Total State Expenditures: Capital Inclusive (In millions of dollars)

Amounts shown in fiscal years 2020 and 2021 are based on actual expenditures during these years, regardless of the year appropriated. Fiscal 2022 amounts shown are equal to actual expenditures through 9 months (June 30, 2022) and then annualized for the year.

Part of the increase in expenditures in this year’s report compared to prior reports is due to Arizona now including both appropriated and non-appropriated expenditures. In prior State Expenditure Reports, Arizona only included appropriated expenditures. 

The fiscal 2021 increase in federal funds is primarily due to an $89B increase in Unemployment Insurance Benefit payments due to the COVID-19 pandemic. The fiscal 2022 increase in general funds is related to temporary expenditures from the state’s surplus and other spending that occurs with increased revenues. 

“All Other” Other State Funds declined in estimated fiscal 2022 due to data being based on budgeted funds rather than actual expenditures.

The increase in fiscal 2021 spending and subsequent decline in estimated fiscal 2022 is related to one-time spending and COVID-19 spending.

The increase in fiscal 2021 Other State Funds spending is largely due to one-time spending from higher state revenues.  

The $12 billion increase in Federal Funds from FY 2020 to FY 2022 is largely driven by additional funds provided by the federal government for relief from the COVID-19 pandemic.

General Fund totals differ from the Fiscal Survey of States due to certain transfers to non-budgeted funds. The Fiscal Survey reflects such transfers as spent from the General Fund, whereas the State Expenditure Report captures spending from the non-budgeted funds directly.

Fiscal 2022 estimated expenditures are equal to FY 2022 appropriations enacted as of July 20, 2022. 

There was a correction to actual fiscal 2020 from prior surveys. Previously certain classes of expenditures were omitted in calculation. 

The State and Local Fiscal Recovery Funds (SLFRF) provided through the American Rescue Plan Act is included in the State budget as a deposit of Federal aid to the General Fund to offset revenue loss, ensure the continuation of essential services and assistance provided by government, and assist with the Public Health Emergency response and recovery efforts. These funds are expected to be deposited to the General Fund over multiple years to support eligible uses and spending.  In FY 2022, the State deposited $4.5 billion of the Federal SLFRF aid to the General Fund to fund eligible costs incurred through March 31, 2022, as follows: Public Assistance – Other Cash Assistance – $183 million; Corrections – $1.082 billion; Transportation – $110 million; and All Other State Expenditures – $3.125 billion. 
General Fund expenditures have been adjusted in all years to exclude operating transfers to other funds which constitute legally authorized transfers from the General Fund, which receives the revenues, to a fund through which disbursements will ultimately be made. These transfers totaled (in millions): $6,098, $7,978 and $9,813 for 2020; 2021; and 2022, respectively.

Federal reimbursements for Medicaid expenditures funded from the General Revenue Fund (GRF) are deposited into the GRF. Federal reimbursements for Medicaid expenditures from non-GRF sources are deposited into the appropriate federal fund. Expenditures of GRF federal funds have been removed from the GRF number presented in this report to be consistent with budget presentations in other NASBO surveys. 
Also, inherent in Ohio’s budgetary accounting environment are significant overstatements of total state spending due to two phenomena. First, fiduciary fund expenditures represent the distribution of funds collected by the state on behalf of other entities. These are not operating, program, or subsidy expenditures of the state. Examples of this would be the collection and distribution of county and local permissive sales taxes or motor vehicle registration taxes. Fiduciary fund group expenditures totaled $9,552.7 million in fiscal 2022. Second, “double counting” of revenue and expenditures related to intrastate transactions overstates overall state expenditure activity. Intrastate transactions totaled $721.0 million in fiscal 2022. These accounting practices will tend to make Ohio’s “All-Other” expenditures look higher, on a dollar and percentage basis, and conversely make Ohio’s other categories look lower, on a percentage basis, relative to other states that don’t follow similar practices. 

Tennessee collects personal income tax on income from dividends on stocks and interest on certain bonds. Legislation was passed in 2017 to annually reduce this tax to zero by fiscal year 2022. Tax revenue estimates do not include federal funds and other departmental revenues. However, federal funds and other departmental revenues are included in the budget as funding sources for the general fund, along with state tax revenues. 

Part of Wyoming’s yearly variation in expenditure totals is due to the fact that the state budgets on a two-year cycle.