RD189 - State Spending: 2020 Update

Executive Summary:

• Virginia’s budget was $62.6 billion in FY20. 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 5.4% per year, on average. This equated to a total growth rate of 61% between FY11 and FY20. A majority of this growth was because of growth in non-general fund appropriations (6.3% per year, on average). The non-general fund budget grew the most between FY18 and FY20, primarily because of Medicaid expansion and additional funds for road construction and repair projects. 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 3.3% per year during the 10-year period, with the non-general fund budget increasing by 4.1% per year and the general fund budget increasing by 2.0% per year, on average.

• The majority of budget growth was concentrated in a few agencies and programs between FY11 and FY20. Ten agencies (out of 148) accounted for 72% of total budget growth with DMAS and VDOT accounting for 49%. Nine budget programs within the core functions of health care, education, and transportation accounted for 67% of total budget growth.

• General fund budget growth was even more concentrated by agency and program. Two agencies—DMAS and DOE—were responsible for 57% of general fund budget growth.

• Some agencies have had very large percentage increases in general fund appropriations since FY11, but—with the exception of DMAS and DBHDS—many of these agencies are quite small.