SD14 - State Spending: 2015 Update


Executive Summary:
WHAT WE FOUND

• Over the past decade, Virginia’s operating budget increased by $15 billion (47%)—a 21% increase in general funds and a 70% increase in non-general funds. A variety of economic factors and policies contributed to this growth. With population growth of 9% from 2006 to 2014, Virginia had approximately 680,000 more residents. Inflation increased by 18% over the period while the personal income of Virginians increased by 32%.

• When controlling for growth in population and inflation, the total budget grew by 15%, the general fund budget decreased by 5%, and the non-general fund budget increased by 33%, over the 10-year period.

• When general funds declined in several years during the past decade, the total budget continued to increase due to the growth in non-general funds. While the annual average increase in general funds over this time period was 2.3%, the average annual increase in non-general funds was 6.1%.

• The 10 largest state agencies (out of 150) accounted for 66% of the total state budget in FY 2015 and approximately 60% of all budget growth between FY 2006 and FY 2015.

• Growth in general and non-general fund appropriations is concentrated in a few large state agencies. Several agencies experienced substantial growth in general and non-general fund appropriations over the past 10 years.

• The general fund appropriations for 38 agencies either grew more slowly than inflation or declined.

• Budget growth was concentrated in a few large programs: eight (of 213) in health care, education, and transportation accounted for 63% of total budget growth.