HD24 - Review of State Spending: 2008 Update


Executive Summary:
Virginia’s operating budget increased by 80 percent between fiscal years (FYs) 1999 and 2008, a result of increasing prosperity, population growth, and policy decisions. Adjusting for the effects of inflation and population growth, the budget increased by 23 percent, an average annual increase of 2.4 percent.

The ten-year period 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, $16 billion growth was concentrated in core functions of State government: education, health care, transportation, and social services. For example, 52 percent of all budget growth occurred in just four agencies: the Departments of Medical Assistance Services, Education, 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 12 agencies each receiving more than $100 million in new general funds during the period accounted for 87 percent of all general fund growth.