State Government Expenditures Exceed Revenues for the Third Time in the Last Four Years

pie chart revenue source

pie chart revenue source

State Government Expenditures Exceed Revenues for the Third Time in the Last Four Years 

“A large part of the decrease in the federal grants revenue was due to the temporary nature of funding provided through federal stimulus money beginning in mid-2009,” said Lisa Blumerman, chief of the Census Bureau’s Governments Division. “The 2012 Census of Governments captures the third fiscal year since the beginning of the infusion of stimulus money.”

General revenues for state governments were $1.6 trillion in 2012, a 1.8 percent decrease from $1.7 trillion in 2011, according to the latest findings on state government finances from the U.S. Census Bureau. General expenditures by state governments fell 0.5 percent in 2012 to $1.6 trillion, down from $1.7 trillion in 2011. This is third time in the last four years that general expenditures have exceeded revenues.

A major contributor to the fall in general revenue was declining funding from federal grants.  Federal grants to states totaled $514.2 billion, down 10.7 percent from $575.8 billion in 2011. (Federal grants make up 31.6 percent of states’ general revenue.)

 

states taxes and federal funding

states taxes and federal funding

Total revenue, which includes general revenues and social insurance trust revenue such as unemployment compensation funds, fell 15.6 percent to $1.9 trillion in 2012 (down from $2.3 trillion in 2011).

The findings are from the 2012 Census of Governments: Finance – Survey of State Government Finances, which shows revenues, expenditures, debt, and cash and security holdings for each state as well as a national summary of state government finances.

state unemployment expense and revenue

state unemployment expense and revenue

The decline in total revenue in 2012 was mainly due to the $323.0 billion decrease in social insurance trust revenue. Social insurance trust systems showed revenues of $263.7 billion in 2012, a drop of 55.1 percent from $586.7 billion in 2011. These systems are mainly composed of state employee retirement systems and state social insurance trust systems, including those for unemployment compensation and workers’ compensation.

Louisiana’s budget showing revenues and expenses compared to the United States

SGF001:   Louisiana vs. United States Government Finances: 2012

2012   Annual Survey of State Government Finances
State Government Finances: 2012
(Amounts in thousands)
Item United   States Louisiana
Total   Revenue 1,912,253,172 26,942,887
  General Revenue 1,627,804,381 25,336,717
    Intergovernmental Revenue 533,699,688 11,213,427
      From Federal 514,181,193 11,136,334
      From Local 19,518,495 77,093
    Total Taxes 798,221,675 8,994,053
      General Sales and Gross Receipts Taxes 245,316,442 2,815,919
      Selective Sales and Gross Receipts   Taxes 132,225,287 2,072,935
      License Taxes 54,090,961 402,212
      Individual Income Taxes 280,672,114 2,474,606
      Corporation Net Income Taxes 41,982,048 290,389
      All Other Taxes 43,934,823 937,992
    Current Charges 172,925,777 2,705,838
    Miscellaneous General Revenue 122,957,241 2,423,399
  Utility Revenue 13,616,484 7,269
  Liquor Stores Revenue 7,114,248 0
  Insurance Trust Revenue (1) 263,718,059 1,598,901
    Unemployment Compensation Systems 80,109,746 273,116
    State-Administered Pension Systems 160,510,446 1,021,648
    Workers’ Compensation Systems 15,526,364 65,446
    Other Insurance Trust Systems 7,571,503 238,691
Total   Expenditure 1,976,789,593 31,685,604
  Intergovernmental Expenditure 481,204,347 6,387,767
  Direct Expenditure 1,495,585,246 25,297,837
    Current Operations 986,417,347 17,541,289
    Capital Outlay 117,741,012 2,435,093
    Insurance Benefits and Repayments 301,460,223 3,920,302
    Assistance and Subsidies 40,079,600 497,590
    Interest on Debt 49,887,064 903,563
  Exhibit: Salaries and Wages 250,994,694 4,230,457
  General Expenditure 1,645,819,643 27,760,070
    Intergovernmental General Expenditure 481,204,347 6,387,767
    Direct General Expenditure 1,164,615,296 21,372,303
General   Expenditure, by Function:
  Education 588,708,137 8,998,450
  Public Welfare 489,201,919 6,300,387
  Hospitals 68,547,769 1,949,705
  Health 61,243,727 567,016
  Highways 113,552,361 1,922,374
  Police Protection 14,251,739 368,657
  Correction 48,438,866 729,887
  Natural Resources 21,933,708 705,161
  Parks and Recreation 5,640,062 336,734
  Governmental Administration 52,826,730 895,022
  Interest on General Debt 47,326,011 903,563
  Other and Unallocable 134,148,614 4,083,114
Utility   Expenditure 23,902,016 5,232
Liquor   Stores Expenditure 5,607,711 0
Insurance   Trust Expenditure 301,460,223 3,920,302
  Unemployment Compensation Systems 95,317,830 524,806
  State-Administered Pension Systems 188,413,250 3,218,454
  Workers’ Compensation Systems 10,923,109 44,558
  Other Insurance Trust Systems 6,806,034 132,484
Debt   Outstanding, Long Term and Short Term 1,147,933,947 15,415,488
Cash   and Security Holdings 3,682,741,156 54,756,719

Source: U.S. Census Bureau, 2012 Census of Governments: Finance – Survey of State Government Finances.

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