October 29, 2009 Where Do State and Local Governments Concentrate Their Spending? Gerald Prante Gerald Prante Print this page Subscribe Support our work Download Fiscal Fact No. 199 Fiscal Fact No. 199 Newly released Census data highlight the different spending priorities of state and local governments. By presenting the data here as percentages of total spending, we reveal government priorities whether their combined state and local budgets are comparatively large or small. Spending is shown for nine specific functional categories and a miscellaneous catch-all: K-12 Education, Higher Education, Public Welfare, Hospitals and Health, Transportation, Public Safety, Environment and Housing, Government Administration, Interest on Debt, and Other. Tables 1-9 below are “top ten” tables, showing the 10 states that devote the largest share of their total spending to each of these categories. The percentages for all 50 states and the District of Columbia are presented in Table 10. The tables are compiled using the most recent state and local finance data from the Census Bureau for fiscal year 2007 (July 1, 2006 through June 30, 2007 in most states). Combined state-local data is best for interstate comparison because what some states accomplish with local spending is accomplished in other states with state-level programs. Table 1 Which Ten States Concentrate Their Spending on K-12 Education? State Percentage of Total Spending New Jersey 31.8% New Hampshire 28.6% Texas 28.0% Connecticut 27.7% Michigan 27.2% Virginia 26.9% Georgia 26.8% Arkansas 26.0% Vermont 25.2% Maryland 25.2% US average 23.9% Source: Tax Foundation calculations based on data from Census Bureau’s government finance data for state and local governments during fiscal year 2007. Table 2 Which Ten States Concentrate Their Spending on Higher Education? State Percentage of Total Spending Utah 15.5% North Dakota 15.4% North Carolina 14.2% Vermont 13.7% Iowa 13.2% Alabama 13.2% Kansas 13.0% Oklahoma 12.6% Arkansas 12.3% New Mexico 12.2% US average 9.1% Source: Tax Foundation calculations based on data from Census Bureau’s government finance data for state and local governments during fiscal year 2007. Table 3 Which Ten States Concentrate Their Spending on Public Welfare? State Percentage of Total Spending Maine 24.3% Rhode Island 23.7% Minnesota 22.8% Vermont 22.7% Pennsylvania 21.7% Massachusetts 21.7% New York 21.6% Arkansas 21.4% Kentucky 21.2% Tennessee 20.8% US average 16.8% Note: Medicaid spending split between Public Welfare and Health & Hospitals. Source: Tax Foundation calculations based on data from Census Bureau’s government finance data for state and local governments during fiscal year 2007. Table 4 Which Ten States Concentrate Their Spending on Health and Hospitals? State Percentage of Total Spending South Carolina 15.9% Wyoming 15.2% Alabama 14.7% Mississippi 13.6% North Carolina 12.9% Tennessee 12.2% Iowa 12.1% Washington 11.6% Georgia 10.6% Missouri 10.5% US average 8.4% Note: Medicaid spending split between Public Welfare and Health & Hospitals. Source: Tax Foundation calculations based on data from Census Bureau’s government finance data for state and local governments during fiscal year 2007. Table 5 Which Ten States Concentrate Their Spending on Transportation? State Percentage of Total Spending South Dakota 15.8% Alaska 15.6% North Dakota 14.2% Montana 12.2% Nevada 12.2% Georgia 11.5% Wyoming 10.8% Idaho 9.7% Kentucky 9.6% Washington 9.5% US average 7.6% Source: Tax Foundation calculations based on data from Census Bureau’s government finance data for state and local governments during fiscal year 2007. Table 6 Which Ten States Concentrate Their Spending on Public Safety? State Percentage of Total Spending Nevada 13.6% Arizona 12.2% California 12.0% Florida 11.2% Maryland 10.5% Oregon 10.4% Colorado 10.0% Rhode Island 9.8% Virginia 9.7% Illinois 9.0% US average 9.1% Source: Tax Foundation calculations based on data from Census Bureau’s government finance data for state and local governments during fiscal year 2007. Table 7 Which Ten States Concentrate Their Spending on Environment/Housing? State Percentage of Total Spending Louisiana 15.1% Florida 11.1% Washington 9.7% Hawaii 9.6% South Dakota 9.3% California 9.3% Oregon 9.1% Arizona 9.1% Colorado 9.0% Maryland 8.9% US average 7.7% Source: Tax Foundation calculations based on data from Census Bureau’s government finance data for state and local governments during fiscal year 2007. Table 8 Which Ten States Concentrate Their Spending on Government Administration? State Percentage of Total Spending Delaware 8.6% Nevada 7.8% Utah 7.8% Montana 7.4% Alaska 7.1% West Virginia 7.0% Rhode Island 6.9% Colorado 6.9% California 6.7% Oregon 6.6% US average 5.3% Source: Tax Foundation calculations based on data from Census Bureau’s government finance data for state and local governments during fiscal year 2007. Table 9 Which Ten States Concentrate Their Spending on Interest on Their Debt? State Percentage of Total Spending Massachusetts 7.4% Hawaii 5.6% New Hampshire 5.5% Rhode Island 5.3% Illinois 5.3% Texas 5.1% Connecticut 5.1% Colorado 5.1% Kentucky 4.9% Pennsylvania 4.9% US average 4.1% Source: Tax Foundation calculations based on data from Census Bureau’s government finance data for state and local governments during fiscal year 2007. Table 10 State-Local Spending by Category, by State Percentage of Total Spending in Fiscal Year 2007 State K-12 Educ. Higher Educ. Public Welfare Hospitals & Health Transp. Public Safety Envir./ Housing Govt. Admin. Debt Interest Other U.S. 23.90% 9.10% 16.80% 8.40% 7.60% 9.10% 7.70% 5.30% 4.10% 7.90% Ala. 23.40% 13.20% 15.40% 14.70% 7.60% 7.70% 5.10% 4.40% 3.10% 5.30% Alaska 18.50% 6.10% 13.80% 3.60% 15.60% 6.20% 7.90% 7.10% 4.30% 17.00% Ariz. 21.70% 10.00% 16.70% 6.90% 8.40% 12.20% 9.10% 6.10% 3.50% 5.40% Ark. 26.00% 12.30% 21.40% 6.90% 7.40% 7.20% 5.60% 5.20% 2.70% 5.20% Calif. 21.80% 8.60% 14.60% 9.30% 5.80% 12.00% 9.30% 6.70% 4.10% 7.80% Colo. 22.90% 10.60% 11.20% 8.40% 8.50% 10.00% 9.00% 6.90% 5.10% 7.50% Conn. 27.70% 7.30% 16.20% 6.70% 4.50% 7.50% 6.20% 5.80% 5.10% 13.00% Del. 21.70% 11.20% 17.00% 5.50% 7.00% 8.90% 8.20% 8.60% 4.10% 7.80% Fla. 22.60% 6.30% 14.00% 8.20% 9.30% 11.20% 11.10% 6.10% 3.50% 7.70% Ga. 26.80% 7.60% 14.60% 10.60% 11.50% 8.70% 7.10% 5.00% 2.10% 6.00% Hawaii 20.00% 9.50% 13.90% 9.80% 7.60% 6.30% 9.60% 6.10% 5.60% 11.50% Idaho 21.60% 10.50% 16.90% 10.00% 9.70% 8.90% 8.10% 6.30% 2.40% 5.70% Ill. 23.90% 8.50% 15.80% 5.60% 9.10% 9.00% 7.90% 5.00% 5.30% 10.00% Ind. 24.00% 11.00% 16.80% 8.80% 6.80% 6.70% 6.20% 4.60% 4.10% 10.90% Iowa 23.00% 13.20% 16.60% 12.10% 9.30% 6.10% 5.40% 4.20% 3.00% 7.10% Kans. 24.20% 13.00% 16.00% 6.90% 9.30% 7.40% 5.30% 5.00% 4.40% 8.60% Ky. 22.10% 11.20% 21.20% 7.70% 9.60% 6.70% 5.30% 4.60% 4.90% 6.70% La. 19.20% 7.90% 14.00% 10.10% 7.70% 8.40% 15.10% 5.20% 4.10% 8.20% Maine 22.00% 7.60% 24.30% 6.10% 8.00% 6.20% 7.30% 5.10% 3.50% 9.90% Md. 25.20% 10.20% 16.40% 4.80% 7.70% 10.50% 8.90% 5.50% 3.60% 7.20% Mass. 22.50% 6.90% 21.70% 4.40% 5.30% 8.10% 7.20% 4.70% 7.40% 11.70% Mich. 27.20% 12.10% 15.60% 9.00% 6.30% 8.50% 6.50% 4.50% 4.20% 5.90% Minn. 22.80% 9.00% 22.80% 6.40% 8.90% 6.90% 7.70% 4.90% 3.90% 6.60% Miss. 18.60% 10.50% 18.20% 13.60% 9.10% 5.90% 4.60% 3.70% 2.10% 13.80% Mo. 24.60% 9.10% 15.70% 10.50% 9.00% 8.00% 6.50% 4.60% 4.80% 7.20% Mont. 21.80% 11.50% 12.80% 6.50% 12.20% 8.00% 8.40% 7.40% 3.60% 7.80% Nebr. 24.60% 12.10% 16.50% 9.70% 9.00% 7.60% 6.60% 4.20% 2.20% 7.50% Nev. 24.10% 8.10% 10.80% 7.30% 12.20% 13.60% 8.10% 7.80% 4.20% 3.80% N.H. 28.60% 9.10% 17.50% 2.20% 8.80% 8.20% 6.60% 5.50% 5.50% 7.80% N.J. 31.80% 6.40% 15.80% 4.80% 4.90% 8.70% 6.50% 4.60% 4.50% 11.90% N.M. 20.20% 12.20% 20.00% 7.80% 8.80% 8.60% 6.20% 5.80% 3.10% 7.20% N.Y. 23.60% 5.40% 21.60% 8.40% 5.80% 8.40% 6.90% 4.70% 4.70% 10.50% N.C. 21.40% 14.20% 16.30% 12.90% 6.70% 8.20% 7.60% 3.90% 2.60% 6.10% N.D. 21.00% 15.40% 15.70% 2.20% 14.20% 5.50% 7.80% 5.10% 4.40% 8.80% Ohio 24.50% 8.90% 20.20% 8.30% 6.20% 7.70% 7.60% 5.90% 4.00% 6.80% Okla. 24.10% 12.60% 19.40% 7.40% 8.80% 8.40% 5.70% 5.30% 2.90% 5.40% Ore. 20.70% 11.40% 14.40% 8.30% 8.70% 10.40% 9.10% 6.60% 4.30% 6.00% Pa. 24.60% 7.30% 21.70% 6.40% 8.30% 7.30% 6.50% 5.40% 4.90% 7.70% R.I. 24.30% 6.60% 23.70% 2.80% 6.00% 9.80% 6.00% 6.90% 5.30% 8.60% S.C. 24.30% 9.60% 17.20% 15.90% 5.30% 6.80% 5.40% 5.80% 3.80% 5.90% S.D. 21.70% 9.50% 15.50% 4.60% 15.80% 7.10% 9.30% 5.80% 3.50% 7.20% Tenn. 21.50% 8.50% 20.80% 12.20% 7.30% 8.60% 6.50% 4.80% 2.80% 7.00% Tex. 28.00% 11.20% 13.70% 8.80% 9.30% 8.60% 5.80% 3.80% 5.10% 5.70% Utah 21.20% 15.50% 13.00% 7.70% 8.10% 8.30% 8.50% 7.80% 3.00% 7.00% Vt. 25.20% 13.70% 22.70% 3.20% 9.00% 6.00% 6.00% 4.60% 3.70% 6.00% Va. 26.90% 11.30% 14.20% 8.00% 8.60% 9.70% 6.90% 5.40% 3.30% 5.50% Wash. 20.70% 10.30% 14.10% 11.60% 9.50% 9.00% 9.70% 4.40% 4.10% 6.60% W.Va. 23.20% 11.70% 20.10% 5.30% 9.40% 6.00% 6.30% 7.00% 2.80% 8.20% Wis. 23.80% 12.00% 18.20% 6.70% 8.60% 8.90% 7.10% 4.30% 4.40% 6.10% Wyo. 23.10% 9.00% 10.30% 15.20% 10.80% 7.50% 8.20% 6.50% 1.80% 7.60% D.C. 16.80% 1.50% 25.50% 6.30% 1.20% 11.70% 16.00% 6.20% 4.40% 10.40% Source: Tax Foundation calculations based on data from Census Bureau’s government finance data for state and local governments during fiscal year 2007. Topics Center for State Tax Policy Data Research Tags State and Local Budgets and Spending State and Local Government Employee Retirement Systems