RD222 - State Spending: 2017 Update

Executive Summary:

State Spending: 2017 Update

• Over the past decade, Virginia’s operating budget increased by more than $16 billion (45%)—a 19% increase in general funds and a 68% increase in non-general funds. A variety of economic factors and policies contributed to this growth. Virginia’s population grew by 7% from 2008 to 2016, inflation increased by 12%, and Virginia’s personal income increased by 30%.

• Adjusted for growth in population and inflation, the total budget grew by 21% over the 10-year period; non-general funds increased by 40%; and general funds decreased by 1%.

• When general funds declined 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%, the average annual increase in non-general funds was 6%.

• Total budget growth was concentrated within three major areas: health care, education, and transportation. Nine budget programs (of 215 total programs) within these areas accounted for 60% of total budget growth.

• The 10 largest state agencies (out of 148) accounted for 66% of the total state budget in FY17 and approximately 64% of all budget growth between FY08 and FY17. The agency that experienced the most growth in total appropriations over the past decade was DMAS.

• Growth in general and non-general fund appropriations was concentrated in a few large state agencies over the past 10 years. DMAS and the Treasury Board had the highest growth amount in general funds. DMAS and VDOT had the highest non-general fund growth amounts over this time period.

• The general fund appropriations for 50 agencies either grew more slowly than inflation or declined.