HD41 - Review of State Spending: 2007 Update


Executive Summary:
This report was replaced in its entirety by the Joint Legislative Audit and Review Commission on August 28, 2009.

Review of State Spending: 2007 Update

Virginia’s operating budget doubled between fiscal years (FYs) 1998 and 2007, a result of increasing prosperity, population growth, and policy decisions. Adjusting for the effects of inflation and population growth, the budget increased by 38 percent, an average annual increase of 3.7 percent.

The decade under review includes the economic boom years of the late 1990s and the downturn in FY 2002, when general fund appropriations declined 2.2 percent. Significant economic growth returned by FY 2005.

Much of the ten-year, $17.5 billion growth was concentrated in core functions of State government: education, health care, transportation, and social services. For example, 53 percent of all budget growth occurred in just four agencies: the Departments of Education, Medical Assistance Services, Transportation, and the University of Virginia (including the Medical Center).

General fund growth was also concentrated in a few agencies, largely reflecting policy choices and initiatives of the Governor and General Assembly. The 13 agencies each receiving more than $100 million in new general funds during the period accounted for 86 percent of all general fund growth.