U.S. state spending exceeds $2 trillion in fiscal 2018: report

NEW YORK (Reuters) – U.S. state spending topped $2 trillion for the primary time in fiscal 2018, with Medicaid expenditures rising probably the most together with a big enhance in transportation spending, in accordance with a report launched on Thursday.

The U.S. flag flies close to the Statue of Freedom atop the U.S. Capitol in Washington, U.S. November 2, 2018. REUTERS/Jonathan Ernst

Total expenditures grew an estimated four.eight p.c in comparison with three.eight p.c in fiscal 2017, the National Association of State Budget Officers’ (NASBO) annual state expenditure report mentioned.

“The fiscal 2018 data presents a slightly improved fiscal situation than the prior two years,” John Hicks, NASBO govt director, mentioned in a cellphone interview.

“We’re seeing a slight increase in the growth of spending both from total spending and states’ own funds,” he added.

The annual report focuses on the seven prime state spending classes, that are elementary and secondary training, greater training, public help, Medicaid, corrections, transportation and “all other.”

Each class noticed some progress in fiscal 2018, with public help rising the least at zero.7 p.c and Medicaid, the state and federal healthcare program for the poor, rising probably the most at 7.three p.c.

Growth in state spending of federal funds outpaced spending of state-generated income, together with from common funds, the report discovered.

Medicaid continued to account for the majority of federal flowing to states. The program made up 29.7 p.c of complete state expenditures in fiscal 2018, in comparison with 20.5 p.c a decade earlier.

Elementary and secondary training expenditures, which rose four.6 p.c, remained the most important space of state common fund spending.

The report additionally highlighted a 6.5 p.c enhance in transportation spending, which represents eight p.c of complete state expenditures. The rise signifies a rising give attention to infrastructure.

General fund income additionally grew in fiscal 2018 by 6.2 p.c, the very best progress charge since fiscal 2011. It was unclear how a lot of that income, largely made up of revenue and gross sales taxes, was nonrecurring, the report mentioned.

Looking ahead, states count on to see some progress in state income collections. But in addition they are girding for long-term spending pressures from rising well being care prices, pensions and faculty infrastructure, amongst different bills, the report mentioned.

Fiscal 2018 ended for many states on June 30.

Reporting by Laila Kearney; Editing by Bill Berkrot

Our Standards:The Thomson Reuters Trust Principles.

Source link reuters.com

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