Texas is poised to increase its expenditures by 5% during the current fiscal year, more than 11 points below the 16.2% average rate for all 50 states, according to a new study from the National Association of State Budget Officers.
The state’s expenditures in fiscal year 2021 were estimated at $143.2 billion, the report states. This year’s 5% increase over Texas’ 2020 expenditures represented the 43rd highest spending hike among the 50 states, according to the association.
Nationwide, total state spending during the current fiscal year will reach $2.65 trillion, up from $2.28 trillion during the previous fiscal year, the study found. Expenditures in states’ general funds rose 5.7% in the current year, while federal funds earmarked to states shot up 35.7%, according to the association.Â
The increased spending was a direct result of the coronavirus pandemic response and recovery efforts around the nation, the report says. The 2021 increase marked the biggest jump in the states’ total spending in at least 35 years, the study’s authors said.
Total state tax collections rose markedly during this time period, including sales (6.9%), personal income tax (14.7%), corporate income tax (34.1%), and gaming and lottery revenues (7.8%). The association expects state revenues to continue to increase in 2022, but at a slower rate, according to the study.
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State Spending Growth in FY 2021
| Rank | State | Estimated Fiscal 2021 Expenditures (Billions) | % Change Over 2020 |
| 1 | California | $512.9 | 43.6% |
| 2 | South Dakota | $6.7 | 38.3% |
| 3 | Hawaii | $24.4 | 34.6% |
| 4 | Montana | $11.1 | 34.1% |
| 5 | Rhode Island | $15.1 | 32.5% |
| 6 | Idaho | $15.4 | 31.9% |
| 7 | Utah | $23.7 | 30.5% |
| 8 | Tennessee | $46.4 | 28.6% |
| 9 | Alaska | $14.9 | 25.1% |
| 10 | Oregon | $59.6 | 22.1% |
| 11 | Louisiana | $37.7 | 21.3% |
| 12 | North Dakota | $8.4 | 19.1% |
| 13 | Indiana | $44.7 | 18.7% |
| 14 | Vermont | $7.3 | 18.1% |
| 15 | Nebraska | $15.1 | 16.8% |
| 16 | Mississippi | $23.2 | 16.7% |
| 17 (tie) | Michigan | $72.5 | 16.4% |
| 17 (tie) | Virginia | $75.0 | 16.4% |
| 19 | Minnesota | $50.0 | 16.3% |
| 20 | Maryland | $56.4 | 16.2% |
| 21 | Maine | $12.1 | 14.8% |
| 22 | Wisconsin | $59.4 | 14.5% |
| 23 | Washington | $61.8 | 13.8% |
| 24 | New Mexico | $25.3 | 13.3% |
| 25 (tie) | New Jersey | $75.1 | 12.5% |
| 25 (tie) | Illinois | $87.5 | 12.5% |
| 27 | Arkansas | $31.2 | 12.4% |
| 28 | Oklahoma | $27.8 | 12.0% |
| 29 | Delaware | $13.3 | 11.8% |
| 30 | Arizona | $45.1 | 10.6% |
| 31 (tie) | Kansas | $21.3 | 9.5% |
| 31 (tie) | Kentucky | $42.1 | 9.5% |
| 33 (tie) | New Hampshire | $7.6 | 9.3% |
| 33 (tie) | South Carolina | $29.4 | 9.3% |
| 35 | Missouri | $29.8 | 9.0% |
| 36 | Ohio | $81.2 | 8.9% |
| 37 | Massachusetts | $68.5 | 8.6% |
| 38 (tie) | Pennsylvania | $103.8 | 8.1% |
| 38 (tie) | Nevada | $16.3 | 8.1% |
| 40 | New York | $186.6 | 7.9% |
| 41 | Florida | $92.3 | 7.3% |
| 42 | Iowa | $27.6 | 5.9% |
| 43 | Texas | $143.2 | 5.0% |
| 44 | Connecticut | $35.7 | 4.9% |
| 45 | Colorado | $36.9 | 3.4% |
| 46 | West Virginia | $19.1 | 3.0% |
| 47 | Alabama | $31.7 | 0.1% |
| 48 | Wyoming | $4.7 | -0.2% |
| 49 | North Carolina | $59.9 | -2.9% |
| 50 | Georgia | $57.7 | -5.1% |
Source: National Association of State Budget Officers
