POLICY HIGHLIGHTER

Volume 14, Number 31
December 13, 2004

State budget expenditures comparison

The National Association of State Budget Officers (NASBO) recently released its 2003 State Expenditure Report, which compares how states rank in regard to various budget expenditure levels. Founded in 1945, NASBO is the "principal organization for the professional development of its members; for improving the capabilities of staff and information available to state budget officers; and for the development of the national fiscal and executive management policies of the National Governors Association . . . NASBO is composed of the heads of state finance departments, the states' chief budget officers, and their deputies."

Because various special interest groups often lament the level of expenditures for their causes by pointing to Washington's commitment to various programs in comparison to other states, it is useful to utilize a consistent source to compare states' rankings. The NASBO 2003 State Expenditure Report serves as a reliable source for comparing state spending because of its consistent methodology.

The NASBO report highlighted several state expenditures, including K-12 education, higher education, public assistance, Medicaid, and corrections. Below is a regional state comparison of these expenditures. Data for 2002 and 2003 are actuals while 2004 figures represent estimates. All tables are derived from NASBO's 2003 State Expenditure Report.

K-12 expenditures as a percent of total expenditures (all funds)

* Washington's general fund state K-12 expenditures percentage: 44%

Higher education expenditures as a percent of total expenditures (all funds)

* Washington's general fund state higher education expenditures percentage: 12%

Public assistance expenditures as a percent of total expenditures (all funds)

* Washington's general fund state public assistance expenditures percentage: 4%

Medicaid expenditures as a percent of total expenditures (all funds)

* Washington's general fund state Medicaid expenditures percentage: 24% (25% in 2004)

Corrections expenditures as a percent of total expenditures (all funds)

* Washington's general fund state corrections expenditures percentage: 6 % (5% in 2002)

Washington exceeds the U.S. average for percentage of total expenditures in K-12 education, higher education, public assistance and Medicaid. Of the five areas chosen for review, only in corrections expenditures does Washington rank below the U.S. average and its neighbors. To view a complete copy of NASBO's 2003 State Expenditure Report, please visit: http://www.nasbo.org/Publications/PDFs/2003ExpendReport.pdf

Prepared by: Jason Mercier | Budget Research Analyst | 360.956.3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org