Dkes The Government Track How Much Money You Give To Relative In Another Country?

State and local governments spent $iii.3 trillion on direct general government expenditures in fiscal yr 2019.¹ States spent $1.half dozen trillion directly and local governments—cities, townships, counties, school districts, and special districts—spent $1.8 trillion directly (the numbers do not sum to the combined full because of rounding).²

While state governments raised more revenues than local governments in 2019, local governments' direct expenditures were larger than states' because localities often administer programs with funds transferred from land governments. In 2019, states transferred over $568 billion to local governments. This total includes indirect funds from the federal government, often referred to as pass-through grants. For example, the federal authorities sends simple and secondary education funds to state governments, and and so state governments transfer the money to local governments which spend the dollars on local didactics programs.

Most state and local regime spending falls into one of vii categories: unproblematic and secondary education, public welfare (which includes most Medicaid spending), college education, wellness and hospitals, highways and roads, criminal justice (which includes spending on police, corrections, and courts), and housing and community evolution.

What practise state and local governments spend money on?
How does country spending differ from local spending?
How have country and local expenditures inverse over fourth dimension?
How and why does spending differ across states?

What do country and local governments spend money on?

State and local governments spend most of their resources on pedagogy, health, and social service programs. In 2019, about 1-third of state and local spending went toward combined elementary and secondary educational activity (22 percent) and higher didactics (nine per centum).³ (Census'southward data on higher education expenditures include both spending funded past tax revenues and student tuition and fees. Run across our college education backgrounder for more information.)

Another 22 percent of expenditures went toward public welfare in 2019. Public welfare includes spending on means-tested programs, such equally Medicaid, Temporary Assistance for Needy Families, and Supplemental Security Income.⁴ Spending on health and hospitals was another 10 percent of state and local direct expenditures.

State and Local Direct General Expenditures

Medicaid constitutes a large and growing portion of state spending. However, Demography does not separate Medicaid spending into its ain category. Instead, virtually Medicaid spending is accounted for under the public welfare category with some spending counted as hospital expenditures.⁵

The National Association of Country Budget Officers (NASBO) estimates that in fiscal year 2021 Medicaid alone accounted for well-nigh 27 percent of total state spending—upwards from 20 percentage in 2008. (Both of these totals include the federal share of Medicaid spending.)⁶

Highway and road spending was 6 percent of state and local straight general expenditures in 2019. Looking at criminal justice expenditures individually, police spending was iv pct of country and local direct general expenditures, corrections spending was 3 pct, and courtroom spending was 2 pct. Housing and community development expenditures deemed for another ii percent of country and local directly full general expenditures.

Near of the remaining 22 percent of country and local direct expenditures in 2019 went toward these programs:

financial administration and key staff services (v percent)
involvement on debt (3 percent)
sewerage (two percent)
local fire protection (2 percentage)
parks and recreation (1 percent)
natural resources services (1 percent)
air transportation (1 percent)
solid waste management (1 percentage)
public buildings, libraries, and h2o transportation (each expenditure accounted for less than 1 percent)

The residue was mostly miscellaneous expenses not elsewhere classified by Census.

How does country spending differ from local spending?

States and local governments provide dissimilar mixes of services, which are reflected in their direct general expenditures.

State verse Local Expenditure

Elementary and secondary didactics is a far larger share of direct local government spending than than country spending. In 2019, 40 percent of straight local authorities spending went to elementary and secondary educational activity versus less than 1 per centum of direct state spending. Notwithstanding, while local governments overwhelmingly spent these dollars directly, much of that money came from state and federal funds.^vii In total, during the 2017-2018 school twelvemonth, states provided 47 percent of overall uncomplicated and secondary teaching funding, local governments provided 45 percent, and the federal authorities provided eight percent.⁸

Meanwhile, higher pedagogy was a far larger share of country direct spending (17 percentage) than local government directly spending (3 pct) in 2019.

Similarly, states as well directly spent a far higher per centum of their budgets on public welfare expenditures than local governments. In 2019, 43 per centum of states' direct general expenditures went toward public welfare, the largest straight expenditure as a share of country spending. Local governments spent but 4 percentage on public welfare. Much of public welfare spending is Medicaid spending, which is jointly funded by states and the federal government but administered by state governments (and local governments in a few states).

State governments as well spent more directly on highways and roads (8 per centum) than local governments (4 pct), while local governments spent a larger share of their budgets on police (6 percent) than land governments (1 per centum). Direct spending on health and hospitals (9 percent of state budgets and x percent of local budgets) was roughly equal at the 2 levels of regime.

How have state and local expenditures changed over fourth dimension?

From 1977 to 2019, in 2019 aggrandizement-adapted dollars, state and local government spending increased from $ane.2 trillion to $3.3 trillion, a 190 per centum increase. Existent per capita expenditures increased from $5,238 to $x,161, a 94 per centum increase, over the same menstruation.

Although spending in all major categories increased over the menstruation, the percentage modify in country and local straight general expenditures varied. For case, state and local government spending on public welfare, in 2019 inflation-adapted dollars, increased by 411 percent betwixt 1977 and 2019, by far the most of any major expenditure. Medicaid is responsible for near of the increase in full state and local public welfare spending, but the federal share of Medicaid spending too increased over this period, from 55 percent of Medicaid spending to 65 percentage.^nine Related, health and hospital spending grew 231 percent from 1977 to 2019. Meanwhile, unproblematic and secondary educational activity spending grew 138 percent betwixt 1977 and 2019.

State and Local Expenditures

Higher education spending grew 184 percent, simply changes in higher education spending are complicated by the increasing share of tuition payments every bit a funding source. Police spending grew 179 percent between 1977 and 2019. Among these major expenditures, highway and road spending grew at the slowest pace, 108 percentage, from 1977 to 2019.

How and why does spending differ across states?

State and local governments spent $10,161 per capita in 2019, just per capita direct spending varies widely beyond states.

Among the states, Alaska had the highest per capita state and local spending in 2019 at $17,596, followed by New York ($15,667) and Wyoming ($15,107). Every bit is typical, the Commune of Columbia's per capita spending exceeded all states at $21,066.^ten Arizona ($seven,251) and Georgia ($7,280) had the lowest per capita spending in 2019.

State and Local Expenditures

Data: View and download each state's per capita direct general expenditures

Differences in spending arise from variations in geography, demographics, history, and other external factors. They can also arise from state policy choices, such every bit generosity of service levels, eligibility rules for social services, or tax policy. For case, New York has relatively loftier elementary and secondary educational activity spending even though information technology has relatively few school-age children for its overall population and a bigger share of kids in private school than nearly states.¹¹ But New York's per capita spending is relatively loftier because it has more teachers per student enrollment and higher teacher salaries than well-nigh states.¹² In contrast, Idaho has a relatively high number of school-age children to educate for its overall population and a loftier rate of attendance in public schools, merely it has relatively low per capita teaching spending because it employs fewer teachers per student and has lower payroll costs than nearly states.¹³

Interactive Data Tools

State and Local Finance Information: Exploring the Census of Governments

State Fiscal Briefs

What everyone should know well-nigh their state's budget

Notes

³The Census counts state expenditures on scholarships and other educational subsidies under a carve up category that includes subsidies for college and K–12 education combined. The code (J19) includes, for example, individual scholarships for higher education and institutional assistance to individual K–12 charter schools.

⁷Meet William A. Fischel, School Finance Litigation and Holding Tax Revolts: How Undermining Local Control Turns Voters Away from Public Education, Working Paper WP98WF1 (Washington, DC: Lincoln Plant of State Policy, 1998); too Sheila Murray and Kim Rueben, School Finance Over Fourth dimension: How Changing Structures Touch on Support for Chiliad–12 Education, Policy working paper WP07SM1 (Cambridge, MA: Lincoln Institute of State Policy, 2007).

Source: https://www.urban.org/policy-centers/cross-center-initiatives/state-and-local-finance-initiative/state-and-local-backgrounders/state-and-local-expenditures

Posted by: apontewhistract.blogspot.com