Receipts and expenditures of state governments and of local governments: new estimates for 2002-2004 and revised estimates for 1990-2001.

Baker, Bruce E.

THE national income and product accounts (NIPAs) have long included an account showing combined state and local government receipts and expenditures. Periodically, the Bureau of Economic Analysis (BEA) has also published two tables that separately showed state government and local government receipts and expenditures. Beginning with this article, BEA will publish these separate tables annually following the release of the annual or comprehensive revision of the NIPAs. (1)

The most recent presentation of separate state and local government tables was published in the SURVEY of CURRENT BUSINESS in June 2003; it included estimates for 1959-2001. (2) In this article, BEA presents revised estimates of receipts and expenditures for both state and local governments for 1990-2001 and new estimates for 2002-2004. These new estimates incorporate the results of the most recent comprehensive revision of the NIPAs, which was released in December 2003.

Highlights of the new and revised estimates include the following:

* Net saving of state governments increased in 2003 and 2004 after decreasing sharply in 2001 and 2002.

* Net saving of local governments also increased in 2003 and 2004 after decreasing in 2001 and 2002.

The purpose of these new tables is to contribute to a better understanding of this important sector of the economy by allowing better comparisons of NIPA government data with data from other sources, including the Census Bureau, the National Association of State Budget Officers, and others.

The remainder of this article includes two main sections. The first section provides a brief summary of the new and revised estimates of "net government saving" and "net lending or net borrowing." The second section discusses key changes to the state government and local government accounts as a result of the methodological changes and other changes in the NIPAs that affected the state and local government estimates and that were a part of the 2003 comprehensive NIPA revision.

Estimates of "Net Government Saving" and "Net Lending or Net Borrowing"

The NIPA measure of "net government saving" shows the balance of receipts and expenditures for the current period for both state governments and local governments in aggregate. Net government saving includes general funds, "rainy day" funds, and funds from programs funded by grants from other levels of government. Net government saving excludes capital expenditures; however, within current expenditures, consumption expenditures are based on a measure of costs that includes "consumption of fixed capital" (CFC), also known as depreciation, as a partial measure of the services of government-owned fixed assets.

The NIPA measure of "net lending or net borrowing" is a measure of the borrowing or lending that is required by state governments and by local governments in aggregate so that total receipts equals total expenditures. If total expenditures exceed total receipts, net borrowing is required. "Net lending or net borrowing" is defined as net saving plus capital receipts less capital expenditures less purchases of non-produced assets; it excludes CFC.

Recent trends and revisions of previous estimates

State governments. Net saving by state governments has increased in recent years. In 2004, current expenditures exceeded current receipts by $67.8 billion. The deficit was $82.5 billion in 2003 and $90.9 billion in 2002 (table 1). The decreases in the deficit reflected stronger economic growth after the recession in 2001; the stronger economy led to stronger growth in tax receipts.

The revisions to net saving for state governments were relatively small for 1990- 2001, the latest year for which data were published in the 2003 article (chart 1). The revised estimates did not meaningfully alter the trends shown by the previously published estimates.

[GRAPHIC OMITTED]

Net borrowing by state governments showed much the same pattern as net saving (chart 2). In 2004, state governments borrowed $91.2 billion, compared with $102.7 billion in 2003 and $107.6 billion in 2002. The revisions to net borrowing for 1990-2001 were also generally small.

[GRAPHIC OMITTED]

Local governments. Net saving by local governments has markedly risen in recent years. In 2004, net saving was $62.0 billion, compared with $58.7 billion in 2003 and $56.7 billion in 2002. A major contributor to the increase in net saving was property tax revenue, which was pushed higher by strong increases in real estate values.

For 1990-2001, the revisions to net saving by local governments were generally larger than the revisions to net saving by state government. The upward revisions mainly reflect upward revisions to property tax revenue and downward revisions to consumption expenditures, particularly for services (chart 3).

[GRAPHIC OMITTED]

In general, local government estimates are subject to larger revisions than state government estimates because they are based on a single source of data, the Census Bureau's Government Finances series. In contrast, the state estimates are based on numerous data sources as well as Government Finances. In addition, until the 2004 annual revision, the availability of local data from Government Finances lagged 3 years, compared with a 2-year lag for state data. The revised local government estimates were based on Government Finances data released in 2005, which covered the years through fiscal 2003; the Government Finances data replaced previous BEA judgemental extrapolations of local government receipts and expenditures.

"Net lending or net borrowing" by local governments showed a mixed pattern for 1990-2001 (chart 4). Through the 1990s, the amount local governments borrowed trended lower, reflecting the pattern of net saving. In 1999, local governments became net lenders. In 2001, local governments again became net borrowers. Net borrowing crested in 2002, at $18.5 billion. Since then it has trended lower, falling to $15.0 billion in 2003 and $9.8 billion in 2004.

The revisions to "net lending or net borrowing" by local governments were also significant. For example, the revised estimates show local governments as net lenders in 1999-2000, while the previously published estimates show that local governments remained net borrowers in these years.

Key Changes Since June 2003

The 2003 comprehensive revision of the NIPAs included extensive changes in presentation. Like all comprehensive revisions, it also included conceptual, statistical, and methodological changes. (3)

Presentational changes

Compared with the tables from June 2003, the new receipts and expenditures tables reflect a variety of changes (tables 1 and 2). (4)

The new presentation of current receipts reflects the following:

* Most nontaxes are now referred to as "current transfer receipts from business and from persons."

* Corporate profits tax accruals are now referred to as "taxes on corporate income."

* Contributions for social insurance are now referred to as "contributions for government social insurance."

* New categories have been added for "income receipts on assets." These categories include "interest receipts" and "dividends,' which had previously been netted against interest payments, and "rents and royalties;' which was previously part of nontaxes.

* "Current transfer receipts" is a new category that comprises grants-in-aid from Federal, state, and local governments, "transfer receipts from business," and "transfer receipts from persons." These transfer receipts include fines, fees, tobacco settlements, donations, unclaimed bank deposits, and other miscellaneous items--all of which were previously recorded as nontaxes. These new transfer receipts also include "net insurance settlements" a new category that reflects BEA's new treatment of property and casualty insurance.

* "Current surplus of government enterprises" is now recorded as a current receipt. Previously, the surplus was netted against "subsidies" paid to businesses.

The new presentation of current expenditures reflects the following changes:

* Transfer payments to persons are now referred to as "government social benefit payments to persons."

* "Interest payments" are now shown gross of interest receipts.

* "Subsidies" are now shown independently; they are no longer netted against the surplus of government enterprises.

Conceptual changes

Two of the most wide-ranging conceptual changes incorporated as part of the 2003 comprehensive NIPA revision concerned commercial banking services and property and casualty insurance services. The 2003 comprehensive revision also included a reclassification of Indian tribal governments.

Banking. The revised treatment of commercial banking shifted part of the value of implicit services provided by the banks from depositors to borrowers, recognizing that both borrowers and depositors receive these services from banks. State and local governments are both depositors and borrowers; therefore, estimates of interest receipts and interest payments were both revised. The net revision to interest receipts and payments was offset by a revision to consumption expenditures, so the revised treatment did not affect net saving or "net lending or net borrowing."

Property and casualty insurance. The revised treatment of insurance services affected state and local governments because these governments purchase property and casualty insurance. The services provided by these insurance providers are now calculated as premiums plus premium supplements (investment income) less "normal" insurance losses. Losses above or below "normal" losses (which are estimated using historical trends) are treated as transfers from business to government. This new treatment affected state government and local government estimates of purchases of insurance services and of interest receipts. The new treatment also added a new category of transfer receipts, "net insurance settlements." This improved treatment of insurance did not affect net saving or net lending.

Indian tribal governments. Tribal governments are now treated as local governments, and Indian casinos are classified as government enterprises. The compensation earned by employees of the tribal governments and casinos are thus recorded as compensation of general government and of government enterprises, respectively. Profits or losses earned by the casinos are reflected in the current surplus of government enterprises; profits and losses affect "net government saving" and "net lending or net borrowing."

Statistical and methodological changes

As part of the 2003 comprehensive NIPA revision, new source data were incorporated, and methodologies were improved. The most comprehensive source data for state and local government finances is the Census Bureau's Government Finances series of surveys. Since June 2003, 3 additional years of fiscal year data have become available for states--for 2001, 2002, and 2003. For local estimates, 4 years of data were incorporated--for 2000-2003. Other new and revised source data have also been incorporated. The changes are too numerous to be listed here, but a summary can be found in the September 2003 SURVEY. (5)

Methodological enhancements were also part of the 2003 comprehensive revision of the NIPAs. The enhancement that had the greatest quantitative impact was the allocation of fiscal year tax revenue to quarters, and then to calendar years. Under the previous method, revenue for fiscal years was averaged into revenue for calendar years and then interpolated into revenue for quarters. Revenue for quarters was then aggregated into revenue for calendar years. The drawback of this method was that revenue for quarters, when aggregated back into fiscal years, did not match the original fiscal year revenues. The new method derives quarters from fiscal years instead of calendar years, allowing both calendar years and fiscal years to be constructed with precision.

Data Availability

This article presents estimates of current receipts and expenditures for state and for local governments for 1990-2004. BEA has also revised the estimates back to 1959, yielding a consistent times series from 1959-2004. The entire time series is presented as underlying NIPA tables on BEA's Web site at <www.bea.gov/bea/dn/nipaweb/nipa_underlying/ Index.asp>.

(1.) Comprehensive revisions occur about every 5 years and usually involve incorporating new benchmark input output data, rebasing price and quantity indexes, updating concepts and presentation, and implementing statistical and methodological revisions back to 1929. Annual revisions primarily revolve statistical revisions to data for the previous 3 years only.

(2.) Bruce F,. Baker "Receipts and Expenditures of State Governments and of Local Governments, 1959-2001," SURVEY 83 (June 2003): 36-53.

(3.) For more details, see Brent R. Moulton and Eugene P. Seskin "Preview of the 2003 Comprehensive Revision of the National Income and Product Accounts: Changes in Definitions and Classifications," SURVEY 83 (June 2003): 17--34.

(4.) For a more complete discussion of these changes see Nicole Mayerhauser, Shelly Smith, and David E Sullivan, "Preview of the 2003 Comprehensive Revision of the National Income and Product Accounts: New and Redesigned Tables" SURVEY 83 (August 2003): 7-31.

(5.) See Carol E. Moylan and Brooks B. Robinson, "Preview of the 2003 Comprehensive Revision of the National Income and Product Accounts: Statistical Changes," SURVEY 83 (September 2003): 17-44.

Steven J. Andrews prepared the estimates presented in this article.

Table 1. State Government Current Receipts and Expenditures

[Billions of dollars]

 Line 1990 1991 1992 1993

 Current receipts 1 476.5 512.3 559.7 593.9
Current tax receipts 2 305.4 314.1 338.6 356.9
 Personal current taxes 3 109.6 111.8 120.6 126.3
 Income taxes 4 99.6 101.4 109.0 114.9
 Other 5 10.0 10.4 11.6 11.3
 Taxes on production and
 imports 6 175.4 180.8 195.9 206.3
 Sales taxes 7 152.5 157.5 169.7 179.4
 Property taxes 8 4.6 4.9 6.1 5.9
 Other 9 18.3 18.3 20.1 21.0
 Taxes on corporate income 10 20.4 21.5 22.1 24.3
Contributions for government
 social insurance 11 10.0 11.6 13.1 14.1
Income receipts on assets 12 33.9 34.4 33.9 32.6
 Interest receipts 13 31.3 31.4 30.7 29.5
 Dividends 14 0.2 0.3 0.5 0.6
 Rents and royalties 15 2.3 2.6 2.7 2.5
Current transfer receipts 16 119.5 144.2 165.4 180.9
 Federal grants-in-aid 17 104.7 124.6 141.8 155.8
 Local grants-in-aid 18 6.2 7.6 9.0 10.1
 From business (net) 19 1.6 2.0 2.6 2.9
 From persons 20 6.9 10.0 12.1 12.1
Current surplus of government
 enterprises 21 7.7 8.0 8.7 9.3

 Current expenditures 22 479.6 528.4 570.4 604.3
Consumption expenditures 23 171.4 179.0 186.1 195.9
 Current transfer payments 24 280.4 319.5 354.3 379.5
 Government social benefit
 payments to persons 25 111.0 137.6 159.5 173.6
Grants-in-aid to local
 governments 26 169.4 181.9 194.8 206.0
Interest payments 27 22.3 24.1 24.0 22.9
Subsidies 28 5.5 5.8 6.0 6.0
Less: Wage accruals less
 disbursements 29 0.0 0.0 0.0 0.0
 Net state government
 saving 30 -3.1 -16.1 -10.7 -10.4
Social insurance funds 31 2.0 2.4 3.1 4.2
Other 32 -5.1 -18.5 -13.8 -14.6

Addenda:
Total receipts 33 488.8 525.0 573.2 608.2
 Current receipts 34 476.5 512.3 559.7 593.9
 Capital transfer receipts 35 12.3 12.7 13.4 14.4

Total expenditures 36 503.5 552.3 594.7 629.1
 Current expenditures 37 479.6 528.4 570.4 604.3
 Gross government investment 38 47.3 48.6 49.9 51.8
 Net purchases of nonproduced
 assets 39 1.7 1.9 1.9 1.7
 Less: Consumption of fixed
 capital 40 25.2 26.5 27.4 28.7
Net lending or net
 borrowing (-) 41 -14.7 -27.3 -21.6 -20.8

 1994 1995 1996 1997

 Current receipts 630.1 662.8 696.0 731.1
Current tax receipts 380.2 401.4 425.9 449.0
 Personal current taxes 132.1 140.9 150.9 162.7
 Income taxes 120.2 128.4 138.6 149.7
 Other 11.9 12.5 12.3 13.0
 Taxes on production and
 imports 220.8 231.3 245.0 255.4
 Sales taxes 191.7 200.5 211.8 221.3
 Property taxes 7.0 7.2 8.2 8.1
 Other 22.1 23.6 25.0 26.0
 Taxes on corporate income 27.3 29.1 30.0 30.8
Contributions for government
 social insurance 14.5 13.6 12.5 10.8
Income receipts on assets 33.8 36.6 39.2 41.6
 Interest receipts 30.5 33.1 35.1 37.4
 Dividends 0.8 1.0 1.4 1.5
 Rents and royalties 2.5 2.6 2.7 2.7
Current transfer receipts 191.7 200.4 206.8 217.5
 Federal grants-in-aid 164.9 173.0 177.7 184.5
 Local grants-in-aid 11.0 11.1 12.0 13.5
 From business (net) 3.4 4.1 5.0 6.6
 From persons 12.4 12.2 12.0 13.0
Current surplus of government
 enterprises 9.9 10.8 11.7 12.1

 Current expenditures 639.5 672.6 699.4 729.1
Consumption expenditures 206.5 215.2 221.2 232.1
 Current transfer payments 403.2 426.3 444.8 461.9
 Government social benefit
 payments to persons 184.4 194.8 202.5 206.8
Grants-in-aid to local
 governments 218.9 231.6 242.4 255.1
Interest payments 23.5 24.3 25.6 26.5
Subsidies 6.3 6.7 7.7 8.6
Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0
 Net state government
 saving -9.4 -9.8 -3.4 2.0
Social insurance funds 4.6 4.0 2.8 1.2
Other -14.0 -13.9 -6.2 0.8

Addenda:
Total receipts 645.8 679.1 713.2 749.1
 Current receipts 630.1 662.8 696.0 731.1
 Capital transfer receipts 15.7 16.3 17.1 18.0

Total expenditures 666.5 700.2 725.9 758.6
 Current expenditures 639.5 672.6 699.4 729.1
 Gross government investment 55.7 58.3 58.8 63.6
 Net purchases of nonproduced
 assets 1.6 1.6 1.6 1.6
 Less: Consumption of fixed
 capital 30.3 32.3 33.9 35.6
Net lending or net
 borrowing (-) -20.7 -21.1 -12.7 -9.5

 1998 1999 2000 2001

 Current receipts 777.5 826.2 884.5 922.0
Current tax receipts 480.7 508.0 540.7 547.2
 Personal current taxes 180.4 192.5 213.6 219.9
 Income taxes 166.8 178.4 199.2 205.5
 Other 13.6 14.1 14.3 14.3
 Taxes on production and
 imports 268.8 283.0 294.8 300.1
 Sales taxes 233.3 245.9 255.5 259.6
 Property taxes 8.5 9.1 7.8 7.9
 Other 27.0 27.9 31.6 32.6
 Taxes on corporate income 31.6 32.5 32.3 27.2
Contributions for government
 social insurance 10.4 9.8 11.0 13.6
Income receipts on assets 43.1 46.7 48.7 46.6
 Interest receipts 39.0 42.4 43.2 41.0
 Dividends 1.7 1.8 1.9 2.0
 Rents and royalties 2.4 2.6 3.6 3.7
Current transfer receipts 231.3 250.0 273.4 304.2
 Federal grants-in-aid 194.9 212.5 227.4 254.3
 Local grants-in-aid 13.3 12.9 14.0 14.9
 From business (net) 9.8 9.9 14.7 15.5
 From persons 13.2 14.7 17.3 19.4
Current surplus of government
 enterprises 12.0 11.7 10.8 10.3

 Current expenditures 773.5 837.6 898.7 977.4
Consumption expenditures 249.0 273.3 291.5 309.0
 Current transfer payments 488.5 527.5 568.1 618.8
 Government social benefit
 payments to persons 214.6 230.3 248.7 281.3
Grants-in-aid to local
 governments 273.9 297.2 319.4 337.5
Interest payments 27.1 27.6 29.3 32.2
Subsidies 8.9 9.3 9.7 17.4
Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0
 Net state government
 saving 4.0 -11.4 -14.2 -55.4
Social insurance funds 1.7 1.7 2.0 2.6
Other 2.3 -13.2 -16.2 -58.0

Addenda:
Total receipts 795.9 847.5 908.0 948.5
 Current receipts 777.5 826.2 884.5 922.0
 Capital transfer receipts 18.5 21.3 23.5 26.6

Total expenditures 804.5 873.3 938.9 1022.1
 Current expenditures 773.5 837.6 898.7 977.4
 Gross government investment 66.2 72.6 79.7 86.7
 Net purchases of nonproduced
 assets 2.0 2.4 2.6 2.5
 Less: Consumption of fixed
 capital 37.2 39.3 42.1 44.4
Net lending or net
 borrowing (-) -8.6 -25.8 -30.9 -73.5

 2002 2003 2004

 Current receipts 938.4 989.1 1062.5
Current tax receipts 536.1 561.7 609.1
 Personal current taxes 198.5 201.9 221.3
 Income taxes 183.7 185.9 204.4
 Other 14.8 16.0 16.9
 Taxes on production and
 imports 308.6 328.2 350.6
 Sales taxes 267.3 281.9 300.2
 Property taxes 7.6 8.9 9.2
 Other 33.6 37.5 41.2
 Taxes on corporate income 29.0 31.7 37.2
Contributions for government
 social insurance 15.8 17.5 19.7
Income receipts on assets 42.4 41.4 42.7
 Interest receipts 36.7 35.0 35.8
 Dividends 2.0 2.1 2.4
 Rents and royalties 3.7 4.2 4.5
Current transfer receipts 334.3 358.7 380.9
 Federal grants-in-aid 280.6 302.5 320.6
 Local grants-in-aid 15.5 16.4 17.1
 From business (net) 16.3 16.4 17.2
 From persons 21.9 23.4 26.0
Current surplus of government
 enterprises 9.9 9.9 10.1

 Current expenditures 1029.3 1071.6 1130.4
Consumption expenditures 326.2 332.6 341.0
 Current transfer payments 659.2 695.5 744.4
 Government social benefit
 payments to persons 306.6 324.6 352.6
Grants-in-aid to local
 governments 352.6 370.9 391.8
Interest payments 32.2 31.5 31.8
Subsidies 11.7 12.0 13.1
Less: Wage accruals less
 disbursements 0.0 0.0 0.0
 Net state government
 saving -90.9 -82.5 -67.8
Social insurance funds 1.7 1.3 1.8
Other -92.6 -83.7 -69.7

Addenda:
Total receipts 967.1 1016.0 1088.7
 Current receipts 938.4 989.1 1062.5
 Capital transfer receipts 28.7 26.9 26.2

Total expenditures 1074.7 1118.7 1179.9
 Current expenditures 1029.3 1071.6 1130.4
 Gross government investment 89.3 92.5 97.2
 Net purchases of nonproduced
 assets 3.1 3.5 3.5
 Less: Consumption of fixed
 capital 46.9 48.9 51.1
Net lending or net
 borrowing (-) -107.6 -102.7 -91.2

NOTE. State receipts plus local receipts and state expenditures
plus local expenditures do not sum to the consolidated state and
local government account totals, because grants-in-aid from states
to local governments and from local to state governments are netted
in the consolidated account totals. In addition, the receipt
category "surplus of government enterprises" and the expenditure
category "subsidies" do not sum to the consolidated account totals,
because the level of government making subsidy payments accounts
for them as subsidies while recipient governments account for them
as surpluses of government enterprises.

Table 2. Local Government Current Receipts and Expenditures

[Billions of dollars]

 Line 1990 1991 1992 1993

 Current receipts 1 443.3 473.1 496.7 516.1
Current tax receipts 2 213.7 230.2 241.2 247.8
 Personal current taxes 3 12.9 13.5 14.7 14.8
 Income taxes 4 10.0 10.3 11.4 11.3
 Other 5 3.0 3.2 3.3 3.5
 Taxes on production and
 imports 6 198.7 214.5 224.2 230.5
 Sales taxes 7 31.8 33.2 34.6 37.0
 Property taxes 8 157.0 171.1 178.6 181.3
 Other 9 9.9 10.2 11.0 12.1
 Taxes on corporate income 10 2.1 2.2 2.3 2.6
Contributions for government
 social insurance 11 ... ... ... ...
Income receipts on assets 12 34.5 33.6 30.9 28.7
 Interest receipts 13 32.7 31.6 28.8 26.7
 Dividends 14 ... ... ... ...
 Rents and royalties 15 1.8 1.9 2.0 2.1
Current transfer receipts 16 189.6 203.5 218.6 232.9
 Federal grants-in-aid 17 6.7 7.0 7.4 7.9
 State grants-in-aid 18 169.4 181.9 194.8 206.0
 From business (net) 19 5.5 5.9 6.7 7.7
 From persons 20 8.0 8.7 9.8 11.4
Current surplus of government
 enterprises 21 5.4 5.9 6.1 6.6

 Current expenditures 22 433.0 461.2 485.3 504.7
Consumption expenditures 23 373.2 395.6 416.5 434.4
Current transfer payments 24 22.9 26.5 29.5 31.7
 Government social benefit
 payments to persons 25 16.6 18.9 20.5 21.6
 Grants-in-aid to state
 governments 26 6.2 7.6 9.0 10.1
Interest payments 27 35.6 37.7 37.9 37.2
Subsidies 28 1.3 1.4 1.4 1.4
Less: Wage accruals less
 disbursements 29 0.0 0.0 0.0 0.0
 Net local government saving 30 10.3 11.9 11.4 11.4
Social insurance funds 31 ... ... ... ...
Other 32 10.3 11.9 11.4 11.4

Addenda:
Total receipts 33 456.0 486.2 510.2 530.3
 Current receipts 34 443.3 473.1 496.7 516.1
 Capital transfer receipts 35 12.7 13.1 13.5 14.2

Total expenditures 36 479.1 508.3 531.4 547.6
 Current expenditures 37 433.0 461.2 485.3 504.7
 Gross government investment 38 79.9 83.5 84.5 83.9
 Net purchases of nonproduced
 assets 39 4.0 4.0 4.0 4.1
 Less: Consumption of fixed
 capital 40 37.8 40.3 42.4 45.1
Net lending or net borrowing (-) 41 -23.0 -22.0 -21.2 -17.4

 1994 1995 1996 1997

 Current receipts 550.0 577.9 610.4 644.6
Current tax receipts 264.0 270.7 283.7 300.9
 Personal current taxes 15.9 17.2 17.8 19.3
 Income taxes 12.0 13.3 13.7 14.9
 Other 3.8 3.9 4.1 4.3
 Taxes on production and
 imports 245.4 251.0 262.9 278.4
 Sales taxes 39.7 42.2 44.4 47.4
 Property taxes 192.4 195.3 204.2 215.5
 Other 13.3 13.4 14.4 15.6
 Taxes on corporate income 2.7 2.6 3.0 3.3
Contributions for government
 social insurance ... ... ... ...
Income receipts on assets 0.0 0.0 0.0 0.0
 Interest receipts 27.4 29.8 32.2 34.1
 Dividends ... ... ... ...
 Rents and royalties 0.0 0.0 0.0 0.0
Current transfer receipts 250.2 266.4 281.7 297.7
 Federal grants-in-aid 9.8 11.1 13.4 14.1
 State grants-in-aid 218.9 231.6 242.4 255.1
 From business (net) 8.6 9.4 10.2 11.1
 From persons 12.9 14.3 15.7 17.3
Current surplus of government
 enterprises 6.4 9.0 11.0 9.8

 Current expenditures 530.1 556.0 581.3 607.5
Consumption expenditures 456.8 480.8 503.6 526.8
Current transfer payments 33.4 34.0 33.8 34.2
 Government social benefit
 payments to persons 22.4 22.9 21.8 20.8
 Grants-in-aid to state
 governments 11.0 11.1 12.0 13.5
Interest payments 38.6 39.9 42.5 44.9
Subsidies 1.4 1.4 1.4 1.6
Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0
 Net local government saving 19.8 21.9 29.2 37.1
Social insurance funds ... ... ... ...
Other 0.0 0.0 0.0 0.0

Addenda:
Total receipts 564.1 594.0 627.2 661.9
 Current receipts 550.0 577.9 610.4 644.6
 Capital transfer receipts 14.2 16.0 16.7 17.3

Total expenditures 573.9 605.9 637.4 671.1
 Current expenditures 530.1 556.0 581.3 607.5
 Gross government investment 87.3 95.7 105.0 115.4
 Net purchases of nonproduced
 assets 4.6 5.0 4.5 4.2
 Less: Consumption of fixed
 capital 48.1 50.8 53.3 56.0
Net lending or net borrowing (-) -9.8 -11.9 -10.2 -9.2

 1998 1999 2000 2001

 Current receipts 682.9 730.9 779.2 814.9
Current tax receipts 314.2 332.4 352.6 368.6
 Personal current taxes 20.9 21.9 23.1 22.9
 Income taxes 16.2 17.1 18.0 17.6
 Other 4.6 4.8 5.0 5.3
 Taxes on production and
 imports 290.0 307.1 326.2 342.7
 Sales taxes 50.6 55.6 61.1 61.6
 Property taxes 222.5 233.7 246.8 261.4
 Other 16.9 17.8 18.3 19.8
 Taxes on corporate income 3.3 3.3 3.3 3.0
Contributions for government
 social insurance ... ... ... ...
Income receipts on assets 0.0 0.0 0.0 0.0
 Interest receipts 35.6 36.0 40.8 39.3
 Dividends ... ... ... ...
 Rents and royalties 0.0 0.0 0.0 0.0
Current transfer receipts 322.7 350.9 375.4 399.0
 Federal grants-in-aid 17.8 20.3 19.9 21.7
 State grants-in-aid 273.9 297.2 319.4 337.5
 From business (net) 12.3 13.1 14.2 15.8
 From persons 18.7 20.2 21.9 23.9
Current surplus of government
 enterprises 8.2 9.1 7.7 5.2

 Current expenditures 634.9 669.1 715.0 754.7
Consumption expenditures 552.4 585.6 626.3 660.7
Current transfer payments 34.5 34.9 36.9 38.9
 Government social benefit
 payments to persons 21.1 22.1 23.0 24.0
 Grants-in-aid to state
 governments 13.3 12.9 14.0 14.9
Interest payments 46.5 47.0 50.2 53.4
Subsidies 1.5 1.6 1.6 1.7
Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0
 Net local government saving 48.0 61.8 64.2 60.2
Social insurance funds ... ... ... ...
Other 0.0 0.0 0.0 0.0

Addenda:
Total receipts 700.4 749.5 799.4 836.9
 Current receipts 682.9 730.9 779.2 814.9
 Capital transfer receipts 17.5 18.5 20.2 22.0

Total expenditures 701.8 746.0 798.9 844.5
 Current expenditures 634.9 669.1 715.0 754.7
 Gross government investment 120.3 133.5 145.4 156.3
 Net purchases of nonproduced
 assets 5.6 6.2 6.2 6.8
 Less: Consumption of fixed
 capital 59.0 62.8 67.7 73.3
Net lending or net borrowing (-) -1.3 3.5 0.6 -7.6

 2002 2003 2004

 Current receipts 851.9 899.7 941.9
Current tax receipts 392.9 410.9 438.5
 Personal current taxes 22.8 23.7 26.0
 Income taxes 17.1 17.8 19.6
 Other 5.7 6.0 6.3
 Taxes on production and
 imports 366.9 383.5 408.2
 Sales taxes 62.8 66.0 70.2
 Property taxes 282.6 294.6 313.7
 Other 21.5 23.0 24.3
 Taxes on corporate income 3.2 3.6 4.3
Contributions for government
 social insurance ... ... ...
Income receipts on assets 0.0 0.0 0.0
 Interest receipts 32.9 30.4 31.1
 Dividends ... ... ...
 Rents and royalties 0.0 0.0 3.3
Current transfer receipts 418.5 452.8 467.8
 Federal grants-in-aid 23.9 36.6 27.7
 State grants-in-aid 352.6 370.9 391.8
 From business (net) 16.4 17.7 18.3
 From persons 25.6 27.7 30.0
Current surplus of government
 enterprises 4.6 2.5 1.2

 Current expenditures 795.2 841.0 879.9
Consumption expenditures 699.2 742.2 776.7
Current transfer payments 40.9 43.0 45.0
 Government social benefit
 payments to persons 25.4 26.7 27.9
 Grants-in-aid to state
 governments 15.5 16.4 17.1
Interest payments 53.8 54.7 57.0
Subsidies 1.3 1.1 1.2
Less: Wage accruals less
 disbursements 0.0 0.0 0.0
 Net local government saving 56.7 58.7 62.0
Social insurance funds ... ... ...
Other 0.0 58.7 62.0

Addenda:
Total receipts 875.3 924.3 967.6
 Current receipts 851.9 899.7 941.9
 Capital transfer receipts 23.4 24.6 25.7

Total expenditures 893.8 939.3 977.4
 Current expenditures 795.2 841.0 879.9
 Gross government investment 166.8 169.8 173.4
 Net purchases of nonproduced
 assets 7.5 7.8 8.2
 Less: Consumption of fixed
 capital 75.8 79.4 84.2
Net lending or net borrowing (-) -18.5 -15.0 -9.8

NOTE. State receipts plus local receipts and state expenditures
plus local expenditures do not sum to the consolidated state
and local government account totals, because grants-in-aid from
states to local governments and from local to state governments
are netted in the consolidated account totals. In addition, the
receipt category "surplus of government enterprises" and the
expenditure category "subsidies" do not sum to the consolidated
account totals, because the level of government making subsidy
payments accounts for them as subsidies while recipient
governments account for them as surpluses of government
enterprises.