.8
15.8
1.4

10.7
23.0
0.4
8.3
8.3
14.7
10.3
5.9
7.7
12.4
3.1
0.8

45.4
47.0
4.3
-3.8
4.3
-16.4
-9.5
24.9
1.2
8.0
-0.1
2.4

16.2
26.8
1.2
6.1
7.6
6.5
5.6
8.4
6.5
11.5
2.7
1.2

17.3
2.1
8.6
21.7

2.3
-7.5
0.5
1.2

14.7
0.7
7.3
17.1

1.8
6.3
4.2
21.1

0.8
38.0
6.0
3.0

1.7
10.7
4.5
18.1

4.2
28.7
11.9
11.4
101.4

13.7
4.8
-0.7
0.0
-29.8

5.4
25.2
9.5
9.6
78.8

3.7
6.3
9.6
20.5
-19.9

-5.0
24.1
6.9
1.1
0.0

2.5
8.5
9.2
17.6
-18.6

12.9
8.3
10.2
17.9
6.4
6.7

-4.7
0.3
14.8
9.0
-3.8
-1.5

10.1
4.5
4.2
16.4
4.8
6.0

1.9
4.1
0.0
4.6
11.3
8.0

15.8
3.7
11.6
-28.0
1.4
3.6

3.9
5.2
1.1
-0.6
9.8
7.7

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
GREAT LAKES

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
GREAT LAKES

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

8.9 %

1.6 %

Note: State funds are defined as general funds and other state funds (bonds are excluded).
Source: National Association of State Budget Officers, 2007 State Expenditure Report

[18] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

7.3 %

7.0 %

3.8 %

6.5 %

Table 10
ITemS excluded From elemenTary and Secondary educaTIon expendITureS

Region/State

Employer
Employer
Contributions to Contributions to
Pensions
Health Benefits

Head
Start

Libraries

Day Care
Programs

School
Health Care/
Immunization

X

X

P

X
X
X

X
X
X

P
X

X
P
X
X
X

P
X
P
X
X

NEW ENGLAND

X

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

X

X
X
X

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania

X
P

P
P

X
X
X

GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin

P
P
X
X

P
P
P
X
X

X
X
P

X
X
X
P

X
X

X
P
X

P
P
X
X

X
X

X

X

X
X
X

X
X
X

X
X
X
X

P
X
X
X

X

X
X
X
X
X
X
X
X

X
X
X
X

PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota

X
X
X
X
X
X

SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia

X
X

X

X

X

X

X
P
X
P
X
X
X
P

X

P
X
X

X
P

P

X
X
P
P
X
X
X
X
X

P
X
X
X

X

SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas

X
P
P
X

P

ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming

P

P

X
X
X
X

P
P

FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington

P

ALL STATES

11

Excluded=X

X

Partially Excluded=P

P

X
X
X
X
X

14

32

X
P
X

X
X
X
X
X
X

X
X
X
X
X

25

44

39

Not Applicable=N/A

Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [19]

Elementary and Secondary
Education Notes

Utah: Included with General Fund is Education Fund (income tax
revenue) which in Utah is restricted by the Utah state constitution
for the sole use of public and higher education. Public Education in

Small dollar amounts, when rounded, cause an aberration in the

Utah is organized to include the Utah State Office of Rehabilitation

percentage increase. In these instances, the actual dollar amounts

(USOR). The numbers reflected in this report for Public Education

should be consulted to determine the exact percentage increase.

include USOR. The USOR amounts are as follows: for fiscal 2006,

Alabama: Federal funds received directly by local school systems
are not reported at the state budget level.

$20 million in General Fund and Education Fund, $33 million in
federal funds, and $1 million in other state funds; for fiscal 2007,
$21 million in General Fund and Education Fund, $34 million in federal

Arizona: Deferred $272 million of Fiscal 2008 school aid payments

funds, and $1 million in other state funds; for fiscal 2008, $23 million

to Fiscal 2009.

in General Fund and Education Fund, $35 million in federal funds,
and $1 million in other state funds.

Michigan: Figures reflect K-12 education, the Michigan Department
of Education, adult education and pre-school. Employer contributions
to current employees’ pensions and health benefits are reported
for Department of Education employees but excluded for employees
of K-12 schools. General fund revenue support has declined from
fiscal 2006 as support from other revenue sources in the State
School Aid Fund have grown, especially property tax revenue as
taxable values have increased.

[20] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

CHAPTER TWO
HIGHER EDUCATION
10.5% of State Expenditures

Founded 1945

State higher education spending reflects support of public

share of total higher education spending, decreased by 8.8 percent.

university systems, community colleges, and vocational education

In fiscal 2008, overall state higher education spending is estimated

institutions. In fiscal 2007, states spent $150.4 billion on higher

to grow by 6.2 percent, with state funds increasing by 8.9 percent

education, 10.5 percent of total state spending, and 11.2 percent of

and federal funds declining by 11.1 percent (see Table 11).

overall general fund expenditures. General funds account for
48.6 percent of state spending on higher education, other state

Capital Spending

funds for 35.4 percent, federal funds for 10.2 percent, and bonds
5.9 percent (see Figure 11 and Table 12).

State expenditures for higher education-related construction,
renovation and other capital projects increased by 19.7 percent in

In calculating higher education expenditures for fiscal 2007, 14 states

fiscal 2007, and is estimated to increase by 17.5 percent in fiscal

wholly or partially excluded tuition and fees, and 18 states wholly

2008 (see Table 48).

or partially excluded student loan programs. Additionally, other
items that are wholly or partially excluded include: University

Regional Expenditures

Research Grants (29 states), Vocational Education (16), and Assistance
to Private Colleges or Universities (23). Table 15 lists programs

In fiscal 2007, the Southeast region saw the greatest percentage

excluded from the expenditure data.

increase in higher education spending at 13 percent, while the Far
Overall, total state higher education spending grew by 6.6 percent

West region grew by the smallest amount, declining 5.3 percent.

in fiscal 2007. State funds (general funds plus other state funds)

It is estimated that for 2008 the Plains region will experience the

grew by 7.8 percent, while federal funds, which represent a small

largest growth rate at 14.3 percent, while the New England region
will experience the smallest growth rate at 3.0 percent.

Figure 11
STaTe expendITureS For hIgher educaTIon by

Financing Issues

Fund Source, FIScal 2007

During state fiscal crises, higher education is often one of the first

Other State Funds
35.4%

categories of spending to be cut. One rationale for this is that in
most states, higher education institutions have the ability to raise
Federal Funds
10.2%

Bonds
5.9%

tuition and fees when state funding decreases and they also have
the discretion to make other reductions and budget adjustments
on their own. According to The College Board, tuition and fees at
four-year public institutions averaged $381 more in the 2007-2008
school year than in the 2006-2007 school year ($6,185 versus
$5,800, a 6.6 percent increase). Total costs of four-year public
institutions averaged $13,589 for the 2007-2008 school year, a
5.9 percent increase compared to 2006-2007.

General Funds
48.6%

Table 11
regIonal percenTage change In STaTe hIgher educaTIon expendITureS,
FIScal 2007 and 2008
Fiscal 2006 to 2007
Region
New England
Mid-Atlantic
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West
ALL STATES

State
Funds

Federal
Funds

Fiscal 2007 to 2008

All
Funds

State
Funds

Federal
Funds

All
Funds

10.1 %
8.4
2.8
5.6
12.1
12.8
2.1
-0.3

-1.7 %
1.1
9.8
1.2
1.3
7.9
9.1
-21.6

10.5 %
9.3
2.8
6.3
13.0
10.7
2.2
-5.3

2.3 %
5.4
10.0
15.5
10.7
5.8
11.4
8.4

6.3 %
14.3
-5.8
5.9
-11.8
-7.6
14.3
-18.4

3.0 %
5.0
6.8
14.3
6.3
4.6
11.5
4.0

7.8 %

-8.8 %

6.6 %

8.9 %

-11.1 %

6.2 %

[22] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 12
hIgher educaTIon expendITureS—capITal IncluSIVe ($ In mIllIonS)

Region/State

Actual Fiscal 2006
Other
State
General Federal
Fund
Funds
Funds
Bonds

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds
Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$614
234
980
119
180
79

$220
0
9
12
1
0

$1,470
2
2,572
51
498
3

$157
18
48
34
17
4

$2,461
254
3,609
216
696
86

$677
250
1,107
126
189
83

$217
0
9
9
3
0

$1,571
3
2,884
52
537
9

$243
8
46
22
42
6

$2,708
261
4,046
209
771
98

$731
260
1,079
140
190
84

$230
0
9
9
5
0

$1,646
3
2,881
56
588
4

$253
13
39
34
75
3

$2,860
276
4,008
239
858
91

239
1,271
2,165
2,895
1,904

28
227
21
162
5

61
2,123
1,111
3,514
55

3
206
0
366
185

331
3,827
3,297
6,937
2,149

254
1,455
2,150
3,587
2,015

29
220
24
173
2

68
2,203
1,225
3,574
92

10
235
0
526
244

361
4,113
3,399
7,860
2,353

240
1,544
2,264
3,733
2,056

30
262
28
192
0

65
2,462
1,302
3,754
102

5
229
0
520
200

340
4,497
3,594
8,199
2,358

2,199
1,568
1,989
2,462
1,262

229
5
20
26
965

111
3
138
7
2,017

133
192
67
274
0

2,672
1,768
2,214
2,769
4,244

2,285
1,608
1,728
2,551
1,283

308
3
19
58
979

163
9
232
8
2,224

112
37
168
274
0

2,868
1,657
2,147
2,891
4,486

2,218
1,736
2,201
2,745
1,341

244
5
23
17
999

373
10
120
151
2,401

64
161
68
123
0

2,899
1,912
2,412
3,036
4,741

805
747
2,409
831
549
217
172

420
360
4
3
139
148
80

2,362
822
19
169
994
356
240

23
29
141
0
0
20
13

3,610
1,958
2,573
1,003
1,682
741
505

831
782
2,564
871
595
230
183

432
361
5
3
131
150
86

2,505
858
22
215
1,012
370
258

8
49
256
0
0
51
3

3,776
2,050
2,847
1,089
1,738
801
530

915
833
2,774
938
647
283
200

427
357
5
6
141
183
118

2,829
983
26
568
1,290
469
292

8
57
254
0
0
45
12

4,179
2,230
3,059
1,512
2,078
980
622

1,403
645
3,713
2,158
1,250
1,074
339
3,113
760
1,368
1,574
430

909
1
141
55
635
202
189
42
499
185
591
195

1,160
1,812
643
0
2,367
1,225
855
1,647
2,293
1,371
1,712
902

0
0
467
205
0
68
13
300
115
163
445
118

3,472
2,458
4,964
2,418
4,252
2,569
1,396
5,102
3,667
3,087
4,322
1,645

1,713
682
4,092
2,237
1,284
1,317
427
3,507
891
1,504
1,903
431

917
1
61
58
652
139
225
45
496
191
712
196

1,257
1,934
917
0
2,664
1,266
919
1,829
2,538
1,487
2,118
980

0
0
824
354
0
67
9
604
106
228
600
105

3,887
2,617
5,894
2,649
4,600
2,789
1,580
5,985
4,031
3,410
5,333
1,712

1,953
746
4,256
2,478
1,341
1,469
525
3,695
1,015
1,847
2,122
581

873
10
136
57
691
147
178
42
556
212
153
202

1,260
2,225
1,943
0
3,669
1,416
954
1,859
2,170
1,543
1,879
1,010

0
0
1,084
342
0
35
12
0
0
84
433
108

4,086
2,981
7,419
2,877
5,701
3,067
1,669
5,596
3,741
3,686
4,587
1,901

1,010
811
804
6,529

481
510
506
167

2,118
1,137
1,179
2,447

237
188
227
1,141

3,846
2,646
2,716
10,284

1,158
923
897
6,599

564
508
556
168

1,880
1,400
2,580
2,656

186
199
325
981

3,788
3,030
4,358
10,404

1,262
884
1,049
7,345

612
359
518
170

1,922
907
2,720
3,060

34
180
340
1,200

3,830
2,330
4,627
11,775

637
309
154
722
280

20
3
43
10
1

1,532
155
266
320
5

0
5
0
0
0

2,189
472
463
1,052
286

694
321
156
799
36

20
3
45
15
1

1,635
153
288
377
13

0
5
0
0
0

2,349
482
489
1,191
50

748
352
182
900
36

21
3
53
18
1

1,788
193
296
475
13

0
5
0
0
0

2,557
553
531
1,393
50

305
9,595
601
498
692
1,442

121
7,770
33
0
403
6

370
1,267
268
194
1,173
1,959

0
1,044
68
4
85
332

796
19,676
970
696
2,353
3,739

306
10,494
666
496
614
1,503

121
5,979
22
0
399
8

323
37
283
224
1,234
2,129

94
1,143
69
109
79
400

844
17,653
1,040
829
2,326
4,040

313
11,067
683
631
820
1,589

169
4,739
14
0
394
9

396
42
588
57
1,319
2,343

0
1,726
183
95
130
499

878
17,574
1,468
783
2,663
4,440

$68,106

$16,802

$49,075

$7,155

$141,138

$73,054

$15,323

$53,215

$8,827

$150,419

$79,041

$13,627

$58,422

$8,653

$159,743

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York*
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama*
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado*
Idaho
Montana
Utah*
Wyoming
FAR WEST

Alaska
California*
Hawaii
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Higher Education Notes for explanation

2007 STATE EXPENDITURE REPORT [23]

Table 13
hIgher educaTIon expendITureS aS a percenT oF ToTal
expendITureS
Region/State

Fiscal
2006

Fiscal
2007

Fiscal
2008

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

12.0 %
3.6
9.2
4.8
10.5
1.7

11.9 %
3.6
9.7
4.6
11.5
1.9

12.2 %
3.7
9.7
5.1
11.8
1.7

4.4
14.2
7.8
6.6
4.0

4.5
14.0
7.5
7.0
4.1

4.2
14.6
7.3
7.1
3.9

6.2
8.2
5.3
5.2
12.7

6.2
7.3
5.0
5.4
13.1

6.1
7.9
5.5
5.5
13.1

24.6
17.1
10.0
5.1
21.1
22.5
17.0

25.1
17.1
10.5
5.2
21.3
23.8
17.3

25.5
17.0
10.6
6.6
21.7
27.2
18.3

10.3
16.1
8.1
7.0
20.7
11.2
10.7
14.6
20.4
13.2
13.5
8.1

10.7
16.2
8.9
7.1
20.6
9.5
10.3
15.1
20.2
13.8
15.3
9.2

9.4
15.5
10.5
7.4
22.3
7.6
10.0
11.8
17.6
13.5
13.0
10.0

15.2
20.5
16.6
14.0

13.8
20.9
22.5
12.8

13.4
16.4
22.2
13.1

14.0
9.4
10.4
11.8
5.1

14.1
8.8
10.4
11.9
1.0

14.2
8.6
9.4
11.1
1.0

8.3
11.4
10.2
9.2
11.6
13.4

7.3
9.7
9.8
10.1
11.5
13.5

7.0
8.6
11.6
10.1
11.4
13.7

10.5 %

10.5 %

10.3 %

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Source: National Association of State Budget Officers, 2007 State Expenditure Report

[24] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 14
annual percenTage change In hIgher educaTIon expendITureS

Region/State

State
Funds

Fiscal 2006 to 2007
Federal
Funds

All
Funds

State
Funds

Fiscal 2007 to 2008
Federal
Funds

All
Funds

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

7.9 %
7.2
12.4
4.7
7.1
12.2

-1.4 %

0.0
-25.0
200.0

10.0 %
2.8
12.1
-3.2
10.8
14.0

5.7 %
4.0
-0.8
10.1
7.2
-4.3

6.0 %

0.0
0.0
66.7

5.6 %
5.7
-0.9
14.4
11.3
-7.1

7.3
7.8
3.0
11.7
7.6

3.6
-3.1
14.3
6.8
-60.0

9.1
7.5
3.1
13.3
9.5

-5.3
9.5
5.7
4.6
2.4

3.4
19.1
16.7
11.0
-100.0

-5.8
9.3
5.7
4.3
0.2

6.0
2.9
-7.9
3.6
7.0

34.5
-40.0
-5.0
123.1
1.5

7.3
-6.3
-3.0
4.4
5.7

5.8
8.0
18.4
13.2
6.7

-20.8
66.7
21.1
-70.7
2.0

1.1
15.4
12.3
5.0
5.7

5.3
4.5
6.5
8.6
4.1
4.7
7.0

2.9
0.3
25.0
0.0
-5.8
1.4
7.5

4.6
4.7
10.6
8.6
3.3
8.1
5.0

12.2
10.7
8.3
38.7
20.5
25.3
11.6

-1.2
-1.1
0.0
100.0
7.6
22.0
37.2

10.7
8.8
7.4
38.8
19.6
22.3
17.4

15.9
6.5
15.0
3.7
9.2
12.4
12.7
12.1
12.3
9.2
22.4
5.9

0.9
0.0
-56.7
5.5
2.7
-31.2
19.0
7.1
-0.6
3.2
20.5
0.5

12.0
6.5
18.7
9.6
8.2
8.6
13.2
17.3
9.9
10.5
23.4
4.1

8.2
13.6
23.8
10.8
26.9
11.7
9.9
4.1
-7.1
13.3
-0.5
12.8

-4.8
900.0
123.0
-1.7
6.0
5.8
-20.9
-6.7
12.1
11.0
-78.5
3.1

5.1
13.9
25.9
8.6
23.9
10.0
5.6
-6.5
-7.2
8.1
-14.0
11.0

-2.9
19.3
75.3
3.1

17.3
-0.4
9.9
0.6

-1.5
14.5
60.5
1.2

4.8
-22.9
8.4
12.4

8.5
-29.3
-6.8
1.2

1.1
-23.1
6.2
13.2

7.4
2.2
5.7
12.9
-82.8

0.0
0.0
4.7
50.0
0.0

7.3
2.1
5.6
13.2
-82.5

8.9
15.0
7.7
16.9
0.0

5.0
0.0
17.8
20.0
0.0

8.9
14.7
8.6
17.0
0.0

-6.8
-3.0
9.2
4.0
-0.9
6.8

0.0
-23.1
-33.3

-1.0
33.3

6.0
-10.3
7.2
19.1
-1.1
8.1

12.7
5.5
33.9
-4.4
15.7
8.3

39.7
-20.7
-36.4

-1.3
12.5

4.0
-0.4
41.2
-5.5
14.5
9.9

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

7.8 %

-8.8 %

6.6 %

8.9 %

-11.1 %

6.2 %

Note: State funds are defined as general funds and other state funds (bonds are excluded).
Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [25]

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

P

P

X

P

P

P

P

P
P
X

University
Research
Grants

Vocational
Education

Assistance
To Private Colleges
& Universities

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

X

X

X

X

X
X
X

P
X

X
X

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York*
Pennsylvania

X

P
X

P
X

P
X
P

P
P
X
P

P

X
P
X
P
X

X

X

X
P
P

P

P
X
P

P

P
X

X
X

X

X

X
X

GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin

P
X
X
X

P
X
X

P

PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota

X
X

X
X

X
X
X

X

SOUTHEAST

Alabama*
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia

P
P
P

X

X

X
P
X
X
X

X

X
X
X

P

P

SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas

P

P

P
X
P

P
P

P
X
P

X
X
P

P

ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming

X
X
X

X
X
X
X

X
X
X

FAR WEST

Alaska
California*
Hawaii
Nevada
Oregon
Washington
ALL STATES

Excluded=X

X
P
X
X

X
X

X

X
X
X

11

Partially Excluded=P

12

14

Not Applicable=N/A

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Higher Education Notes for explanation

[26] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

18

29

16

23

Higher Education Notes

Michigan: General Fund support has declined from fiscal 2006
reflecting a one-month payment delay to universities and

Small dollar amounts, when rounded, cause an aberration in the

community colleges and a one-time shift from general fund to

percentage increase. In these instances, the actual dollar amounts

restricted funds. Fiscal 2008 expenditures reflect restoration of

should be consulted to determine the exact percentage increase.

these one-time occurrences.

Alabama: Other state funds for Higher Education include tuition

New York: Assistance to private colleges and universities is part

and fees as reported by institutions. Bonds issued and expended

of miscellaneous education expenditures and is included under

directly by institutions are not reported at the state budget level.

Elementary and Secondary Education.

California: Beginning in Fiscal 2007, California State University

Utah: Included with General Fund is Education Fund (income

(CSU) began depositing its fee revenue in a separate trust fund

tax revenue) which in Utah is restricted by the Utah state constitution

account, consistent with the University of California.Tuition and fees

for the sole use of public and higher education. Revenue bonds

are also excluded for the California Community Colleges. Thus,

have been issued in the past. However, no revenue bonds were

tuition and fees are included only for CSU in Fiscal 2006.
Colorado: Higher Education doesn’t produce Sch-3s for the

authorized for Higher Education for fiscal 2006, fiscal 2007, or
fiscal 2008.

majority of their budget (statutorily exempt from producing for
academic agencies) so “Actual” data is not available. In lieu of
“Actual” data, appropriations where utilized for this report.
Specifically, the 2006 Actual is from the FY 2006-07 Appropriations
Report (page 140) and the 2007 Actual is from the FY 2007-08
Appropriations Report (page 151).

2007 STATE EXPENDITURE REPORT [27]

CHAPTER THREE
P U B L I C A S S I S TA N C E
1.7% of State Expenditures

Founded 1945

Public Assistance Expenditures

This report has information only on the cash assistance benefit
levels within the program which represents approximately 35 percent

This report contains data on cash assistance provided through the

of total program costs and does not reflect total TANF spending.

Temporary Assistance for Needy Families (TANF) program and
other public assistance programs. Spending for these categories

Expenditure data on total cash assistance,TANF cash assistance, and

totaled $23.8 billion in fiscal 2007 and represented 1.7 percent of

other cash assistance can be found on Tables 18-26, accompanied

total state expenditures. State spending for total public assistance

by explanatory notes.

decreased by 0.3 percent from 2006 to 2007.
The primary sources of public assistance funding for fiscal 2007 are
general funds, providing 52.6 percent, followed by federal funds at
45.7 percent (see Figure 12).

Fund Shares
The figure below provides fund shares for 2007.

The “other cash assistance” category, which includes optional state

Figure 12

programs for Supplemental Security Income (SSI) and General

STaTe expendITureS For ToTal publIc aSSISTance by Fund

Assistance, are not funded in all states, and when funded, are

Source, FIScal 2007

relatively small programs.
Federal Funds
45.7%

TA N F
The Temporary Assistance for Needy Families (TANF) program
was reauthorized as part of the Deficit Reduction Act in February

Other State Funds
1.8%

2006. The TANF block grant is funded at $16.6 billion each year
through 2010. Although the program retains the work participation
rates of 50 percent for all families and 90 percent for two-parent
families, adjusting the base year for the caseload reduction credit
effectively increases the work requirements from the prior levels.
The reauthorized program also includes specific definitions of work,
General Funds
52.6%

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.
Since welfare reform was initially passed in 1996, states have

Regional Expenditures

focused on providing supportive services for families to achieve

The following table shows regional percentage changes in

self-sufficiency rather than cash assistance. Since 1996, caseloads

expenditures for total cash assistance for fiscal 2006-2007 and

have declined significantly. The average monthly number of

2007-2008 by region.

recipients fell from 12.8 million prior to the enactment of TANF
to 3.8 million by June 2008, a decrease of over two-thirds.
Table 16
regIonal percenTage change In STaTe ToTal publIc aSSISTance
expendITureS, FIScal 2007 and 2008
Fiscal 2006 to 2007
Region

Federal
Funds

All
Funds

State
Funds

Federal
Funds

All
Funds

New England
Mid-Atlantic
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West

1.3 %
-3.7
0.9
6.9
-3.3
-8.7
-17.2
3.5

-1.0 %
6.7
-3.8
0.4
-10.4
-5.6
-31.8
-2.9

0.8 %
2.5
-1.5
2.9
-7.8
-6.7
-25.9
1.1

6.2 %
11.3
-2.2
14.0
1.7
-4.3
-1.3
-5.6

0.2 %
-1.2
-13.5
-6.5
19.7
-1.6
64.1
16.5

4.9 %
3.5
-8.0
1.6
12.8
-2.6
34.7
2.4

0.9 %

-1.7 %

-0.3 %

0.0 %

7.5 %

3.4 %

ALL STATES

[30] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Fiscal 2007 to 2008

State
Funds

Expenditures for Cash Assistance
u n d e r Te m p o r a r y A s s i s t a n c e f o r N e e d y
F a m i l i e s ( TA N F ) P r o g r a m

Fund Shares

State and federal funds for TANF cash assistance expenditures

Figure 13

totaled $14.1 billion in fiscal 2007, a decrease of 1.9 percent from

STaTe expendITureS For Temporary aSSISTance For needy

2006 to 2007 (see Table 23). According to the most recent data,

FamIlIeS by Fund Source, FIScal 2007

The figure below provides fund shares for 2007.

cash assistance expenditures from state and federal funds
accounted for about 35 percent of total TANF spending in fiscal

Federal Funds
62.9%

2006 while child care accounted for about 19 percent of all funds
used that year.
States have provided funding for programs to address childcare
services, training and education, transportation needs, transitional

Other State Funds
1.6%

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.
General Funds
35.5%

Expenditure data for TANF cash assistance can be found on
Tables 21-23.

Regional Expenditures
The following table shows percentage changes in expenditures
for TANF cash assistance for fiscal 2006-2007 and 2007-2008 by
region.
Table 17
regIonal percenTage change In STaTe TanF expendITureS,
FIScal 2007 and 2008
Fiscal 2006 to 2007

Fiscal 2007 to 2008

Region

State
Funds

Federal
Funds

All
Funds

State
Funds

Federal
Funds

All
Funds

New England
Mid-Atlantic
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West

0.0 %
-6.2
0.2
10.7
-5.3
-8.3
-36.0
2.4

-3.3 %
5.4
-2.8
0.4
-13.2
-5.6
-31.8
-2.1

-1.2 %
3.1
-1.4
3.0
-10.4
-6.5
-32.9
-0.2

7.0 %
-1.8
-3.6
18.3
-2.3
-4.0
-6.3
-18.9

0.5 %
-1.2
-13.6
-6.6
22.0
-1.6
64.1
21.1

4.7 %
-1.3
-8.7
0.3
12.9
-2.4
46.7
4.1

-0.9 %

-2.5 %

-1.9 %

-7.7 %

9.7 %

3.3 %

ALL STATES

2007 STATE EXPENDITURE REPORT [31]

Other Cash Assistance

Other cash assistance programs accounted for only 0.7 percent of
total state spending in fiscal 2007. States spent $9.7 billion for other

The second component of cash assistance for public welfare is

cash assistance, with 77 percent of that amount funded from state

other cash assistance, including state participation in the

general funds. California accounted for over half of the total

Supplemental Security Income (SSI) program, General Assistance

spending on other cash assistance.

(GA), and emergency assistance. Each state determines the
structure of its own program, resulting in significant variations in

Expenditure data for other cash assistance can be found on

programs and funding. Some have statewide uniform eligibility rules

Tables 24-26.

while others simply require some form of county participation.
Thirty-six states spend some amount on this category of other
cash assistance.

[32] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 18
ToTal publIc aSSISTance expendITureS ($ In mIllIonS)

Region/State

General
Fund

Actual Fiscal 2006
Other
Federal
State
Funds
Funds

Total

General
Fund

Actual Fiscal 2007
Other
Federal
State
Funds
Funds

Total

Estimated Fiscal 2008
Other
General
Federal
State
Fund
Funds
Funds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$214
35
1,260
33
86
29

$267
49
12
37
90
49

$0
89
0
6
0
6

$481
173
1,272
76
176
84

$209
40
1,293
35
80
26

$267
36
13
41
86
56

$0
89
0
6
0
2

$476
165
1,306
82
166
84

214
38
1,379
38
57
33

262
52
12
37
84
53

0
124
0
7
0
0

476
214
1,391
82
141
86

7
47
271
1,251
559

15
395
133
2,097
568

2
17
0
0
27

24
459
404
3,348
1,154

7
44
241
1,154
613

10
433
159
2,243
577

2
13
0
0
27

19
490
400
3,397
1,217

7
36
233
1,404
615

8
437
171
2,184
580

2
13
0
0
28

17
486
404
3,588
1,223

91
83
340
129
33

79
294
143
207
84

0
4
47
23
0

170
381
530
359
117

85
83
392
113
6

65
290
114
211
96

0
4
50
24
0

150
377
556
348
102

72
73
373
120
28

46
253
107
188
77

0
4
49
21
0

118
330
529
329
105

62
39
95
43
31
4
8

58
34
257
112
35
1
21

11
0
0
22
0
6
0

131
73
352
177
66
11
29

62
39
116
42
36
0
9

50
27
283
105
28
6
21

11
0
0
23
0
5
0

123
66
399
170
64
11
30

60
39
158
43
35
4
9

62
21
220
116
44
1
22

12
0
0
26
0
5
0

134
60
378
185
79
10
31

4
135
178
161
72
7
1
70
25
38
63
27

42
268
0
410
108
35
20
196
26
107
115
91

4
9
0
0
0
0
0
0
12
3
0
0

50
412
178
571
180
42
21
266
63
148
178
118

4
138
148
170
72
2
2
52
29
32
67
28

36
287
7
345
99
42
24
161
26
98
92
54

6
15
0
0
0
0
1
2
12
2
0
0

46
440
155
515
171
44
27
215
67
132
159
82

4
151
125
165
72
2
3
61
41
33
68
27

37
399
28
395
123
42
27
186
18
107
75
84

5
19
0
0
0
0
1
1
14
3
0
0

46
569
153
560
195
44
31
248
73
143
143
111

60
22
82
67

98
87
148
63

0
0
0
0

158
109
230
130

44
19
79
69

80
103
148
43

0
0
0
0

124
122
227
112

45
15
77
65

80
107
146
35

0
0
0
0

125
122
223
100

5
8
14
32
37

105
7
29
71
74

96
0
0
0
0

206
15
43
103
111

2
9
14
34
0

96
7
27
65
0

100
0
0
0
0

198
16
41
99
0

2
9
15
25
0

223
6
32
59
0

106
0
0
0
0

331
15
47
84
0

72
6,058
74
27
46
276

11
3,694
26
22
72
115

28
0
0
0
4
0

111
9,752
100
49
122
391

75
6,272
77
33
42
286

10
3,582
30
17
84
104

21
0
0
0
8
0

106
9,854
107
50
134
390

70
5,872
84
32
82
273

13
4,199
40
19
88
100

19
0
0
0
1
0

102
10,071
124
51
171
373

$12,411

$11,077

$416

$23,904

$12,524

$10,884

$423

$23,831

$12,486

$11,705

$460

$24,651

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Note: This table reflects TANF and other cash assistance expenditures.
Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [33]

Table 19
ToTal publIc aSSISTance expendITureS aS a
percenT oF ToTal expendITureS
Region/State

Fiscal
2006

Fiscal
2007

Fiscal
2008

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

2.3 %
2.4
3.2
1.7
2.7
1.7

2.1 %
2.3
3.1
1.8
2.5
1.6

2.0 %
2.8
3.4
1.8
1.9
1.6

0.3
1.7
1.0
3.2
2.1

0.2
1.7
0.9
3.0
2.1

0.2
1.6
0.8
3.1
2.0

0.4
1.8
1.3
0.7
0.3

0.3
1.7
1.3
0.7
0.3

0.2
1.4
1.2
0.6
0.3

0.9
0.6
1.4
0.9
0.8
0.3
1.0

0.8
0.6
1.5
0.8
0.8
0.3
1.0

0.8
0.5
1.3
0.8
0.8
0.3
0.9

0.1
2.7
0.3
1.7
0.9
0.2
0.2
0.8
0.4
0.6
0.6
0.6

0.1
2.7
0.2
1.4
0.8
0.1
0.2
0.5
0.3
0.5
0.5
0.4

0.1
3.0
0.2
1.4
0.8
0.1
0.2
0.5
0.3
0.5
0.4
0.6

0.6
0.8
1.4
0.2

0.5
0.8
1.2
0.1

0.4
0.9
1.1
0.1

1.3
0.3
1.0
1.2
2.0

1.2
0.3
0.9
1.0
0.0

1.8
0.2
0.8
0.7
0.0

1.2
5.6
1.1
0.6
0.6
1.4

0.9
5.4
1.0
0.6
0.7
1.3

0.8
4.9
1.0
0.7
0.7
1.2

1.8 %

1.7 %

1.6 %

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

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

[34] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 20
annual percenTage change In ToTal publIc aSSISTance expendITureS

Region/State

State
Funds

Fiscal 2006 to 2007
Federal
Funds

All
Funds

State
Funds

Fiscal 2007 to 2008
Federal
Funds

All
Funds

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

-2.3 %
4.0
2.6
5.1
-7.0
-20.0

0.0 %
-26.5
8.3
10.8
-4.4
14.3

-1.0 %
-4.6
2.7
7.9
-5.7
0.0

2.4 %
25.6
6.7
9.8
-28.8
17.9

-1.9 %
44.4
-7.7
-9.8
-2.3
-5.4

0.0 %
29.7
6.5
0.0
-15.1
2.4

0.0
-10.9
-11.1
-7.8
9.2

-33.3
9.6
19.5
7.0
1.6

-20.8
6.8
-1.0
1.5
5.5

0.0
-14.0
-3.3
21.7
0.5

-20.0
0.9
7.5
-2.6
0.5

-10.5
-0.8
1.0
5.6
0.5

-6.6
0.0
14.2
-9.9
-81.8

-17.7
-1.4
-20.3
1.9
14.3

-11.8
-1.0
4.9
-3.1
-12.8

-15.3
-11.5
-4.5
2.9
366.7

-29.2
-12.8
-6.1
-10.9
-19.8

-21.3
-12.5
-4.9
-5.5
2.9

0.0
0.0
22.1
0.0
16.1
-50.0
12.5

-13.8
-20.6
10.1
-6.3
-20.0
500.0
0.0

-6.1
-9.6
13.4
-4.0
-3.0
0.0
3.4

-1.4
0.0
36.2
6.2
-2.8
80.0
0.0

24.0
-22.2
-22.3
10.5
57.1
-83.3
4.8

8.9
-9.1
-5.3
8.8
23.4
-9.1
3.3

25.0
6.3
-16.9
5.6
0.0
-71.4
200.0
-22.9
10.8
-17.1
6.3
3.7

-14.3
7.1

-15.9
-8.3
20.0
20.0
-17.9
0.0
-8.4
-20.0
-40.7

-8.0
6.8
-12.9
-9.8
-5.0
4.8
28.6
-19.2
6.3
-10.8
-10.7
-30.5

-10.0
11.1
-15.5
-2.9
0.0
0.0
33.3
14.8
34.1
5.9
1.5
-3.6

2.8
39.0
300.0
14.5
24.2
0.0
12.5
15.5
-30.8
9.2
-18.5
55.6

0.0
29.3
-1.3
8.7
14.0
0.0
14.8
15.3
9.0
8.3
-10.1
35.4

-26.7
-13.6
-3.7
3.0

-18.4
18.4
0.0
-31.7

-21.5
11.9
-1.3
-13.8

2.3
-21.1
-2.5
-5.8

0.0
3.9
-1.4
-18.6

0.8
0.0
-1.8
-10.7

1.0
12.5
0.0
6.3
-100.0

-8.6
0.0
-6.9
-8.5
-100.0

-3.9
6.7
-4.7
-3.9
-100.0

5.9
0.0
7.1
-26.5

132.3
-14.3
18.5
-9.2

67.2
-6.3
14.6
-15.2

-4.0
3.5
4.1
22.2
0.0
3.6

-9.1
-3.0
15.4
-22.7
16.7
-9.6

-4.5
1.0
7.0
2.0
9.8
-0.3

-7.3
-6.4
9.1
-3.0
66.0
-4.5

30.0
17.2
33.3
11.8
4.8

-3.8
2.2
15.9
2.0
27.6
-4.4

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

0.9 %

-1.7 %

-0.3 %

0.0 %

7.5 %

3.4 %

Notes: State funds are defined as general funds and other state funds (bonds are excluded).
This table reflects TANF and other cash assistance expenditures.
Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [35]

Table 21
caSh expendITureS under Temporary aSSISTance To needy FamIlIeS expendITureS (TanF) ($ In mIllIonS)

Region/State

General
Fund

Actual Fiscal 2006
Other
Federal
State
Funds
Funds

Total

General
Fund

Actual Fiscal 2007
Other
Federal
State
Funds
Funds

Total

Estimated Fiscal 2008
Other
General
Federal
State
Fund
Funds
Funds

Total

NEW ENGLAND

Connecticut*
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$120
18
467
26
16
14

$267
48
0
37
51
24

$0
89
0
0
0
2

$387
155
467
63
67
40

$112
28
466
28
16
13

$267
35
0
41
44
26

$0
89
0
0
0
0

$379
152
466
69
60
39

$111
25
484
30
16
15

$262
52
0
37
37
27

$0
124
0
0
0
0

$373
201
484
67
53
42

2
13
51
243
314

15
80
85
2,097
253

1
10
0
0
0

18
103
136
2,340
567

2
13
18
201
354

10
79
92
2,243
242

1
6
0
0
0

13
98
110
2,444
596

2
7
14
205
348

8
91
103
2,184
247

1
7
0
0
0

11
105
117
2,389
595

52
40
237
106
30

76
137
127
207
22

0
4
38
23
0

128
181
402
336
52

44
40
288
88
3

64
137
100
211
41

0
4
40
24
0

108
181
428
323
44

32
30
267
93
25

44
137
90
188
19

0
4
40
21
0

76
171
397
302
44

44
30
34
17
24
4
8

58
34
257
112
34
1
21

11
0
0
0
0
6
0

113
64
291
129
58
11
29

44
30
52
17
29
0
9

50
27
283
105
27
6
21

11
0
0
0
0
5
0

105
57
335
122
56
11
30

43
30
87
17
27
4
9

62
21
220
116
43
1
22

11
0
0
0
0
5
0

116
51
307
133
70
10
31

4
12
178
161
72
7
1
70
12
38
51
26

42
59
0
410
108
35
20
196
26
107
67
91

4
0
0
0
0
0
0
0
0
3
0
0

50
71
178
571
180
42
21
266
38
148
118
117

4
13
148
170
72
2
2
52
8
32
63
28

36
66
7
345
99
42
24
161
26
98
50
54

6
0
0
0
0
0
1
2
0
2
0
0

46
79
155
515
171
44
27
215
34
132
113
82

4
12
125
165
72
2
3
61
8
33
65
26

37
143
28
395
123
42
27
186
18
107
40
84

5
5
0
0
0
0
1
1
0
3
0
0

46
160
153
560
195
44
31
248
26
143
105
110

56
15
54
67

97
87
148
63

0
0
0
0

153
102
202
130

42
11
54
69

79
103
148
43

0
0
0
0

121
114
202
112

42
7
55
65

79
107
146
35

0
0
0
0

121
114
201
100

1
0
14
22
37

105
7
29
71
74

26
0
0
0
0

132
7
43
93
111

1
0
14
23
0

96
7
27
65
0

26
0
0
0
0

123
7
41
88
0

1
0
15
16
0

223
6
32
59
0

28
0
0
0
0

252
6
47
75
0

18
1,963
38
20
46
173

10
2,974
26
22
68
113

2
0
0
0
4
0

30
4,937
64
42
118
286

16
2,018
38
26
42
169

9
2,909
30
17
80
102

2
0
0
0
8
0

27
4,927
68
43
130
271

17
1,555
38
25
82
160

12
3,559
40
19
83
98

2
0
0
0
1
0

31
5,114
78
44
166
258

$5,066

$9,098

$223

$14,387

$5,012

$8,874

$227

$14,113

$4,575

$9,739

$259

$14,573

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas*
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Public Assistance Notes for explanation

[36] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 22
TanF expendITureS For caSh aSSISTance aS a
percenT oF ToTal expendITureS
Region/State

Fiscal
2006

Fiscal
2007

Fiscal
2008

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

1.9 %
2.2
1.2
1.4
1.0
0.8

1.7 %
2.1
1.1
1.5
0.9
0.8

1.6 %
2.7
1.2
1.4
0.7
0.8

0.2
0.4
0.3
2.2
1.1

0.2
0.3
0.2
2.2
1.0

0.1
0.3
0.2
2.1
1.0

0.3
0.8
1.0
0.6
0.2

0.2
0.8
1.0
0.6
0.1

0.2
0.7
0.9
0.6
0.1

0.8
0.6
1.1
0.7
0.7
0.3
1.0

0.7
0.5
1.2
0.6
0.7
0.3
1.0

0.7
0.4
1.1
0.6
0.7
0.3
0.9

0.1
0.5
0.3
1.7
0.9
0.2
0.2
0.8
0.2
0.6
0.4
0.6

0.1
0.5
0.2
1.4
0.8
0.1
0.2
0.5
0.2
0.5
0.3
0.4

0.1
0.8
0.2
1.4
0.8
0.1
0.2
0.5
0.1
0.5
0.3
0.6

0.6
0.8
1.2
0.2

0.4
0.8
1.0
0.1

0.4
0.8
1.0
0.1

0.8
0.1
1.0
1.0
2.0

0.7
0.1
0.9
0.9
0.0

1.4
0.1
0.8
0.6
0.0

0.3
2.9
0.7
0.6
0.6
1.0

0.2
2.7
0.6
0.5
0.6
0.9

0.2
2.5
0.6
0.6
0.7
0.8

1.1 %

1.0 %

0.9 %

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Source: National Association of State Budget Officers, 2007 State
Expenditure Report

2007 STATE EXPENDITURE REPORT [37]

Table 23
annual percenTage change In TanF caSh aSSISTance expendITureS
Fiscal 2006 to 2007
Region/State

State
Funds

Federal
Funds

Fiscal 2007 to 2008
All
Funds

State
Funds

Federal
Funds

All
Funds

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

-6.7 %
9.3
-0.2
7.7
0.0
-18.8

0.0 %
-27.1

10.8
-13.7
8.3

-2.1 %
-1.9
-0.2
9.5
-10.4
-2.5

0.0
-17.4
-64.7
-17.3
12.7

-33.3
-1.3
8.2
7.0
-4.3

-27.8
-4.9
-19.1
4.4
5.1

-15.4
0.0
19.3
-13.2
-90.0

-15.8
0.0
-21.3
1.9
86.4

0.0
0.0
52.9
0.0
20.8
-50.0
12.5

-0.9 %
27.4
3.9
7.1
0.0
15.4

-1.9 %
48.6

-9.8
-15.9
3.8

-1.6 %
32.2
3.9
-2.9
-11.7
7.7

0.0
-26.3
-22.2
2.0
-1.7

-20.0
15.2
12.0
-2.6
2.1

-15.4
7.1
6.4
-2.3
-0.2

-15.6
0.0
6.5
-3.9
-15.4

-27.3
-22.7
-6.4
1.8
733.3

-31.3
0.0
-10.0
-10.9
-53.7

-29.6
-5.5
-7.2
-6.5
0.0

-13.8
-20.6
10.1
-6.3
-20.6
500.0
0.0

-7.1
-10.9
15.1
-5.4
-3.4
0.0
3.4

-1.8
0.0
67.3
0.0
-6.9
80.0
0.0

24.0
-22.2
-22.3
10.5
59.3
-83.3
4.8

10.5
-10.5
-8.4
9.0
25.0
-9.1
3.3

25.0
8.3
-16.9
5.6
0.0
-71.4
200.0
-22.9
-33.3
-17.1
23.5
7.7

-14.3
11.9

-15.9
-8.3
20.0
20.0
-17.9
0.0
-8.4
-25.4
-40.7

-8.0
11.3
-12.9
-9.8
-5.0
4.8
28.6
-19.2
-10.5
-10.8
-4.2
-29.9

-10.0
30.8
-15.5
-2.9
0.0
0.0
33.3
14.8
0.0
5.9
3.2
-7.1

2.8
116.7
300.0
14.5
24.2
0.0
12.5
15.5
-30.8
9.2
-20.0
55.6

0.0
102.5
-1.3
8.7
14.0
0.0
14.8
15.3
-23.5
8.3
-7.1
34.1

-25.0
-26.7
0.0
3.0

-18.6
18.4
0.0
-31.7

-20.9
11.8
0.0
-13.8

0.0
-36.4
1.9
-5.8

0.0
3.9
-1.4
-18.6

0.0
0.0
-0.5
-10.7

0.0
--0.0
4.5
-100.0

-8.6
0.0
-6.9
-8.5
-100.0

-6.8
0.0
-4.7
-5.4
-100.0

7.4

7.1
-30.4

132.3
-14.3
18.5
-9.2

104.9
-14.3
14.6
-14.8

-10.0
2.8
0.0
30.0
0.0
-2.3

-10.0
-2.2
15.4
-22.7
17.6
-9.7

-10.0
-0.2
6.3
2.4
10.2
-5.2

5.6
-22.9
0.0
-3.8
66.0
-5.3

33.3
22.3
33.3
11.8
3.8
-3.9

14.8
3.8
14.7
2.3
27.7
-4.8

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

-0.9 %

-2.5 %

Note: State funds are defined as general funds and other state funds (bonds are excluded).
Source: National Association of State Budget Officers, 2007 State Expenditure Report

[38] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

-1.9 %

-7.7 %

9.7 %

3.3 %

Table 24
oTher caSh aSSISTance expendITureS ($ In mIllIonS)

Region/State

General
Fund

Actual Fiscal 2006
Other
Federal
State
Funds
Funds

Total

General
Fund

Actual Fiscal 2007
Other
Federal
State
Funds
Funds

Total

Estimated Fiscal 2008
Other
General
Federal
State
Fund
Funds
Funds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$94
17
793
7
70
15

$0
1
12
0
39
25

$0
0
0
6
0
4

$94
18
805
13
109
44

$97
12
827
7
64
13

$0
1
13
0
42
30

$0
0
0
6
0
2

$97
13
840
13
106
45

$103
13
895
8
41
18

$0
0
12
0
47
26

$0
0
0
7
0
0

$103
13
907
15
88
44

5
34
220
1,008
245

0
315
48
0
315

1
7
0
0
27

6
356
268
1,008
587

5
31
223
953
259

0
354
67
0
335

1
7
0
0
27

6
392
290
953
621

5
29
219
1,199
267

0
346
68
0
333

1
6
0
0
28

6
381
287
1,199
628

39
43
103
23
3

3
157
15
0
62

0
0
9
0
0

42
200
127
23
65

41
43
105
25
3

1
153
15
0
55

0
0
10
0
0

42
196
130
25
58

40
43
106
27
3

2
116
17
0
58

0
0
9
0
0

42
159
132
27
61

18
9
61
26
7
0
0

0
0
0
0
1
0
0

0
0
0
22
0
0
0

18
9
61
48
8
0
0

18
9
64
25
7
0
0

0
0
0
0
1
0
0

0
0
0
23
0
0
0

18
9
64
48
8
0
0

17
9
71
26
8
0
0

0
0
0
0
1
0
0

1
0
0
26
0
0
0

18
9
71
52
9
0
0

0
123
0
0
0
0
0
0
13
0
12
1

0
209
0
0
0
0
0
0
0
0
47
0

0
9
0
0
0
0
0
0
12
0
0
0

0
341
0
0
0
0
0
0
25
0
59
1

0
125
0
0
0
0
0
0
21
0
4
0

0
221
0
0
0
0
0
0
0
0
42
0

0
15
0
0
0
0
0
0
12
0
0
0

0
361
0
0
0
0
0
0
33
0
46
0

0
139
0
0
0
0
0
0
33
0
3
1

0
256
0
0
0
0
0
0
0
0
35
0

0
14
0
0
0
0
0
0
14
0
0
0

0
409
0
0
0
0
0
0
47
0
38
1

4
7
28
0

1
0
0
0

0
0
0
0

5
7
28
0

2
8
25
0

1
0
0
0

0
0
0
0

3
8
25
0

3
8
22
0

1
0
0
0

0
0
0
0

4
8
22
0

4
8
0
10
0

0
0
0
0
0

70
0
0
0
0

74
8
0
10
0

1
9
0
11
0

0
0
0
0
0

74
0
0
0
0

75
9
0
11
0

1
9
0
9
0

0
0
0
0
0

78
0
0
0
0

79
9
0
9
0

54
4,095
36
6
0
103

1
720
0
0
4
2

26
0
0
0
0
0

81
4,815
36
6
4
105

59
4,254
39
7
0
117

1
673
0
0
4
2

19
0
0
0
0
0

79
4,927
39
7
4
119

53
4,317
46
7
0
113

1
640
0
0
5
2

17
0
0
0
0
0

71
4,957
46
7
5
115

$7,344

$1,977

$193

$9,514

$7,513

$2,011

$196

$9,720

$7,911

$1,966

$201

$10,078

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado*
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Public Assistance Notes for explanation

2007 STATE EXPENDITURE REPORT [39]

Table 25
oTher caSh aSSISTance expendITureS aS a
percenT oF ToTal expendITureS
Region/State

Fiscal
2006

Fiscal
2007

Fiscal
2008

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

0.5 %
0.3
2.1
0.3
1.6
0.9

0.4 %
0.2
2.0
0.3
1.6
0.9

0.4 %
0.2
2.2
0.3
1.2
0.8

0.1
1.3
0.6
1.0
1.1

0.1
1.3
0.6
0.8
1.1

0.1
1.2
0.6
1.0
1.0

0.1
0.9
0.3
0.0
0.2

0.1
0.9
0.3
0.0
0.2

0.1
0.7
0.3
0.0
0.2

0.1
0.1
0.2
0.2
0.1
0.0
0.0

0.1
0.1
0.2
0.2
0.1
0.0
0.0

0.1
0.1
0.2
0.2
0.1
0.0
0.0

0.0
2.2
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.2
0.0

0.0
2.2
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.1
0.0

0.0
2.1
0.0
0.0
0.0
0.0
0.0
0.0
0.2
0.0
0.1
0.0

0.0
0.1
0.2
0.0

0.0
0.1
0.1
0.0

0.0
0.1
0.1
0.0

0.5
0.2
0.0
0.1
0.0

0.4
0.2
0.0
0.1
0.0

0.4
0.1
0.0
0.1
0.0

0.8
2.8
0.4
0.1
0.0
0.4

0.7
2.7
0.4
0.1
0.0
0.4

0.6
2.4
0.4
0.1
0.0
0.4

0.7 %

0.7 %

0.6 %

NEW ENGLAND

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Source: National Association of State Budget Officers, 2007 State
Expenditure Report

[40] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 26
annual percenTage change In oTher caSh aSSISTance expendITureS
Fiscal 2006 to 2007
Region/State

State
Funds

Federal
Funds

Fiscal 2007 to 2008
All
Funds

State
Funds

Federal
Funds

All
Funds

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

3.2 %
-29.4
4.3
0.0
-8.6
-21.1

—%
0.0
8.3

7.7
20.0

3.2 %
-27.8
4.3
0.0
-2.8
2.3

6.2 %
8.3
8.2
15.4
-35.9
20.0

—%
-100.0
-7.7

11.9
-13.3

6.2 %
0.0
8.0
15.4
-17.0
-2.2

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania

0.0
-7.3
1.4
-5.5
5.1


12.4
39.6

6.3

0.0
10.1
8.2
-5.5
5.8

0.0
-7.9
-1.8
25.8
3.1


-2.3
1.5

-0.6

0.0
-2.8
-1.0
25.8
1.1

5.1
0.0
2.7
8.7
0.0

-66.7
-2.5
0.0

-11.3

0.0
-2.0
2.4
8.7
-10.8

-2.4
0.0
0.0
8.0
0.0

100.0
-24.2
13.3

5.5

0.0
-18.9
1.5
8.0
5.2

0.0
0.0
4.9
0.0
0.0





0.0

0.0
0.0
4.9
0.0
0.0

0.0
0.0
10.9
8.3
14.3





0.0

0.0
0.0
10.9
8.3
12.5


6.1






32.0

-66.7
-100.0


5.7








-10.6


5.9






32.0

-22.0
-100.0


9.3






42.4

-25.0


15.8








-16.7


13.3






42.4

-17.4

-50.0
14.3
-10.7

0.0


-40.0
14.3
-10.7

50.0
0.0
-12.0

0.0


33.3
0.0
-12.0

1.4
12.5

10.0





1.4
12.5

10.0

5.3
0.0

-18.2





5.3
0.0

-18.2

-2.5
3.9
8.3
16.7

13.6

0.0
-6.5


0.0
0.0

-2.5
2.3
8.3
16.7
0.0
13.3

-10.3
1.5
17.9
0.0

-3.4

0.0
-4.9


25.0
0.0

-10.1
0.6
17.9
0.0
25.0
-3.4

GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

2.3 %

1.7 %

2.2 %

5.2 %

-2.2 %

3.7 %

Note: State funds are defined as general funds and other state funds (bonds are excluded).
Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [41]

Public Assistance Notes

Michigan: Other Cash Assistance figures do not include
expenditures for day care, a large part of Michigan’s public assistance

Small dollar amounts, when rounded, cause an aberration in the

program. Day care expenditures total $460.0 million in fiscal 2006;

percentage increase. In these instances, the actual dollar amounts

$433.8 million in fiscal 2007; and are estimated at $410.7 million in

should be consulted to determine the exact percentage increase.

fiscal 2008.

Colorado: “Other Cash Assistance” includes the OAP Cash

Texas: In fiscal 2006, TANF amounts were revised to reflect only

Assistance and Aid to the Needy Disabled State Supplemental

the Cash Assistance expenditures. Non-Cash Assistance expenditures

Grant Program. The FY 2005-06 and FY 2006-07 OAP numbers

for statewide TANF services were included in the NASBO 2006

are taken from the Nov 1, 2007 DHS Sch 3, page (10)-17, for and

State Expenditure Report. The TANF decrease in fiscal 2008

the FY 2007-08 expenditure is the HB 08-1287 appropriation. The

Federal expenditures is because of the decrease in projected

Aid to the Needy Disabled State Supplemental Grant Program

caseloads. TANF State General Revenue Maintenance of Effort

expenditures for FY 2005-06 and FY 2006-07 are from the Nov 1,

(GR-MOE) must be expended at appropriated Levels which have

2007 Sch 3, page (10)-35. However, the line was combined with

remained fairly level. Therefore decreases in caseloads and the

other programs that are not classified as cash assistance in FY 2007-

corresponding decreases in Cash Assistance payments show up

08, so the FY 2007-08 number is a continuation of the FY 2006-07

most prominently in the Federal TANF.

expenditure.
Connecticut: TANF figures exclude medical assistance under the
State Administered General Assistance Program. Amounts for that
purpose were $136 million in fiscal 2006, $153 million in fiscal 2007,
and $174 million in fiscal 2008.

[42] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

CHAPTER FOUR
MEDICAID EXPENDITURES
21.2% of State Expenditures

Founded 1945

Medicaid, a means-tested entitlement program financed by the

States have been aggressive over the past five years in pursuing cost

states and the federal government, provides comprehensive and

containment measures to help slow spending increases. According

long-term medical care for more than 59 million low-income

to the Kaiser Commission on Medicaid and the Uninsured, every

individuals.

state instituted cost containment measures during this period with
the majority centered on freezing or reducing provider payments

Total Medicaid spending in fiscal 2007 was $305.1 billion, excluding
administrative costs, which represents a 6.1 percent increase
over fiscal 2006. Medicaid spending for fiscal 2008 is estimated at
$322 billion, an increase of 5.5 percent over fiscal 2007. Medicaid
accounted for 21.2 percent of total state spending in fiscal 2007 and

and managing prescription drug costs. Long range projections for
national health expenditures are estimated to increase on average
approximately 6.7 percent annually, according to CMS and will
continue to rise as a percentage of the nation’s gross domestic
product.

is tied with elementary and secondary education as the single
largest portion of total state spending.

Significant Health Challenges Facing States. States face a
number of challenges in funding and providing health care both

Included in Medicaid spending are the Medicare Part D “clawback”
payments, statutorily known as the phased down state contribution.
Beginning in January 2006, the prescription drug costs for those
eligible for both Medicare and Medicaid were no longer part of the
Medicaid program. Instead these costs are now part of 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 total $2.1 billion in fiscal 2006, $6.9 billion in fiscal 2007,
and are estimated at $7 billion for fiscal 2008.

within the Medicaid program and throughout state government.
Among the issues of greatest concern for states include, health care
cost increases and greater utilization of services; the aging
population and the impact on long-term care financing; regulatory
actions at the federal level that would limit federal participation for
key services; workforce shortages such as nurses; hospital finances;
pressure to raise physician rates in order to maintain participation
in the Medicaid program; State Children’s Health Insurance
Program (SCHIP) funding; mental health funding and access; and
generally the pressure to maintain health care spending that on

Figures 14 and 15 provide actual and projected Medicaid costs for

average consumes a greater share of state budgets over time. State

total spending and for state spending from 1970 to 2008. In

officials are also concerned about the number of citizens in their

addition to Medicaid, state spending on other health services

states without health insurance, but often lack the necessary

accounts for another 9 percent of total state spending based on

resources to commit to plans for the uninsured.

data from NASBO’s 2002-2003 State Health Expenditure Report.

Even with more moderating growth rates in health care spending

Medicaid Enrollment. Although Medicaid enrollment decreased

from the height of the economic downturn in the early 2000’s,

by 0.5 percent in fiscal 2007 it is projected to increase by 2.1

projections over the next ten years remain at an average annual

percent in fiscal 2008 and by 3.5 percent in fiscal 2009, according

rate of about 7.9 percent from fiscal 2008 through fiscal 2018,

to the Kaiser Commission on Medicaid and the Uninsured. The

according to recent estimates by CMS. With Medicaid comprising

downturn in the economy is expected to result in significant

21 percent of state spending, these long-term growth rates will

increases in Medicaid enrollment as it has during previous

continue to strain state budgets.

economic slowdowns. For example, enrollment increased by 9.5
percent in fiscal 2002. The Centers for Medicare and Medicaid
Services (CMS), in its first annual report on the financial outlook for
Medicaid, is projecting an average annual rate of enrollment
increase at 1.2 percent over the next 10 years.

[44] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Figure 14, based on August 2008 projections by the Congressional

Figure 15, also based on August 2008 projections by the CBO, again

Budget Office (CBO), assumes a 56 percent federal share of total

assumes a 56 percent federal share of total Medicaid costs. Figures

Medicaid costs. Figures for 1990 and prior years are from the Federal

for 1990 and prior years are from the Federal Funds Information

Funds Information for States Issue Brief 94-14, Recent Trends in

for States Issue Brief 94-14, Recent Trends in Medicaid Spending.

Medicaid Spending.

Figure 14

Figure 15

acTual and projecTed ToTal medIcaId SpendIng,

acTual and projecTed STaTe medIcaId SpendIng,

1970 To 2008 (In bIllIonS)

1970 To 2008 (In bIllIonS)

158

160

400

150
359

350

309
300

341
319 323

284

140

133

137

142

122
120

112

260
250

228

98

100

89

207
200

80

67

156
150

60

100

40

32

73

5 13

26

0

19
80
19
85
19
90
19
95
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08

19

19
7

75

0

Source: Congressional Budget Office and Federal Funds Information for States

18

20
0

2

6

11

19
70
19
75
19
80
19
85
19
90
19
95
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08

41

50

Source: Congressional Budget Office and Federal Funds Information for States

2007 STATE EXPENDITURE REPORT [45]

Fund Shares
The figure below provides fund shares for 2007.
Figure 16
STaTe expendITureS For medIcaId by
Fund Source, FIScal 2007
Federal Funds
55.0%
Other State Funds
8.8%

General Funds
36.1%

Regional Expenditures
The following table shows percentage changes in expenditures for
Medicaid for fiscal 2006-2007 and 2007-2008 by region. For 2007,
the Southwest region is well above the national average while the
Rocky Mountain region is well below the national average.
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 2007 and 2008
Fiscal 2006 to 2007

Fiscal 2007 to 2008

Region

State
Funds

Federal
Funds

All
Funds

State
Funds

Federal
Funds

All
Funds

New England
Mid-Atlantic
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West

5.3 %
4.1
0.6
12.3
11.6
13.9
4.8
1.1

-3.0 %
4.9
9.1
1.1
5.9
11.6
-2.3
7.9

3.6 %
4.6
4.1
5.9
7.9
12.4
0.5
4.9

8.6 %
-1.0
9.2
2.4
6.4
7.7
5.7
5.3

10.5 %
-1.2
9.2
8.4
5.2
7.4
8.2
10.6

9.0 %
-1.1
9.2
5.7
5.6
7.5
7.2
8.3

5.8 %

6.3 %

6.1 %

5.3 %

5.8 %

5.5 %

ALL STATES

[46] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 28
medIcaId expendITureS ($ In mIllIonS)

Region/State

General
Fund

Actual Fiscal 2006
Other
State
Federal
Funds
Funds

Total

General
Fund

Actual Fiscal 2007
Other
State
Federal
Funds
Funds

Total

Estimated Fiscal 2008
Other
State
General Federal
Funds
Funds
Fund

Total

NEW ENGLAND

$3,141
677
6,889
409
775
168

$0
1,429
0
553
917
529

$780
166
28
153
0
193

$3,921
2,272
6,917
1,115
1,692
890

$3,152
660
7,551
440
796
197

$0
1,342
0
580
848
556

$775
169
0
157
0
188

$3,927
2,171
7,551
1,177
1,644
941

$3,519
666
8,248
468
890
193

$0
1,548
0
615
930
581

$785
187
0
167
0
178

$4,304
2,401
8,248
1,250
1,820
952

459
2,479
4,274
8,291
6,111

464
2,609
4,519
18,687
9,106

0
103
185
3,231
2,005

923
5,191
8,978
30,209
17,222

486
2,559
4,380
9,017
6,418

490
2,775
4,554
19,867
9,441

0
115
129
3,504
1,634

976
5,449
9,063
32,388
17,493

509
2,546
4,422
8,568
6,533

550
2,787
4,341
19,102
9,915

0
220
136
3,370
1,648

1,059
5,553
8,899
31,040
18,096

3,778
1,400
2,219
9,991
1,380

5,479
3,034
4,698
1,987
2,693

2,135
388
1,480
1,461
421

11,392
4,822
8,397
13,439
4,494

4,235
1,461
2,326
9,251
1,788

5,977
3,117
5,227
2,355
2,835

2,336
415
1,682
1,150
147

12,548
4,993
9,235
12,756
4,770

4,449
1,537
2,373
10,272
1,699

6,623
3,335
5,930
2,480
2,932

2,886
380
1,840
1,338
290

13,958
5,252
10,143
14,090
4,921

599
763
2,704
1,328
579
162
209

1,538
1,331
2,833
4,024
855
342
431

521
72
0
1,526
18
5
0

2,658
2,166
5,537
6,878
1,452
509
640

665
835
2,965
1,106
619
165
219

1,470
1,310
3,060
4,002
889
326
420

490
86
0
2,360
20
4
0

2,625
2,231
6,025
7,468
1,528
495
639

617
889
3,173
1,285
719
191
254

1,575
1,397
3,296
4,376
977
362
463

539
93
0
1,972
23
4
0

2,731
2,379
6,469
7,633
1,719
557
717

506
560
4,167
2,040
967
791
315
2,508
721
2,058
2,393
315

2,999
2,307
8,135
3,692
3,126
3,716
2,577
5,466
2,695
4,458
2,378
1,542

726
277
1,543
416
397
240
422
865
488
400
2
258

4,231
3,144
13,845
6,148
4,490
4,747
3,314
8,839
3,904
6,916
4,773
2,115

491
652
4,549
2,211
982
752
315
2,650
754
2,259
2,586
409

3,107
2,297
8,291
4,472
3,107
4,018
2,577
6,152
3,062
4,567
2,456
1,547

898
255
1,500
730
442
413
422
1,692
659
267
0
201

4,496
3,204
14,340
7,413
4,531
5,183
3,314
10,494
4,475
7,093
5,042
2,157

563
647
4,942
2,051
1,133
895
51
2,915
834
2,696
2,743
401

2,972
2,567
8,327
4,747
3,313
4,643
2,689
6,395
3,410
4,648
2,603
1,726

790
359
1,644
937
391
468
418
1,684
681
267
0
242

4,325
3,573
14,913
7,735
4,837
6,006
3,158
10,994
4,925
7,611
5,346
2,369

1,373
703
827
6,216

4,180
1,810
1,952
10,782

545
51
210
856

6,098
2,564
2,989
17,854

1,523
764
869
6,589

4,436
1,941
2,143
12,373

549
44
309
1,634

6,508
2,749
3,321
20,596

1,272
833
1,292
7,485

4,947
2,090
2,124
13,270

567
48
300
1,432

6,786
2,971
3,716
22,187

1,262
308
162
301
136

1,297
709
522
1,028
273

60
79
35
185
0

2,619
1,096
719
1,514
409

1,226
321
158
318
213

1,296
713
510
984
239

93
85
51
184
0

2,615
1,119
719
1,486
452

1,286
349
162
328
247

1,375
771
565
1,080
257

85
88
60
195
0

2,746
1,208
787
1,603
504

Alaska
California
Hawaii
Nevada
Oregon
Washington

349
12,180
390
387
914
2,956

670
17,311
582
673
1,941
3,103

47
1,683
3
103
307
0

1,066
31,174
975
1,163
3,162
6,059

374
13,403
440
437
901
2,791

656
19,418
616
700
1,924
2,887

27
643
6
106
395
0

1,057
33,464
1,062
1,243
3,220
5,678

434
14,071
479
450
1,052
2,941

750
21,865
672
637
2,013
3,048

28
703
10
80
303
0

1,212
36,639
1,161
1,167
3,368
5,989

ALL STATES

$104,590

$157,982

$25,069

$287,641

$110,228

$167,930

$26,966

$305,124

$116,572

$177,619

$27,836

$322,027

Connecticut*
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
MID-ATLANTIC

Delaware
Maryland*
New Jersey
New York*
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri*
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama*
Arkansas
Florida*
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee*
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas*
ROCKY MOUNTAIN

Colorado*
Idaho
Montana
Utah
Wyoming
FAR WEST

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Medicaid Notes for explanation

2007 STATE EXPENDITURE REPORT [47]

Table 29
medIcaId expendITureS aS a percenT oF ToTal
expendITureS
Region/State

Fiscal
2006

Fiscal
2007

Fiscal
2008

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

19.1 %
32.0
17.7
24.9
25.5
18.0

17.2 %
30.2
18.1
25.9
24.4
18.3

18.4 %
31.9
20.0
26.8
24.9
18.2

12.2
19.3
21.2
29.0
31.9

12.3
18.5
20.0
28.7
30.7

13.1
18.0
18.1
26.7
30.2

26.2
22.3
20.1
25.1
13.4

27.2
21.9
21.7
24.0
13.9

29.2
21.8
23.1
25.7
13.6

18.1
18.9
21.5
34.9
18.2
15.4
21.5

17.4
18.6
22.2
35.5
18.7
14.7
20.9

16.7
18.2
22.4
33.2
18.0
15.5
21.1

12.6
20.5
22.5
17.8
21.9
20.6
25.5
25.3
21.7
29.6
15.0
10.4

12.3
19.9
21.7
19.8
20.3
17.6
21.7
26.5
22.4
28.6
14.5
11.6

10.0
18.6
21.2
20.0
18.9
14.8
18.9
23.3
23.1
27.9
15.1
12.5

24.0
19.9
18.3
24.3

23.7
19.0
17.2
25.4

23.7
20.9
17.8
24.7

16.8
21.8
16.1
17.0
7.3

15.6
20.5
15.3
14.9
8.9

15.3
18.8
13.9
12.7
10.2

11.1
18.0
10.3
15.4
15.6
21.8

9.2
18.3
10.0
15.2
15.9
19.0

9.7
18.0
9.2
15.1
14.4
18.5

21.4 %

21.2 %

20.7 %

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Source: National Association of State Budget Officers,
2007 State Expenditure Report

[48] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 30
annual percenTage change In medIcaId expendITureS

Fiscal 2006 to 2007
Region/State

State
Funds

Federal
Funds

Fiscal 2007 to 2008
All
Funds

State
Funds

Federal
Funds

All
Funds

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

0.2 %
-1.7
9.2
6.2
2.7
6.6

—%
-6.1

4.9
-7.5
5.1

0.2 %
-4.4
9.2
5.6
-2.8
5.7

9.6 %
2.9
9.2
6.4
11.8
-3.6

— %
15.4

6.0
9.7
4.5

9.6 %
10.6
9.2
6.2
10.7
1.2

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania

5.9
3.6
1.1
8.7
-0.8

5.6
6.4
0.8
6.3
3.7

5.7
5.0
0.9
7.2
1.6

4.7
3.4
1.1
-4.7
1.6

12.2
0.4
-4.7
-3.9
5.0

8.5
1.9
-1.8
-4.2
3.4

11.1
4.9
8.4
-9.2
7.4

9.1
2.7
11.3
18.5
5.3

10.1
3.5
10.0
-5.1
6.1

11.6
2.2
5.1
11.6
2.8

10.8
7.0
13.4
5.3
3.4

11.2
5.2
9.8
10.5
3.2

3.1
10.3
9.7
21.4
7.0
1.2
4.8

-4.4
-1.6
8.0
-0.5
4.0
-4.7
-2.6

-1.2
3.0
8.8
8.6
5.2
-2.8
-0.2

0.1
6.6
7.0
-6.0
16.1
15.4
16.0

7.1
6.6
7.7
9.3
9.9
11.0
10.2

4.0
6.6
7.4
2.2
12.5
12.5
12.2

12.7
8.4
5.9
19.7
4.4
13.0
0.0
28.7
16.9
2.8
8.0
6.5

3.6
-0.4
1.9
21.1
-0.6
8.1
0.0
12.6
13.6
2.4
3.3
0.3

6.3
1.9
3.6
20.6
0.9
9.2
0.0
18.7
14.6
2.6
5.6
2.0

-2.6
10.9
8.9
1.6
7.0
17.0
-36.4
5.9
7.2
17.3
6.1
5.4

-4.3
11.8
0.4
6.1
6.6
15.6
4.3
3.9
11.4
1.8
6.0
11.6

-3.8
11.5
4.0
4.3
6.8
15.9
-4.7
4.8
10.1
7.3
6.0
9.8

8.0
7.2
13.6
16.3

6.1
7.2
9.8
14.8

6.7
7.2
11.1
15.4

-11.2
9.0
35.1
8.4

11.5
7.7
-0.9
7.2

4.3
8.1
11.9
7.7

-0.2
4.9
6.1
3.3
56.6

-0.1
0.6
-2.3
-4.3
-12.5

-0.2
2.1
0.0
-1.8
10.5

3.9
7.6
6.2
4.2
16.0

6.1
8.1
10.8
9.8
7.5

5.0
8.0
9.5
7.9
11.5

1.3
1.3
13.5
10.8
6.1
-5.6

-2.1
12.2
5.8
4.0
-0.9
-7.0

-0.8
7.3
8.9
6.9
1.8
-6.3

15.2
5.2
9.6
-2.4
4.6
5.4

14.3
12.6
9.1
-9.0
4.6
5.6

14.7
9.5
9.3
-6.1
4.6
5.5

GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

5.8 %

6.3 %

6.1 %

5.3 %

5.8 %

5.5 %

Note: State funds are defined as general funds and other state funds (bonds are excluded).
Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [49]

Medicaid Notes

Connecticut: Medicaid Appropriation is “gross funded”—Federal
funds are deposited directly to the State Treasury. Connecticut’s

States were asked to report Medicaid expenditures as follows:

FMAP is currently at 50 percent of Medicaid benefit costs. Excludes

General funds: all general funds appropriated to the Medicaid

state portion of Qualified Medicare Beneficiaries and School Based

agency and any other agency which are used for direct Medicaid

Child Health as those expenditures are netted out of federal

matching purposes under Title XIX. Other state funds: other funds

Medicaid reimbursement.

and revenue sources used as Medicaid match, such as local funds
and provider taxes, fees, donations, assessments (as defined by the

Florida: For fiscal 2005-06, Other State Funds include provider

Health Care Finance Administration). Federal Funds: all federal

assessments of $391 million, cigarette taxes of $115 million, tobacco

matching funds provided pursuant to Title XIX.

settlement funds of $83 million, state drug rebates of $346 million,
other non-general funds transferred as matching funds of $34 million,

As noted above, the figures reported as Other State Funds reflect

state fraud recoupments of $18 million, and local county funds of

the amounts reported as provider taxes, fees, donations,

$556 million. For fiscal 2006-07, Other State Funds include provider

assessments and local funds by states. State Medicaid agencies

assessments of $362 million, cigarette taxes of $113 million, tobacco

report these amounts to the Health Care Financing Administration

settlement funds of $83 million, state drug rebates of $156 million,

(HCFA) on form 37, as defined by the Medicaid Voluntary

other non-general funds transferred as matching of $53 million,

Contribution and Provider-specific Tax Amendments of 1991 (P.L.

state fraud recoupments of $18 million, and local county funds of

102-234). However, some state budget offices are unable to align

$716 million. For fiscal 2007-08, Other State Funds include provider

their financial reporting to separate these costs for the NASBO

assessments of $416 million, cigarette taxes of $112 million, tobacco

State Expenditure Report. Thus, this report does not capture 100

settlement funds of $83 million, state drug rebates of $156 million,

percent of state provider taxes, fees, donations, assessments and

other non-general funds transferred as matching of $47 million,

local funds. Small dollar amounts, when rounded, cause an

state fraud recoupments of $18 million, and local county funds of

aberration in the percentage increase. In these instances, the actual

$813 million.

dollar amounts should be consulted to determine the exact
percentage increase.

Maryland: Medicaid funds are estimates for each fiscal year;
some expenditures may have been recorded in other fiscal years

The states were asked to separately detail the amount of provider

than are shown here.

taxes, fees, donations, assessments and local funds reported as
Other State Funds.

Michigan: Other state funds include local funds of $103.0 million,
and provider taxes of $674.0 million for fiscal 2006; local funds of

Alabama: Fiscal 2006 through fiscal 2008 Other State Funds

$102.0 million and provider taxes of $856.0 million for fiscal 2007;

includes provider taxes in the amounts of $58 million, $58 million,

and local funds of $62.0 million and provider taxes of $1,008.0

and $59 million, respectively.

million for fiscal 2008. Public health and community and institutional

Colorado: “Medicaid Spending” includes all Title XIX expenditures
—Medical Services Premiums (the actual cost of providing medical

care for mentally and developmentally disabled persons are
partially reported in the Medicaid totals.

services to clients), Medicaid Mental Health services, and Medicaid

Missouri: Medicaid and SCHIP data are from the CMS 64 Report

services provided by the Department of Human Services. Any

used for federal reporting of Medicaid expenditures. The split

Medicaid community or institutional mental health funding is

between the General Revenue Fund and Other Funds is an

included in the Medicaid expenditures.

estimate. While state-only Medicaid program expenditures are
tracked, local and administrative expenditures are estimated based
on CMS 64 data. Other Funds include estimated local funds of
$404 million for fiscal 2006, $1,002 million for fiscal 2007, and
$601 million for fiscal 2008.

[50] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

New York: State Medicaid spending does not include local

and fiscal 2008 totals $85 million. Regarding the ICF/MR 6 percent

government shares.

Gross Receipts Tax: fiscal 2006 totals $16 million, fiscal 2007 totals
$16 million, and fiscal 2008 totals $15 million. Regarding

Tennessee: Regarding premium revenue: fiscal 2006 totals
$71 million, fiscal 2007 totals $64 million, and fiscal 2008 totals

Intergovernmental Transfers: fiscal 2006 totals $0 million, fiscal 2007
totals $0 million, and fiscal 2008 totals $0 million.

$64 million. Regarding Certified Public Expenditures—Local fund
from Hospitals: fiscal 2006 totals $251 million, fiscal 2007 totals

Texas: For fiscal 2006, Medicaid amounts were revised to

$416 million, and fiscal 2008 totals $265 million. Regarding Nursing

coincide with the finalized FFY 2006 CMS 64 report for

Home Tax: fiscal 2006 totals $85 million, fiscal 2007 totals $85 million,

statewide expenditures.

2007 STATE EXPENDITURE REPORT [51]

CHAPTER FIVE
CORRECTIONS EXPENDITURES
3.4% of State Expenditures

Founded 1945

State spending on corrections reflects the costs to build and

state corrections spending is estimated to be $52.6 billion in fiscal

operate prison systems and may include spending on juvenile

2008, 3.4 percent of total state spending, and an estimated increase

justice programs and alternatives to incarceration such as probation

of 8.1 percent over the fiscal 2007 level.

and parole. State spending for corrections totaled $48.6 billion in
fiscal 2007, a 9.7 percent increase compared to the previous year.
The largest increase in corrections spending was in 1990, when it
grew by over 23 percent. Since then, growth in state corrections
expenditures has averaged about 7.5 percent.

According to an analysis conducted by the Pew Public Safety
Performance Project released in February 2008, 1.4 million prisoners
were held in state correctional facilities at the end of calendar year
2007. Overall, state’s prison population grew 1.4 percent in 2007.
The South saw the largest prisoner increase at 2.8 percent, while

In fiscal 2007, corrections spending represented 3.4 percent of total

the Northeast had an increase of 0.6 percent, the Midwest

state spending and 6.7 percent of general fund spending. General

experienced an increase of 0.4 percent, and the West’s

fund dollars are used primarily to fund state corrections spending

population remained relatively unchanged with a decrease of less

and account for $43.9 billion, or 90.3 percent, of all fiscal 2007 state

than 0.1 percent.

corrections spending. State funds (general funds and other state
funds combined, but excluding bonds) accounted for 95.7 percent
of total state corrections spending in fiscal 2007. Bonds accounted

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

for 2.5 percent, and federal funds accounted for 1.9 percent. Total
Figure 17
STaTe expendITureS For correcTIonS by
Fund Source, FIScal 2007

Federal Funds
1.9%
Other State Funds
5.4%
Bonds
2.5%

General Funds
90.3%

[54] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Regional Expenditures

Corrections-Expenditures Exclusions

Table 31 shows changes in corrections expenditures by region

Some states exclude certain items when reporting correction

between fiscal 2006 and fiscal 2007, and between fiscal 2007 and

expenditures.Twenty-two states wholly or partially excluded juvenile

estimated fiscal 2008. Fiscal 2007 corrections spending in the Far

delinquency counseling from their corrections figures and fourteen

West region increased by 17.6 percent, well above the national

states wholly or partially excluded spending on juvenile institutions.

average of 9.7 percent. Although corrections expenditures did not

Seventeen states wholly or partially excluded spending on drug

decrease in any of the regions, the Rocky Mountain region

abuse rehabilitation centers and thirty-six states wholly or partially

experienced growth of only 1.2 percent.

excluded spending for institutions for the criminally insane.
Nineteen states wholly excluded aid to local governments for jails.
For details, see Table 36.

Table 31
regIonal percenTage change In STaTe correcTIonS expendITureS,
FIScal 2007 and 2008
Fiscal 2006 to 2007
Region
New England
Mid-Atlantic
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West
ALL STATES

State
Funds

Federal
Funds

Fiscal 2007 to 2008

All
Funds

State
Funds

Federal
Funds

All
Funds

4.8 %
13.2
6.7
7.9
6.8
5.8
1.7
16.7

-23.8 %
-6.1
27.6
5.6
28.3
-48.9
-37.5
-8.0

4.9 %
11.6
6.7
10.9
6.4
5.4
1.2
17.6

11.1 %
2.6
5.1
8.1
8.5
7.0
9.9
11.4

-18.8 %
-5.0
-14.0
47.4
-8.6
41.3
60.0
14.1

10.5 %
1.8
4.6
6.8
7.1
18.0
10.3
11.6

9.7 %

0.5 %

9.7 %

7.7 %

0.5 %

8.1 %

2007 STATE EXPENDITURE REPORT [55]

Table 32
correcTIonS expendITureS—capITal IncluSIVe ($ In mIllIonS)

Actual Fiscal 2006
Other
State
General Federal
Fund
Funds
Funds
Bonds

Region/State

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds
Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island*
Vermont

$624
132
1,058
88
151
103

$4
3
1
1
9
3

$1
2
0
3
2
6

$4
0
0
1
0
2

$633
137
1,059
93
162
114

$631
138
1,126
92
156
116

$3
3
0
0
9
1

$0
3
0
3
5
4

$13
0
0
2
0
1

$647
144
1,126
97
170
122

$699
153
1,250
101
185
116

$3
4
0
1
4
1

$0
4
1
3
9
6

$6
0
0
1
0
1

$708
161
1,251
106
198
124

227
967
1,401
2,407
1,575

1
22
18
151
85

5
110
98
39
66

0
23
0
250
134

233
1,122
1,517
2,847
1,860

252
1,166
1,504
2,889
1,638

1
20
16
193
30

5
114
102
45
91

0
4
0
212
177

258
1,304
1,622
3,339
1,936

200
1,192
1,581
2,871
1,836

0
26
18
182
21

5
77
103
62
82

0
68
0
254
36

205
1,363
1,702
3,369
1,975

1,057
613
2,012
1,713
956

0
0
96
25
2

63
54
79
173
133

11
0
2
56
0

1,131
667
2,189
1,967
1,091

1,230
645
2,064
1,766
1,037

0
0
93
63
1

90
75
82
190
132

20
0
6
25
0

1,340
720
2,245
2,044
1,170

1,363
669
2,178
1,794
1,076

0
0
100
29
6

120
65
98
187
136

18
0
2
25
0

1,501
734
2,378
2,035
1,218

296
301
403
506
155
50
70

1
3
3
7
3
6
13

55
52
14
28
20
7
9

15
6
13
0
0
2
0

367
362
433
541
178
65
92

319
310
436
556
169
54
74

1
3
5
9
3
4
13

74
43
16
37
22
5
6

13
11
77
0
0
0
0

407
367
534
602
194
63
93

353
341
460
575
179
65
81

1
2
5
28
3
3
14

70
53
20
50
30
8
7

8
12
46
0
0
0
0

432
408
531
653
212
76
102

371
299
2,425
979
431
538
218
1,077
403
541
1,166
150

8
1
91
10
16
2
1
4
18
1
38
1

99
44
124
28
52
82
74
125
111
34
19
9

1
0
0
32
0
4
0
0
1
73
173
23

479
344
2,640
1,049
499
626
293
1,206
533
649
1,396
183

387
313
2,707
997
465
539
227
1,156
438
572
1,136
168

14
1
78
17
16
2
1
1
21
62
31
1

145
40
128
46
45
75
81
131
125
40
68
10

4
0
0
21
0
5
0
0
1
40
168
9

550
354
2,913
1,081
526
621
309
1,288
585
714
1,403
188

420
348
2,819
1,100
521
625
266
1,254
487
675
1,254
181

17
5
91
10
17
3
0
3
9
1
67
1

159
57
152
26
46
85
61
106
122
48
73
11

1
0
0
34
0
2
0
0
0
35
88
1

597
410
3,062
1,170
584
715
327
1,363
618
759
1,482
194

800
228
414
2,677

34
3
6
47

96
19
38
91

0
1
0
31

930
251
458
2,846

895
238
461
2,811

3
3
6
34

90
15
36
69

0
1
0
67

988
257
503
2,981

951
277
491
2,958

30
2
1
32

108
22
45
86

0
0
4
573

1,089
301
541
3,649

533
162
131
291
103

3
7
1
4
1

45
32
9
20
4

0
3
0
0
0

581
204
141
315
108

576
175
138
324
1

1
6
1
2
0

56
50
9
23
0

0
3
0
0
0

633
234
148
349
1

625
207
169
330
1

3
9
1
3
0

73
35
12
34
0

0
3
0
0
0

701
254
182
367
1

219
7,258
182
198
641
778

7
131
3
3
13
5

16
1
10
49
34
33

0
0
1
7
60
86

242
7,390
196
257
748
902

248
8,678
201
225
637
823

5
121
2
3
12
6

24
20
12
50
28
42

0
0
0
31
112
172

277
8,819
215
309
789
1,043

240
9,657
228
253
763
917

8
131
2
3
20
6

26
22
18
28
28
66

0
2
17
117
30
193

274
9,812
265
401
841
1,182

$40,078

$916

$2,317

$1,015

$44,326

$43,904

$921

$2,602

$1,195

$48,622

$47,335

$926

$2,745

$1,577

$52,583

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri*
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida*
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado*
Idaho
Montana
Utah*
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Corrections Notes for explanation

[56] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 33
correcTIonS expendITureS aS a percenT oF
ToTal expendITureS
Region/State

Fiscal
2006

Fiscal
2007

Fiscal
2008

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

3.1 %
1.9
2.7
2.1
2.4
2.3

2.8 %
2.0
2.7
2.1
2.5
2.4

3.0 %
2.1
3.0
2.3
2.7
2.4

3.1
4.2
3.6
2.7
3.5

3.2
4.4
3.6
3.0
3.4

2.5
4.4
3.5
2.9
3.3

2.6
3.1
5.2
3.7
3.3

2.9
3.2
5.3
3.8
3.4

3.1
3.0
5.4
3.7
3.4

2.5
3.2
1.7
2.7
2.2
2.0
3.1

2.7
3.1
2.0
2.9
2.4
1.9
3.0

2.6
3.1
1.8
2.8
2.2
2.1
3.0

1.4
2.2
4.3
3.0
2.4
2.7
2.3
3.4
3.0
2.8
4.4
0.9

1.5
2.2
4.4
2.9
2.4
2.1
2.0
3.2
2.9
2.9
4.0
1.0

1.4
2.1
4.4
3.0
2.3
1.8
2.0
2.9
2.9
2.8
4.2
1.0

3.7
1.9
2.8
3.9

3.6
1.8
2.6
3.7

3.8
2.1
2.6
4.1

3.7
4.1
3.2
3.5
1.9

3.8
4.3
3.1
3.5
0.0

3.9
4.0
3.2
2.9
0.0

2.5
4.3
2.1
3.4
3.7
3.2

2.4
4.8
2.0
3.8
3.9
3.5

2.2
4.8
2.1
5.2
3.6
3.7

3.3 %

3.4 %

3.4 %

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Source: National Association of State Budget Officers,
2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [57]

Table 34
correcTIonS general Fund expendITureS aS a
percenT oF ToTal general Fund expendITureS
Region/State

Fiscal
2006

Fiscal
2007

Fiscal
2008

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

4.3 %
4.7
4.1
6.5
4.9
9.1

4.1 %
4.6
4.1
6.6
4.8
9.7

4.3 %
4.9
4.6
6.8
5.5
9.4

7.1
7.8
5.0
5.2
6.4

7.4
8.2
5.0
5.6
6.2

6.1
8.2
4.8
5.4
6.7

5.4
5.1
21.8
6.9
7.7

5.9
5.3
22.5
7.4
7.9

6.1
5.3
22.0
7.3
8.0

5.9
5.9
2.5
7.1
5.3
5.2
7.0

5.9
5.5
2.6
7.1
5.4
5.3
7.0

6.0
5.6
2.6
6.8
5.1
5.4
7.1

2.9
7.9
9.4
6.3
5.2
6.9
6.0
6.3
7.1
5.7
8.0
4.2

2.6
7.8
9.8
5.9
5.3
5.8
5.8
6.2
6.7
5.6
6.9
4.5

2.5
8.0
10.0
5.9
5.5
6.4
6.4
6.2
6.6
5.5
7.6
4.7

9.2
4.2
7.8
7.7

8.5
4.0
7.7
7.2

9.5
4.6
7.0
6.8

8.5
7.3
8.4
6.9
5.5

8.5
6.8
8.3
6.9
0.0

8.6
7.3
8.6
5.7
0.0

7.0
7.9
3.9
6.8
10.5
5.7

5.7
8.6
3.7
7.8
11.3
5.8

4.7
9.3
4.3
7.9
10.6
6.3

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

6.7 %

Source: National Association of State Budget Officers,
2007 State Expenditure Report

[58] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

6.7 %

6.9 %

Table 35
annual percenTage change In correcTIonS expendITureS
Fiscal 2006 to 2007
Region/State

State
Funds

Federal
Funds

Fiscal 2007 to 2008
All
Funds

State
Funds

Federal
Funds

All
Funds

NEW ENGLAND

Connecticut
Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

4.3 %
1.0 %
5.2
6.4
4.4
5.2
10.1

100.0 %
-25.0 %
0.0
-100.0
-100.0
0.0
-66.7

4.5 %
2.2 %
5.1
6.3
4.3
4.9
7.0

5.9 %
10.8 %
11.3
11.1
9.5
20.5
1.7

-25.0 %
0.0 %
33.3


-55.6
0.0

9.0 %
9.4 %
11.8
11.1
9.3
16.5
1.6

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania

10.8
18.8
7.1
20.0
5.4

0.0
-9.1
-11.1
27.8
-64.7

10.7
16.2
6.9
17.3
4.1

-20.2
-0.9
4.9
0.0
10.9

-100.0
30.0
12.5
-5.7
-30.0

-20.5
4.5
4.9
0.9
2.0

17.9
7.9
2.6
3.7
7.3



-3.1
152.0
-50.0

18.5
7.9
2.6
3.9
7.2

12.3
1.9
6.1
1.3
3.7



7.5
-54.0
500.0

12.0
1.9
5.9
-0.4
4.1

12.0
0.0
8.4
11.0
9.1
3.5
1.3

0.0
0.0
66.7
28.6
0.0
-33.3
0.0

10.9
1.4
23.3
11.3
9.0
-3.1
1.1

7.6
11.6
6.2
5.4
9.4
23.7
10.0

0.0
-33.3
0.0
211.1
0.0
-25.0
7.7

6.1
11.2
-0.6
8.5
9.3
20.6
9.7

13.2
2.9
11.2
3.6
5.6
-1.0
5.5
7.1
9.5
6.4
1.6
11.9

75.0
0.0
-14.3
70.0
0.0
0.0
0.0
-75.0
16.7
6,100.0
-18.4
0.0

14.8
2.9
10.3
3.1
5.4
-0.8
5.5
6.8
9.8
10.0
0.5
2.7

8.8
14.7
4.8
8.0
11.2
15.6
6.2
5.7
8.2
18.1
10.2
7.9

21.4
400.0
16.7
-41.2
6.3
50.0
-100.0
200.0
-57.1
-98.4
116.1
0.0

8.5
15.8
5.1
8.2
11.0
15.1
5.8
5.8
5.6
6.3
5.6
3.2

9.9
2.4
10.0
4.0

-91.2
0.0
0.0
-27.7

6.2
2.4
9.8
4.7

7.5
18.2
7.8
5.7

900.0
-33.3
-83.3
-5.9

10.2
17.1
7.6
22.4

9.3
16.0
5.0
11.6
-99.1

-66.7
-14.3
0.0
-50.0
-100.0

9.0
14.7
5.0
10.8
-99.1

10.4
7.6
23.1
4.9
0.0

200.0
50.0
0.0
50.0

10.7
8.5
23.0
5.2
0.0

15.7
19.8
10.9
11.3
-1.5
6.7

-28.6
-7.6
-33.3
0.0
-7.7
20.0

14.5
19.3
9.7
20.2
5.5
15.6

-2.2
11.3
15.5
2.2
18.9
13.6

60.0
8.3
0.0
0.0
66.7
0.0

-1.1
11.3
23.3
29.8
6.6
13.3

GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

9.7 %

0.5 %

9.7 %

7.7 %

0.5 %

8.1 %

Note: State funds are defined as general funds and other state funds (bonds are excluded)
Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [59]

Table 36
ITemS excluded From correcTIonS expendITureS

Region/State

Employer
Contributions to
Pensions

Employer
Contributions to
Health Benefits

Juvenile
Delinquency
Counseling

X

X

X

Juvenile
Institutions

Aid to
Local Govts.
for Jails

Drug Abuse
Rehab.
Centers

Institutions for
the Criminally
Insane

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

X
X

X
X
X

X
X
X

X
X
X

X
X
X

P

X
X

X

X

X
X

X

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania

P

P

X

X

P

X

X

X
X
X
X

GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin

X

P
X

X
X

X

P
P
X
X

X
X
X
X
X

X

X

X

P

X

PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota

X

P
X

X

X

X

SOUTHEAST

Alabama
Arkansas
Florida
Georgia*
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia

X

X

X

X

X
X
X
X

X
X

X

X
X
X

X

X

P
X

X

X

P
X

X

P

SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas

X

X

ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming

P

P

X
X
X

P
X

P

X

X
X
X
X

FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Excluded=X

P

5

Partially Excluded=P

P

X
X

5

22

Not Applicable=N/A

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Corrections Notes for explanation

[60] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

X
X

14

X

X
P
X

X
X
X
X
X

19

17

36

X
X

Corrections Notes

Georgia: Corrections does not operate facilities for the criminally
insane. This is a responsibility of Department of Human Resources.

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

Michigan: Figures include adult inmate and juvenile justice

should be consulted to determine the exact percentage increase.

expenditures.

Colorado: The Department of Corrections budget includes some

Missouri: All Other State Expenditures includes capital expenditures

juvenile services through the Youthful Offender System. However,

for maintenance and repair projects at facilities operated by the

the Division of Youth Corrections (where the majority of delinquent

Department of Corrections.

youth are served) is in the Department of Human Services and is
therefore not captured in the Corrections budget. The Department
of Corrections reimburses local jails for parolees who have been
revoked and are awaiting a return placement in DOC.
Florida: Fiscal Year 2007-08 Estimated Expenditures reflect a total
reduction of $57 million due to a Special Session reduction bill that
reduced the FY 2007-08 agency budgets and a Special Reduction
Act passed during the first week of Florida’s regular legislative
session that reduced FY 2007-08 budgets a second time. Increase
between the FY 2007-08 Estimated Expenditures and the FY 200607 Actual Expenditures is primarily due to the funding for additional

Rhode Island: In this year’s State Expenditure Report, expenditures
reported under “Corrections” contain information pertaining
exclusively to the RI Department of Corrections. In previous
surveys, expenditures for other public safety agencies were
reported here as well.
Utah: Expenditure amounts for Corrections do not include any
amounts for prison industries. In Utah, Prison Industries is operated
as an enterprise fund and does not receive support from state
appropriations. The prison industry program has been self-sufficient
for the last 10 to 15 years.

prison construction.The slight adjustment to the FY 2006-07 Actual
Capital from last year’s submission is due to FEMA funds received
during the year that additional authority was provided through the
budget amendment process to allow expenditure of the funds.

2007 STATE EXPENDITURE REPORT [61]

CHAPTER SIX
T R A N S P O RTAT I O N
8.4% of State Expenditures

Founded 1945

Transportation expenditures totaled $121 billion in fiscal 2007,

F e d e r a l H i g h w ay Tr u s t F u n d S h o r t f a l l

8.4 percent of total state spending and an increase of 11.2 percent
over the previous year. Transportation spending is expected to slow

An ongoing concern for states is the solvency of the Federal

in fiscal 2008 according to preliminary figures, with total transportation

Highway Trust Fund. The fund receives its revenue mainly from the

expenditures growing at 3.7 percent.

18.4 cents-a-gallon federal excise tax on gasoline, and it serves as
the major source of federal spending on highways. In fiscal 2008,

Approximately 55 percent of transportation expenditures are

the fund faced a substantial shortfall that necessitated an $8 billion

funded from earmarked revenues placed in special transportation

transfer from the federal general fund in order for the federal Highway

trust funds, captured in the “Other State Funds” category in this

Trust Fund to remain solvent. The long-term solvency of the fund

report. The major earmarked revenue source is the gasoline excise

remains in question as vehicle miles traveled (VMT) are down 3.5

tax. While “Other State Funds” account for the majority of

percent through the first nine months of calendar year 2008.

transportation spending, federal funds also play a large role. In
fiscal 2007, federal funds accounted for 29.8 percent of total
transportation spending, with bonds (9.6 percent) and general

Fund Shares

funds (5.6 percent) comprising the remaining amount.

The figure below provides fund shares for fiscal 2007.

SAFETEA-LU

Figure 18
STaTe expendITureS For TranSporTaTIon by

The latest surface transportation law was enacted in August 2005.

Fund Source, FIScal 2007

The law, the Safe, Accountable, Flexible, and Efficient Transportation
Equity Act: A Legacy for Users (SAFETEA-LU) replaced the
Transportation Equity Act for the 21st Century (TEA-21). SAFETEA-LU
set total surface transportation guaranteed spending authority for

Federal Funds
29.8%
General Funds
5.6%

federal fiscal years 2004-2009 at $286.4 billion, with contract
authority set at $295 billion. The funding included approximately
$228 billion for highways, $52 billion for transit, and nearly $6 billion

Bonds
9.6%

for highway safety. Additionally, SAFETEA-LU raised the minimum
rate of return on state contributions to the Highway Trust fund
from 90.5 percent in 2005 to 92 percent by 2008. SAFETEA-LU
will expire at the conclusion of federal fiscal year 2009. It is
expected that Congress will seek to reauthorize SAFETEA-LU
during its 111th session that begins in January 2009.

[64] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Other State Funds
55.0%

Regional Expenditures
Table 37 shows percentage changes in transportation expenditures
by region between fiscal 2006 and fiscal 2007 and between fiscal
2007 and estimated fiscal 2008. The largest growth in fiscal 2007
occurred in the Far West region, increasing by 26.9 percent.
Table 37
regIonal percenTage change In STaTe TranSporTaTIon expendITureS,
FIScal 2007 and 2008
Fiscal 2006 to 2007
Region
New England
Mid-Atlantic
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West
ALL STATES

State
Funds

Federal
Funds

All
Funds

Fiscal 2007 to 2008
State
Funds

Federal
Funds

All
Funds

-6.3 %
1.3
8.8
-2.9
-6.2
14.2
11.4
39.8

34.2 %
-3.3
12.3
6.9
25.2
7.5
-0.4
6.7

19.4 %
3.1
10.3
4.5
3.9
25.1
7.3
26.9

-4.5 %
17.4
7.1
-10.4
14.3
14.5
12.9
-11.4

1.5 %
11.5
6.2
-1.6
-13.6
2.3
0.8
15.5

-5.3 %
11.5
4.5
-12.1
3.6
-4.2
35.0
5.2

6.7 %

12.0 %

11.2 %

6.3 %

0.4 %

3.7 %

Tr a n s p o r t a t i o n — E x p e n d i t u r e
Exclusions
Thirty-nine states wholly or partially exclude state police and
highway patrols from the transportation expenditures reported
here. Additionally, forty-one states wholly or partially exclude port
authority operations, nineteen states omit motor vehicle licensing,
twenty states exclude truck enforcement regulation programs, and
seventeen exclude gasoline tax and fee collections. For details, see
Table 41.

2007 STATE EXPENDITURE REPORT [65]

Table 38
TranSporTaTIon expendITureS—capITal IncluSIVe ($ In mIllIonS)
Actual Fiscal 2006
Other
General Federal
State
Fund
Funds
Funds
Bonds

Region/State

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds
Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$2
0
181
1
0
0

$75
205
428
211
259
149

$410
369
1,213
318
144
188

$264
12
542
0
44
0

$751
586
2,364
530
447
337

$2
0
238
3
0
0

$397
169
576
232
225
182

$447
333
986
308
130
202

$789
39
688
0
40
0

$1,635
541
2,488
543
395
384

$3
0
243
1
0
0

$438
191
508
238
239
193

$486
323
863
303
108
200

$477
84
724
0
46
0

$1,404
598
2,338
542
393
393

12
0
1,234
152
325

115
860
1,506
1,449
1,541

597
2,686
316
3,520
3,193

0
0
994
445
150

724
3,546
4,050
5,566
5,209

2
0
1,384
61
334

104
783
1,228
1,575
1,599

533
2,745
347
3,433
3,353

0
0
1,280
774
150

639
3,528
4,239
5,843
5,436

0
0
1,388
107
14

141
776
1,710
1,560
1,712

564
2,969
328
4,668
4,272

0
0
1,401
198
150

705
3,745
4,827
6,533
6,148

106
2
0
26
41

125
561
1,124
1,141
736

3,316
1,033
2,022
2,683
1,346

240
0
158
261
0

3,787
1,596
3,304
4,111
2,123

153
1
0
21
69

153
883
1,230
1,148
726

3,669
1,505
1,848
2,758
1,483

127
0
381
307
0

4,102
2,389
3,459
4,234
2,278

170
2
0
22
56

170
910
1,415
1,123
778

3,863
1,581
2,193
2,730
1,705

97
0
55
329
0

4,300
2,493
3,663
4,204
2,539

0
0
97
11
1
0
0

295
374
229
67
270
274
250

828
872
1,954
1,644
418
164
224

0
114
178
372
0
13
0

1,123
1,360
2,458
2,094
689
451
474

1
5
107
12
1
0
0

390
372
252
84
243
257
283

717
859
2,178
1,408
361
169
212

0
122
144
844
0
15
0

1,108
1,358
2,681
2,348
605
441
495

1
16
136
14
1
0
0

260
380
344
60
264
237
305

757
894
2,135
564
481
212
193

0
128
144
403
0
13
0

1,018
1,418
2,759
1,041
746
462
498

0
1
578
15
4
1
0
0
0
0
185
7

783
438
1,767
1,836
573
23
755
982
770
616
527
419

420
521
5,052
690
1,220
1,500
601
2,345
1,146
828
2,735
609

32
0
514
410
0
24
61
0
0
0
80
0

1,235
960
7,911
2,951
1,797
1,548
1,417
3,327
1,916
1,444
3,527
1,035

0
0
1
17
8
4
0
0
1
0
643
6

748
488
2,210
3,113
759
26
1,015
982
558
914
652
412

479
417
4,875
714
1,387
1,496
475
2,345
1,081
749
2,083
524

27
0
672
6
0
22
59
0
0
83
122
25

1,254
905
7,758
3,850
2,154
1,548
1,549
3,327
1,640
1,746
3,500
967

0
1
86
23
6
0
0
0
11
0
151
10

761
566
2,369
1,337
849
27
552
943
470
941
900
542

598
1,022
5,402
758
1,615
1,401
581
2,541
1,015
807
3,041
707

0
0
752
77
0
36
38
0
0
84
174
80

1,359
1,589
8,609
2,195
2,470
1,464
1,171
3,484
1,496
1,832
4,266
1,339

0
23
7
8

454
323
532
2,976

999
455
656
4,462

241
259
0
1,350

1,694
1,060
1,195
8,796

1
74
7
1

498
290
626
3,192

941
471
1,004
5,052

350
286
0
3,149

1,790
1,121
1,637
11,394

0
51
1
304

450
358
604
3,301

995
444
1,733
5,115

354
250
66
1,242

1,799
1,103
2,404
9,962

0
0
6
120
249

498
269
259
322
5

770
340
304
526
286

0
0
0
0
0

1,268
609
569
968
540

0
0
7
40
267

489
243
286
324
5

633
380
301
967
302

0
0
0
0
0

1,122
623
594
1,331
574

0
0
11
389
267

441
326
374
212
5

621
389
352
940
302

0
0
0
1,100
0

1,062
715
737
2,641
574

252
1,359
0
17
5
2

759
3,274
143
223
27
403

333
4,318
656
265
1,238
1,012

195
0
40
199
3
602

1,539
8,951
839
704
1,273
2,019

676
2,630
0
3
4
2

1,022
3,081
182
314
28
526

369
5,590
741
281
1,573
1,354

150
0
69
199
2
647

2,217
11,301
992
797
1,607
2,529

460
1,439
0
2
4
2

599
4,469
204
196
45
439

401
5,407
1,018
233
1,490
1,254

26
1,637
1
135
7
992

1,486
12,952
1,223
566
1,546
2,687

$5,030

$32,200

$63,745

$7,797

$108,772

$6,786

$36,074

$66,568

$11,568 $120,996

$5,392

$36,232

$72,574

$11,300

$125,498

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania*
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri*
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida*
Georgia*
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee*
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico*
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Transportation Notes for explanation

[66] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 39
TranSporTaTIon expendITureS aS a percenT
oF ToTal expendITureS
Region/State

Fiscal
2006

Fiscal
2007

Fiscal
2008

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

3.7 %
8.3
6.0
11.9
6.7
6.8

7.2 %
7.5
6.0
12.0
5.9
7.5

6.0 %
8.0
5.7
11.6
5.4
7.5

9.6
13.2
9.6
5.3
9.7

8.0
12.0
9.3
5.2
9.5

8.7
12.2
9.8
5.6
10.3

8.7
7.4
7.9
7.7
6.3

8.9
10.5
8.1
8.0
6.6

9.0
10.3
8.4
7.7
7.0

7.7
11.9
9.5
10.6
8.6
13.7
15.9

7.4
11.3
9.9
11.2
7.4
13.1
16.2

6.2
10.8
9.5
4.5
7.8
12.8
14.7

3.7
6.3
12.8
8.5
8.8
6.7
10.9
9.5
10.7
6.2
11.0
5.1

3.4
5.6
11.7
10.3
9.7
5.3
10.1
8.4
8.2
7.1
10.0
5.2

3.1
8.3
12.2
5.7
9.7
3.6
7.0
7.4
7.0
6.7
12.1
7.1

6.7
8.2
7.3
12.0

6.5
7.8
8.5
14.1

6.3
7.7
11.5
11.1

8.1
12.1
12.7
10.9
9.6

6.7
11.4
12.6
13.3
11.2

5.9
11.1
13.1
21.0
11.6

16.0
5.2
8.9
9.3
6.3
7.3

19.2
6.2
9.3
9.7
7.9
8.4

11.9
6.4
9.7
7.3
6.6
8.3

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

8.1 %

8.4 %

8.1 %

Source: National Association of State Budget Officers,
2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [67]

Table 40
annual percenTage change In TranSporTaTIon expendITureS
Fiscal 2006 to 2007
Region/State

State
Funds

Federal
Funds

Fiscal 2007 to 2008
All
Funds

State
Funds

Federal
Funds

All
Funds

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

9.0 %
-9.8
-12.2
-2.5
-9.7
7.4

429.3 %
-17.6
34.6
10.0
-13.1
22.1

117.7 %
-7.7
5.2
2.5
-11.6
13.9

8.9 %
-3.0
-9.6
-2.3
-16.9
-1.0

10.3 %
13.0
-11.8
2.6
6.2
6.0

-14.1 %
10.5
-6.0
-0.2
-0.5
2.3

-12.2
2.2
11.7
-4.8
4.8

-9.6
-9.0
-18.5
8.7
3.8

-11.7
-0.5
4.7
5.0
4.4

5.4
8.2
-0.9
36.7
16.2

35.6
-0.9
39.3
-1.0
7.1

10.3
6.2
13.9
11.8
13.1

11.7
45.5
-8.6
2.6
11.9

22.4
57.4
9.4
0.6
-1.4

8.3
49.7
4.7
3.0
7.3

5.5
5.1
18.7
-1.0
13.5

11.1
3.1
15.0
-2.2
7.2

4.8
4.4
5.9
-0.7
11.5

-13.3
-0.9
11.4
-14.2
-13.6
3.0
-5.4

32.2
-0.5
10.0
25.4
-10.0
-6.2
13.2

-1.3
-0.1
9.1
12.1
-12.2
-2.2
4.4

5.6
5.3
-0.6
-59.3
33.1
25.4
-9.0

-33.3
2.2
36.5
-28.6
8.6
-7.8
7.8

-8.1
4.4
2.9
-55.7
23.3
4.8
0.6

14.0
-20.1
-13.4
3.7
14.0
-0.1
-21.0
0.0
-5.6
-9.5
-6.6
-14.0

-4.5
11.4
25.1
69.6
32.5
13.0
34.4
0.0
-27.5
48.4
23.7
-1.7

1.5
-5.7
-1.9
30.5
19.9
0.0
9.3
0.0
-14.4
20.9
-0.8
-6.6

24.8
145.3
12.6
6.8
16.2
-6.6
22.3
8.4
-5.2
7.7
17.1
35.3

1.7
16.0
7.2
-57.1
11.9
3.8
-45.6
-4.0
-15.8
3.0
38.0
31.6

8.4
75.6
11.0
-43.0
14.7
-5.4
-24.4
4.7
-8.8
4.9
21.9
38.5

-5.7
14.0
52.5
13.0

9.7
-10.2
17.7
7.3

5.7
5.8
37.0
29.5

5.6
-9.2
71.5
7.2

-9.6
23.4
-3.5
3.4

0.5
-1.6
46.9
-12.6

-17.8
11.8
-0.6
55.9
6.4

-1.8
-9.7
10.4
0.6
0.0

-11.5
2.3
4.4
37.5
6.3

-1.9
2.4
17.9
32.0
0.0

-9.8
34.2
30.8
-34.6
0.0

-5.3
14.8
24.1
98.4
0.0

78.6
44.8
13.0
0.7
26.9
33.7

34.7
-5.9
27.3
40.8
3.7
30.5

44.1
26.3
18.2
13.2
26.2
25.3

-17.6
-16.7
37.4
-17.3
-5.3
-7.4

-41.4
45.1
12.1
-37.6
60.7
-16.5

-33.0
14.6
23.3
-29.0
-3.8
6.2

12.0 %

11.2 %

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

6.7 %

Note: State funds are defined as general funds and other state funds (bonds are excluded)
Source: National Association of State Budget Officers, 2007 State Expenditure Report

[68] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

6.3 %

0.4 %

3.7 %

Table 41
ITemS excluded From TranSporTaTIon expendITureS

Region/State

Employer
Contributions to
Pensions

Employer
Contributions to
Health Benefits

Port
Authority
Operations

Gasoline
Tax & Fee
Collections

X
X

X
P
X

Truck
Train/Railroad
Road Assist.
Enforcement
Subsidy
Subsidy Prog.
Reg. Programs
Programs
for Local Govts.

Motor
Vehicle
Licensing

State Police/
Highway
Patrol

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

X
X

X
X

X

X

X

X

X
X

X
X
X

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania

P
X
P

P

P

P

X
X
P

X

X
X
X
X

X
P

GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin

X
X
X
X
X

X

X

X

X
X
X

X

X

X

X

X
X
X
X

X

PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota

X
X
X
X
X
X
X

X

X
X
X
X

X

X

SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia*
West Virginia

X
X
X
X
X
P

P

X

X
X
X

X
X

X

X

X
X

X

X

X

X
X

X
X
X

P
P

P

X
X

X
X

X
X
X
X
X
X
X

X
X

X
X
X
X

X

X

SOUTHWEST

Arizona*
New Mexico
Oklahoma
Texas

X

P
X
P
X

X

P
P

X
P

X

ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming

X

P

X
X

X

X

X
X

P

P

X
X
X
X

X

FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Excluded=X

3

Partially Excluded=P

3

X
X
X
X
X
X

X
X

X

X

X

X

X
X
X

X
X

X
X

X
X

41

17

20

13

12

19

Not Applicable=N/A

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Transportation Notes for explanation

2007 STATE EXPENDITURE REPORT [69]

X
X
X
X
X

39

Tr a n s p o r t a t i o n N o t e s

New Mexico: Capital amounts for all state government are
combined under the “All Other” category instead of being included

Small dollar amounts, when rounded, cause an aberration in the

in the individual categories of Transportation.

percentage increase. In these instances, the actual dollar amounts
should be consulted to determine the exact percentage increase.

Pennsylvania: Act 44 of 2007 provided an additional $300 million
in funding for transit programs in fiscal 2008 and more funds in

Arizona: A portion of the gross “Gasoline Tax & Fee Collections”

future fiscal years. The Act created the Public Transportation Fund;

is distributed to local governments.

replacing numerous transit grant programs from several funds with

Florida: Transportation expenditures for Fiscal Year 2005-06 were
higher than the succeeding years due to the passage of growth
management legislation in the 2005 Legislative Session that
provided a one-time transfer of $575 million from the General
Revenue Fund to the State Transportation Trust Fund to initiate

a dedicated funding mechanism that will substantially increase
funding for operation and improvement of public transit systems.
The reduction in 2008 Estimated General Funds reflects the shift of
over $300 million to the Public Transportation Fund included in
Other State Funds.

additional road infrastructure projects. In addition, in Fiscal Year

Tennessee: Bond estimates represent bond authorizations, while

2005-06 the state began redirecting $541.75 million of documentary

actual bonds represent bond proceeds utilized.

stamp revenue to the State Transportation Trust Fund.
Virginia: State Police and Highway Patrol funding is included in
Georgia: Transportation bonds do not include GARVEES.
Missouri: Fringe benefits are appropriated and paid centrally and
are therefore included in all other expenditures with the exception
of retirement and health care costs for Transportation employees.

[70] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Public Safety.

CHAPTER SEVEN
A L L OT H E R E X P E N D I T U R E S
33.6% of State Expenditures

Founded 1945

The “All Other” category reflects a substantial amount of state

fiscal 2007. Spending for SCHIP was $8.2 billion in fiscal 2006,

spending not included in the categories described in previous

$8.5 billion in fiscal 2007, and is estimated at $10.3 billion in fiscal

chapters. “All Other” spending in states includes the State Children’s

2008 as shown in Appendix Table A-2.

Health Insurance Program (SCHIP), 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

Fund Shares
The figure below illustrates fund shares for fiscal 2007.

and recreation, housing, and general aid to local governments (a list
of the items excluded from the “All Other” category is displayed in

Figure 19

Table 46).

STaTe expendITureS For all oTher programS by
Fund Source, FIScal 2007

The “All Other” category of expenditures totaled $483.9 billion for
fiscal 2007, or 33.6 percent of total state spending. Total spending in

General Funds
37.4%

the “All Other” category increased 6.8 percent from fiscal 2006 to
fiscal 2007, and is expected to grow by 12.9 percent from fiscal
2007 to fiscal 2008.

S t a t e C h i l d r e n ’s H e a l t h I n s u r a n c e
Program

Federal Funds
21.6%

Bonds
2.7%

Enacted as part of the Balanced Budget Act of 1997, the State
Children’s Health Insurance Program (SCHIP) has expanded health
coverage for previously uninsured children. The program is targeted
toward children from families with incomes too high to qualify for
Medicaid but too low to afford private insurance. States receive a

Other State Funds
38.4%

federal match for their SCHIP programs that range from 65 percent
to 85 percent within a capped allotment. SCHIP’s original ten-year
authorization ran through September 30, 2007. President Bush
signed legislation in January 2008 that extended SCHIP until
March 2009 at levels that would provide coverage for the
current enrollment levels.

Regional Expenditures
The following table shows percentage changes for “all other”
expenditures for fiscal 2006-2007 and 2007-2008 by region. For
fiscal 2007, the Southeast and Mid-Atlantic regions are well above

According to the Kaiser Commission on Medicaid and the Uninsured,

the national average while the Great Lakes region is well below the

approximately 7 million children were covered under SCHIP during

national average.

Table 42
regIonal percenTage change In STaTe all oTher expendITureS,
FIScal 2007 and 2008
Fiscal 2006 to 2007
Region
New England
Mid-Atlantic
Great Lakes
Plains
Southeast
Southwest
Rocky Mountain
Far West
ALL STATES

[72] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

State
Funds

Federal
Funds

Fiscal 2007 to 2008

All
Funds

State
Funds

Federal
Funds

All
Funds

8.3 %
12.6
-1.2
7.3
11.1
6.2
11.2
7.8

-4.9 %
1.2
-0.7
-4.2
6.3
-12.4
-15.1
-2.2

6.4 %
10.1
-1.4
4.7
11.1
2.7
5.0
7.4

-4.0 %
5.5
-0.7
16.6
9.5
13.7
17.6
16.2

6.0 %
6.3
9.0
33.5
64.1
11.6
12.0
16.5

-3.8 %
6.0
1.1
20.6
22.3
9.3
15.6
20.3

8.1 %

-0.8 %

6.8 %

8.0 %

28.5 %

12.9 %

Table 43
all oTher expendITureS—capITal IncluSIVe ($ In mIllIonS)

Region/State

Actual Fiscal 2006
Other
State
General Federal
Fund
Funds
Funds Bonds

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$7,674
702
11,091
696
1,047
735

$209
493
1,176
442
525
373

$517
1,215
5,138
245
805
1,030

$443
26
1,092
52
69
30

$8,843
2,436
18,497
1,435
2,446
2,168

$8,311
766
11,857
695
1,108
740

$240
455
1,131
381
519
335

$1,079
1,311
5,434
312
792
1,065

$371
23
1,046
24
93
28

$10,001
2,555
19,468
1,412
2,512
2,168

$8,616
772
10,404
732
1,142
757

$329
524
1,110
359
588
336

$574
1,126
5,823
255
900
1,038

$464
39
586
32
142
35

$9,983
2,461
17,923
1,378
2,772
2,166

1,233
3,463
9,250
16,508
6,059

264
1,234
1,412
8,385
4,096

1,995
2,569
3,052
8,680
5,901

12
451
66
789
211

3,504
7,717
13,780
34,362
16,267

1,301
4,336
10,278
18,601
6,476

404
1,270
1,936
7,746
4,226

2,066
2,984
3,171
10,185
6,691

9
474
87
687
327

3,780
9,064
15,472
37,219
17,720

1,275
3,819
11,697
18,756
6,777

300
1,440
2,542
8,056
4,230

2,300
3,080
3,371
11,357
7,302

0
544
183
880
351

3,875
8,883
17,793
39,049
18,660

5,509
3,687
2,606
3,684
3,045

2,821
2,008
3,954
3,610
2,026

6,708
1,345
5,490
13,129
9,945

317
0
221
261
0

15,355
7,040
12,271
20,684
15,016

5,498
3,811
2,633
2,905
3,111

3,022
1,988
3,687
3,686
1,938

7,084
1,380
5,438
12,768
9,848

307
0
70
212
0

15,911
7,179
11,828
19,571
14,897

5,703
3,912
2,729
2,737
3,272

2,884
2,445
4,885
3,348
2,055

5,927
1,304
4,026
13,975
10,492

160
0
50
220
0

14,674
7,661
11,690
20,280
15,819

1,036
695
3,538
1,841
707
211
208

1,232
782
1,712
474
752
367
235

1,903
896
1,495
1,918
1,276
442
300

40
59
155
11
0
14
7

4,211
2,432
6,900
4,244
2,735
1,034
750

1,156
807
3,851
2,420
768
231
232

1,231
672
1,719
298
809
369
224

1,869
1,040
1,655
1,657
1,216
461
312

48
63
218
19
0
2
7

4,304
2,582
7,443
4,394
2,793
1,063
775

1,392
915
4,321
2,745
910
292
233

1,747
1,024
1,874
819
1,082
267
293

1,728
1,002
1,761
3,112
1,413
422
369

70
84
229
42
0
4
6

4,937
3,025
8,185
6,718
3,405
985
901

7,062
442
5,376
3,677
2,014
2,739
945
3,561
1,685
2,280
4,102
946

4,765
1,123
6,203
2,178
1,632
3,217
1,510
2,330
1,829
2,936
1,742
692

7,676
3,453
7,448
7,057
1,342
3,512
997
2,078
895
1,890
5,960
11,532

199
59
670
142
0
93
163
70
3
21
195
0

19,702
5,077
19,697
13,054
4,988
9,561
3,615
8,039
4,412
7,127
11,999
13,170

8,151
470
6,216
3,868
2,201
3,959
955
3,921
2,263
2,436
4,526
968

4,780
1,048
5,711
1,100
1,721
5,708
2,867
2,566
1,835
2,540
1,473
715

8,000
3,967
8,278
7,341
1,891
4,934
1,299
2,947
1,453
2,300
6,556
9,587

247
54
1,805
175
0
81
351
199
4
110
208
0

21,178
5,539
22,010
12,484
5,813
14,682
5,472
9,633
5,555
7,386
12,763
11,270

9,093
541
5,878
4,753
2,293
3,351
1,106
4,475
2,558
3,129
4,818
942

6,558
1,978
6,066
1,966
1,970
13,958
4,505
8,297
2,192
2,822
1,712
588

10,977
3,466
9,589
7,350
2,692
6,737
1,397
3,127
1,803
2,448
5,995
9,284

562
210
1,475
123
0
208
141
200
0
93
154
0

27,190
6,195
23,008
14,192
6,955
24,254
7,149
16,099
6,553
8,492
12,679
10,814

2,053
1,338
1,013
6,262

2,177
950
1,629
6,662

3,479
1,185
2,716
756

0
42
50
849

7,709
3,515
5,408
14,529

2,590
1,568
1,267
6,431

2,741
997
1,645
4,614

3,245
1,492
2,743
641

0
358
0
1,674

8,576
4,415
5,655
13,360

2,466
1,439
1,270
8,841

3,072
1,142
1,600
5,339

3,709
1,524
2,500
969

0
243
217
648

9,247
4,348
5,587
15,797

1,136
411
551
884
1,070

1,187
630
529
594
908

2,784
338
697
1,174
1,575

0
2
0
5
0

5,107
1,381
1,777
2,657
3,553

1,435
447
554
1,085
2,569

1,351
638
531
607
139

3,148
326
797
1,211
242

0
2
0
111
0

5,934
1,413
1,882
3,014
2,950

1,556
535
746
1,293
2,569

1,427
781
588
723
139

3,656
662
1,121
1,516
242

0
2
0
0
0

6,639
1,980
2,455
3,532
2,950

1,069
20,821
1,588
940
1,262
2,796

1,095
15,570
542
624
1,519
1,783

2,440
15,580
1,740
1,934
6,402
3,310

109
1,128
157
20
61
163

4,713
53,099
4,027
3,518
9,244
8,052

1,666
22,910
1,970
720
838
3,083

1,004
14,916
552
608
1,463
2,123

3,028
16,274
1,912
2,246
6,384
3,519

55
2,641
336
15
53
461

5,753
56,741
4,770
3,589
8,738
9,186

2,550
23,247
1,736
707
1,600
2,974

1,110
17,214
746
490
2,011
2,501

3,550
22,214
2,797
2,142
7,343
4,123

0
6,570
643
62
31
454

7,210
69,245
5,922
3,401
10,985
10,052

$163,248 $105,138

$175,944

$8,527

$452,857

$180,959

$104,279

$185,579

$13,055

$483,872

$190,374

$134,032

$205,590

$16,157

$546,153

MID-ATLANTIC

Delaware
Maryland
New Jersey*
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri*
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia*
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado*
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See All Other Expenditures Notes for explanation

2007 STATE EXPENDITURE REPORT [73]

Table 44
all oTher expendITureS aS a percenT oF
ToTal expendITureS
Region/State

Fiscal
2006

Fiscal
2007

Fiscal
2008

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

43.2 %
34.3
47.2
32.1
36.8
43.8

43.9 %
35.5
46.6
31.1
37.3
42.1

42.6 %
32.7
43.5
29.5
38.0
41.5

46.3
28.7
32.6
32.9
30.2

47.6
30.8
34.1
33.0
31.1

48.0
28.8
36.2
33.6
31.2

35.4
32.5
29.4
38.7
44.8

34.4
31.5
27.8
36.8
43.5

30.7
31.8
26.7
37.0
43.8

28.7
21.3
26.8
21.6
34.3
31.4
25.2

28.6
21.6
27.5
20.9
34.2
31.6
25.3

30.2
23.1
28.3
29.2
35.6
27.3
26.5

58.5
33.2
32.0
37.8
24.3
41.6
27.8
23.0
24.6
30.5
37.6
64.5

58.2
34.4
33.3
33.4
26.1
49.8
35.8
24.3
27.8
29.8
36.6
60.8

62.6
32.3
32.7
36.7
27.2
60.0
42.7
34.1
30.8
31.1
35.9
57.2

30.4
27.3
33.0
19.8

31.3
30.5
29.3
16.5

32.3
30.5
26.7
17.6

32.7
27.5
39.8
29.8
63.3

35.5
25.9
40.0
30.2
57.8

36.9
30.8
43.5
28.1
59.5

48.9
30.7
42.5
46.5
45.7
28.9

49.8
31.0
44.8
43.8
43.1
30.7

57.7
34.0
46.8
43.9
47.0
31.1

33.7 %

33.6 %

35.1 %

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Source: National Association of State Budget Officers,
2007 State Expenditure Report

[74] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 45
annual percenTage change In all oTher expendITureS
Fiscal 2006 to 2007
Region/State

State
Funds

Federal
Funds

Fiscal 2007 to 2008
All
Funds

State
Funds

Federal
Funds

All
Funds

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

14.6 %
8.3
6.5
7.0
2.6
2.3

14.8 %
-7.7
-3.8
-13.8
-1.1
-10.2

13.1 %
4.9
5.2
-1.6
2.7
0.0

-2.1 %
-8.6
-6.2
-2.0
7.5
-0.6

37.1 %
15.2
-1.9
-5.8
13.3
0.3

-0.2 %
-3.7
-7.9
-2.4
10.4
-0.1

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania

4.3
21.4
9.3
14.3
10.1

53.0
2.9
37.1
-7.6
3.2

7.9
17.5
12.3
8.3
8.9

6.2
-5.8
12.0
4.6
6.9

-25.7
13.4
31.3
4.0
0.1

2.5
-2.0
15.0
4.9
5.3

3.0
3.2
-0.3
-6.8
-0.2

7.1
-1.0
-6.8
2.1
-4.3

3.6
2.0
-3.6
-5.4
-0.8

-7.6
0.5
-16.3
6.6
6.2

-4.6
23.0
32.5
-9.2
6.0

-7.8
6.7
-1.2
3.6
6.2

2.9
16.1
9.4
8.5
0.1
6.0
7.1

-0.1
-14.1
0.4
-37.1
7.6
0.5
-4.7

2.2
6.2
7.9
3.5
2.1
2.8
3.3

3.1
3.8
10.5
43.7
17.1
3.2
10.7

41.9
52.4
9.0
174.8
33.7
-27.6
30.8

14.7
17.2
10.0
52.9
21.9
-7.3
16.3

9.6
13.9
13.0
4.4
21.9
42.3
16.1
21.8
44.0
13.6
10.1
-15.4

0.3
-6.7
-7.9
-49.5
5.5
77.4
89.9
10.1
0.3
-13.5
-15.4
3.3

7.5
9.1
11.7
-4.4
16.5
53.6
51.4
19.8
25.9
3.6
6.4
-14.4

24.3
-9.7
6.7
8.0
21.8
13.4
11.0
10.7
17.4
17.8
-2.4
-3.1

37.2
88.7
6.2
78.7
14.5
144.5
57.1
223.3
19.5
11.1
16.2
-17.8

28.4
11.8
4.5
13.7
19.6
65.2
30.6
67.1
18.0
15.0
-0.7
-4.0

5.5
21.3
7.5
0.8

25.9
4.9
1.0
-30.7

11.2
25.6
4.6
-8.0

5.8
-3.2
-6.0
38.7

12.1
14.5
-2.7
15.7

7.8
-1.5
-1.2
18.2

16.9
3.2
8.3
11.6
6.3

13.8
1.3
0.4
2.2
-84.7

16.2
2.3
5.9
13.4
-17.0

13.7
54.9
38.2
22.3
0.0

5.6
22.4
10.7
19.1
0.0

11.9
40.1
30.4
17.2
0.0

33.8
7.6
16.6
3.2
-5.8
8.1

-8.3
-4.2
1.8
-2.6
-3.7
19.1

22.1
6.9
18.5
2.0
-5.5
14.1

30.0
16.0
16.8
-3.9
23.8
7.5

10.6
15.4
35.1
-19.4
37.5
17.8

25.3
22.0
24.2
-5.2
25.7
9.4

GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

8.1 %

-0.8 %

6.8 %

8.0 %

28.5 %

12.9 %

Note: State funds are defined as general funds and other state funds (bonds are excluded).
Source: National Association of State Budget Officers, 2007 State Expenditure Report

2007 STATE EXPENDITURE REPORT [75]

Table 46
ITemS excluded From all oTher expendITureS

Employer
Child
Community and Community and
Parks
Employers
Institutional
Environmental
and
Contribution to Contributions to Health Insurance Public Institutional for
Pensions
Health Benefits
Program
Health Mental Health for Dev. Disabled
Programs
Recreation Housing

Region/State

General Aid
to Local
Government

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont
MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania

P

P

GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin

P
P

P

X

P

PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota

N/A

N/A
X
X
X

SOUTHEAST

Alabama
Arkansas
Florida
Georgia*
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia

X
X

X

P
P
X

SOUTHWEST

Arizona*
New Mexico
Oklahoma
Texas

P
X
X

P

X

X

ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming

P

FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
ALL STATES

Excluded=X

P

P

P
P

P
X
P

2

Partially Excluded=P

2

0

Not Applicable=N/A

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See All Other Expenditures Notes for explanation

[76] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

2

2

2

2

0

11

9

All Other Expenditure Notes

Michigan: Public health and community and institutional care for
mentally and developmentally disabled persons are partially

Small dollar amounts, when rounded, cause an aberration in the

reported in the Medicaid totals.

percentage increase. In these instances, the actual dollar amounts
should be consulted to determine the exact percentage increase.

Missouri: Fringe benefits are appropriated and paid centrally
and are therefore included in All Other Expenditures with the

Arizona: Some of the “General Aid to Local Government”

exception of retirement and health care costs for Transportation

assistance items are revenue distributions.

employees. Figures also include capital expenditures for

Colorado: Capital expenditures are not included in the
department totals because they cannot be separated by the listed

maintenance and repair projects at facilities operated by the
Department of Corrections.

functional areas in the specific years. Per the instructions, all capital

New Jersey: All Other expenditures reflected in this survey

expenditures are reported in the All Other category and thus

do not include a significant amount of related costs incurred by

are included in the total budget. Also, capital expenditures are

independent authorities such as Higher Education Student

reported by the annual appropriation total because there is no actual

Assistance Authority (HESAA), New Jersey Housing and Mortgage

expenditure reporting. Any Medicaid community or institutional

Finance Agency (HMFA), etc.

mental health funding is included in the Medicaid expenditures.
Georgia: Other state expenditures include Hope Scholarships
and Tuition for Higher Education, as well as Pre-K lottery funds.
Community and Institutional for Mental Health and Community
and Institutional for the Developmentally Disabled are partially
included in Medicaid. Public Health is not included in Medicaid.

2007 STATE EXPENDITURE REPORT [77]

CHAPTER EIGHT
C A P I TA L E X P E N D I T U R E S

Founded 1945

Capital expenditures are made for new construction, infrastructure,

their capital spending following a period of little or no growth. In

major repairs and improvements, land purchases and the acquisition

fiscal 2003, state capital spending decreased by 1.4 percent; it then

of major equipment and existing structures. Minor repairs and

increased slightly in 2004 by 0.8 percent. Since the two-year period

routine maintenance are reported as operating expenses. Given

of slow growth, state capital spending has increased by 6.2 percent

the long-term nature of capital projects, states often find it difficult

in 2005, 9.9 percent in 2006, and 16.1 percent in 2007. Total capital

to report capital expenditures for one specific fiscal year. This is

spending growth is expected to slow to 8.1 percent in fiscal 2008.

because the amount of money appropriated when a project initially

Overall, state capital spending totaled $81.0 billion in fiscal 2006,

is undertaken usually will not be the amount spent in a single year.

$94.1 billion in 2007, and is estimated to be $101.7 billion in 2008.

For greater detail on states’ capital spending practices, see the
report Capital Budgeting in the States, available in the publications

Capital Fund Sources

section of NASBO’s website at www.nasbo.org.

State spending on capital projects traditionally has come from non-

The following chapter includes capital expenditures for higher

general fund sources. Other state funds such as dedicated fees and

education, corrections, transportation, environmental projects,

fund surpluses (36.7 percent in fiscal 2007) and bonds (31.3

housing, and “all other”. Capital expenditures not included in these

percent) combine to account for 68 percent of total state spending

categories due to differences in states’ reporting capabilities, or

on capital projects. Federal funds (24.6 percent) and state general

expenditures for items not easily classified, are included in the “All

funds (7.4 percent) also contribute to capital spending.

Other” category. Tables 47-53 display capital expenditure data.

Capital Funds by Use

To t a l C a p i t a l E x p e n d i t u r e s

Comprising 60.6 percent ($57.0 billion) of all capital expenditures

Because of the nature of capital spending, such as long construction

in fiscal 2007, transportation is the largest category of state

timetables and unforeseen or delayed project costs, increases in

capital expenditures. Capital spending for transportation increased

state spending on capital projects are generally followed by a

by 12.6 percent in fiscal 2007, and is expected to increase by 2

slowdown or decrease in spending. Currently, states are increasing

percent in 2008.

Figure 20

Millions $

capITal expendITureS by Type, FIScal 1991 To 2008

65,000

Higher Ed

60,000

Corrections

55,000

Transportation

50,000

Environment

45,000

Housing

40,000

All Other

35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
1991

1992

1993

1994

[80] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Higher education capital expenditures increased by 19.7 percent

Figure 22

in fiscal 2007, totaling $12.3 billion. In fiscal 2008, higher education

ToTal capITal expendITureS by FundIng Source,
FIScal 2007

capital spending is estimated to increase by 17.5 percent. In fiscal
2007, higher education accounted for 13 percent of total state
capital outlays.
State capital spending for environmental purposes in fiscal 2007

Bond Funds
31.3%

General Funds
7.4%

totaled $6.5 billion, 6.9 percent of total capital spending and a
22.4 percent increase from fiscal 2006. Environmental capital

Federal Funds
24.6%

expenditures are estimated to increase 12.7 percent in fiscal 2008.
Corrections capital spending experienced an increase of 23.3
percent in fiscal 2007, totaling $1.8 billion. Corrections accounted
for 1.9 percent of total state capital expenditures. Fiscal 2008
estimates indicate spending of $2.3 billion, a 28.7 percent increase.
Housing capital expenditures account for just 1.2 percent of total

Other State Funds
36.7%

fiscal 2007 capital spending, at approximately $1.1 billion. Housing
capital spending decreased by 8.6 percent in fiscal 2007, but is
estimated to increase by 30.3 percent in fiscal 2008.
State spending for all other purposes totaled $15.4 billion in fiscal
2007, or 16.4 percent of total capital spending. This includes capital
expenditures not easily classified into one of the other categories.
Examples of expenditures in all other may include items such as
public school facilities, zoo improvements, health care infrastructure,
or sports facilities.

Figure 21
annual percenTage change In ToTal capITal expendITureS
25

20

15

10

5

0

-5

-10

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

2007 STATE EXPENDITURE REPORT [81]

Table 47
ToTal capITal expendITureS ($ In mIllIonS)
Actual Fiscal 2006
Other
State
General Federal
Fund
Funds
Funds
Bonds

Region/State

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds
Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island*
Vermont

$0
3
0
0
3
0

$0
169
422
35
208
121

$0
112
274
176
94
40

$1,609
17
1,681
90
133
43

$1,609
301
2,377
301
438
204

$0
3
0
0
4
0

$0
132
567
46
262
157

$0
70
26
186
93
46

$2,088
36
1,779
58
182
37

$2,088
241
2,372
290
541
240

$0
0
0
0
1
0

$0
125
500
50
200
161

$0
57
0
187
171
50

$1,926
4
1,348
74
274
49

$1,926
186
1,848
311
646
260

236
6
1,102
0
0

116
845
1,459
1,706
0

270
1,104
5
1,571
0

1
680
1,060
1,855
680

623
2,635
3,626
5,132
680

209
149
1,241
0
0

104
771
1,185
1,737
0

171
1,339
21
1,577
0

0
713
1,367
2,244
898

484
2,972
3,814
5,558
898

190
27
1,281
0
0

141
741
1,642
1,755
0

0
1,391
19
2,507
0

0
841
1,584
1,869
737

331
3,000
4,526
6,131
737

0
210
249
4
0

124
0
869
1,271
0

1,876
27
465
1,050
0

888
192
447
1,430
0

2,888
429
2,030
3,755
0

0
225
223
4
0

157
0
983
1,148
0

2,203
33
156
988
0

615
37
625
1,414
0

2,975
295
1,987
3,554
0

0
280
231
2
0

176
0
897
1,021
0

2,280
37
356
1,228
0

382
161
175
753
0

2,838
477
1,658
3,004
0

0
16
26
21
20
11
29

158
358
24
76
281
243
8

446
553
657
1,694
470
109
121

47
73
494
383
0
49
20

651
1,000
1,201
2,174
771
412
178

0
21
63
73
30
12
18

265
360
22
16
252
231
2

329
541
879
1,470
396
93
88

54
91
709
863
0
68
10

648
1,013
1,673
2,422
678
404
118

0
23
30
222
15
36
3

188
355
81
201
325
231
6

557
629
817
977
620
156
15

74
96
695
445
0
62
18

819
1,103
1,623
1,845
960
485
42

5
0
262
19
0
68
12
180
20
69
82
18

509
26
2,017
1,771
0
95
501
0
43
1,029
24
457

135
105
7,290
576
507
1,180
324
0
209
397
234
558

231
14
1,651
923
0
567
245
370
119
413
717
141

880
145
11,220
3,289
507
1,910
1,081
550
391
1,908
1,057
1,174

38
0
1,212
19
0
730
19
207
29
74
176
21

475
37
2,566
3,412
0
163
857
0
32
934
14
429

169
48
7,014
1,015
633
1,282
276
0
317
457
193
506

275
15
3,301
999
0
633
427
803
111
461
911
171

957
100
14,093
5,445
633
2,808
1,579
1,009
489
1,926
1,294
1,127

13
0
646
27
0
156
20
230
0
264
371
19

407
89
2,624
2,591
0
259
368
0
0
941
11
546

303
202
7,751
794
1,541
1,329
305
549
0
484
174
572

563
90
3,311
1,031
0
722
198
200
0
235
636
222

1,286
381
14,332
4,443
1,541
2,466
892
980
0
1,924
1,191
1,359

14
80
51
192

457
0
595
2

437
0
689
4,899

479
490
836
1,178

1,387
570
2,171
6,271

22
122
95
196

502
0
762
6

359
0
1,311
5,426

537
844
552
1,058

1,420
966
2,720
6,686

20
155
33
296

404
0
652
6

388
0
1,861
5,429

388
673
620
1,793

1,200
828
3,166
7,524

0
0
0
260
117

11
248
0
267
67

333
79
0
345
112

0
9
0
5
0

344
336
0
877
296

0
0
0
339
126

12
220
0
277
9

374
139
0
737
104

0
9
0
111
0

386
369
0
1,464
239

0
3
0
792
126

40
295
0
181
9

765
229
0
747
104

0
9
0
1,100
0

805
536
0
2,820
239

339
189
0
69
15
0

1,089
1,741
125
233
5
475

196
1,616
192
219
60
978

326
1,294
404
230
209
1,239

1,950
4,840
721
751
289
2,692

933
300
43
11
2
0

1,295
1,662
153
324
2
603

188
1,420
235
207
57
1,339

328
1,339
474
354
246
1,569

2,744
4,721
904
896
307
3,511

1,002
213
50
34
28
0

1,136
2,019
239
197
10
553

380
2,392
942
236
76
1,242

61
4,522
844
409
198
2,225

2,579
9,146
2,075
876
312
4,020

$3,998

$20,279

$32,783

$23,962

$81,022

$6,988

$23,144

$34,512

$29,414

$94,058

$6,838

$22,373

$40,849

$31,616

$101,676

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri*
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama*
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina*
Tennessee*
Virginia
West Virginia
SOUTHWEST

Arizona*
New Mexico*
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado*
Idaho
Montana*
Utah*
Wyoming
FAR WEST

Alaska
California
Hawaii*
Nevada
Oregon
Washington
TOTAL*

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Capital Spending Notes for explanation

[82] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 48
hIgher educaTIon capITal expendITureS ($ In mIllIonS)

Region/State

Actual Fiscal 2006
Other
State
General Federal
Fund
Funds
Funds
Bonds

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds
Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$0
0
0
0
0
0

$0
0
0
0
0
0

$0
0
0
0
20
0

$157
0
48
34
17
4

$157
0
48
34
37
4

$0
0
0
0
0
0

$0
0
0
0
0
0

$0
0
0
0
9
0

$243
0
46
22
42
4

$243
0
46
22
51
4

$0
0
0
0
0
0

$0
0
0
0
1
0

$0
0
0
0
17
0

$253
0
39
34
75
3

$253
0
39
34
93
3

7
2
0
0
0

0
0
0
0
0

0
25
0
59
0

1
206
0
366
185

8
233
0
425
185

4
19
0
0
0

0
0
0
0
0

0
25
0
54
0

0
235
0
526
244

4
279
0
580
244

5
0
0
0
0

0
0
0
0
0

0
30
0
66
0

0
229
0
520
200

5
259
0
586
200

0
28
129
0
0

0
0
0
0
0

0
0
0
0
0

133
192
67
274
0

133
220
196
274
0

0
31
114
0
0

0
0
0
0
0

0
0
0
0
0

112
37
168
274
0

112
68
282
274
0

0
72
119
0
0

0
0
0
0
0

0
0
0
161
0

64
161
68
123
0

64
233
187
284
0

0
4
0
0
8
6
0

0
3
0
0
4
0
0

8
29
0
0
89
14
0

13
19
141
0
0
20
13

21
55
141
0
101
40
13

0
3
0
0
18
4
0

0
3
0
0
1
0
0

19
50
0
19
68
19
0

8
21
256
0
0
51
3

27
77
256
19
87
74
3

0
3
0
1
10
19
0

0
2
0
0
7
10
0

96
87
0
335
156
17
0

8
23
254
0
0
45
12

104
115
254
336
173
91
12

0
0
70
2
0
33
5
142
4
36
58
0

0
0
0
0
0
10
3
0
1
0
2
0

0
15
61
0
208
118
54
0
172
12
161
236

0
0
467
205
0
67
13
300
115
163
439
118

0
15
598
207
208
228
75
442
292
211
660
354

0
0
27
0
0
53
11
140
14
28
144
0

0
0
0
0
0
2
4
0
1
0
2
0

0
12
157
0
221
55
60
0
272
0
155
270

0
0
824
354
0
37
9
604
106
228
591
137

0
12
1,008
354
221
147
84
744
393
256
892
407

0
0
111
5
0
57
11
126
0
206
260
0

0
0
0
0
0
1
4
0
0
0
1
0

0
36
136
0
595
63
65
549
0
10
94
278

0
0
1,084
342
0
56
12
0
0
84
429
141

0
36
1,331
347
595
177
92
675
0
300
784
419

13
60
32
175

13
0
39
0

31
0
243
0

237
188
227
1,141

294
248
541
1,316

20
54
75
175

8
0
62
0

2
0
385
0

186
199
325
981

216
253
847
1,156

0
50
28
263

0
0
48
0

1
0
259
0

34
180
340
1,200

35
230
675
1,463

0
0
0
31
9

0
0
0
0
5

244
9
0
0
9

0
5
0
0
0

244
14
0
31
23

0
0
0
71
27

0
0
0
0
1

230
18
0
0
0

0
5
0
0
0

230
23
0
71
28

0
3
0
79
27

0
0
0
0
1

555
10
0
3
0

0
5
0
0
0

555
18
0
82
28

49
10
0
47
15
0

1
0
0
0
0
0

83
0
0
6
49
122

0
1,044
68
4
85
332

133
1,054
68
57
149
454

17
5
43
1
0
0

2
0
0
0
0
0

3
0
0
34
38
127

94
1,143
69
109
79
400

116
1,148
112
144
117
527

17
0
0
25
28
0

16
0
3
0
0
0

21
0
205
57
66
167

0
1,726
183
95
130
499

54
1,726
391
177
224
666

$975

$81

$2,077

$7,108

$10,241

$1,098

$86

$2,302

$8,772

$12,258

$1,525

$94

$4,135

$8,651

$14,405

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama*
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Capital Spending Notes for explanation

2007 STATE EXPENDITURE REPORT [83]

Table 49
correcTIonS capITal expendITureS ($ In mIllIonS)
Actual Fiscal 2006
Other
State
General Federal
Fund
Funds
Funds
Bonds

Region/State

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds
Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$0
0
0
0
0
0

$0
0
0
0
6
0

$0
0
0
0
1
0

$4
0
0
1
0
2

$4
0
0
1
7
2

$0
0
0
0
0
0

$0
0
0
0
3
0

$0
0
0
0
5
0

$13
0
0
2
0
1

$13
0
0
2
8
1

$0
0
0
0
0
0

$0
0
0
0
0
0

$0
0
0
0
9
0

$6
0
0
2
0
1

$6
0
0
2
9
1

1
3
3
0
0

1
0
0
4
0

4
38
0
3
0

0
23
0
250
134

6
64
3
257
134

2
1
1
0
0

0
0
0
0
0

5
36
0
0
0

0
4
0
212
177

7
41
1
212
177

0
0
4
0
0

0
0
0
0
0

0
0
0
0
0

0
68
0
254
36

0
68
4
254
36

0
60
65
0
0

0
0
0
0
0

0
10
0
0
0

6
0
2
56
0

6
70
67
56
0

0
56
48
0
0

0
0
0
0
0

0
12
0
0
0

20
0
6
25
0

20
68
54
25
0

0
53
48
0
0

0
0
0
0
0

0
16
0
0
0

18
0
2
14
0

18
69
50
14
0

0
5
5
0
1
0
0

0
0
0
3
0
0
0

1
4
0
0
1
0
0

15
3
13
0
0
2
0

16
12
18
3
2
2
0

0
3
13
0
1
1
0

0
0
1
4
0
0
0

1
2
0
5
2
0
0

13
7
77
0
0
0
0

14
12
91
9
3
1
0

0
4
5
0
0
3
0

0
0
1
21
0
0
0

23
5
1
2
1
0
0

2
7
46
0
0
0
0

25
16
53
23
1
3
0

2
0
39
0
0
18
1
0
0
0
8
2

0
0
3
1
0
14
0
0
6
0
11
0

2
7
1
1
15
2
1
0
1
18
2
1

0
0
0
32
0
5
0
0
1
73
173
23

4
7
43
34
15
39
2
0
8
91
194
26

3
0
148
0
0
4
1
0
2
3
10
3

0
0
3
13
0
14
0
0
5
0
9
0

1
1
2
0
9
1
1
0
1
24
1
0

1
0
0
21
0
2
0
0
1
40
168
9

5
1
153
34
9
21
2
0
9
67
188
12

12
0
202
0
0
11
1
0
0
3
40
3

0
0
0
1
0
2
0
0
0
0
2
0

2
2
0
0
9
2
1
0
0
29
4
1

1
0
0
34
0
4
0
0
0
35
88
1

15
2
202
35
9
19
2
0
0
67
134
5

0
1
0
0

0
0
0
0

1
0
0
0

1
1
0
31

2
2
0
31

1
3
0
0

0
0
0
0

1
0
0
0

1
1
0
67

3
4
0
67

0
5
0
0

0
0
0
0

0
0
0
0

0
0
4
573

0
5
4
573

0
0
0
13
9

1
0
0
1
5

5
3
0
0
8

0
3
0
0
0

6
6
0
14
22

0
0
0
20
0

0
0
0
0
0

38
23
0
0
0

0
3
0
0
0

38
26
0
20
0

0
0
0
0
0

0
0
0
0
0

96
5
0
0
0

0
3
0
0
0

96
8
0
0
0

2
30
0
0
0
0

0
0
0
0
0
1

2
0
0
0
0
1

0
0
1
7
60
86

4
30
1
7
60
88

6
66
0
0
0
0

0
0
0
0
0
0

0
0
0
0
0
2

0
0
0
31
112
172

6
66
0
31
112
174

0
139
0
0
0
0

0
0
0
0
0
0

0
0
0
0
0
0

0
2
17
117
30
193

0
141
17
117
30
193

$268

$57

$133

$1,008

$1,466

$396

$52

$173

$1,186

$1,807

$533

$27

$208

$1,558

$2,326

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida*
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Capital Spending Notes for explanation

[84] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 50
TranSporTaTIon capITal expendITureS ($ In mIllIonS)

Region/State

Actual Fiscal 2006
Other
State
General Federal
Fund
Funds
Funds Bonds

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$0
0
0
0
0
0

$0
152
422
35
194
121

$0
107
274
176
6
40

$264
7
542
0
44
0

$264
266
1,238
211
244
161

$0
0
0
0
0
0

$0
118
567
46
173
157

$0
64
26
186
10
46

$789
30
688
0
40
0

$789
212
1,281
232
223
203

$0
0
0
0
0
0

$0
122
500
50
147
161

$0
46
0
187
10
50

$477
1
724
0
46
0

$477
169
1,224
237
203
211

0
0
805
0
0

115
773
1,459
1,393
0

266
746
5
1,210
0

0
0
994
445
150

381
1,519
3,263
3,048
150

0
0
895
0
0

104
694
1,182
1,511
0

166
704
21
1,080
0

0
0
1,280
774
150

270
1,398
3,378
3,365
150

0
0
895
0
0

141
681
1,628
1,495
0

0
827
19
1,833
0

0
0
1,401
198
150

141
1,508
3,943
3,526
150

0
2
0
3
0

117
0
698
1,141
0

1,691
1
341
746
0

240
0
156
261
0

2,048
3
1,195
2,151
0

0
1
0
3
0

151
0
818
1,148
0

1,938
0
71
767
0

127
0
365
307
0

2,216
1
1,254
2,225
0

0
2
0
0
0

169
0
720
1,021
0

2,028
0
252
782
0

97
0
55
329
0

2,294
2
1,027
2,132
0

0
0
0
0
0
0
0

158
351
11
0
265
228
1

395
510
624
1,644
360
56
44

0
47
178
372
0
13
0

553
908
813
2,016
625
297
45

0
0
0
0
0
0
0

265
339
8
0
239
216
0

259
489
832
1,408
301
52
36

0
53
144
844
0
15
0

524
881
984
2,252
540
283
36

0
7
0
1
0
0
0

188
338
28
0
259
189
0

264
525
744
564
412
85
8

0
50
144
403
0
13
0

452
920
916
968
671
287
8

0
0
0
11
0
0
0
0
3
0
0
4

509
0
1,767
1,765
0
6
466
0
0
996
0
412

79
0
4,198
575
8
1,035
231
0
8
366
49
265

32
0
514
410
0
384
61
0
0
156
4
0

620
0
6,479
2,761
8
1,425
758
0
11
1,518
53
681

0
0
0
13
0
643
0
0
0
0
0
4

475
0
2,210
3,392
0
5
813
0
0
914
0
403

110
0
3,889
1,015
10
980
164
0
0
433
22
184

27
0
672
6
0
470
59
0
0
83
61
25

612
0
6,771
4,426
10
2,098
1,036
0
0
1,430
83
616

0
0
85
12
0
0
0
0
0
0
0
6

407
0
2,369
2,578
0
6
336
0
0
941
0
531

197
0
4,335
794
13
873
206
0
0
445
70
256

0
0
752
77
0
525
38
0
0
84
52
80

604
0
7,541
3,461
13
1,404
580
0
0
1,470
122
873

0
19
0
0

442
0
532
0

404
0
316
4,898

241
259
75
0

1,087
278
923
4,898

0
65
0
0

492
0
626
0

355
0
676
5,424

350
286
77
0

1,197
351
1,379
5,424

0
100
0
0

404
0
604
0

379
0
894
5,426

354
250
67
0

1,137
350
1,565
5,426

0
0
0
120
83

0
248
0
262
48

10
58
0
328
78

0
0
0
0
0

10
306
0
710
209

0
0
0
35
87

0
220
0
255
2

15
87
0
757
99

0
0
0
0
0

15
307
0
1,047
188

0
0
0
384
87

0
295
0
168
2

20
92
0
708
99

0
0
0
1,100
0

20
387
0
2,360
188

57
0
0
17
0
0

757
1,727
112
223
0
377

70
1,555
59
175
0
312

195
15
40
199
3
602

1,079
3,297
211
614
3
1,291

453
0
0
3
0
0

1,020
1,530
144
314
0
491

102
1,383
77
99
0
585

150
36
69
199
2
647

1,725
2,949
290
615
2
1,723

255
0
0
2
0
0

595
1,912
160
196
0
412

112
2,188
395
167
0
435

26
1,197
1
135
7
992

988
5,297
556
500
7
1,839

$1,124

$18,283

$24,319

$6,903

$50,629

$2,202

$21,042

$24,922

$8,825

$56,991

$1,836

$19,753

$26,740

$9,825

$58,154

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Capital Spending Notes for explanation

2007 STATE EXPENDITURE REPORT [85]

Table 51
enVIronmenTal projecTS capITal expendITureS ($ In mIllIonS)
Actual Fiscal 2006
Other
General Federal
State
Fund
Funds
Funds Bonds

Region/State

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$0
0
0
0
2
0

$0
0
0
0
8
0

$0
0
0
0
2
0

$173
0
142
5
18
9

$173
0
142
5
30
9

$0
0
0
0
4
0

$0
0
0
0
13
0

$0
0
0
0
2
0

$136
0
166
5
18
6

$136
0
166
5
37
6

$0
0
0
0
1
0

$0
0
0
0
4
0

$0
0
0
0
9
0

$375
0
167
5
54
9

$375
0
167
5
68
9

13
0
78
0
0

0
54
0
137
0

0
263
0
103
0

0
51
40
247
10

13
368
118
487
10

11
15
99
0
0

0
47
3
109
0

0
532
0
237
0

0
43
60
202
0

11
637
162
548
0

10
7
117
0
0

0
36
10
129
0

0
495
0
353
0

0
30
57
143
7

10
568
184
625
7

0
48
9
1
0

7
0
11
0
0

161
4
68
0
0

74
0
49
133
0

242
52
137
134
0

0
36
9
1
0

6
0
9
0
0

237
2
55
0
0

46
0
35
139
0

289
38
108
140
0

0
37
9
1
0

7
0
19
0
0

249
2
70
0
0

64
0
9
87
0

320
39
107
88
0

0
0
6
0
0
0
0

0
0
7
0
0
5
0

12
0
21
7
0
16
0

3
0
10
11
0
0
0

15
0
44
18
0
21
0

0
0
12
0
0
1
0

0
0
5
0
0
4
0

16
0
30
0
0
14
0

1
0
28
19
0
2
0

17
0
75
19
0
21
0

0
0
7
0
0
4
0

0
0
6
0
0
12
0

14
0
26
0
0
19
0

0
0
14
42
0
4
0

14
0
53
42
0
39
0

0
0
82
6
0
0
0
19
0
0
10
0

0
0
247
5
0
0
2
0
18
0
3
16

31
0
1,100
0
36
1
4
0
10
0
14
19

19
0
365
56
0
0
4
70
0
0
39
0

50
0
1,794
67
36
1
10
89
28
0
66
35

1
0
848
6
0
0
0
38
0
0
5
0

0
0
353
7
0
0
10
0
9
0
3
14

29
0
994
0
3
2
5
0
14
0
4
22

8
0
384
56
0
0
15
99
0
0
17
0

38
0
2,579
69
3
2
30
137
23
0
29
36

0
0
171
10
0
1
0
50
0
0
1
0

0
0
255
12
0
1
1
0
0
0
6
10

39
0
1,012
0
11
3
7
0
0
0
3
10

21
0
425
28
0
0
4
0
0
0
20
0

60
0
1,863
50
11
5
12
50
0
0
30
20

0
0
3
17

0
0
6
2

0
0
82
1

0
29
0
6

0
29
91
26

0
0
4
21

0
0
6
6

0
0
107
2

0
31
0
10

0
31
117
39

0
0
0
33

0
0
0
6

0
0
41
3

0
0
0
20

0
0
41
62

0
0
0
0
0

9
0
0
0
0

54
0
0
0
0

0
0
0
0
0

63
0
0
0
0

0
0
0
0
0

6
0
0
0
0

62
0
0
0
0

0
0
0
0
0

68
0
0
0
0

0
0
0
0
0

29
0
0
0
0

66
0
0
0
0

0
0
0
0
0

95
0
0
0
0

25
144
0
0
0
0

79
2
0
0
0
64

0
45
0
0
0
287

4
222
11
7
0
45

108
413
11
7
0
396

30
219
0
0
0
0

75
4
0
0
0
84

0
12
0
0
0
194

0
159
0
6
0
137

105
394
0
6
0
415

40
59
0
0
0
0

56
24
13
0
0
96

3
46
0
0
0
248

0
1,552
8
5
0
194

99
1,681
21
5
0
538

$463

$682

$2,341

$1,852

$5,338

$1,360

$773

$2,575

$1,828

$6,536

$558

$732

$2,729

$3,344

$7,363

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama*
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah*
Wyoming
FAR WEST

Alaska
California
Hawaii*
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Capital Spending Notes for explanation

[86] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 52
houSIng capITal expendITureS ($ In mIllIonS)

Region/State

Actual Fiscal 2006
Other
General Federal
State
Fund
Funds
Funds Bonds

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island*
Vermont

$0
0
0
0
0
0

$0
0
0
0
0
0

$0
0
0
0
0
0

$26
0
129
0
0
2

$26
0
129
0
0
2

$0
0
0
0
0
0

$0
0
0
0
0
0

$0
0
0
0
0
0

$17
0
151
0
0
2

$17
0
151
0
0
2

$0
0
0
0
0
0

$0
0
0
0
0
0

$0
0
0
0
0
0

$15
0
156
0
0
1

$15
0
156
0
0
1

4
0
0
0
0

0
18
0
2
0

0
26
0
2
0

0
23
0
129
0

4
67
0
133
0

0
39
0
0
0

0
17
0
1
0

0
23
0
1
0

0
1
0
117
0

0
80
0
119
0

0
8
0
0
0

0
17
0
3
0

0
36
0
0
0

0
7
0
129
0

0
68
0
132
0

0
0
0
0
0

0
0
130
130
0

0
0
24
24
0

0
0
1
1
0

0
0
155
155
0

0
0
0
0
0

0
0
132
0
0

0
0
26
0
0

0
0
2
1
0

0
0
160
1
0

0
0
2
0
0

0
0
140
0
0

0
0
30
0
0

0
0
5
1
0

0
0
177
1
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0

0
0
443
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
1
0
0
0
0
0

0
0
443
0
0
0
1
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0

0
0
433
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
1
0
0
0
0
0

0
0
433
0
0
0
1
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0

0
0
390
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0

0
0
390
0
0
0
0
0
0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

2
0
0
0
0

1
0
0
0
0

0
0
0
0
0

3
0
0
0
0

0
0
0
0
0
0

2
0
0
0
0
0

11
0
0
0
0
4

18
0
0
0
0
42

31
0
0
0
0
46

0
0
0
0
0
0

0
0
0
0
0
0

28
0
0
0
0
9

29
0
0
0
0
60

57
0
0
0
0
69

0
0
0
0
0
0

300
0
0
0
0
0

23
0
2
0
0
7

35
0
51
0
0
59

358
0
53
0
0
66

$4

$282

$534

$372

$1,192

$39

$150

$520

$381

$1,090

$10

$462

$489

$459

$1,420

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri*
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah*
Wyoming
FAR WEST

Alaska
California
Hawaii*
Nevada
Oregon
Washington
TOTAL

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Capital Spending Notes for explanation

2007 STATE EXPENDITURE REPORT [87]

Table 53
all oTher capITal expendITureS ($ In mIllIonS)
Actual Fiscal 2006
Other
State
General Federal
Fund
Funds
Funds Bonds

Region/State

Total

Actual Fiscal 2007
Other
General Federal
State
Fund
Funds
Funds Bonds

Total

General
Fund

Estimated Fiscal 2008
Other
Federal
State
Funds
Funds
Bonds

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$0
3
0
0
1
0

$0
17
0
0
0
0

$0
5
0
0
65
0

$985
10
820
50
54
26

$985
35
820
50
120
26

$0
3
0
0
0
0

$0
14
0
0
73
0

$0
6
0
0
67
0

$890
6
728
29
82
24

$890
29
728
29
222
24

$0
0
0
0
0
0

$0
3
0
0
48
0

$0
11
0
0
126
0

$800
3
262
33
99
35

$800
17
262
33
273
35

211
1
216
0
0

0
0
0
170
0

0
6
0
194
0

0
377
26
418
201

211
384
242
782
201

192
75
246
0
0

0
13
0
116
0

0
19
0
205
0

0
430
27
413
327

192
537
273
734
327

175
12
265
0
0

0
7
4
128
0

0
3
0
255
0

0
507
126
625
344

175
529
395
1,008
344

0
72
46
0
0

0
0
30
0
0

24
12
32
280
0

435
0
174
705
0

459
84
282
985
0

0
102
53
0
0

0
0
24
0
0

28
19
4
221
0

310
0
49
668
0

338
121
130
889
0

0
115
53
1
0

0
0
18
0
0

3
18
4
285
0

139
0
36
199
0

142
133
111
485
0

0
7
15
21
11
5
29

0
4
6
73
12
10
7

30
10
12
43
21
23
77

16
4
152
0
0
14
7

46
25
185
137
44
52
120

0
15
38
73
11
6
18

0
18
8
12
12
11
2

34
0
17
38
25
8
52

32
10
204
0
0
0
7

66
43
267
123
48
25
79

0
9
18
220
5
10
3

0
15
46
180
59
20
6

160
12
46
76
51
35
7

64
16
237
0
0
0
6

224
52
347
476
115
65
22

3
0
71
0
0
17
6
19
13
33
7
12

0
26
0
0
0
65
30
0
18
33
7
29

23
83
1,487
0
240
25
34
0
18
1
8
37

180
14
305
220
0
111
166
0
3
21
61
0

206
123
1,863
220
240
218
236
19
52
88
83
78

34
0
189
0
0
30
7
29
13
43
16
14

0
37
0
0
0
142
30
0
17
20
0
12

29
35
1,539
0
390
244
46
0
30
0
12
30

239
15
1,421
562
0
124
343
100
4
110
75
0

302
87
3,149
562
390
540
426
129
64
173
103
56

1
0
77
0
0
87
8
55
0
55
69
10

0
89
0
0
0
249
27
0
0
0
3
5

65
164
1,878
0
913
388
27
0
0
0
3
27

541
90
1,050
550
0
137
144
200
0
32
47
0

607
343
3,005
550
913
861
206
255
0
87
122
42

1
0
16
0

2
0
18
0

1
0
48
0

0
13
534
0

4
13
616
0

1
0
16
0

2
0
68
0

1
0
143
0

0
327
150
0

4
327
377
0

20
0
5
0

0
0
0
0

8
0
667
0

0
243
209
0

28
243
881
0

0
0
0
96
16

1
0
0
4
9

21
8
0
17
17

0
2
0
5
0

22
10
0
122
42

0
0
0
213
12

6
0
0
22
6

30
12
0
-20
5

0
2
0
111
0

36
14
0
326
23

0
0
0
329
12

9
0
0
13
6

27
122
0
36
5

0
2
0
0
0

36
124
0
378
23

206
5
0
6
0
0

250
12
13
10
5
33

30
16
133
38
11
252

109
13
284
13
61
132

595
46
430
67
77
417

427
10
0
6
2
0

198
128
9
10
2
28

55
25
159
74
19
422

55
1
336
9
53
153

735
164
504
99
76
603

690
15
50
7
0
0

169
83
63
1
10
45

221
158
340
12
10
385

0
45
584
57
31
288

1,080
301
1,037
77
51
718

$1,165

$894

$3,382

$6,721

$12,162

$1,894

$1,040

$4,023

$8,426

$15,383

$2,376

$1,306

$6,548

$7,781

$18,011

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri*
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama*
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii*
Nevada
Oregon
Washington
TOTAL*

Source: National Association of State Budget Officers, 2007 State Expenditure Report
*See Capital Spending Notes for explanation

[88] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Capital Spending Notes

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

Alabama: Capital expenditures for higher education are not
captured/available at the state budget level. Capital expenditures for

Utah: All numerical information presented represents bond

Environmental and All Other from Federal and Other State Funds

“authorization”. All bond information included in the report is for

are not reported separately, combined amounts are included in the

General Obligation bonds. Not included in the report is State

Other State Funds.

Building Ownership Authority (SBOA) Bonds ($8 million in fiscal
2006, $7 million in fiscal 2007, and $7 million in fiscal 2008) and

Arizona: State Government is responsible for new construction and
building renewal for K-12 facilities. Local school districts initiate the

Board of Regents Revenue Bonds (discussed under the Higher
Education footnote).

expenditures/projects with state approval and then are reimbursed
as payments need to be made. These are included as operating

Regarding housing capital expenditures, numerous revolving loan

expenditures rather than capital expenditures for the purpose of

programs have been established by the State of Utah. These loan

this survey.

funds are typically provided startup General Fund appropriations
when established. Some loan funds receive periodic General Fund

Colorado: Per the instructions, expenditures that cannot be
categorized by functional area are reported in the “All Other” category.
Capital expenditures are reported by the annual appropriation total
because there is no actual expenditure reporting. “Other State Funds”
primarily consist of funding from the Capital Construction Fund, which
is largely funded by transfers from the General Fund. General Fund
transfers to the Capital Construction Fund are as follows: FY 2005-06
= $79 million; FY 2006-07 = $139 million; FY 2007-08 = $268 million.
Hawaii: Not possible to separate Fiscal 2006 and Fiscal 2007
capital expenditures into the Housing and Environmental functional
areas; included in All Other.

appropriations to enhance the loan programs. Once established,
loan repayments generally remain within the loan programs in
order to provide additional monies for future loans. One revolving
loan program provides low-interest loans and grants to Utah
residents for low-income housing. This loan fund is the Olene
Walker Housing Trust Fund ($6 million available in 2006, $7 million
available in 2007, and $6 million projected available for 2008).These
funds were shown under capital for housing in previous years, but
were reclassified in the 2002 expenditure report to a footnote.
Regarding environmental capital expenditures, numerous revolving
loan programs have been established by the State of Utah. These

Michigan: Higher education capital expenditures made from

loan funds are typically provided startup General Fund

non-state funds are excluded.

appropriations when established. Some loan funds receive periodic
General Fund appropriations to enhance the loan programs. Once

Missouri: Housing Capital Expenditures do not include expenditures

established, loan repayments generally remain within the loan

made by the Missouri Housing Development Commission, a body

programs in order to provide additional monies for future loans.

corporate and politic. All Other Capital Expenditures includes capital

Several revolving loan programs provide low-interest loans to local

expenditures for maintenance and repair projects at facilities operated

governments, such as cities and counties, to provide water and

by the Department of Corrections.

sewer systems. These loan funds include: 1) Water Resources

Montana: Capital expenditures are not reported separately but
are included in Total Expenditures.

Construction Fund ($6 million available in 2006, $8 million available
in 2007, and $13 million projected available for 2008); 2) Water
Resources Cities Water Loan Fund ($2 million available in 2006,

New Mexico: Unable to accurately break out capital outlay by

$2 million available in 2007, and $4 million projected available for

revenue source from total expenditures for federal funds and other

2008); 3) Water Resources Conservation and Development Fund

state funds.

($24 million available in 2006, $39 million available in 2007, and
$50 million projected available for 2008); 4) Water Quality Loan

Rhode Island: Capital expenditures for “Housing” are under the

Fund ($21 million available in 2006, $18 million available in 2007,

auspices of the Rhode Island Housing Resources Commission and

and $20 million projected available for 2008); and 5) Drinking

the Rhode Island Housing and Mortgage Finance Corporation. Both

Water Loan Fund ($13 million available in 2006, $13 million

are quasi-public agencies.

available in 2007, and $14 million projected available for 2008).

South Carolina: Estimated capital expenditures are no longer
collected. Therefore, no capital expenditure data is included for
estimated fiscal 2008.
2007 STATE EXPENDITURE REPORT [89]

CHAPTER NINE
REVENUE SOURCES
IN THE GENERAL FUND

Founded 1945

General fund revenue, the source of most state expenditures,

S t a t e Ta x C o l l e c t i o n Tr e n d s

totaled $641.9 billion in fiscal 2007. Personal income taxes, sales and
compensating use taxes, and corporate income taxes are the three

States maintained relatively strong revenue growth in fiscal 2007

main sources of general fund revenue, accounting for 81.2 percent

with total general fund revenues growing by 5.2 percent. However,

of general fund collections. Specifically, personal income taxes

revenue growth in fiscal 2007 was below the growth level of prior

account for 40.7 percent of the total, sales and compensating use

years. Revenues grew at 8.9 percent in both fiscal 2005 and fiscal

taxes for 32.3 percent, and corporate income taxes for 8.2 percent

2006. In addition, revenue growth is expected to slow further in

of total general fund revenues. Other taxes and fees represent 18.1

fiscal 2008. Total general fund revenues are estimated to grow

percent of general fund revenues, while gaming taxes are 0.8

2.6 percent in fiscal 2008.

percent. The major sources of general fund revenues are displayed
by state in Table 54.

Unlike fiscal 2006 when all states either met or exceeded their
revenue estimates, fiscal 2007 saw several states fail to meet their

Depending on the state, “other taxes and fees” may include

revenue expectations. Thirty-eight states exceeded expectations,

cigarette and tobacco taxes, alcoholic beverage taxes, insurance

four states were on target, and eight states were below

premiums, severance taxes, licenses and fees for permits,

expectations in fiscal 2007 (revenue estimates are detailed in

inheritances taxes, and charges for state-provided services.

NASBO’s Fiscal Survey of States, published December 2007).

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

Figure 23

taxes, lottery proceeds, and motor vehicle taxes fees, which often

reVenue SourceS In The general Fund

are earmarked for special purposes or specific funds, such as
Other
Taxes & Fees
18.1%

education or roads.
Table 55 illustrates the major items that are excluded from 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

Sales Tax
32.3%

Gaming Tax
0.8%
Corporate
Income Tax
8.2%

subsidies to help reduce the amount of property taxes local
governments collect.

Personal Income Tax
40.7%

[92] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table 54
reVenue SourceS In The general Fund ($ In mIllIonS)
Actual Fiscal 2006
Other
Personal Corp.
Sales Income Income Gaming Taxes &
Tax
Tax
Tax
Tax
Fees

Region/state

Total

Actual Fiscal 2007
Personal Corp.
Other
Sales Income Income Gaming Taxes &
Tax
Tax
Tax
Tax
Fees

Total

Estimated Fiscal 2008
Personal Corp.
Other
Sales Income Income GamingTaxes &
Tax
Tax
Tax
Tax
Fees

Total

NEW ENGLAND

Connecticut
Maine
Massachusetts*
New Hampshire
Rhode Island
Vermont

$3,402
993
4,004
0
869
217

$6,156
1,255
10,483
0
997
542

$788
188
1,391
546
165
76

$718
0
0
3
327
0

$3,935 $14,999
496
2,932
2,610 18,488
1,633
2,182
782
3,140
277
1,112

$3,496
1,021
4,068
0
873
222

$6,749
1,354
11,400
0
1,065
581

$891
184
1,581
599
148
73

$714
0
0
3
324
0

0
3,355
6,853
10,593
8,334

1,015
6,200
10,507
30,813
9,524

163
623
3,162
5,084
2,302

0
0
867
23
0

1,992
2,212
7,316
2,458
5,694

7,092
5,226
1,003
7,368
4,128

8,635
4,322
4,184
8,786
6,144

1,428
925
1,842
1,055
780

689
590
47
0
0

1,836
2,005
4,464
1,962
1,264
456
577

2,398
2,371
6,863
4,579
1,545
273
0

264
350
1,062
405
262
112
0

2,002
2,087
19,378
5,712
2,749
3,073
2,069
4,894
2,545
6,225
2,813
1,012

2,689
2,357
0
8,022
2,919
2,512
1,246
9,400
2,608
140
9,309
1,298

4,273
1,742
1,570
18,201

$3,893 $15,743
461
3,020
2,687 19,736
1,689
2,291
820
3,231
275
1,151

$3,599
1,029
4,086
0
853
230

$7,460
1,400
12,493
0
1,069
610

$747
182
1,512
613
157
73

3,170
12,390
28,705
48,971
25,854

0
3,420
8,610
10,050
8,591

1,008
6,679
11,727
34,580
10,262

140
590
3,208
6,468
2,493

0
0
850
21
0

2,142
2,251
6,807
2,723
6,103

4,790
997
1,190
8,637
978

22,634
12,061
8,266
25,846
12,030

7,136
5,379
1,003
7,432
4,159

9,408
4,616
4,331
8,863
6,574

1,750
987
1,816
1,584
890

685
625
46
0
0

140
0
56
0
1
9
0

690
598
3,065
387
280
244
480

5,328
5,324
15,510
7,332
3,352
1,094
1,057

1,863
2,052
4,506
1,955
1,304
511
603

2,667
2,709
7,231
4,918
1,651
315
0

325
442
1,171
458
213
121
0

484
378
2,405
863
1,002
769
412
1,204
258
763
872
348

3
5
16
0
0
435
146
0
0
0
0
0

1,977
314
5,276
2,742
1,706
1,516
460
1,523
815
2,386
1,841
1,004

7,155
5,141
27,075
17,339
8,376
8,305
4,333
17,021
6,226
9,514
14,834
3,662

2,087
2,188
19,435
5,913
2,818
3,165
2,149
4,996
2,631
6,500
3,049
1,003

2,938
2,536
0
8,821
3,042
3,257
1,475
10,508
2,882
163
9,788
1,361

3,690
1,124
2,380
0

874
377
265
0

0
57
17
0

448
2,259
1,499
18,474

9,285
5,559
5,731
36,675

4,533
1,902
1,667
20,183

2,123
881
13
1,806
392

4,019
1,216
769
2,288
0

447
194
154
378
0

18
0
66
0
0

358
141
715
392
555

6,965
2,432
1,717
4,864
947

147
27,581
2,355
1,005
0
7,357

0
49,901
1,551
0
5,444
0

799
10,316
130
0
438
0

2
2
0
838
0
0

3,252
5,651
889
1,216
430
5,782

4,200
93,451
4,925
3,059
6,312
13,139

$699 $3,815 $16,320
0
429 3,040
0 2,797 20,888
3 1,730 2,346
360
997 3,436
0
277 1,190

3,290
12,940
31,202
53,842
27,449

0
3,752
8,972
10,592
8,556

1,011
6,986
12,172
36,564
11,097

176
559
2,885
6,018
2,522

0
0
881
23
0

2,179
2,317
6,575
2,632
6,013

3,366
13,614
31,485
55,829
28,188

4,958
1,019
1,122
8,052
995

23,937
12,626
8,318
25,931
12,618

7,172
5,534
964
7,614
4,210

10,048
4,838
5,054
9,115
6,660

1,750
910
2,036
754
810

636
583
17
0
0

5,110
1,066
1,093
9,176
1,188

24,716
12,931
9,164
26,659
12,868

117
0
54
0
1
9
0

674
591
2,946
386
239
268
489

5,646
5,794
15,908
7,717
3,408
1,224
1,092

1,962
1,975
4,575
1,929
1,300
541
642

2,841
2,930
7,589
5,211
1,665
304
0

332
415
903
449
225
132
0

116
0
50
0
1
10
0

811 6,062
606 5,926
2,734 15,851
368 7,957
216 3,407
348 1,335
535 1,177

455
391
2,444
1,020
988
1,052
485
1,451
262
946
880
358

3
8
32
0
0
428
186
0
0
0
0
0

2,006
317
4,493
3,087
1,726
1,778
495
1,757
884
2,586
1,850
1,031

7,489
5,440
26,404
18,840
8,574
9,680
4,790
18,712
6,659
10,195
15,566
3,753

2,109
2,097
18,626
6,031
2,878
3,137
2,282
4,982
2,539
6,650
3,096
1,027

3,050
2,708
0
9,288
3,483
3,145
1,497
10,902
2,925
171
10,171
1,408

467
379
2,326
1,007
534
1,036
475
1,112
275
937
699
362

3
10
28
0
0
419
179
0
0
0
0
0

2,234
335
3,488
3,040
1,769
2,262
405
1,836
771
2,795
1,784
1,022

3,736
1,180
2,338
0

986
460
435
0

0
71
19
0

298
2,215
1,524
18,155

9,553
5,828
5,983
38,338

4,490
1,910
1,750
20,335

3,555
1,160
2,239
0

832
408
279
0

0
710 9,587
66 2,475 6,019
18 1,684 5,969
0 17,874 38,209

2,210
1,077
16
1,858
482

4,476
1,400
827
2,573
0

497
190
177
425
0

7
0
72
0
0

350
144
746
452
591

7,539
2,811
1,838
5,308
1,073

2,359
1,166
15
1,795
482

4,514
1,379
773
2,709
0

490
169
161
382
0

0
0
77
0
0

156
27,445
2,558
1,021
0
7,892

0
51,941
1,560
0
5,597
0

771
11,158
82
0
406
0

3
2
0
859
0
0

4,171
4,867
942
1,266
427
6,288

5,101
95,413
5,142
3,145
6,430
14,180

161
27,100
2,680
984
0
8,285

0
54,088
1,602
0
5,036
0

738
10,135
90
0
433
0

3
2
0
821
0
0

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri*
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama*
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia

7,863
5,529
24,469
19,365
8,664
9,997
4,837
18,832
6,510
10,553
15,751
3,819

SOUTHWEST

Arizona*
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado*
Idaho
Montana
Utah
Wyoming

363
148
747
408
636

7,726
2,862
1,773
5,294
1,118

FAR WEST

Alaska
California
Hawaii*
Nevada
Oregon
Washington
ALL STATES

$200,006 $242,473 $47,103

$5,074 $115,360 $610,017

$207,187 $261,086 $52,451

$5,137 $116,037 $641,899

$209,053 $272,919 $47,884

5,518 6,420
9,865 101,190
915 5,287
1,247 3,053
478 5,947
6,046 14,331

$5,004 $123,867 $658,728

*See Revenue Sources in the General Fund Notes for explanation

2007 STATE EXPENDITURE REPORT [93]

Table 55
ITemS excluded From reVenue SourceS

Sales and
Personal
Compensating Use Income
Taxes
Taxes

Region/State

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

P
X

P

X
X
X
X
X

Licenses
and
Fees
Other

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

X
P

X
X

X

X

P

X

X

X

X

X

P
X

X
P

P

X
X
X
P

X

X
X

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania

P

P

P

X

X

P

X

X
X

P
X
X

X
X
X
X

P

X
X

P

P

X
X
X

X
X
X
X
X

P
X
P

X
P

X
X
P

P

P

X

X

X
P

P

P

P
P

P
P

GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin

P

P

P

P

P
X
X
X
X

X
X
X
X
X

P

P

X
X
X
X

PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota

P
P
X
P
X

X
X
X
X

X
X
X
P

X

X
X
X
X

P
P

X
P
X
X
X
X
X

X
X
X
X
X
X

P
X
P

P
X
X
X

SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina*
South Carolina
Tennessee
Virginia
West Virginia

X
X
X
P

P

X
X
X
X
X

X
X
X
X
X
X
X
X
P
X
P

X

P
X
X

X

P

X
X
P

P

X
X
X
X
X

X
P

X
X

P
P

X
X
P

P

P
P

X
X
X

P
P

X
X

P
X
X

X
X

P
X
X
X

X
X
X
X
X

P
X
P
X

P

X
X
X

P

SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas

X
P

P
X

P
X

P
X

X
X

P
P

X
X
X

X

P

X
X
P
P

X
X
P

X
X
P

X
N/A
X
X

X
P
X
X

X
N/A
X

P
X
X
X

P

P

X
X
X

P
X
P

P

P
P

P
P

X

X
P
X
X
X

28

40

21

ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming

P

P
X

P
X

X
X

X
X

N/A
X

X

FAR WEST

Alaska
California
Hawaii*
Nevada
Oregon
Washington
ALL STATES

Excluded=X

P
P

X
P

P
N/A

X

X

X

X

X
X

12

8

30

X

12

Partially Excluded=P

*See Revenue Sources in the General Fund Notes for explanation

[94] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

X
P
N/A
X
X

33

Not Applicable=N/A

P
P
P

15

X
X
X
X
X
37

P
P

6

6

39

23

P
11

Revenue Sources in the General Fund

Michigan: Actual fiscal 2006 and fiscal 2007 amounts reflect
general fund non-dedicated revenue as contained in the respective

Alabama: Fiscal 2008 estimated revenue amounts exclude a

State of Michigan Comprehensive Annual Financial Reports.

projected transfer from the Proration Prevention Fund of $376

Revenue figures have been adjusted to put them on a basis

million.

comparable to the consensus estimates. Fiscal 2008 estimates are

Arizona: Fiscal 2008 other taxes and fees includes transfers from
the rainy day fund ($487 million) and transfers from other funds.
Colorado: Amounts shown in “Personal Income Taxes” are
reduced by the amount flowing to the State Education Fund.
Hawaii: Does not have Gaming Taxes, Lottery Funds, Property
Taxes, or Severance Taxes.

the May 2008 consensus revenue estimates.
Missouri: Revenue sources exclude refunds of $1,129 million in
fiscal 2006, $1,208 million in fiscal 2007, and $1,300 million in
fiscal 2008.
North Carolina: Lottery proceeds are allocated for Education
Programs only.

Massachusetts: Tax revenue totals reflect revenue through the
end of the fiscal year (June 30th).

2007 STATE EXPENDITURE REPORT [95]

APPENDIX

Founded 1945

Table A-1
ToTal STaTe expendITureS by Fund Source (excludeS bondS) ($ In mIllIonS)

Region/State

State
Funds

Actual Fiscal 2006
State &
Federal
Federal
Funds
Funds

State
Funds

Actual Fiscal 2007
State &
Federal
Federal
Funds
Funds

Estimated Fiscal 2008
State &
State
Federal
Federal
Funds
Funds
Funds

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

$17,684
4,669
35,031
2,966
4,526
3,689

$1,189
2,361
2,466
1,415
1,981
1,214

$18,873
7,030
37,497
4,381
6,507
4,903

$19,170
4,936
37,439
3,073
4,686
3,861

$1,540
2,190
2,557
1,409
1,864
1,250

$20,710
7,126
39,996
4,482
6,550
5,111

$19,835
4,879
37,453
3,170
4,985
3,891

$1,684
2,501
2,388
1,420
2,040
1,281

$21,519
7,380
39,841
4,590
7,025
2,662

6,314
19,974
32,824
67,868
35,927

1,029
6,214
8,420
34,618
17,305

7,343
26,188
41,244
102,486
53,232

6,550
22,388
35,275
75,067
38,204

1,174
6,368
8,751
35,453
17,820

7,724
28,756
44,026
110,520
56,024

6,692
23,294
37,896
79,507
40,652

1,169
6,673
9,609
34,680
18,474

7,861
29,967
47,505
114,187
59,126

31,843
14,755
29,783
43,402
26,316

10,685
6,683
11,499
8,616
7,166

42,528
21,438
41,282
52,018
33,482

34,218
15,653
30,092
42,573
27,010

11,398
7,107
11,853
9,181
7,246

45,616
22,760
41,945
51,754
34,256

35,363
16,110
29,624
45,276
28,555

12,091
7,818
14,040
8,832
7,536

47,454
23,928
43,664
54,108
36,091

10,669
7,960
19,635
13,767
5,670
1,983
1,782

3,922
3,265
5,628
5,539
2,303
1,263
1,177

14,591
11,225
25,263
19,306
7,973
3,246
2,959

11,041
8,593
20,428
14,834
5,796
2,062
1,849

3,959
3,131
5,965
5,333
2,366
1,239
1,200

15,000
11,724
26,393
20,167
8,162
3,301
3,049

11,812
9,234
21,845
16,174
6,770
2,360
2,013

4,467
3,582
6,394
6,361
2,804
1,180
1,367

16,279
12,816
28,239
22,535
9,574
3,540
3,380

23,099
10,642
41,178
23,823
13,725
14,641
6,939
24,433
11,320
13,984
25,069
16,913

10,344
4,602
18,750
9,775
6,767
8,166
5,828
10,163
6,521
9,137
5,960
3,277

33,443
15,244
59,928
33,598
20,492
22,807
12,767
34,596
17,841
23,121
31,029
20,190

25,742
11,465
43,962
25,711
15,229
18,147
7,451
27,798
13,198
15,088
27,492
15,056

10,399
4,594
18,849
10,664
7,051
11,151
7,424
11,069
6,680
9,211
6,244
3,263

36,141
16,059
62,811
36,375
22,280
29,298
14,875
38,867
19,878
24,299
33,736
18,319

30,483
12,759
47,434
27,636
17,880
20,336
7,931
29,729
13,933
17,362
28,129
15,154

12,377
6,219
19,615
10,012
7,690
19,836
8,598
17,316
7,345
9,637
6,336
3,489

42,860
18,978
67,049
37,648
25,570
40,172
16,529
47,045
21,278
26,999
34,465
18,643

16,609
8,309
10,763
45,250

8,289
4,098
5,336
24,710

24,898
12,407
16,099
69,960

17,698
9,394
13,312
50,667

9,207
4,226
5,690
24,485

26,905
13,620
19,002
75,152

18,166
8,980
14,667
59,589

10,083
4,588
5,593
26,330

28,249
13,568
20,260
85,919

12,062
3,210
2,942
6,498
4,244

3,571
1,811
1,528
2,401
1,366

15,633
5,021
4,470
8,899
5,610

12,936
3,643
3,159
7,505
4,648

3,776
1,804
1,544
2,369
457

16,712
5,447
4,703
9,874
5,105

14,006
4,282
3,877
9,007
4,482

3,987
2,138
1,768
2,471
475

17,993
6,420
5,645
11,478
4,957

6,481
114,308
7,533
5,598
15,509
20,503

2,856
53,569
1,539
1,745
4,504
6,097

9,337
167,877
9,072
7,343
20,013
26,600

8,245
123,967
8,534
5,982
15,629
21,867

3,002
52,935
1,645
1,861
4,419
6,326

11,247
176,902
10,179
7,843
20,048
28,193

9,616
132,261
9,868
5,830
18,111
23,321

2,862
58,669
1,947
1,503
5,087
6,799

12,478
190,930
11,815
7,333
23,198
30,120

$944,622

$368,668

$1,313,290

$1,018,323

$380,699

$1,399,022

$1,092,219

$421,161

$1,513,380

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

Note: State funds are defined as general funds and other state funds (bonds are excluded).
Source: National Association of State Budget Officers, 2007 State Expenditure Report

[98] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table A-2
chIld healTh InSurance block granTS ($ In mIllIonS)

Regions/state

General
Fund

Actual Fiscal 2006
Other
State
Federal
Funds
Funds

Total

General
Fund

Actual Fiscal 2007
Other
State
Federal
Funds
Funds

Total

Estimated Fiscal 2008
Other
General
State
Federal
Fund
Funds
Funds

Total

NEW ENGLAND

Connecticut*
Maine
Massachusetts*
New Hampshire
Rhode Island
Vermont

30
9
229
4
36
1

0
0
0
0
0
0

0
25
148
7
78
3

30
34
377
11
114
4

32
10
299
4
23
2

0
0
0
0
0
0

0
28
193
8
48
5

32
37
492
12
71
7

33
11
377
5
24
2

0
0
0
0
0
0

0
32
244
9
50
6

33
44
621
14
74
8

2
53
111
0
47

1
2
61
345
28

6
100
217
310
158

9
155
389
655
233

4
60
129
0
50

1
3
66
335
36

8
115
259
316
182

13
178
454
651
268

5
64
150
0
66

1
1
59
306
36

11
118
288
321
218

17
183
497
627
320

225
0
31
69
62

5
29
36
0
7

420
82
152
177
125

650
111
219
246
194

174
0
36
76
82

5
33
32
0
7

333
93
155
191
126

512
126
223
266
216

167
0
38
82
79

5
30
13
0
8

314
85
122
216
146

486
115
173
297
233

16
15
7
19
7
2
3

0
2
31
11
5
0
0

48
46
69
82
31
5
11

64
63
107
112
43
7
14

18
17
8
23
7
2
4

0
2
23
6
5
0
0

53
43
58
79
31
6
10

71
62
89
108
43
8
14

21
17
9
27
11
2
5

0
2
25
21
5
0
0

56
48
63
116
32
7
14

77
67
97
164
48
9
19

20
16
18
43
21
26
21
68
14
0
36
7

1
0
69
0
3
0
0
0
0
0
13
0

93
73
215
111
76
98
103
192
51
0
90
34

114
89
302
154
100
124
124
260
65
0
139
41

21
17
12
61
20
28
22
50
9
2
41
7

5
0
87
23
3
3
0
2
0
0
14
0

101
78
245
267
78
113
107
157
31
1
103
37

127
95
344
351
101
144
129
209
40
3
158
44

28
22
21
83
20
34
27
59
30
28
51
8

5
0
103
20
3
0
0
1
0
0
14
0

117
93
286
294
85
136
138
158
113
86
120
37

150
115
410
397
108
170
165
218
143
114
18
45

41
7
20
125

0
0
1
0

138
28
77
288

179
35
98
413

32
7
25
157

0
0
1
0

105
28
91
386

137
35
117
543

35
23
26
290

0
0
2
0

110
92
94
675

145
115
122
965

0
4
0
0
4

26
0
4
11
0

52
16
16
41
5

78
20
21
52
9

0
6
0
0
4

37
0
5
13
0

65
23
18
40
8

102
29
23
53
12

0
7
0
2
5

46
0
6
15
0

82
30
23
59
10

128
37
30
76
15

10
656
5
10
2
6

0
0
0
0
10
9

22
1151
12
27
33
28

32
1807
17
37
45
43

7
558
8
12
1
6

0
0
0
0
14
8

17
981
19
29
40
25

24
1539
27
41
55
39

7
674
8
13
0
7

0
41
0
0
20
8

14
1269
17
30
50
29

21
1984
25
43
70
44

$2,159

$710

$5,370

$8,239

$2,173

$770

$5,532

$8,475

$2,704

$796

$6,763

$10,263

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan*
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri*
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee*
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas*
ROCKY MOUNTAIN

Colorado*
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California*
Hawaii
Nevada
Oregon
Washington
TOTAL

*See Child Health Insurance Block Grants Notes for explanation

2007 STATE EXPENDITURE REPORT [99]

Child Health Insurance Block Grants

Michigan: Michigan received federal approval of the Adult Benefit
Waiver (ABW) to expand health care coverage to childless adults

California: Included in the actual General Fund amount for FFY

using SCHIP funds in fiscal 2004. ABW enrollment averaged 58,000

2006 and 2007 are the prenatal expenditures which Proposition

in fiscal 2006 and 60,000 in fiscal 2007. In fiscal 2008, ABW

99 funds are used as the match to Federal Funds.

enrollment is expected to average 62,000. Enrollment in the

Colorado: Expenditures include administration, medical premiums,
and dental premiums.
Connecticut: SCHIP Appropriation is “gross funded”: federal
funds are deposited directly to the State Treasury. Connecticut’s
FMAP is currently at 65 percent of SCHIP benefit costs.
Massachusetts: Since the 2006 State Expenditure Report,
Massachusetts has altered how it reports SCHIP expenditures.

traditional program for children (“MIChild”) declined from an average
34,000 in fiscal 2006 to 29,000 in the second quarter of fiscal 2008.
Missouri: Medicaid and SCHIP data are from the CMS 64 Report
used for federal reporting of Medicaid expenditures. The split
between the General Revenue Fund and Other Funds is an estimate.
Tennessee: Tennessee began receiving funds for the Child Health
Insurance Block Grant in fiscal 2007.
Texas: CHIP expenditures include Immigrant Health Insurance,
School Employee Insurance, expenditures which are 100 percent
general revenue programs.

[100] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Table A-3
medIcare parT d claWback paymenTS ($ In mIllIonS)

Region/State

General
Fund

Actual Fiscal 2006
Other
State
Funds
Total

General
Fund

Actual Fiscal 2007
Other
State
Funds
Total

Estimated Fiscal 2008
Other
General
State
Fund
Funds
Total

NEW ENGLAND

Connecticut
Maine
Massachusetts
New Hampshire
Rhode Island
Vermont

45
8
87
13
18
0

0
0
0
0
0
7

45
8
87
13
18
7

113
42
227
27
39
19

0
0
0
0
0
0

113
42
227
27
39
19

118
41
223
29
40
20

0
0
0
0
0
0

118
41
223
29
40
20

5
42
121
0
140

0
0
0
0
0

5
42
121
0
140

13
92
267
814
339

0
0
0
0
0

13
92
267
814
339

13
92
279
738
385

0
0
0
0
0

13
92
279
738
385

62
39
124
90
26

0
0
0
0
0

62
39
124
90
26

353
71
175
236
146

0
0
0
0
0

353
71
175
236
146

351
90
186
243
140

0
0
0
0
0

351
90
186
243
140

29
0
47
67
12
4
0

0
13
0
0
0
0
0

29
13
47
67
12
4
0

63
0
137
175
39
8
8

0
41
0
0
0
0
0

63
41
137
175
39
8
8

67
10
144
168
40
8
14

0
37
0
0
0
0
0

67
47
144
168
40
8
14

10
13
106
52
9
30
18
92
28
110
48
9

24
0
0
0
0
0
0
0
0
0
0
0

34
13
106
52
9
30
18
92
28
110
48
9

0
32
388
129
85
73
36
224
68
221
152
29

61
2
0
0
0
0
0
0
0
0
0
0

61
34
388
129
85
73
36
224
68
221
152
29

0
33
383
118
75
78
40
232
68
250
157
31

61
2
0
0
0
0
0
0
0
0
0
0

61
35
383
118
75
78
40
232
68
250
157
31

14
2
21
136

3
0
0
0

17
2
21
136

45
2
53
289

9
0
0
0

54
2
53
289

48
2
58
301

10
0
0
0

58
2
58
301

32
2
5
10
4

0
5
0
0
0

32
7
5
10
4

73
5
11
22
8

0
12
0
0
0

73
17
11
22
8

72
6
12
22
10

0
13
0
0
0

72
19
12
22
10

7
207
4
6
19
64

0
0
0
0
0
0

7
207
4
6
19
64

16
1,222
24
22
57
135

0
0
0
0
0
0

16
1,222
24
22
57
135

15
1,149
23
22
61
137

0
0
0
0
0
0

15
1,149
23
22
61
137

$2,036

$52

$2,088

$6,823

$125

$6,948

$6,842

$123

$6,965

MID-ATLANTIC

Delaware
Maryland
New Jersey
New York*
Pennsylvania
GREAT LAKES

Illinois
Indiana
Michigan
Ohio
Wisconsin
PLAINS

Iowa
Kansas
Minnesota
Missouri
Nebraska
North Dakota
South Dakota
SOUTHEAST

Alabama
Arkansas
Florida
Georgia
Kentucky
Louisiana
Mississippi
North Carolina
South Carolina
Tennessee
Virginia
West Virginia
SOUTHWEST

Arizona
New Mexico
Oklahoma
Texas
ROCKY MOUNTAIN

Colorado*
Idaho
Montana
Utah
Wyoming
FAR WEST

Alaska
California
Hawaii
Nevada
Oregon
Washington
TOTAL

*See Medicare Part D Clawback Payments Notes for explanation

2007 STATE EXPENDITURE REPORT [101]

M e d i c a r e P a r t D C l a w b a c k P ay m e n t s
Colorado: Colorado passed legislation (SB 07-133) that changed
the MMA State Contribution Payment line item from accrual to
cash accounting. This caused as a one-time savings of $7,173,368
in FY 2007-08 because there are only 11 payments in that year.
Although not the actual expenditure, this amount should be added
to the total if being compared to prior years. FY 2007-08 = 76.7
(07-08 Long Bill Approp) - 7.1 (07-133) + 2.6 (08-09 Long Bill
Add-on).
New York: Due to Federal billing delays, there were no Medicare
Part D Clawback Payments during State Fiscal Year 2005-06.

[102] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

Methodology

For corrections, states were asked to include, where applicable,
expenditures for capital construction, aid to local governments for

The Fiscal Year 2007 State Expenditure Report reflects three years

jails, parole programs, prison industries, and community corrections,

of data: actual fiscal year 2006, actual fiscal year 2007, and estimated

as well as expenditures made for juvenile correction programs.

fiscal year 2008. The text of this report focuses on actual fiscal year

States were asked to exclude expenditures for drug abuse

2007 data.

rehabilitation programs and institutions for the criminally insane.

This survey documents state expenditures in six functional

Transportation figures include capital and operating expenditures

categories: elementary and secondary education, higher education,

for highways, mass transit, and airports. States were also asked to

public assistance including Temporary Assistance for Needy Families

include expenditures for road assistance to local governments, the

and other cash assistance, Medicaid, corrections, and transportation.

administration of the department of transportation, truck and

All other expenditures make up a seventh category. The report

train/railroad programs, motor vehicle licensing, and gas tax and fee

includes expenditures from four fund sources, including general

collection. The data exclude spending for port authorities, state

funds, federal funds, other state funds, and bonds. Data for each

police and highway patrol.

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

The “all other” expenditure category includes all remaining
programs not captured in the functional categories previously

Elementary and secondary education spending includes state and

described, including the State Children’s Health Insurance Program

federal fund expenditures only, and excludes local funds raised for

and any debt service for other state programs (i.e., environmental

education purposes. States also were asked to include, where

projects, housing). States with lotteries were asked to exclude

applicable, state expenditures that support the state’s Department

prizes paid to lottery winners. States were also asked to exclude

of Education, transportation of school children, adult literacy

expenditures for state-owned utilities and liquor stores.

programs, handicapped education programs, programs for other
special populations (i.e., gifted and talented programs), anti-drug

Capital spending is included with operating expenditures within

programs, and vocational education. States were asked to exclude

each functional category, unless otherwise noted. Capital

spending for day care programs in the school system and spending

expenditures have also been collected separately in the following

for school health and immunization programs.

categories: corrections, environmental projects, higher education,
housing, and transportation. Capital expenditure data can be found

For higher education, states were requested to include

in Chapter Eight.

expenditures made for capital construction, community colleges,
vocational education, law, medical, veterinary, nursing and technical

Chapter Nine illustrates the major sources of state revenue

schools, and assistance to private colleges and universities, as well as

including sales taxes, personal income taxes, corporate income

tuition, fees and student loan programs. Higher education

taxes, gaming taxes, and other taxes and fees. This chapter only

expenditures exclude federal research grants and endowments to

contains information on general fund revenue.

universities.

Tables included in four of the functional categories reflect

Spending for public assistance includes expenditures for cash

expenditures that states have excluded from their reported data.

assistance under the Temporary Assistance for Needy Families

Each table underscores the observation that state-to-state

(TANF) program, and other cash assistance (i.e., state supplements

expenditure comparisons in any functional category can be

to the Supplemental Security Income program, general or

misleading. For example, one state may have included its juvenile

emergency assistance). States were asked to exclude administrative

institutions in its corrections budget, while another state may have

costs from reported expenditures.

included them in its human resources budget. Comparisons for one
state over time, however, should prove accurate.

Medicaid spending amounts also exclude administrative costs, while
including spending from state funds, federal matching funds and
other funds and revenue sources used as a Medicaid match such as
provider taxes, fees, assessments, donations, and local funds.

2007 STATE EXPENDITURE REPORT [103]

All years reported are state fiscal years unless otherwise indicated.

Federal funds: funds received directly from the Federal

In 46 states the fiscal year begins on July 1 and ends on June 30. The

government.

exceptions are as follows: in Alabama and Michigan the fiscal year
begins on October 1; in Texas, the fiscal year begins on September
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.

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).

Definitions

Bonds: expenditures from the sale of bonds, generally for capital
projects.

General fund: predominant fund for financing a state’s operations.
Revenues are received from broad-based state taxes. There are

State funds: general fund plus other state fund spending,

differences in how specific functions are financed from state to

excluding state spending from bonds.

state, however.

[104] NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS

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