RD146 - State Spending: 2019 Update – October 7, 2019

Executive Summary:

State Spending: 2019 Update – Summary

• Virginia’s budget was $58.2 billion in FY19. Three agencies—DMAS, DOE, and VDOT—received nearly half of total appropriations, and two agencies—DMAS and DOE—received just over half of general fund appropriations.

• Over the past decade, Virginia’s operating budget increased by 5.2% per year, on average. This equated to a total growth rate of 57% between FY10 and FY19. This growth was primarily due to growth in non-general fund appropriations (5.8% per year, on average). The general fund budget grew at a slower rate (4.2% per year, on average).

• Adjusted for growth in population and inflation, the total budget grew by an average of 2.6% per year during the 10-year period, with the non-general fund budget increasing by 3.2% per year and the general fund budget increasing by 1.6% per year, on average.

• The majority of budget growth was concentrated in a few agencies and programs between FY10 and FY19. Ten agencies (out of 147) accounted for 69% of total budget growth with DMAS and VDOT accounting for 44%. Nine budget programs within the core functions of health care, education, and transportation accounted for 64% of total budget growth.

• General fund budget growth was even more concentrated by agency and program. One agency—DMAS—was responsible for 39% of general fund budget growth due to growth in appropriations for the Medicaid program.

• Some agencies have had very large percentage increases in general fund appropriations since FY10, but—with the exception of DMAS and DBHDS—many of these agencies are quite small.