Receipts and expenditures of state governments and of local governments, 1959-2001.

Baker, Bruce E.

IN the standard presentation of the national income and product accounts (NIPA's), the estimates of receipts and expenditures of state governments and of local governments are combined. This article presents estimates of receipts and expenditures for each level of government. (1) Separate estimates facilitate long-term analysis of each level. It also allows us to see significant developments that would otherwise be hidden. For example, we can see that the combined NIPA deficit for state and local governments in 2001 reflected a record deficit at the state level but sizable surpluses at the local level.

This article begins with a short discussion of some of the main features of the government finances. It then gives an overview of changes in receipts and in various measures of expenditures and fiscal balance. The next section describes major trends in receipts and expenditures over the past four decades. The article concludes by showing that the NIPA estimates of state expenditures are reconcilable with the best known non-NIPA data on the subject. The estimates for state governments and for local governments are presented in tables 2-7 at the end of the article.

Features of Government Finances

The federal system of government in the United States comprises three levels: The Federal Government, 50 state governments, and 87,453 local governments. (2) The local governments consist of municipalities, counties, townships, school districts, and "special districts." (3) The structure of local governments varies from state to state.

As shown in table 1, the Federal Government is entirely responsible for funding national defense, most economic affairs, most disability and retirement programs, and unemployment insurance (which is classified in the NIPA's as a Federal program). (4) In addition, it is predominantly responsible for funding agriculture programs, public housing, and public health. Local governments are mainly responsible for police, fire, and primary and secondary education services. States usually share responsibility with the other two levels of governments; they take the lead in spending for prisons. The responsibility for many functions--such as transportation, natural resources, and welfare and social services--is disbursed widely among levels of government.

The ability of local governments to deliver services partly depends on grants, which generally flow from the higher levels of government to the local level (chart 1). (5) Partly because of these grants, local governments have had current surpluses in recent years, while state governments have generally had current deficits (chart 2).

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An Overview of Receipts, Expenditures, and Fiscal Balances

Receipts

Over the past four decades, receipts at each level of government have grown relative to the size of the economy.

* As a share of gross domestic product (GDP), total government receipts grew from 24.1 percent in 1959 to 29.7 percent in 2001 (chart 3).

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* Federal Government receipts grew from 17.1 percent to 19.9 percent.

* State government receipts (excluding grants from other levels of government) grew from 3.4 percent to 5.8 percent.

* Local government receipts (excluding grants from other levels of government) grew from 3.5 percent to 3.9 percent.

Expenditures

The NIPA's provide two principal measures of government expenditures--"consumption" expenditures and "current" expenditures.

* Consumption expenditures are the inputs consumed by government in the process of producing government services. They include compensation of general government employees (except compensation that is classified as own-account investment), durable goods, nondurable goods, consumption of fixed capital, and other services.

* Current expenditures are much broader. They consist of consumption expenditures plus net transfer payments, grants to other levels of government, net interest payments, and subsidies to business less the surpluses earned by government enterprises, and they exclude wage accruals less disbursements. Current expenditures exclude capital account transactions, such as capital investment and capital transfers.

Consumption expenditures are important to the economy because they reflect the value of the services produced by the government and the value of the goods and services purchased by government from the private sector. Current expenditures are broader, and they also reflect influences on other sectors. For example, transfer payments to persons are a source of income to the household sector, and most of household income is used to purchase goods and services that are reflected in final demand as personal consumption expenditures.

A third NIPA measure augments consumption expenditures by the addition of government investment in structures and in equipment and software. The result, "consumption expenditures and gross investment" (CE&GI), represents total "final demand" by the government--essentially, purchases of goods, services, and structures. Over the past four decades, the share of GDP accounted for by CE&GI of state and local governments has increased, while the share of CE&GI of the Federal Government has fallen.

* Local government CE&GI grew from about 6 percent in 1959 to more than 8 percent in 2001 (chart 5).

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* State government CE&GI increased from about 3 percent to about 4 percent.

* Federal Government CE&GI fell from about 13 percent to about 6 percent (primarily reflecting a decline in the share of expenditures for national defense).

Changes in the composition of current expenditures. From 1959 to 2001, the Federal Government and state governments tended to allocate more of their expenditures to transfer payments and to grants and less to consumption. Local governments continued to allocate almost all of their expenditures to consumption.

* At the Federal level, consumption expenditures fell from 62.1 percent of current expenditures in 1959 to 27.3 percent in 2001.

* At the state level, consumption expenditures fell from 44.2 percent of current expenditures to 34.6 percent.

* In contrast, local government consumption expenditures were 96.1 percent of current expenditures in 1959 and 94.0 percent in 2001.

Fiscal balances

The difference between current receipts and current expenditures is the current surplus or deficit. It is the principal measure of fiscal balance in the NIPA's. In 2001,

* The Federal Government recorded a small surplus,

* Local governments collectively ran a sizable surplus, and

* State governments collectively posted record deficits.

The deficit at the state level may seem anomalous in light of the fact that all states except Vermont are legally required to balance their general funds. (6) Three considerations explain the apparent anomaly. First, significant conceptual differences exist between the accounting conventions for state general funds and those for the NIPA's. In the state budgets, general funds can be "balanced" in the short run by transfers from the other funds. However, these interfund transactions are offsetting in the NIPA's because all funds (including general funds, capital funds, Federal funds, revolving funds, and "rainy day" funds) are consolidated.

Second, in the NIPA's, the consumption of fixed capital (depreciation) is treated as a current cost; this treatment is analogous to business accounting, in which depreciation is recorded as a current expense. As a result of this treatment, NIPA estimates of current expenditures include costs that are not included in state general-fund accounting.

Third, general funds have balances from prior years that may be used to fund current expenditures, while the NIPA surplus/deficit measure is defined as current receipts less current expenditures.

An alternative NIPA measure of the government fiscal balance is "net lending" or "net borrowing" (if the sign is negative). Net lending is the cash-financing requirement for government. Except for consumption of fixed capital (a noncash expenditure included in consumption expenditures), net lending includes everything in the current surplus or deficit plus the following:

* Noncurrent expenditures for gross investment,

* Purchases of nonproduced assets, and

* Capital transfers.

In recent years, state governments and local governments have both recorded net borrowing (chart 6).

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Trends in State and Local Government Finances

State and local governmental operations have changed significantly since 1959. The following discussion examines overall trends that are based on the NIPA estimates of state government and of local government receipts and expenditures, but it does not reflect the trends of individual governments. It should be noted that NIPA calendar years are estimated by averaging Census fiscal years. (7) Small differences due to timing are reflected in the final results.

In the following section, receipts and current expenditures are discussed in terms of percentages of GDP. As previously mentioned, these measures are not included directly in GDP, but it is often useful to compare macroeconomic aggregates against GDP, particularly when considering trends that span long periods of time.

State governments

The NIPA surplus/deficit has both cyclical and noncyclical components. Chart 2 shows separate measures for states and local governments. In the 1960s, the noncyclical component was sufficiently robust to allow states to run an unbroken string of current surpluses, despite the 1960-61 recession.

In 1970, the state surplus turned to deficit and remained negative in 1971. Total receipts decelerated, as decelerations in taxes more than offset a step-up in Federal grants. Transfer payments accelerated, particularly for family assistance.

Recovery and the return to surplus in 1972 was short-lived, as the 1973-75 recession led to diminishing surpluses and a return to deficits in 1975 and 1976, largely due to an acceleration in Medicaid and family assistance. Surpluses returned in 1977-79, but spending grew faster than revenue in 1979 and 1980. In 1981, with the onset of recession, deficits grew, and in 1982, the deficit reached $10.9 billion. Surpluses returned in 1984-86; as revenue grew strongly with the economic recovery and as growth in transfers was restrained.

In 1987, small surpluses turned into a small deficit, beginning a nearly unbroken string of deficits. Factors behind the downswing included a deceleration in Federal grants-in-aid and a downturn in fines.

In 1990 and 1991, the deficit worsened, reflecting a combination of weak tax revenues caused by the economic downturn and of sharp increases in Medicaid. Medicaid spending increased 59 percent from 1990 to 1992; consequently, it took many years of growth to achieve a small surplus of $2.9 billion in 1998. Deficits returned in 1999, reflecting an 8.6-percent increase in Medicaid spending and an acceleration in consumption expenditures. In 2001 the NIPA deficit reached a record $64.0 billion; tax revenue showed almost no growth, while transfer payments and subsidies to business increased sharply. The California electricity crisis contributed significantly to the subsidies.

Local governments

From 1959 to 2001, the receipts and current expenditures of local governments grew more slowly than those of the state governments. In 1959, local government receipts amounted to 5.1 percent of GDP, and current expenditures amounted to 4.6 percent; in 2001, receipts amounted to 7.4 percent of GDP, and expenditures amounted to 7.1 percent.

Based on NIPA accounting concepts, the finances of local governments have a strong tendency towards surplus. Local government revenue sources are not closely tied to the business cycle; local governments depend on property taxes and on grants-in-aid from other levels of government. Local governments are also less affected by increases in caseloads for transfer programs than state governments. From 1959 to 2001, transfer payments averaged 4.2 percent of total spending, while consumption expenditures averaged 93.8 percent. Partly because of the lack of cyclical volatility, and probably because of different local accounting conventions, NIPA surpluses were recorded in every year from 1959 through 2001.

Local governments engage in considerable investment activity, which is sometimes financed by borrowing. These surplus estimates imply that governments often partly fund investment activity from current surpluses instead of by borrowing. The alternative NIPA balance measure "net lending or net borrowing" represents governments' cash borrowing requirement.

In the NIPA's, capital transactions and purchases of nonproduced assets, such as land, are excluded from the current surplus calculation but are included in local government budgets. Thus the NIPA concept "net lending or net borrowing" is probably close to the budget constraints faced by local governments.

State Expenditures in the NIPA's and in NASBO data

In addition to the NIPA's, there are other widely recognized sources of data on state government finance, such as the National Association of State Budget Officers (NASBO). (8) There are several important statistical and conceptual differences between the NIPA's and the NASBO data.

The NIPA's are largely based on the Census Bureau's Government Finances (GF) series. Part of the difference between the NIPA's and NASBO results from differences between the Census Bureau data and the NASBO data, including the following important statistical differences:

* NASBO data are self-reported by the states, which use a variety of different accounting concepts. In contrast, the census data are based on state data that are adjusted by Census Bureau staff to conform to uniform concepts and definitions.

* NASBO data are based on current budget data, while the census data are based on audited financial statements.

* Most of NASBO's work focuses on state general funds, but their "State Expenditure Report" includes federal funds, bond funds, and "other" funds. The "other" funds data are sometimes less complete than the comparable census data, because the Census Bureau undertakes an exhaustive enumeration of governmental units and includes in the GF statistics some funds that the states do not include, such as retirement funds.

Using GF as a primary data source, BEA makes several conceptual adjustments to these data to derive the NIPA estimates. These adjustments, which are intended to conform the census data to the NIPA concepts, include the following:

* Defining the boundaries of the state government sector,

* Separating current and capital transactions,

* Including certain noncash items, and

* Excluding purely financial transactions. (9)

Largely as a result of these conceptual differences, the levels of NIPA and NASBO total expenditures differ substantially.

* The NIPA measure excludes purchases of structures, equipment, and software, but it includes consumption of fixed capital, or depreciation, as a partial measure of the services provided by the stock of fixed assets.

* The NIPA's treat certain transactions, including grants for capital purchases and taxes on gifts and estates, as capital transactions.

* The NIPA's record government consumption expenditures net of sales revenue. Goods and services sold to households are recorded as personal consumption expenditures, not government consumption expenditures.

* Interest transactions are also recorded net.

* The NIPA's exclude transactions by government employee pension funds (except for employer contributions, which are treated as a component of compensation) on the basis that the funds are owned by employees, not by governments. The investment income and benefit payments of pension funds are included in the household sector.

* The NIPA's treat unemployment insurance fund transactions as a Federal program.

* Differences in timing arise from the conversion of source data from fiscal years to calendar years.

As expected, the Census Bureau's estimates are substantially higher than NASBO's estimates because of their wider coverage, and the NIPA estimates are substantially lower (chart 7). However an adjusted NIPA series closely tracks the NASBO estimates. (10)

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Unfortunately, NASBO does not provide comparable total revenue estimates for all funds, and without those estimates, comparable surplus/deficit estimates cannot be made. Chart 8 shows an estimate of the NIPA surplus or deficit and a surplus or deficit measure derived from NASBO balances. (11) As one might expect, the correlation between the lines is not close.

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There is no organization that covers all the local governments like NASBO does for the state governments.

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Table 1. Federal, State, and Local Government Current Expenditures
by Function as a Share of Total Government, 2001

 Federal State Local
 share share share

Total government expenditures 56 20 24

 National defense 100 0 0
 Unemployment 100 0 0
 Income security (excluding disability
 and retirement, unemployment
 and welfare) 100 0 0
 Economic affairs (excluding
 agriculture, natural resources and 100 15 -15
 transportation)
 Disability and retirement 97 3 0
 Agriculture 85 15 0
 Housing and community services 71 14 15
 General public service 69 10 21
 Health 52 44 4
 Natural resources 52 32 16
 Welfare and social services 34 41 25
 Transportation 20 40 40
 Recreation and culture 16 13 71
 Law courts 15 39 46
 Police 15 12 73
 Prisons 6 63 31
 Education 5 18 77
 Fire 1 0 99

Table 2. State Government Current Receipts and Expenditures

[Billions of dollars]

 1959 1960 1961 1962 1963

 Current receipts 21.1 22.3 24.6 26.7 28.7

Personal tax and nontax
 receipts 3.2 3.6 3.9 4.3 4.6
 Income taxes 2.0 2.3 2.5 2.8 3.1
 Nontaxes 0.2 0.2 0.2 0.2 0.2
 Other 1.1 1.1 1.2 1.2 1.3

Corporate profits tax accruals 1.1 1.2 1.3 1.5 1.6

Indirect business tax and
 nontax accruals 12.7 13.7 14.6 15.7 16.7
 Sales taxes 10.0 10.8 11.6 12.6 13.4
 Property taxes 0.5 0.5 0.5 0.6 0.6
 Other 2.2 2.4 2.5 2.6 2.7

Contributions for social
 insurance 0.4 0.5 0.5 0.5 0.6

Federal grants-in-aid 3.4 3.5 4.0 4.4 4.9

Local grants-in-aid 0.3 0.3 0.3 0.3 0.3

 Current expenditures 19.9 21.5 23.4 25.4 27.6

Consumption expenditures 8.8 9.5 10.2 10.9 11.8

Transfer payments to persons 3.6 3.8 4.1 4.4 4.7

Grants-in-aid to local
 governments 7.7 8.5 9.4 10.3 11.3

Net interest paid 0.1 0.1 0.1 0.2 0.2
 Interest paid 0.5 0.6 0.6 0.7 0.7
 Less: Interest received by
 government 0.4 0.5 0.5 0.5 0.5

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -0.3 -0.4 -0.4 -0.4 -0.4
 Subsidies 0.1 0.1 0.1 0.1 0.1
 Less: Current surplus of
 enterprises 0.4 0.4 0.5 0.5 0.5

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 1.2 1.3 1.2 1.3 1.1

Social insurance funds 0.0 0.0 0.0 0.0 0.0
Other 1.2 1.3 1.2 1.3 1.1

Addenda:
 Net lending or net borrowing -1.5 -1.3 -1.9 -2.0 -2.6
 Current surplus or deficit
 NIPA 1.2 1.3 1.2 1.3 1.1
 Plus: Consumption of fixed
 capital 1.8 1.9 2.0 2.1 2.3
 Plus: Capital transfers
 received (net) 2.3 1.7 2.0 2.1 2.6
 Less: Gross investment 6.4 5.7 6.6 7.0 8.0
 Less: Net purchases
 nonproduced assets 0.4 0.5 0.5 0.5 0.6

 1964 1965 1966 1967 1968

 Current receipts 31.4 34.7 41.0 45.2 52.6

Personal tax and nontax
 receipts 5.2 5.7 6.7 7.4 9.2
 Income taxes 3.6 3.9 4.8 5.3 6.9
 Nontaxes 0.3 0.3 0.4 0.4 0.4
 Other 1.3 1.4 1.6 1.7 1.9

Corporate profits tax accruals 1.8 1.9 2.2 2.5 3.1

Indirect business tax and
 nontax accruals 18.0 19.9 22.0 23.6 27.2
 Sales taxes 14.5 16.1 18.0 19.4 22.8
 Property taxes 0.6 0.7 0.7 0.7 0.8
 Other 2.9 3.1 3.3 3.5 3.6

Contributions for social
 insurance 0.7 0.8 0.8 0.9 0.9

Federal grants-in-aid 5.4 6.1 8.9 10.3 11.6

Local grants-in-aid 0.3 0.3 0.4 0.5 0.6

 Current expenditures 30.1 33.6 38.6 44.7 51.0

Consumption expenditures 12.8 14.2 15.9 18.2 20.5

Transfer payments to persons 5.1 5.5 6.4 7.7 9.5

Grants-in-aid to local
 governments 12.4 14.2 16.7 19.2 22.0

Net interest paid 0.2 0.2 0.1 0.1 -0.4
 Interest paid 0.8 0.9 1.0 1.1 1.2
 Less: Interest received by
 government 0.6 0.7 0.9 1.0 1.6

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -0.4 -0.5 -0.5 -0.5 -0.6
 Subsidies 0.1 0.1 0.2 0.2 0.2
 Less: Current surplus of
 enterprises 0.6 0.6 0.7 0.7 0.8

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 1.3 1.1 2.4 0.5 1.6

Social insurance funds 0.0 0.1 0.1 0.1 0.1
Other 1.3 1.0 2.3 0.4 1.5

Addenda:
 Net lending or net borrowing -2.2 -2.8 -2.3 -4.8 -3.0
 Current surplus or deficit
 NIPA 1.3 1.1 2.4 0.5 1.6
 Plus: Consumption of fixed
 capital 2.5 2.7 3.0 3.3 3.6
 Plus: Capital transfers
 received (net) 3.1 3.1 3.4 3.1 4.0
 Less: Gross investment 8.5 9.1 10.4 11.1 11.6
 Less: Net purchases
 nonproduced assets 0.6 0.6 0.7 0.6 0.6

 1969 1970 1971 1972 1973

 Current receipts 60.0 67.2 76.3 93.0 100.1

Personal tax and nontax
 receipts 11.2 12.4 14.0 18.5 20.5
 Income taxes 8.6 9.6 11.0 15.2 16.8
 Nontaxes 0.5 0.5 0.5 0.6 0.8
 Other 2.2 2.4 2.5 2.7 3.0

Corporate profits tax accruals 3.4 3.5 4.0 5.0 5.7

Indirect business tax and
 nontax accruals 30.4 33.2 36.8 41.3 45.4
 Sales taxes 25.7 28.2 31.4 35.2 38.8
 Property taxes 0.9 0.9 1.0 1.1 1.2
 Other 3.8 4.0 4.5 5.0 5.4

Contributions for social
 insurance 1.0 1.1 1.2 1.3 1.5

Federal grants-in-aid 13.3 16.2 19.4 25.8 25.8

Local grants-in-aid 0.7 0.8 0.9 1.1 1.2

 Current expenditures 58.2 67.8 77.4 86.3 96.0

Consumption expenditures 23.3 26.9 30.1 32.8 36.9

Transfer payments to persons 10.8 12.9 15.3 17.5 19.4

Grants-in-aid to local
 governments 25.3 29.2 33.0 36.8 41.1

Net interest paid -0.6 -0.7 -0.5 -0.4 -1.0
 Interest paid 1.4 1.6 1.9 2.3 2.6
 Less: Interest received by
 government 2.0 2.4 2.4 2.7 3.6

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -0.6 -0.5 -0.5 -0.4 -0.4
 Subsidies 0.2 0.3 0.3 0.5 0.7
 Less: Current surplus of
 enterprises 0.8 0.8 0.8 0.9 1.0

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 1.8 -0.6 -1.1 6.7 4.1

Social insurance funds 0.2 0.2 0.2 0.3 0.3
Other 1.6 -0.8 -1.3 6.4 3.8

Addenda:
 Net lending or net borrowing -3.0 -6.2 -7.1 0.6 -2.4
 Current surplus or deficit
 NIPA 1.8 -0.6 -1.1 6.7 4.1
 Plus: Consumption of fixed
 capital 4.1 4.7 5.2 5.6 6.3
 Plus: Capital transfers
 received (net) 3.7 3.3 3.6 3.6 3.1
 Less: Gross investment 12.4 13.4 14.1 14.6 15.2
 Less: Net purchases
 nonproduced assets 0.2 0.2 0.7 0.7 0.7

 1974 1975 1976 1977 1978

 Current receipts 108.1 121.3 137.5 153.2 171.0

Personal tax and nontax
 receipts 22.0 24.2 28.2 32.3 37.1
 Income taxes 18.0 19.9 23.4 27.2 31.6
 Nontaxes 0.9 1.1 1.2 1.4 1.5
 Other 3.1 3.2 3.5 3.7 4.0

Corporate profits tax accruals 6.3 6.9 9.1 10.8 11.5

Indirect business tax and
 nontax accruals 49.2 52.7 58.6 64.3 71.3
 Sales taxes 42.0 44.7 49.9 55.0 60.8
 Property taxes 1.1 1.4 1.5 1.5 1.9
 Other 6.1 6.5 7.2 7.7 8.5

Contributions for social
 insurance 1.7 1.8 2.2 2.8 3.4

Federal grants-in-aid 27.6 33.9 37.1 40.6 45.2

Local grants-in-aid 1.3 1.8 2.3 2.4 2.5

 Current expenditures 108.0 125.4 138.7 150.2 164.7

Consumption expenditures 44.0 51.1 55.9 60.8 67.3

Transfer payments to persons 19.9 24.2 26.9 29.1 32.0

Grants-in-aid to local
 governments 45.9 51.4 56.2 60.7 67.2

Net interest paid -1.6 -1.2 -0.2 -0.3 -1.6
 Interest paid 3.1 3.7 4.6 5.3 5.8
 Less: Interest received by
 government 4.7 4.9 4.8 5.6 7.4

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.1

Subsidies less current surplus
 of enterprises -0.2 -0.1 -0.1 -0.1 -0.1
 Subsidies 0.9 1.1 1.2 1.4 1.6
 Less: Current surplus of
 enterprises 1.0 1.2 1.3 1.4 1.6

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 0.1 -4.1 -1.2 3.0 6.3

Social insurance funds 0.4 0.5 0.6 1.0 1.5
Other -0.3 -4.6 -1.8 2.0 4.8

Addenda:
 Net lending or net borrowing -5.8 -8.5 -4.9 0.7 2.9
 Current surplus or deficit
 NIPA 0.1 -4.1 -1.2 3.0 6.3
 Plus: Consumption of fixed
 capital 8.1 9.0 9.2 9.5 10.1
 Plus: Capital transfers
 received (net) 3.5 4.5 4.7 4.8 4.9
 Less: Gross investment 16.6 17.0 16.8 16.0 17.7
 Less: Net purchases
 nonproduced assets 0.9 0.9 0.8 0.6 0.7

 1979 1980 1981 1982 1983

 Current receipts 186.4 205.9 224.7 230.5 252.9

Personal tax and nontax
 receipts 40.6 45.6 50.6 54.7 61.6
 Income taxes 34.6 39.1 43.6 47.0 53.2
 Nontaxes 1.7 1.8 2.1 2.4 2.8
 Other 4.3 4.6 4.9 5.3 5.7

Corporate profits tax accruals 12.9 13.7 14.5 13.1 14.9

Indirect business tax and
 nontax accruals 78.5 85.9 95.4 99.6 109.6
 Sales taxes 65.7 70.0 76.5 80.3 90.0
 Property taxes 2.3 2.6 2.7 2.8 3.0
 Other 10.4 13.2 16.3 16.5 16.6

Contributions for social
 insurance 3.9 3.6 3.9 4.0 4.1

Federal grants-in-aid 48.3 54.7 57.7 56.0 58.6

Local grants-in-aid 2.2 2.4 2.6 3.1 4.1

 Current expenditures 182.5 205.9 226.4 241.4 257.0

Consumption expenditures 75.3 85.2 94.1 101.4 107.4

Transfer payments to persons 35.4 41.3 46.7 51.0 55.9

Grants-in-aid to local
 governments 75.3 83.7 90.4 94.4 98.9

Net interest paid -3.5 -4.6 -5.4 -5.6 -5.0
 Interest paid 6.6 7.6 8.8 10.6 12.7
 Less: Interest received by
 government 10.1 12.2 14.2 16.1 17.7

Less: Dividends received by
 government 0.1 0.1 0.1 0.2 0.2

Subsidies less current surplus
 of enterprises 0.1 0.4 0.7 0.4 0.0
 Subsidies 1.8 2.1 2.4 2.5 2.8
 Less: Current surplus of
 enterprises 1.7 1.7 1.7 2.1 2.8

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 3.9 0.0 -1.7 -10.9 -4.1

Social insurance funds 1.8 1.3 1.3 1.2 1.2
Other 2.1 -1.3 -3.0 -12.1 -5.3

Addenda:
 Net lending or net borrowing -0.8 -3.6 -4.4 -12.0 -4.9
 Current surplus or deficit
 NIPA 3.9 0.0 -1.7 -10.9 -4.1
 Plus: Consumption of fixed
 capital 11.2 13.1 15.2 16.6 17.0
 Plus: Capital transfers
 received (net) 6.1 7.6 6.7 6.1 7.2
 Less: Gross investment 21.2 23.5 23.8 23.0 24.0
 Less: Net purchases
 nonproduced assets 0.8 0.8 0.8 0.8 1.0

 1984 1985 1986 1987 1988

 Current receipts 284.7 305.5 329.9 349.6 373.4

Personal tax and nontax
 receipts 71.4 76.9 82.7 92.2 95.5
 Income taxes 61.9 66.1 70.7 79.1 81.2
 Nontaxes 3.2 3.8 4.3 4.7 5.4
 Other 6.4 7.1 7.6 8.3 8.9

Corporate profits tax accruals 17.4 18.7 20.8 21.8 23.8

Indirect business tax and
 nontax accruals 122.9 132.5 140.6 148.0 158.0
 Sales taxes 100.9 109.0 115.8 124.6 134.2
 Property taxes 3.4 3.5 3.6 3.7 4.0
 Other 18.7 20.0 21.2 19.6 19.8

Contributions for social
 insurance 4.7 4.9 6.0 7.2 8.4

Federal grants-in-aid 63.3 67.3 74.5 74.9 82.1

Local grants-in-aid 5.0 5.2 5.3 5.5 5.6

 Current expenditures 277.5 302.7 327.0 350.9 376.5

Consumption expenditures 115.7 126.3 135.5 144.1 153.5

Transfer payments to persons 59.8 65.2 71.5 77.5 84.5

Grants-in-aid to local
 governments 108.7 120.0 128.9 137.8 148.4

Net interest paid -6.0 -7.3 -7.2 -7.0 -8.0
 Interest paid 14.7 16.6 18.5 19.8 20.7
 Less: Interest received by
 government 20.6 23.9 25.7 26.8 28.7

Less: Dividends received by
 government 0.2 0.2 0.2 0.2 0.2

Subsidies less current surplus
 of enterprises -0.5 -1.3 -1.5 -1.3 -1.7
 Subsidies 3.1 3.3 3.6 4.2 4.8
 Less: Current surplus of
 enterprises 3.6 4.6 5.1 5.5 6.5

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 7.2 2.8 2.9 -1.3 -3.1

Social insurance funds 1.4 1.3 1.9 2.2 2.5
Other 5.8 1.5 1.0 -3.5 -5.6

Addenda:
 Net lending or net borrowing 3.5 -2.4 -3.5 -9.2 -12.1
 Current surplus or deficit
 NIPA 7.2 2.8 2.9 -1.3 -3.1
 Plus: Consumption of fixed
 capital 17.2 18.1 19.5 21.2 22.4
 Plus: Capital transfers
 received (net) 8.7 10.6 11.1 10.5 11.6
 Less: Gross investment 28.6 32.8 35.7 38.0 41.4
 Less: Net purchases
 nonproduced assets 1.0 1.1 1.3 1.6 1.6

 1989 1990 1991 1992 1993

 Current receipts 404.8 434.2 473.2 515.9 553.6

Personal tax and nontax
 receipts 108.9 114.9 122.9 132.1 138.6
 Income taxes 93.3 97.9 102.3 108.7 114.6
 Nontaxes 6.1 7.1 10.2 12.3 12.2
 Other 9.5 9.9 10.4 11.0 11.8

Corporate profits tax accruals 22.2 20.4 21.5 22.1 24.3

Indirect business tax and
 nontax accruals 167.5 178.0 185.0 197.8 211.5
 Sales taxes 142.8 151.5 157.1 167.6 179.1
 Property taxes 4.3 4.6 4.9 5.2 6.1
 Other 20.4 21.9 23.0 25.0 26.3

Contributions for social
 insurance 9.0 10.0 11.6 13.1 14.1

Federal grants-in-aid 91.5 104.7 124.6 141.8 155.0

Local grants-in-aid 5.7 6.2 7.6 9.0 10.1

 Current expenditures 406.7 447.2 495.5 537.8 572.8

Consumption expenditures 164.4 178.2 186.1 193.1 203.0

Transfer payments to persons 94.5 111.2 137.7 159.6 173.7

Grants-in-aid to local
 governments 159.5 169.4 181.9 194.8 205.9

Net interest paid -9.3 -9.3 -7.8 -6.7 -6.2
 Interest paid 21.8 23.3 24.8 25.2 24.7
 Less: Interest received by
 government 31.1 32.5 32.6 31.8 30.8

Less: Dividends received by
 government 0.2 0.2 0.2 0.2 0.2

Subsidies less current surplus
 of enterprises -2.2 -2.1 -2.2 -2.8 -3.4
 Subsidies 5.2 5.5 5.8 6.0 6.0
 Less: Current surplus of
 enterprises 7.3 7.7 8.0 8.8 9.4

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA -1.9 -13.0 -22.3 -21.9 -19.2

Social insurance funds 2.3 2.0 2.4 3.1 4.2
Other -4.2 -15.0 -24.7 -25.0 -23.4

Addenda:
 Net lending or net borrowing -11.5 -24.6 -33.7 -32.7 -29.8
 Current surplus or deficit
 NIPA -1.9 -13.0 -22.3 -21.9 -19.2
 Plus: Consumption of fixed
 capital 23.7 25.3 26.6 27.5 28.8
 Plus: Capital transfers
 received (net) 11.5 12.2 12.5 13.5 14.4
 Less: Gross investment 43.2 47.3 48.6 49.9 52.0
 Less: Net purchases
 nonproduced assets 1.6 1.8 1.9 1.9 1.8

 1994 1995 1996 1997 1998

 Current receipts 590.7 622.7 649.7 685.0 726.0

Personal tax and nontax
 receipts 146.5 155.9 166.4 181.2 196.5
 Income taxes 121.4 129.6 139.1 152.7 166.6
 Nontaxes 12.5 13.2 13.8 14.5 15.3
 Other 12.6 13.2 13.5 14.0 14.6

Corporate profits tax accruals 27.3 29.1 30.0 30.9 31.3

Indirect business tax and
 nontax accruals 226.2 238.8 250.8 265.2 280.9
 Sales taxes 191.4 201.5 210.9 222.0 233.5
 Property taxes 6.9 7.5 7.8 8.0 8.6
 Other 28.0 29.9 32.1 35.1 38.9

Contributions for social
 insurance 14.5 13.6 12.5 10.8 10.1

Federal grants-in-aid 165.2 174.2 178.0 183.5 193.8

Local grants-in-aid 11.0 11.1 12.0 13.4 13.4

 Current expenditures 606.1 636.2 661.6 686.8 723.1

Consumption expenditures 213.7 223.3 230.5 239.7 249.5

Transfer payments to persons 184.6 195.0 202.6 206.9 214.4

Grants-in-aid to local
 governments 218.8 231.5 242.3 255.4 274.1

Net interest paid -7.1 -9.3 -9.6 -11.3 -11.3
 Interest paid 24.9 25.7 26.4 26.9 27.7
 Less: Interest received by
 government 32.0 35.1 36.1 38.2 39.0

Less: Dividends received by
 government 0.2 0.3 0.3 0.3 0.4

Subsidies less current surplus
 of enterprises -3.7 -4.0 -3.9 -3.6 -3.2
 Subsidies 6.3 6.7 7.7 8.6 8.9
 Less: Current surplus of
 enterprises 9.9 10.7 11.6 12.2 12.1

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA -15.4 -13.5 -11.9 -1.8 2.9

Social insurance funds 4.6 4.0 2.7 1.1 0.6
Other -20.0 -17.5 -14.6 -2.9 2.3

Addenda:
 Net lending or net borrowing -27.4 -25.3 -23.1 -14.8 -12.5
 Current surplus or deficit
 NIPA -15.4 -13.5 -11.9 -1.8 2.9
 Plus: Consumption of fixed
 capital 30.5 32.7 34.6 36.6 38.4
 Plus: Capital transfers
 received (net) 15.5 16.3 17.0 18.1 18.4
 Less: Gross investment 56.3 59.1 60.8 65.6 69.8
 Less: Net purchases
 nonproduced assets 1.7 1.7 2.0 2.1 2.4

 1999 2000 2001

 Current receipts 775.8 828.9 859.5

Personal tax and nontax
 receipts 213.8 232.6 234.5
 Income taxes 182.3 199.5 199.9
 Nontaxes 16.3 17.7 19.1
 Other 15.2 15.5 15.5

Corporate profits tax accruals 31.6 32.3 26.3

Indirect business tax and
 nontax accruals 295.3 311.7 317.6
 Sales taxes 246.2 255.7 259.9
 Property taxes 8.7 8.2 7.9
 Other 40.4 47.8 49.9

Contributions for social
 insurance 9.7 9.2 9.2

Federal grants-in-aid 212.5 229.5 257.7

Local grants-in-aid 12.9 13.6 14.2

 Current expenditures 782.8 846.6 923.5

Consumption expenditures 270.0 296.1 319.1

Transfer payments to persons 230.8 248.3 279.7

Grants-in-aid to local
 governments 297.6 319.3 334.5

Net interest paid -12.5 -14.3 -14.3
 Interest paid 29.0 30.1 30.8
 Less: Interest received by
 government 41.5 44.4 45.2

Less: Dividends received by
 government 0.4 0.4 0.4

Subsidies less current surplus
 of enterprises -2.7 -2.4 4.9
 Subsidies 9.3 9.5 17.2
 Less: Current surplus of
 enterprises 12.0 11.9 12.3

Less: Wage accruals less
 disbursements 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA -7.0 -17.7 -64.0

Social insurance funds 0.9 0.1 -0.1
Other -7.9 -17.8 -63.9

Addenda:
 Net lending or net borrowing -24.2 -34.0 -81.8
 Current surplus or deficit
 NIPA -7.0 -17.7 -64.0
 Plus: Consumption of fixed
 capital 40.9 44.1 46.6
 Plus: Capital transfers
 received (net) 21.1 23.0 25.6
 Less: Gross investment 76.4 80.5 86.9
 Less: Net purchases
 nonproduced assets 2.8 2.9 3.1

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, two expenditure categories
subsidies and current surplus of government enterprises 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.
However, the aggregate category "Subsidies less current surplus of
government enterprises" for state and local governments sum to the
consolidated account total due to netting in the total.

Table 3. Local Government Current Receipts and Expenditures

[Billions of dollars]

 1959 1960 1961 1962 1963

 Current receipts 25.7 28.3 31.0 33.5 36.3

Personal tax and nontax
 receipts 1.0 1.1 1.2 1.4 1.5
 Income taxes 0.2 0.3 0.3 0.3 0.4
 Nontaxes 0.2 0.3 0.4 0.4 0.4
 Other 0.5 0.6 0.6 0.6 0.7

Corporate profits tax accruals 0.0 0.0 0.0 0.0 0.0

Indirect business tax and
 nontax accruals 16.6 18.2 19.8 21.2 22.7
 Sales taxes 1.2 1.3 1.4 1.5 1.6
 Property taxes 14.3 15.7 17.0 18.4 19.7
 Other 1.1 1.2 1.3 1.4 1.4

Contributions for social
 insurance 0.0 0.0 0.0 0.0 0.0

Federal grants-in-aid 0.4 0.5 0.6 0.6 0.8

State grants-in-aid 7.7 8.5 9.4 10.3 11.3

 Current expenditures 23.2 25.3 27.9 29.6 31.6

Consumption expenditures 22.3 24.4 26.8 28.5 30.6

Transfer payments to persons 0.7 0.8 0.9 0.9 1.0

Grants-in-aid to state
 governments 0.3 0.3 0.3 0.3 0.3

Net interest paid 0.7 0.7 0.9 0.9 0.9
 Interest paid 1.3 1.5 1.6 1.8 1.9
 Less: Interest received by
 government 0.6 0.8 0.8 0.9 1.0

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -0.8 -0.9 -1.0 -1.0 -1.2
 Subsidies 0.0 0.0 0.0 0.0 0.0
 Less: Current surplus of
 enterprises 0.8 0.9 1.0 1.0 1.2

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 2.5 3.0 3.1 3.9 4.7

Social insurance funds
Other 2.5 3.0 3.1 3.9 4.7

Addenda:
 Net lending or net borrowing -1.8 -1.7 -1.8 -1.1 -0.8
 Current surplus or deficit
 NIPA 2.5 3.0 3.1 3.9 4.7
 Plus: Consumption of fixed
 capital 2.4 2.6 2.7 2.9 3.1
 Plus: Capital transfers
 received (net) 1.2 1.3 1.3 1.4 1.5
 Less: Gross investment 7.5 8.2 8.4 8.8 9.5
 Less: Net purchases
 nonproduced assets 0.4 0.4 0.5 0.5 0.6

 1964 1965 1966 1967 1968

 Current receipts 39.6 43.1 47.6 53.6 59.6

Personal tax and nontax
 receipts 1.6 1.6 2.0 2.4 2.5
 Income taxes 0.5 0.5 0.6 0.8 0.9
 Nontaxes 0.4 0.4 0.6 0.8 0.8
 Other 0.7 0.8 0.7 0.8 0.8

Corporate profits tax accruals 0.0 0.0 0.0 0.2 0.3

Indirect business tax and
 nontax accruals 24.5 26.2 27.7 30.3 33.7
 Sales taxes 1.9 2.1 2.0 1.9 2.3
 Property taxes 21.1 22.5 23.8 26.2 29.1
 Other 1.5 1.6 1.8 2.1 2.3

Contributions for social
 insurance 0.0 0.0 0.0 0.0 0.0

Federal grants-in-aid 1.1 1.1 1.2 1.5 1.1

State grants-in-aid 12.4 14.2 16.7 19.2 22.0

 Current expenditures 34.5 37.7 42.4 47.1 53.7

Consumption expenditures 33.5 36.6 40.9 45.1 50.6

Transfer payments to persons 1.0 1.1 1.3 1.6 2.0

Grants-in-aid to state
 governments 0.3 0.3 0.4 0.5 0.6

Net interest paid 0.9 0.9 0.9 0.9 1.4
 Interest paid 2.1 2.3 2.5 2.7 3.0
 Less: Interest received by
 government 1.2 1.4 1.6 1.8 1.6

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -1.2 -1.2 -1.1 -1.0 -0.9
 Subsidies 0.0 0.0 0.0 0.0 0.0
 Less: Current surplus of
 enterprises 1.2 1.2 1.1 1.0 0.9

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 5.1 5.4 5.2 6.5 5.9

Social insurance funds
Other 5.1 5.4 5.2 6.5 5.9

Addenda:
 Net lending or net borrowing -1.1 -1.9 -2.5 -2.2 -3.4
 Current surplus or deficit
 NIPA 5.1 5.4 5.2 6.5 5.9
 Plus: Consumption of fixed
 capital 3.3 3.6 3.9 4.3 4.7
 Plus: Capital transfers
 received (net) 1.6 1.6 1.8 2.0 2.9
 Less: Gross investment 10.5 11.8 12.7 14.2 16.1
 Less: Net purchases
 nonproduced assets 0.6 0.7 0.7 0.8 0.8

 1969 1970 1971 1972 1973

 Current receipts 66.7 77.4 87.0 97.3 108.7

Personal tax and nontax
 receipts 2.9 3.2 3.6 4.3 4.2
 Income taxes 1.1 1.3 1.5 2.0 2.0
 Nontaxes 0.8 1.0 1.1 1.3 1.2
 Other 0.8 0.9 1.0 1.0 1.0

Corporate profits tax accruals 0.2 0.2 0.3 0.3 0.3

Indirect business tax and
 nontax accruals 37.0 41.6 46.3 50.0 54.1
 Sales taxes 2.9 3.5 4.0 4.6 5.2
 Property taxes 31.9 35.7 39.5 42.2 45.2
 Other 2.3 2.5 2.9 3.2 3.7

Contributions for social
 insurance 0.0 0.0 0.0 0.0 0.0

Federal grants-in-aid 1.3 3.2 3.8 5.9 9.0

State grants-in-aid 25.3 29.2 33.0 36.8 41.1

 Current expenditures 60.6 69.8 79.5 88.3 97.1

Consumption expenditures 56.9 65.1 73.3 81.0 89.9

Transfer payments to persons 2.4 3.2 4.0 4.5 4.7

Grants-in-aid to state
 governments 0.7 0.8 0.9 1.1 1.2

Net interest paid 1.5 1.6 2.2 2.7 2.3
 Interest paid 3.5 4.0 4.6 5.3 5.8
 Less: Interest received by
 government 2.0 2.3 2.4 2.6 3.5

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -0.9 -0.9 -0.8 -1.1 -1.0
 Subsidies 0.0 0.0 0.0 0.0 0.0
 Less: Current surplus of
 enterprises 0.9 0.9 0.8 1.1 1.0

Less: Wage accruals less
 disbursements 0.0 0.0 0.1 -0.1 0.0

 Current surplus or
 deficit, NIPA 6.1 7.6 7.5 9.0 11.6

Social insurance funds
Other 6.1 7.6 7.5 9.0 11.6

Addenda:
 Net lending or net borrowing -2.1 0.1 0.6 2.9 4.8
 Current surplus or deficit
 NIPA 6.1 7.6 7.5 9.0 11.6
 Plus: Consumption of fixed
 capital 5.3 5.9 6.6 7.2 8.0
 Plus: Capital transfers
 received (net) 3.2 2.9 3.4 3.7 4.2
 Less: Gross investment 15.9 15.4 16.0 16.0 18.0
 Less: Net purchases
 nonproduced assets 0.8 0.9 0.9 1.0 1.0

 1974 1975 1976 1977 1978

 Current receipts 117.6 131.4 145.4 159.4 173.0

Personal tax and nontax
 receipts 4.7 5.3 5.9 6.5 7.2
 Income taxes 2.3 2.6 2.8 3.2 3.4
 Nontaxes 1.3 1.5 1.8 2.0 2.4
 Other 1.1 1.2 1.3 1.3 1.5

Corporate profits tax accruals 0.3 0.4 0.5 0.6 0.6

Indirect business tax and
 nontax accruals 58.0 63.1 69.2 75.6 77.6
 Sales taxes 6.1 7.0 7.9 9.0 10.2
 Property taxes 47.9 52.0 56.7 61.7 61.8
 Other 4.0 4.2 4.6 4.9 5.7

Contributions for social
 insurance 0.0 0.0 0.0 0.0 0.0

Federal grants-in-aid 8.7 11.2 13.6 16.0 20.4

State grants-in-aid 45.9 51.4 56.2 60.7 67.2

 Current expenditures 108.4 125.0 137.0 149.4 160.6

Consumption expenditures 100.5 114.3 124.2 135.7 147.0

Transfer payments to persons 5.4 6.6 7.3 8.0 8.8

Grants-in-aid to state
 governments 1.3 1.8 2.3 2.4 2.5

Net interest paid 1.8 2.5 3.3 3.3 2.4
 Interest paid 6.6 7.4 7.9 8.4 9.1
 Less: Interest received by
 government 4.7 4.8 4.5 5.1 6.7

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -0.6 -0.2 -0.1 0.0 0.1
 Subsidies 0.1 0.3 0.3 0.3 0.3
 Less: Current surplus of
 enterprises 0.7 0.5 0.4 0.3 0.2

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.2

 Current surplus or
 deficit, NIPA 9.2 6.4 8.4 10.0 12.4

Social insurance funds
Other 9.2 6.4 8.4 10.0 12.4

Addenda:
 Net lending or net borrowing 0.4 -3.5 -0.2 3.8 2.8
 Current surplus or deficit
 NIPA 9.2 6.4 8.4 10.0 12.4
 Plus: Consumption of fixed
 capital 9.6 11.2 12.1 13.1 14.3
 Plus: Capital transfers
 received (net) 5.7 6.5 7.3 8.3 8.8
 Less: Gross investment 23.1 26.6 27.1 26.7 31.7
 Less: Net purchases
 nonproduced assets 1.0 1.0 0.9 0.9 1.0

 1979 1980 1981 1982 1983

 Current receipts 182.0 196.7 212.7 227.3 242.2

Personal tax and nontax
 receipts 7.9 8.3 10.0 11.3 12.1
 Income taxes 3.6 3.5 4.3 4.9 5.1
 Nontaxes 2.8 3.2 3.9 4.4 4.9
 Other 1.5 1.7 1.8 2.0 2.1

Corporate profits tax accruals 0.6 0.7 0.9 0.9 1.0

Indirect business tax and
 nontax accruals 60.1 86.4 96.6 107.2 117.2
 Sales taxes 11.5 12.8 14.2 15.9 17.7
 Property taxes 62.1 66.2 74.4 82.5 88.9
 Other 6.5 7.4 7.9 8.8 10.7

Contributions for social
 insurance 0.0 0.0 0.0 0.0 0.0

Federal grants-in-aid 18.1 17.6 14.8 13.5 13.0

State grants-in-aid 75.3 83.7 90.4 94.4 98.9

 Current expenditures 172.9 187.9 203.5 218.7 233.2

Consumption expenditures 159.8 175.2 190.5 205.4 217.6

Transfer payments to persons 8.9 9.9 10.4 10.2 11.0

Grants-in-aid to state
 governments 2.2 2.4 2.6 3.1 4.1

Net interest paid 1.3 -0.8 -2.1 -1.7 -0.2
 Interest paid 10.7 11.8 14.1 16.6 19.6
 Less: Interest received by
 government 9.4 12.5 16.1 18.3 19.7

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises 0.6 1.2 2.1 1.7 0.7
 Subsidies 0.3 0.3 0.4 0.5 0.6
 Less: Current surplus of
 enterprises -0.3 -0.9 -1.7 -1.1 -0.1

Less: Wage accruals less
 disbursements -0.1 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 9.1 8.8 9.2 8.6 9.0

Social insurance funds
Other 9.1 8.8 9.2 8.6 9.0

Addenda:
 Net lending or net borrowing -1.4 -3.4 -1.3 -0.8 -0.1
 Current surplus or deficit
 NIPA 9.1 8.8 9.2 8.6 9.0
 Plus: Consumption of fixed
 capital 16.3 18.7 21.1 22.9 23.9
 Plus: Capital transfers
 received (net) 10.1 11.0 11.1 10.9 10.8
 Less: Gross investment 35.7 40.5 41.2 41.8 42.4
 Less: Net purchases
 nonproduced assets 1.2 1.4 1.5 1.4 1.4

 1984 1985 1986 1987 1988

 Current receipts 265.3 288.9 312.2 329.7 354.3

Personal tax and nontax
 receipts 13.3 14.3 15.9 16.4 18.5
 Income taxes 5.6 6.0 6.8 6.9 8.6
 Nontaxes 5.6 6.2 7.0 7.2 7.3
 Other 2.2 2.2 2.1 2.3 2.5

Corporate profits tax accruals 1.4 1.5 1.8 2.1 2.2

Indirect business tax and
 nontax accruals 128.6 139.5 152.5 164.4 175.7
 Sales taxes 20.1 22.1 24.1 25.7 27.3
 Property taxes 96.3 104.0 112.6 122.7 132.8
 Other 12.2 13.4 15.9 16.1 15.6

Contributions for social
 insurance 0.0 0.0 0.0 0.0 0.0

Federal grants-in-aid 13.3 13.6 13.1 9.0 9.5

State grants-in-aid 108.7 120.0 128.9 137.8 148.4

 Current expenditures 248.7 269.4 294.3 316.2 335.6

Consumption expenditures 233.7 254.2 275.4 295.0 314.4

Transfer payments to persons 11.4 12.1 12.9 13.3 14.1

Grants-in-aid to state
 governments 5.0 5.2 5.3 5.5 5.6

Net interest paid -0.8 -0.5 1.7 3.9 4.2
 Interest paid 22.3 25.5 29.5 32.1 33.7
 Less: Interest received by
 government 23.1 26.0 27.7 28.2 29.5

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -0.6 -1.6 -1.0 -1.5 -2.7
 Subsidies 0.6 0.7 1.0 1.2 1.2
 Less: Current surplus of
 enterprises 1.2 2.3 2.0 2.7 4.0

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 16.6 19.5 17.9 13.5 18.7

Social insurance funds
Other 16.6 19.5 17.9 13.5 18.7

Addenda:
 Net lending or net borrowing 5.1 3.9 -1.4 -7.3 -4.9
 Current surplus or deficit
 NIPA 16.6 19.5 17.9 13.5 18.7
 Plus: Consumption of fixed
 capital 25.1 26.6 28.4 30.3 32.5
 Plus: Capital transfers
 received (net) 11.4 11.4 11.9 11.9 11.6
 Less: Gross investment 46.3 51.6 57.2 60.4 64.9
 Less: Net purchases
 nonproduced assets 1.7 2.0 2.4 2.6 2.8

 1989 1990 1991 1992 1993

 Current receipts 379.4 404.7 432.3 460.2 485.5

Personal tax and nontax
 receipts 20.0 21.1 22.4 24.3 26.1
 Income taxes 9.3 9.8 10.4 10.9 11.4
 Nontaxes 8.0 8.4 9.0 10.2 11.2
 Other 2.8 2.9 3.1 3.2 3.5

Corporate profits tax accruals 2.1 2.1 2.2 2.3 2.6

Indirect business tax and
 nontax accruals 191.0 205.4 218.8 231.4 243.3
 Sales taxes 29.9 31.7 33.0 34.6 36.9
 Property taxes 144.4 156.5 167.9 177.6 185.0
 Other 16.7 17.2 18.0 19.3 21.4

Contributions for social
 insurance 0.0 0.0 0.0 0.0 0.0

Federal grants-in-aid 6.8 6.7 7.0 7.4 7.6

State grants-in-aid 159.5 169.4 181.9 194.8 205.9

 Current expenditures 358.1 389.1 417.7 443.1 464.8

Consumption expenditures 338.6 367.5 390.0 408.5 426.5

Transfer payments to persons 15.0 16.6 18.9 20.5 21.7

Grants-in-aid to state
 governments 5.7 6.2 7.6 9.0 10.1

Net interest paid 2.7 3.0 5.7 9.5 11.7
 Interest paid 35.8 37.1 38.8 39.9 40.1
 Less: Interest received by
 government 33.1 34.1 33.2 30.4 28.3

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -3.9 -4.2 -4.5 -4.4 -5.2
 Subsidies 1.2 1.3 1.4 1.4 1.4
 Less: Current surplus of
 enterprises 5.2 5.4 5.8 5.8 6.5

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 21.3 15.6 14.6 17.1 20.7

Social insurance funds
Other 21.3 15.6 14.6 17.1 20.7

Addenda:
 Net lending or net borrowing -6.4 -17.7 -19.4 -15.5 -8.3
 Current surplus or deficit
 NIPA 21.3 15.6 14.6 17.1 20.7
 Plus: Consumption of fixed
 capital 35.1 37.8 40.4 42.4 45.1
 Plus: Capital transfers
 received (net) 12.0 12.8 13.1 13.5 14.3
 Less: Gross investment 71.5 79.9 83.5 84.5 84.2
 Less: Net purchases
 nonproduced assets 3.3 4.0 4.0 4.0 4.2

 1994 1995 1996 1997 1998

 Current receipts 513.0 537.7 565.1 595.2 635.9

Personal tax and nontax
 receipts 28.2 30.6 33.3 35.8 39.0
 Income taxes 12.0 12.9 13.8 14.9 16.0
 Nontaxes 12.4 13.9 15.4 16.6 18.4
 Other 3.8 3.9 4.0 4.3 4.6

Corporate profits tax accruals 2.7 2.6 3.0 3.3 3.3

Indirect business tax and
 nontax accruals 253.9 262.8 274.1 287.4 303.0
 Sales taxes 39.6 42.1 44.6 47.3 50.7
 Property taxes 190.7 196.1 203.6 212.3 221.7
 Other 23.6 24.6 25.9 27.8 30.6

Contributions for social
 insurance 0.0 0.0 0.0 0.0 0.0

Federal grants-in-aid 9.4 10.2 12.4 13.3 16.5

State grants-in-aid 218.8 231.5 242.3 255.4 274.1

 Current expenditures 488.9 508.9 531.7 562.5 598.0

Consumption expenditures 448.9 471.4 496.1 526.8 558.8

Transfer payments to persons 22.3 22.8 21.7 20.7 20.9

Grants-in-aid to state
 governments 11.0 11.1 12.0 13.4 13.4

Net interest paid 11.5 9.8 10.5 10.4 11.6
 Interest paid 40.9 42.1 44.0 45.7 47.7
 Less: Interest received by
 government 29.3 32.3 33.4 35.3 36.0

Less: Dividends received by
 government 0.0 0.0 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -4.8 -6.2 -8.6 -8.8 -6.7
 Subsidies 1.4 1.4 1.4 1.5 1.5
 Less: Current surplus of
 enterprises 6.2 7.6 10.0 10.3 8.2

Less: Wage accruals less
 disbursements 0.0 0.0 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 24.1 28.8 33.4 32.7 37.9

Social insurance funds
Other 24.1 28.8 33.4 32.7 37.9

Addenda:
 Net lending or net borrowing -6.0 -5.6 -3.8 -15.2 -10.9
 Current surplus or deficit
 NIPA 24.1 28.8 33.4 32.7 37.9
 Plus: Consumption of fixed
 capital 48.4 51.4 54.3 57.6 61.0
 Plus: Capital transfers
 received (net) 14.2 16.0 16.8 17.2 17.6
 Less: Gross investment 88.0 96.7 103.0 117.6 121.2
 Less: Net purchases
 nonproduced assets 4.7 5.1 5.3 5.1 6.2

 1999 2000 2001

 Current receipts 678.8 718.1 750.4

Personal tax and nontax
 receipts 42.0 44.8 46.7
 Income taxes 17.4 18.6 18.7
 Nontaxes 19.8 21.3 22.9
 Other 4.8 5.0 5.1

Corporate profits tax accruals 3.2 3.3 2.7

Indirect business tax and
 nontax accruals 317.4 332.7 346.8
 Sales taxes 54.4 58.6 61.4
 Property taxes 230.6 239.8 249.5
 Other 32.5 34.3 35.9

Contributions for social
 insurance 0.0 0.0 0.0

Federal grants-in-aid 18.6 18.0 19.7

State grants-in-aid 297.6 319.3 334.5

 Current expenditures 633.5 682.4 717.8

Consumption expenditures 594.6 641.8 674.6

Transfer payments to persons 21.9 23.0 24.8

Grants-in-aid to state
 governments 12.9 13.6 14.2

Net interest paid 11.8 11.4 12.2
 Interest paid 49.7 51.3 52.4
 Less: Interest received by
 government 38.0 39.8 40.2

Less: Dividends received by
 government 0.0 0.0 0.0

Subsidies less current surplus
 of enterprises -7.7 -7.4 -8.0
 Subsidies 1.5 1.7 1.7
 Less: Current surplus of
 enterprises 9.3 9.0 9.7

Less: Wage accruals less
 disbursements 0.0 0.0 0.0

 Current surplus or
 deficit, NIPA 45.3 35.7 32.6

Social insurance funds
Other 45.3 35.7 32.6

Addenda:
 Net lending or net borrowing -12.4 -23.0 -24.1
 Current surplus or deficit
 NIPA 45.3 35.7 32.6
 Plus: Consumption of fixed
 capital 65.5 70.9 77.1
 Plus: Capital transfers
 received (net) 18.6 20.8 22.7
 Less: Gross investment 134.9 143.4 149.3
 Less: Net purchases
 nonproduced assets 6.9 7.0 7.2

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, two expenditure categories
subsidies and current surplus of government enterprises 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.
However, the aggregate category "Subsidies less current surplus of
government enterprises" for state and local governments sum to the
consolidated account total due to netting in the total.

Table 4. State Government Consumption Expenditures and
Gross Investment by Function

[Billions of dollars]

 1959 1960 1961 1962 1963 1964

 State 15.4 15.5 17.0 18.2 20.1 21.6

General public service 1.2 1.3 1.4 1.4 1.5 1.8
 Executive and legislative 0.1 0.1 0.1 0.2 0.2 0.2
 Tax collection and
 financial management 0.6 0.7 0.8 0.8 0.8 0.9
 Other 0.4 0.4 0.5 0.5 0.6 0.7

Public order and safety 0.8 0.9 0.9 1.0 1.1 1.2
 Police 0.3 0.3 0.3 0.3 0.3 0.4
 Fire 0.0 0.0 0.0 0.0 0.0 0.0
 Law courts 0.1 0.1 0.2 0.2 0.2 0.2
 Prisons 0.5 0.5 0.5 0.5 0.6 0.6

Economic affairs 8.7 8.3 9.2 9.8 10.7 11.2
 General economic and labor
 affairs 0.6 0.6 0.7 0.7 0.8 0.8
 Agriculture 0.4 0.4 0.4 0.4 0.4 0.5
 Energy 0.1 0.1 0.2 0.1 0.1 0.1
 Natural resources 0.4 0.5 0.5 0.5 0.6 0.6
 Transportation 7.2 6.7 7.4 8.0 8.9 9.1
 Highways 7.2 6.7 7.3 8.0 8.8 9.1
 Air 0.0 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.1 0.1
 Transit and railroad 0.0 0.0 0.0 0.0 0.0 0.0
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Housing and community
 services 0.0 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.0 0.0 0.0 0.0 0.0 0.0
 Sanitation 0.0 0.0 0.0 0.0 0.0 0.0
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Health 1.8 1.8 2.0 2.0 2.2 2.4

Recreation and culture 0.0 0.0 0.0 0.0 0.0 0.0

Education 2.6 2.8 3.2 3.6 4.2 4.7
 Elementary and secondary 0.2 0.2 0.2 0.2 0.2 0.2
 Higher 2.1 2.3 2.6 3.0 3.6 4.0
 Libraries 0.0 0.0 0.0 0.0 0.0 0.0
 Other 0.2 0.3 0.3 0.3 0.4 0.5

Income security 0.4 0.4 0.3 0.4 0.4 0.4
 Disability 0.0 0.0 0.1 0.1 0.1 0.1
 Welfare and social services 0.3 0.3 0.3 0.3 0.3 0.4
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1965 1966 1967 1968 1969 1970

 State 23.6 26.6 29.7 32.6 36.2 40.8

General public service 2.0 2.4 2.6 3.1 3.9 4.0
 Executive and legislative 0.2 0.2 0.3 0.3 0.3 0.4
 Tax collection and
 financial management 0.9 1.1 1.2 1.3 1.5 1.7
 Other 0.9 1.0 1.2 1.5 2.1 1.9

Public order and safety 1.3 1.4 1.6 1.8 2.1 2.4
 Police 0.4 0.4 0.5 0.6 0.7 0.8
 Fire 0.0 0.0 0.0 0.0 0.0 0.0
 Law courts 0.2 0.2 0.3 0.3 0.4 0.4
 Prisons 0.7 0.7 0.8 0.9 1.0 1.2

Economic affairs 11.9 13.2 14.1 15.1 16.0 17.9
 General economic and labor
 affairs 0.9 1.0 1.1 1.2 1.3 1.5
 Agriculture 0.5 0.5 0.6 0.7 0.8 0.9
 Energy 0.0 0.0 0.0 0.1 0.1 0.1
 Natural resources 0.7 0.9 1.0 0.9 1.0 1.0
 Transportation 9.7 10.8 11.3 12.2 12.8 14.4
 Highways 9.6 10.7 11.2 12.0 12.6 14.1
 Air 0.0 0.0 0.0 0.1 0.1 0.2
 Water 0.1 0.1 0.1 0.1 0.1 0.1
 Transit and railroad 0.0 0.0 0.0 0.0 0.0 0.0
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Housing and community
 services 0.0 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.0 0.0 0.0 0.0 0.0 0.0
 Sanitation 0.0 0.0 0.0 0.0 0.0 0.0
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Health 2.5 2.7 3.0 3.3 3.8 4.4

Recreation and culture 0.0 0.0 0.0 0.1 0.1 0.1

Education 5.3 6.4 7.6 8.4 9.4 10.8
 Elementary and secondary 0.2 0.3 0.4 0.4 0.4 0.5
 Higher 4.4 5.2 6.2 6.7 7.5 8.5
 Libraries 0.0 0.0 0.1 0.1 0.1 0.1
 Other 0.6 0.8 1.1 1.2 1.5 1.8

Income security 0.5 0.6 0.7 0.8 1.0 1.2
 Disability 0.1 0.1 0.1 0.1 0.1 0.1
 Welfare and social services 0.4 0.5 0.6 0.8 0.9 1.1
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1971 1972 1973 1974 1975 1976

 State 44.9 48.1 52.8 61.3 68.9 73.4

General public service 4.4 4.8 5.8 6.9 7.9 8.3
 Executive and legislative 0.5 0.5 0.6 0.7 0.8 0.9
 Tax collection and
 financial management 1.8 1.9 2.1 2.4 2.6 2.7
 Other 2.1 2.4 3.1 3.8 4.5 4.8

Public order and safety 2.7 3.1 3.5 4.1 4.7 5.2
 Police 0.9 1.0 1.2 1.3 1.5 1.6
 Fire 0.0 0.0 0.0 0.0 0.0 0.0
 Law courts 0.5 0.6 0.7 0.8 0.8 0.9
 Prisons 1.3 1.5 1.7 2.0 2.3 2.7

Economic affairs 19.3 19.8 20.7 24.2 26.4 26.6
 General economic and labor
 affairs 1.8 2.0 2.2 2.5 2.8 3.1
 Agriculture 0.9 1.0 1.1 1.2 1.4 1.4
 Energy 0.1 0.2 0.2 0.2 0.2 0.4
 Natural resources 1.0 1.0 1.0 1.2 1.3 1.4
 Transportation 15.4 15.7 16.3 19.2 20.8 20.3
 Highways 15.2 15.4 15.9 18.8 20.4 20.0
 Air 0.1 0.1 0.2 0.2 0.2 0.2
 Water 0.1 0.1 0.1 0.1 0.1 0.1
 Transit and railroad 0.0 0.1 0.1 0.1 0.1 0.1
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Housing and community
 services 0.0 0.0 0.0 0.0 0.3 0.2
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.0 0.0 0.0 0.0 0.0 0.1
 Sanitation 0.0 0.0 0.0 0.0 0.0 0.0
 Other 0.0 0.0 0.0 0.0 0.3 0.1

Health 5.0 5.3 5.5 6.5 7.4 8.1

Recreation and culture 0.2 0.2 0.2 0.3 0.6 0.7

Education 11.9 13.1 14.7 16.4 18.2 20.2
 Elementary and secondary 0.5 0.5 0.5 0.5 0.7 0.7
 Higher 9.3 10.2 11.7 13.0 14.1 15.8
 Libraries 0.1 0.1 0.1 0.1 0.1 0.1
 Other 2.0 2.3 2.4 2.8 3.4 3.6

Income security 1.5 1.8 2.4 2.9 3.5 4.1
 Disability 0.1 0.1 0.1 0.2 0.2 0.2
 Welfare and social services 1.4 1.7 2.2 2.7 3.3 3.9
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1977 1978 1979 1980 1981

 State 77.8 86.1 97.6 110.0 119.1

General public service 9.0 9.9 11.6 13.6 14.4
 Executive and legislative 1.0 0.8 1.0 1.2 1.3
 Tax collection and
 financial management 3.0 3.4 3.8 4.0 4.1
 Other 5.0 5.6 6.8 8.4 9.0

Public order and safety 5.8 6.9 8.2 9.5 10.6
 Police 1.7 1.9 2.1 2.4 2.6
 Fire 0.0 0.0 0.0 0.0 0.0
 Law courts 1.0 1.4 1.9 2.3 2.5
 Prisons 3.1 3.6 4.2 4.8 5.5

Economic affairs 27.1 29.9 34.4 38.6 41.3
 General economic and labor
 affairs 3.4 3.7 4.1 4.6 5.0
 Agriculture 1.5 1.6 1.8 2.0 2.2
 Energy 0.4 0.4 0.4 0.4 0.4
 Natural resources 1.5 1.7 1.9 2.3 2.5
 Transportation 20.5 22.6 26.3 29.3 31.1
 Highways 20.1 22.2 25.7 28.5 30.1
 Air 0.1 0.1 0.2 0.2 0.2
 Water 0.1 0.1 0.1 0.2 0.3
 Transit and railroad 0.1 0.1 0.2 0.4 0.5
 Other 0.0 0.0 0.0 0.0 0.0

Housing and community
 services 0.2 0.3 0.3 0.4 0.3
 Water 0.0 0.0 0.0 0.1 0.0
 Sewerage 0.2 0.2 0.2 0.2 0.2
 Sanitation 0.0 0.0 0.0 0.0 0.0
 Other 0.1 0.1 0.1 0.1 0.1

Health 9.0 9.9 11.0 12.7 13.6

Recreation and culture 0.7 0.7 0.8 0.9 0.9

Education 21.3 22.9 25.3 28.1 31.0
 Elementary and secondary 0.7 0.9 1.0 1.1 1.2
 Higher 16.7 18.1 20.1 22.4 25.1
 Libraries 0.1 0.1 0.1 0.1 0.2
 Other 3.7 3.9 4.1 4.4 4.6

Income security 4.7 5.4 6.0 6.3 7.0
 Disability 0.2 0.2 0.3 0.3 0.4
 Welfare and social services 4.4 5.1 5.7 6.0 6.6
 Other 0.0 0.0 0.0 0.0 0.0

 1982 1983 1984 1985 1986

 State 125.9 133.1 146.3 161.5 174.1

General public service 15.2 16.9 19.3 21.4 24.0
 Executive and legislative 1.5 1.6 1.8 2.0 2.2
 Tax collection and
 financial management 4.3 4.8 5.4 6.2 7.0
 Other 9.5 10.5 12.1 13.2 14.8

Public order and safety 12.1 13.5 15.2 17.5 19.3
 Police 2.8 3.0 3.3 3.7 3.9
 Fire 0.0 0.0 0.0 0.0 0.0
 Law courts 2.8 3.1 3.5 3.8 4.1
 Prisons 6.5 7.4 8.4 10.0 11.3

Economic affairs 42.8 44.7 49.3 53.8 57.6
 General economic and labor
 affairs 5.2 5.2 5.4 5.6 6.1
 Agriculture 2.4 2.6 2.8 3.0 3.3
 Energy 0.4 0.3 0.3 0.3 0.3
 Natural resources 2.8 3.0 3.2 3.6 3.9
 Transportation 31.9 33.6 37.5 41.2 43.9
 Highways 30.8 32.2 35.8 39.2 41.9
 Air 0.2 0.2 0.2 0.3 0.2
 Water 0.2 0.2 0.2 0.2 0.2
 Transit and railroad 0.7 1.0 1.3 1.4 1.5
 Other 0.0 0.0 0.0 0.1 0.1

Housing and community
 services 0.3 0.2 0.2 0.2 0.3
 Water 0.1 0.0 0.0 0.0 0.0
 Sewerage 0.2 0.1 0.2 0.2 0.2
 Sanitation 0.0 0.0 0.0 0.0 0.0
 Other 0.1 0.0 0.0 0.0 0.0

Health 14.2 13.9 14.7 16.0 17.0

Recreation and culture 1.0 1.0 1.0 1.2 1.4

Education 33.1 34.5 37.2 41.2 43.9
 Elementary and secondary 1.2 1.1 1.2 1.3 1.4
 Higher 27.0 28.4 30.9 34.3 36.6
 Libraries 0.2 0.2 0.2 0.2 0.3
 Other 4.7 4.7 5.0 5.4 5.7

Income security 7.4 8.5 9.3 10.1 10.7
 Disability 0.4 0.5 0.5 0.5 0.6
 Welfare and social services 7.0 8.1 8.8 9.6 10.1
 Other 0.0 0.0 0.0 0.0 0.0

 1987 1988 1989 1990 1991

 State 185.4 198.0 210.8 228.8 238.4

General public service 25.8 26.6 28.6 30.5 31.8
 Executive and legislative 2.4 2.6 2.8 3.1 3.2
 Tax collection and
 financial management 7.4 7.8 8.3 8.8 9.5
 Other 16.0 16.2 17.5 18.6 19.2

Public order and safety 21.5 23.9 26.6 30.3 32.5
 Police 4.3 4.5 4.9 5.4 5.6
 Fire 0.0 0.0 0.0 0.0 0.0
 Law courts 4.5 5.1 5.6 6.3 6.9
 Prisons 12.7 14.2 16.1 18.6 20.1

Economic affairs 60.7 64.1 65.4 70.7 72.9
 General economic and labor
 affairs 6.5 6.9 7.5 8.1 8.6
 Agriculture 3.4 3.5 3.7 4.0 4.1
 Energy 0.3 0.4 0.4 0.5 0.4
 Natural resources 4.2 4.6 4.9 5.1 5.4
 Transportation 46.2 48.7 48.9 52.9 54.4
 Highways 44.1 46.5 46.5 50.3 51.9
 Air 0.2 0.2 0.3 0.4 0.5
 Water 0.2 0.2 0.2 0.2 0.2
 Transit and railroad 1.7 1.7 1.9 2.0 1.8
 Other 0.1 0.0 0.1 0.0 0.0

Housing and community
 services 0.5 0.8 1.1 1.4 1.7
 Water 0.0 0.0 0.0 0.0 0.1
 Sewerage 0.3 0.3 0.3 0.4 0.5
 Sanitation 0.1 0.4 0.6 0.8 1.0
 Other 0.1 0.1 0.1 0.1 0.1

Health 18.3 19.7 20.7 22.3 22.4

Recreation and culture 1.6 1.7 1.9 2.1 2.3

Education 45.7 48.8 52.7 56.2 57.9
 Elementary and secondary 1.5 1.6 1.8 2.0 2.2
 Higher 37.7 40.4 43.4 46.3 47.9
 Libraries 0.3 0.3 0.3 0.3 0.3
 Other 6.1 6.6 7.3 7.6 7.6

Income security 11.4 12.5 13.7 15.3 16.9
 Disability 0.7 0.8 0.9 1.1 1.2
 Welfare and social services 10.7 11.7 12.8 14.2 15.6
 Other 0.0 0.0 0.0 0.0 0.0

 1992 1993 1994 1995 1996

 State 246.9 258.9 274.2 287.1 295.8

General public service 33.0 34.2 36.5 37.4 37.7
 Executive and legislative 3.2 3.3 3.5 3.6 3.7
 Tax collection and
 financial management 9.9 10.4 11.4 11.6 11.4
 Other 19.9 20.5 21.7 22.3 22.6

Public order and safety 34.0 36.2 39.4 42.8 45.5
 Police 5.7 5.9 6.3 6.9 7.4
 Fire 0.0 0.0 0.0 0.0 0.0
 Law courts 7.3 7.7 8.1 8.7 9.3
 Prisons 21.0 22.6 25.0 27.2 28.8

Economic affairs 75.6 78.9 82.9 85.9 89.1
 General economic and labor
 affairs 9.3 9.7 9.8 9.9 10.1
 Agriculture 4.2 4.3 4.3 4.4 4.5
 Energy 0.4 0.4 0.3 0.2 0.1
 Natural resources 5.7 6.1 6.6 7.1 7.2
 Transportation 56.0 58.4 61.9 64.1 67.1
 Highways 53.7 56.2 59.5 61.3 64.0
 Air 0.5 0.4 0.3 0.3 0.4
 Water 0.2 0.2 0.2 0.2 0.3
 Transit and railroad 1.5 1.6 1.8 2.2 2.4
 Other 0.0 0.0 0.0 0.0 0.1

Housing and community
 services 1.9 2.0 2.2 2.5 2.3
 Water 0.1 0.0 0.0 0.0 0.0
 Sewerage 0.6 0.7 0.8 0.9 0.7
 Sanitation 1.1 1.0 1.2 1.3 1.3
 Other 0.1 0.2 0.2 0.2 0.2

Health 21.7 21.8 21.6 22.0 21.8

Recreation and culture 2.2 2.2 2.3 2.5 2.7

Education 60.1 63.5 66.7 69.6 71.2
 Elementary and secondary 2.4 2.4 2.3 2.7 3.0
 Higher 49.6 52.6 55.4 57.3 58.2
 Libraries 0.3 0.3 0.3 0.3 0.3
 Other 7.8 8.2 8.7 9.3 9.7

Income security 18.5 20.2 22.6 24.4 25.3
 Disability 1.5 1.7 1.8 2.3 2.4
 Welfare and social services 17.0 18.5 20.8 22.2 22.9
 Other 0.0 0.0 0.0 0.0 0.0

 1997 1998 1999 2000 2001

 State 310.3 323.9 351.4 382.4 410.4

General public service 40.9 43.4 47.4 52.4 57.0
 Executive and legislative 3.9 3.9 4.3 4.7 5.1
 Tax collection and
 financial management 12.5 12.1 13.0 14.0 14.3
 Other 24.6 27.4 30.1 33.6 37.6

Public order and safety 48.5 50.5 55.1 60.3 64.5
 Police 7.7 8.0 8.8 9.8 10.8
 Fire 0.0 0.0 0.0 0.0 0.0
 Law courts 10.4 11.4 12.6 13.9 14.9
 Prisons 30.4 31.1 33.7 36.5 38.8

Economic affairs 93.6 98.0 106.6 113.6 121.5
 General economic and labor
 affairs 10.4 10.2 10.7 11.4 11.6
 Agriculture 4.7 4.8 5.4 6.1 6.1
 Energy 0.1 0.2 0.2 0.5 0.2
 Natural resources 7.2 7.3 7.8 8.3 9.0
 Transportation 71.1 75.4 82.3 87.2 94.5
 Highways 68.0 72.0 78.1 82.5 89.5
 Air 0.4 4.0 0.5 0.5 0.6
 Water 0.3 0.3 0.3 0.3 0.3
 Transit and railroad 2.4 2.8 3.4 3.8 4.1
 Other 0.1 0.1 0.1 0.1 0.1

Housing and community
 services 2.2 2.3 2.6 2.9 2.8
 Water 0.0 0.0 0.1 0.1 0.1
 Sewerage 0.5 0.5 0.4 0.3 0.3
 Sanitation 1.4 1.6 1.9 2.2 2.2
 Other 0.2 0.1 0.2 0.2 0.2

Health 20.5 18.9 21.2 24.8 27.0

Recreation and culture 3.0 3.1 3.2 3.4 3.7

Education 74.5 78.5 83.6 90.8 97.5
 Elementary and secondary 3.2 3.4 3.6 3.8 4.0
 Higher 61.1 64.3 68.5 74.4 80.1
 Libraries 0.3 0.3 0.4 0.4 0.4
 Other 9.9 10.4 11.2 12.2 13.0

Income security 27.1 29.3 31.7 34.3 36.3
 Disability 2.6 3.0 2.9 2.9 3.0
 Welfare and social services 24.4 26.3 28.8 31.4 33.3
 Other 0.0 0.0 0.0 0.0 0.0

Table 5. Local Government Consumption Expenditures and Gross
Investment by Function

[Billions of dollars]

 1959 1960 1961 1962 1963 1964

 Local 29.7 32.4 35.0 37.1 39.8 43.7
General public service 2.3 2.5 2.8 2.9 3.1 3.4
 Executive and
 legislative 0.5 0.5 0.5 0.6 0.6 0.6
 Tax collection and
 financial management 0.8 0.8 0.8 0.9 0.9 1.0
 Other 1.1 1.2 1.4 1.5 1.6 1.7

Public order and safety 3.3 3.6 3.8 4.0 4.2 4.5
 Police 1.6 1.7 1.8 2.0 2.1 2.3
 Fire 1.0 1.1 1.2 1.2 1.3 1.4
 Law courts 0.4 0.4 0.5 0.5 0.5 0.5
 Prisons 0.2 0.3 0.3 0.3 0.3 0.3

Economic affairs 4.6 5.1 5.2 5.4 6.0 6.3
 General economic and
 labor affairs 0.1 0.1 0.1 0.1 0.1 0.1
 Agriculture 0.0 0.0 0.0 0.0 0.0 0.0
 Energy 0.4 0.5 0.5 0.5 0.6 0.8
 Natural resources 0.2 0.2 0.3 0.2 0.4 0.4
 Transportation 3.9 4.3 4.4 4.5 4.9 5.0
 Highways 3.6 3.9 3.9 4.1 4.3 4.5
 Air 0.2 0.2 0.2 0.2 0.2 0.2
 Water 0.1 0.1 0.1 0.1 0.2 0.1
 Transit and railroad 0.1 0.1 0.1 0.1 0.2 0.2
 Other 0.0 0.0 0.0 0.0 0.1 0.1

Housing and community
 services 2.7 2.7 2.9 3.3 3.0 3.6
 Water 0.7 0.7 0.8 0.7 1.0 1.0
 Sewerage 0.9 0.9 0.9 1.1 1.0 1.3
 Sanitation 0.6 0.6 0.6 0.6 0.6 0.7
 Other 0.5 0.5 0.7 0.9 0.5 0.6

Health 1.3 1.4 1.5 1.5 1.6 1.7

Recreation and culture 0.7 0.7 0.8 0.8 0.9 1.0

Education 14.5 16.1 17.6 18.7 20.5 22.7
 Elementary and
 secondary 14.0 15.5 17.0 18.1 19.7 21.8
 Higher 0.3 0.3 0.3 0.3 0.4 0.5
 Libraries 0.3 0.3 0.3 0.3 0.4 0.4
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Income security 0.3 0.4 0.4 0.5 0.5 0.6
 Disability 0.0 0.0 0.0 0.0 0.0 0.0
 Welfare and social
 services 0.3 0.4 0.4 0.5 0.5 0.6
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1965 1966 1967 1968 1969 1970

 Local 48.1 53.3 58.8 66.2 72.2 79.9
General public service 3.8 4.1 4.6 5.5 6.0 6.7
 Executive and
 legislative 0.7 0.7 0.8 1.0 1.1 1.2
 Tax collection and
 financial management 1.0 1.1 1.2 1.4 1.6 1.8
 Other 2.0 2.2 2.6 3.1 3.3 3.7

Public order and safety 4.8 5.3 5.8 6.8 7.5 8.5
 Police 2.4 2.7 3.0 3.6 4.0 4.4
 Fire 1.5 1.6 1.7 1.9 2.1 2.4
 Law courts 0.6 0.6 0.7 0.8 0.9 1.0
 Prisons 0.4 0.4 0.4 0.5 0.5 0.6

Economic affairs 7.1 7.4 8.2 9.0 9.4 9.6
 General economic and
 labor affairs 0.2 0.2 0.2 0.3 0.3 0.3
 Agriculture 0.0 0.0 0.0 0.0 0.0 0.0
 Energy 0.9 0.7 0.9 0.9 0.9 1.0
 Natural resources 0.5 0.5 0.5 0.5 0.5 0.6
 Transportation 5.4 6.0 6.5 7.3 7.6 7.7
 Highways 4.8 5.2 5.5 6.1 6.3 6.4
 Air 0.2 0.2 0.3 0.4 0.5 0.5
 Water 0.1 0.1 0.2 0.2 0.2 0.2
 Transit and railroad 0.2 0.4 0.5 0.6 0.7 0.6
 Other 0.1 0.1 0.1 0.1 0.1 0.1

Housing and community
 services 3.8 3.9 4.1 5.0 4.9 5.1
 Water 1.3 1.1 1.4 1.6 1.4 1.2
 Sewerage 1.2 1.3 1.1 1.6 1.4 1.6
 Sanitation 0.7 0.8 0.8 1.0 1.0 1.1
 Other 0.6 0.7 0.9 0.9 1.1 1.2

Health 1.8 1.9 2.1 2.4 2.7 3.1

Recreation and culture 1.0 1.1 1.3 1.4 1.7 1.9

Education 25.1 28.7 31.7 34.9 38.6 43.2
 Elementary and
 secondary 24.0 27.3 30.1 33.1 36.5 40.7
 Higher 0.6 0.9 1.1 1.2 1.4 1.8
 Libraries 0.4 0.5 0.5 0.6 0.6 0.7
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Income security 0.7 0.9 1.0 1.2 1.5 1.8
 Disability 0.0 0.0 0.0 0.0 0.0 0.0
 Welfare and social
 services 0.7 0.9 1.0 1.2 1.5 1.8
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1971 1972 1973 1974 1975 1976

 Local 88.6 96.3 107.3 122.8 140.1 150.5
General public service 7.6 8.8 10.3 12.2 14.7 16.2
 Executive and
 legislative 1.3 1.5 1.7 2.0 2.4 2.7
 Tax collection and
 financial management 2.0 2.1 2.3 2.6 2.9 3.1
 Other 4.3 5.2 6.2 7.5 9.4 10.4

Public order and safety 9.7 10.7 11.9 13.5 15.5 17.0
 Police 5.1 5.6 6.3 7.1 8.1 8.8
 Fire 2.7 2.9 3.2 3.6 4.1 4.5
 Law courts 1.1 1.3 1.5 1.6 1.9 2.1
 Prisons 0.8 0.9 1.0 1.2 1.4 1.6

Economic affairs 10.0 10.8 11.9 14.3 15.8 16.6
 General economic and
 labor affairs 0.3 0.3 0.4 0.4 0.5 0.5
 Agriculture 0.0 0.0 0.0 0.0 0.0 0.0
 Energy 1.0 1.1 1.3 1.6 1.5 1.9
 Natural resources 0.6 0.6 0.7 0.9 1.0 1.0
 Transportation 8.0 8.6 9.5 11.3 12.7 13.0
 Highways 7.0 7.3 8.1 9.5 10.7 10.9
 Air 0.4 0.5 0.4 0.5 0.5 0.5
 Water 0.1 0.1 0.2 0.2 0.3 0.2
 Transit and railroad 0.5 0.8 0.9 1.1 1.2 1.5
 Other 0.1 0.1 0.1 0.1 0.2 0.2

Housing and community
 services 5.5 5.6 6.3 7.7 8.6 9.2
 Water 1.1 1.2 1.2 1.6 2.1 2.1
 Sewerage 1.9 2.1 2.5 3.5 3.7 4.2
 Sanitation 1.3 1.3 1.5 1.7 1.8 1.9
 Other 1.2 0.9 1.0 1.0 1.0 1.0

Health 3.7 3.7 4.2 5.0 5.3 5.0

Recreation and culture 2.0 2.1 2.4 2.9 3.3 3.4

Education 47.9 52.3 57.6 64.3 73.6 79.7
 Elementary and
 secondary 45.0 49.0 53.9 60.0 68.6 74.5
 Higher 2.1 2.5 2.8 3.3 3.8 4.0
 Libraries 0.7 0.8 0.9 1.0 1.1 1.2
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Income security 2.1 2.5 2.7 3.0 3.3 3.5
 Disability 0.0 0.0 0.0 0.0 0.0 0.0
 Welfare and social
 services 2.1 2.5 2.7 3.0 3.3 3.5
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1977 1978 1979 1980 1981

 Local 161.5 177.7 194.3 214.5 230.5
General public service 18.1 195.0 20.5 22.1 23.9
 Executive and
 legislative 2.9 2.8 3.0 3.4 3.8
 Tax collection and
 financial management 3.6 4.3 4.7 5.1 5.5
 Other 11.5 12.4 12.8 13.6 14.6

Public order and safety 18.5 20.7 22.6 25.1 28.3
 Police 9.7 10.6 11.5 12.6 14.3
 Fire 4.8 5.3 5.8 6.4 7.1
 Law courts 2.2 2.9 3.2 3.6 4.0
 Prisons 1.8 1.9 2.1 2.5 2.8

Economic affairs 17.7 20.8 23.4 26.1 28.8
 General economic and
 labor affairs 0.6 0.7 0.8 0.8 0.9
 Agriculture 0.0 0.0 0.0 0.0 0.0
 Energy 2.4 3.6 4.0 4.3 5.3
 Natural resources 0.9 1.0 1.2 1.4 1.4
 Transportation 13.7 15.4 17.3 19.5 21.1
 Highways 11.6 13.0 14.4 15.9 17.2
 Air 0.5 7.0 0.9 1.2 1.2
 Water 0.2 0.3 0.4 0.5 0.5
 Transit and railroad 1.4 1.4 1.5 1.9 2.2
 Other 0.1 0.1 0.1 0.1 0.2

Housing and community
 services 9.0 11.0 12.3 14.7 14.5
 Water 1.9 2.5 2.8 3.5 3.4
 Sewerage 3.9 4.9 5.4 6.4 5.6
 Sanitation 2.0 2.3 2.5 2.8 3.1
 Other 1.2 1.3 1.7 2.0 2.5

Health 5.5 5.8 5.7 6.4 6.5

Recreation and culture 3.5 4.0 4.4 4.8 5.2

Education 85.4 91.9 101.1 110.4 117.9
 Elementary and
 secondary 79.7 85.9 94.7 103.2 110.1
 Higher 4.4 4.6 4.9 5.5 6.0
 Libraries 1.2 1.4 1.5 1.7 1.8
 Other 0.0 0.0 0.0 0.0 0.0

Income security 3.9 4.0 4.4 5.0 5.5
 Disability 0.0 0.0 0.0 0.0 0.0
 Welfare and social
 services 3.9 4.0 4.4 5.0 5.5
 Other 0.0 0.0 0.0 0.0 0.0

 1982 1983 1984 1985 1986

 Local 245.7 258.4 278.1 303.3 329.5
General public service 25.4 26.9 28.4 31.0 33.8
 Executive and
 legislative 4.3 4.3 4.4 4.9 5.3
 Tax collection and
 financial management 6.2 6.7 7.4 8.6 9.6
 Other 14.8 15.9 16.5 17.5 18.9

Public order and safety 31.5 33.9 36.3 40.1 43.8
 Police 15.8 16.8 17.9 19.6 21.2
 Fire 7.9 8.4 9.0 9.9 10.9
 Law courts 4.5 4.8 5.1 5.6 6.1
 Prisons 3.3 3.8 4.3 4.9 5.7

Economic affairs 30.3 31.3 32.5 35.5 37.7
 General economic and
 labor affairs 0.9 0.9 0.9 1.1 1.2
 Agriculture 0.0 0.0 0.0 0.0 0.0
 Energy 5.1 4.9 4.6 5.8 5.4
 Natural resources 1.5 1.7 1.9 2.0 2.2
 Transportation 22.6 23.6 24.9 26.4 28.6
 Highways 18.5 19.1 20.6 22.0 23.7
 Air 1.1 1.3 1.5 1.6 2.0
 Water 0.4 0.5 0.4 0.5 0.5
 Transit and railroad 2.5 2.6 2.5 2.3 2.3
 Other 0.2 0.2 0.2 0.2 0.3

Housing and community
 services 14.3 13.8 15.4 16.7 18.7
 Water 3.5 3.1 3.8 4.5 5.4
 Sewerage 5.4 4.9 5.6 5.8 6.4
 Sanitation 3.1 3.1 3.3 3.6 3.9
 Other 2.4 2.6 2.6 2.9 2.9

Health 6.7 6.4 6.9 7.4 7.4

Recreation and culture 5.7 6.0 6.5 7.2 7.8

Education 126.0 133.5 145.2 157.7 171.8
 Elementary and
 secondary 117.7 125.2 136.6 148.4 161.7
 Higher 6.4 6.1 6.2 6.6 7.3
 Libraries 2.0 2.1 2.3 2.6 2.9
 Other 0.0 0.0 0.0 0.0 0.0

Income security 5.9 6.7 7.1 7.8 8.5
 Disability 0.0 0.0 0.0 0.0 0.0
 Welfare and social
 services 5.9 6.7 7.1 7.8 8.5
 Other 0.0 0.0 0.0 0.0 0.0

 1987 1988 1989 1990 1991

 Local 352.1 376.2 406.9 444.2 469.8
General public service 35.3 37.6 41.0 44.7 47.7
 Executive and
 legislative 5.8 6.2 6.7 7.7 8.2
 Tax collection and
 financial management 10.2 10.6 11.1 11.6 12.6
 Other 19.3 20.8 23.1 25.4 26.9

Public order and safety 47.4 51.0 56.3 61.7 66.3
 Police 22.5 24.0 26.0 28.4 30.7
 Fire 11.8 12.3 13.4 14.4 15.1
 Law courts 6.5 7.4 8.4 9.4 10.1
 Prisons 6.6 7.3 8.5 9.6 10.4

Economic affairs 38.1 39.4 41.6 45.4 47.1
 General economic and
 labor affairs 1.2 1.2 1.4 1.5 1.5
 Agriculture 0.0 0.0 0.0 0.0 0.0
 Energy 4.3 4.2 3.7 3.7 3.8
 Natural resources 2.2 2.2 2.5 2.7 2.8
 Transportation 30.1 31.5 33.7 37.2 38.8
 Highways 25.0 26.1 27.5 29.9 31.0
 Air 2.3 2.4 2.6 3.1 3.4
 Water 0.6 0.6 0.6 0.7 0.6
 Transit and railroad 2.3 2.4 3.0 3.5 3.8
 Other 0.3 0.3 0.3 0.3 0.3

Housing and community
 services 20.7 21.5 22.2 24.1 24.9
 Water 6.0 6.0 6.3 7.1 7.3
 Sewerage 7.5 7.7 7.6 8.1 8.3
 Sanitation 4.1 4.6 5.1 5.4 5.5
 Other 3.0 3.1 3.2 3.6 3.8

Health 8.4 9.1 9.9 11.3 11.6

Recreation and culture 8.3 8.8 9.7 10.9 11.3

Education 184.8 199.1 215.6 234.0 247.8
 Elementary and
 secondary 173.9 187.1 202.4 219.7 232.7
 Higher 7.8 8.7 9.5 10.3 10.8
 Libraries 3.1 3.4 3.6 4.0 4.3
 Other 0.0 0.0 0.0 0.0 0.0

Income security 9.0 9.6 10.7 12.0 12.9
 Disability 0.0 0.0 0.0 0.0 0.0
 Welfare and social
 services 9.0 9.6 10.7 12.0 12.9
 Other 0.0 0.0 0.0 0.0 0.0

 1992 1993 1994 1995 1996

 Local 489.1 506.8 532.7 563.4 594.6
General public service 50.2 52.8 56.2 59.3 62.0
 Executive and
 legislative 8.5 8.8 9.4 10.0 10.6
 Tax collection and
 financial management 13.4 13.8 14.8 15.7 16.3
 Other 28.3 30.1 32.0 33.6 35.1

Public order and safety 71.3 74.6 79.4 84.2 90.2
 Police 33.0 34.9 37.2 39.9 43.4
 Fire 16.4 17.0 17.9 18.5 19.3
 Law courts 10.8 11.4 12.2 12.9 13.8
 Prisons 11.0 11.4 12.2 12.9 13.8

Economic affairs 48.2 50.8 53.4 54.8 57.0
 General economic and
 labor affairs 1.4 1.5 1.6 1.7 1.7
 Agriculture 0.0 0.0 0.0 0.0 0.0
 Energy 4.1 4.2 3.7 3.8 3.3
 Natural resources 2.8 2.7 3.1 3.3 3.5
 Transportation 39.7 42.3 44.8 45.7 48.2
 Highways 31.1 32.5 34.8 36.4 38.8
 Air 4.0 4.4 3.7 3.0 3.1
 Water 0.5 0.7 0.8 0.8 0.9
 Transit and railroad 4.0 4.6 5.4 5.5 5.4
 Other 0.2 0.2 0.2 0.2 0.3

Housing and community
 services 25.0 23.6 23.0 24.0 25.5
 Water 6.7 6.3 6.7 6.9 8.0
 Sewerage 8.7 7.8 6.9 7.4 8.2
 Sanitation 5.5 5.6 5.9 5.6 5.8
 Other 4.2 3.9 3.5 4.2 3.5

Health 11.8 10.8 10.9 9.7 10.6

Recreation and culture 11.8 12.0 12.7 13.6 14.3

Education 256.8 267.5 281.8 302.2 318.9
 Elementary and
 secondary 242.6 252.4 265.7 285.5 301.7
 Higher 9.8 10.5 11.3 11.6 11.8
 Libraries 4.4 4.5 4.8 5.1 5.5
 Other 0.0 0.0 0.0 0.0 0.0

Income security 13.9 14.7 15.3 15.6 16.0
 Disability 0.0 0.0 0.0 0.0 0.0
 Welfare and social
 services 13.9 14.7 15.3 15.6 16.0
 Other 0.0 0.0 0.0 0.0 0.0

 1997 1998 1999 2000 2001

 Local 639.4 675.4 724.6 779.3 819.5
General public service 70.6 75.4 82.3 89.9 90.5
 Executive and
 legislative 11.3 12.8 14.0 15.2 16.1
 Tax collection and
 financial management 17.4 18.2 19.6 21.8 21.3
 Other 41.8 44.4 48.8 52.9 53.1

Public order and safety 95.7 103.2 109.5 118.5 127.9
 Police 46.4 50.0 53.6 58.6 64.2
 Fire 20.4 21.9 23.0 24.7 26.4
 Law courts 14.6 15.3 15.9 16.9 17.7
 Prisons 14.3 15.9 17.0 18.4 19.6

Economic affairs 63.6 65.7 70.8 76.2 77.4
 General economic and
 labor affairs 3.1 3.3 3.6 3.8 4.0
 Agriculture 0.0 0.0 0.0 0.0 0.0
 Energy 4.1 3.8 4.5 6.6 3.8
 Natural resources 3.7 3.7 3.9 4.2 4.4
 Transportation 52.5 54.6 58.4 61.3 64.9
 Highways 41.9 44.0 46.8 49.0 51.7
 Air 4.2 4.8 5.5 5.6 5.9
 Water 0.9 0.9 1.2 1.3 1.5
 Transit and railroad 5.4 4.8 4.9 5.3 5.8
 Other 0.2 0.3 0.3 0.3 0.3

Housing and community
 services 27.0 25.8 25.4 23.9 25.4
 Water 8.5 8.8 9.1 8.2 8.9
 Sewerage 8.7 7.7 7.5 6.8 7.2
 Sanitation 6.1 5.7 5.8 6.1 6.0
 Other 3.7 3.6 3.1 2.8 3.2

Health 10.1 12.0 14.4 16.4 16.9

Recreation and culture 15.5 16.2 17.4 18.4 19.2

Education 340.5 359.4 385.6 415.1 439.8
 Elementary and
 secondary 321.8 339.7 364.8 392.8 416.5
 Higher 12.6 13.3 14.0 15.0 15.6
 Libraries 6.1 6.4 6.8 7.3 7.6
 Other 0.0 0.0 0.0 0.0 0.0

Income security 16.5 17.8 19.1 21.1 22.5
 Disability 0.0 0.0 0.0 0.0 0.0
 Welfare and social
 services 16.5 17.8 19.1 21.1 22.5
 Other 0.0 0.0 0.0 0.0 0.0

Table 6. State Government Current Expenditures by Function

[Billions of dollars]

 1959 1960 1961 1962 1963 1964

 State 12.3 13.2 14.1 15.3 16.5 17.9

General public service 1.1 1.3 1.4 1.5 1.6 1.7
 Executive and legislative 0.2 0.2 0.2 0.2 0.2 0.2
 Tax collection and
 financial management 0.6 0.7 0.7 0.8 0.8 0.9
 Net interest paid 0.1 0.1 0.1 0.2 0.2 0.2
 Other 0.3 0.3 0.3 0.3 0.4 0.5

Public order and safety 0.7 0.8 0.8 0.9 1.0 1.1
 Police 0.2 0.3 0.3 0.3 0.3 0.3
 Fire 0.0 0.0 0.0 0.0 0.0 0.0
 Law courts 0.1 0.1 0.1 0.2 0.2 0.2
 Prisons 0.4 0.4 0.4 0.5 0.5 0.5

Economic affairs 3.1 3.2 3.5 3.7 4.0 4.2
 General economic and labor
 affairs 0.6 0.6 0.7 0.7 0.8 0.8
 Agriculture 0.3 0.4 0.4 0.4 0.4 0.5
 Energy 0.0 0.0 0.0 0.0 0.0 0.0
 Natural resources 0.3 0.3 0.4 0.4 0.4 0.4
 Transportation 2.1 2.1 2.3 2.5 2.6 2.8
 Highways 2.0 2.1 2.3 2.4 2.6 2.8
 Air 0.0 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Transit and railroad 0.0 0.0 0.0 0.0 0.0 0.0
 Other -0.2 -0.2 -0.2 -0.3 -0.2 -0.2

Housing and community
 services 0.0 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.0 0.0 0.0 0.0 0.0 0.0
 Sanitation 0.0 0.0 0.0 0.0 0.0 0.0
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Health 2.0 2.2 2.4 2.7 3.0 3.3

Recreation and culture 0.0 0.0 0.0 0.0 0.0 0.0

Education 2.0 2.3 2.4 2.8 3.1 3.5
 Elementary and secondary 0.1 0.1 0.1 0.1 0.1 0.2
 Higher 1.5 1.8 1.9 2.2 2.4 2.7
 Libraries 0.0 0.0 0.0 0.0 0.0 0.0
 Other 0.3 0.3 0.4 0.4 0.5 0.6

Income security 3.4 3.5 3.5 3.7 3.9 4.1
 Disability 0.4 0.5 0.5 0.6 0.7 0.7
 Welfare and social services 2.9 3.0 3.0 3.1 3.2 3.4
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1965 1966 1967 1968 1969 1970

 State 19.6 22.0 25.7 29.3 33.3 38.8

General public service 2.0 2.2 2.5 2.3 2.6 2.9
 Executive and legislative 0.2 0.2 0.3 0.3 0.4 0.4
 Tax collection and
 financial management 0.9 1.1 1.2 1.3 1.5 1.7
 Net interest paid 0.2 0.1 0.1 -0.4 -0.6 -0.8
 Other 0.7 0.8 0.9 1.2 1.4 1.5

Public order and safety 1.2 1.3 1.5 1.7 1.9 2.2
 Police 0.4 0.4 0.5 0.6 0.6 0.7
 Fire 0.0 0.0 0.0 0.0 0.0 0.0
 Law courts 0.2 0.2 0.3 0.3 0.4 0.4
 Prisons 0.6 0.6 0.7 0.8 0.9 1.0

Economic affairs 4.6 5.0 5.6 6.0 6.7 7.6
 General economic and labor
 affairs 0.9 1.0 1.1 1.2 1.3 1.5
 Agriculture 0.5 0.5 0.6 0.7 0.8 0.8
 Energy 0.0 0.0 0.0 -0.1 -0.1 0.0
 Natural resources 0.5 0.5 0.6 0.6 0.6 0.6
 Transportation 3.0 3.3 3.6 4.0 4.5 5.1
 Highways 3.0 3.3 3.6 4.0 4.4 5.0
 Air 0.0 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Transit and railroad 0.0 0.0 0.0 0.0 0.0 0.1
 Other -0.3 -0.3 -0.3 -0.4 -0.4 -0.4

Housing and community
 services 0.0 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.0 0.0 0.0 0.0 0.0 0.0
 Sanitation 0.0 0.0 0.0 0.0 0.0 0.0
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Health 3.7 4.3 5.3 6.8 7.8 9.2

Recreation and culture 0.0 0.0 0.0 0.1 0.1 0.1

Education 3.9 4.6 5.7 6.6 7.6 8.9
 Elementary and secondary 0.2 0.2 0.2 0.2 0.3 0.3
 Higher 3.0 3.4 4.1 4.7 5.4 6.2
 Libraries 0.0 0.0 0.0 0.1 0.1 0.1
 Other 0.7 1.0 1.3 1.6 1.9 2.3

Income security 4.3 4.6 5.2 5.8 6.6 7.9
 Disability 0.7 0.8 0.8 0.9 1.0 1.0
 Welfare and social services 3.6 3.9 4.4 4.9 5.7 6.9
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1971 1972 1973 1974 1975 1976

 State 44.7 49.7 55.0 62.1 74.0 82.4

General public service 3.4 3.9 4.1 4.6 5.9 7.3
 Executive and legislative 0.5 0.6 0.7 0.8 0.9 0.9
 Tax collection and
 financial management 1.7 1.8 2.1 2.3 2.6 2.7
 Net interest paid -0.5 -0.4 -1.0 -1.7 -1.3 -0.2
 Other 1.6 1.9 2.4 3.1 3.7 4.0

Public order and safety 2.5 2.8 3.3 3.8 4.4 4.8
 Police 0.9 1.0 1.1 1.2 1.4 1.5
 Fire 0.0 0.0 0.0 0.0 0.0 0.0
 Law courts 0.5 0.6 0.7 0.7 0.8 0.9
 Prisons 1.2 1.3 1.5 1.9 2.2 2.5

Economic affairs 8.5 9.0 10.0 12.4 14.3 14.9
 General economic and labor
 affairs 1.8 2.0 2.2 2.5 2.9 3.3
 Agriculture 0.9 1.0 1.0 1.1 1.3 1.4
 Energy 0.0 0.0 0.0 0.0 0.0 -0.1
 Natural resources 0.7 0.7 0.8 0.9 1.1 1.2
 Transportation 5.7 6.0 6.8 8.7 9.9 10.1
 Highways 5.6 5.9 6.6 8.4 9.5 9.7
 Air 0.0 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Transit and railroad 0.1 0.1 0.2 0.3 0.3 0.3
 Other -0.5 -0.6 -0.7 -0.8 -0.8 -0.9

Housing and community
 services 0.0 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.0 0.0 0.0 0.0 0.0 0.0
 Sanitation 0.0 0.0 0.0 0.0 0.0 0.0
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Health 10.9 12.5 14.3 16.9 20.4 22.5

Recreation and culture 0.1 0.2 0.2 0.2 0.3 0.3

Education 10.2 11.2 12.1 14.1 16.9 18.9
 Elementary and secondary 0.4 0.4 0.4 0.4 0.5 0.5
 Higher 7.0 7.7 8.4 9.8 11.9 13.5
 Libraries 0.1 0.1 0.1 0.1 0.1 0.1
 Other 2.7 3.1 3.3 3.8 4.4 4.8

Income security 9.2 10.2 11.1 10.1 12.0 13.5
 Disability 1.1 1.2 1.4 1.5 1.7 1.9
 Welfare and social services 8.1 8.9 9.7 8.6 10.3 11.6
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1977 1978 1979 1980 1981

 State 89.4 97.5 107.0 121.9 135.5

General public service 8.1 7.6 7.3 8.0 7.9
 Executive and legislative 1.0 0.8 1.0 1.2 1.3
 Tax collection and
 financial management 3.0 3.4 3.7 3.9 4.0
 Net interest paid -0.3 -1.7 -3.6 -4.7 -5.5
 Other 4.5 5.1 6.1 7.6 8.1

Public order and safety 5.4 6.4 7.5 8.7 9.8
 Police 1.6 1.8 2.0 2.3 2.5
 Fire 0.0 0.0 0.0 0.0 0.0
 Law courts 1.0 1.4 1.9 2.2 2.4
 Prisons 2.8 3.2 3.7 4.2 4.9

Economic affairs 15.5 17.2 18.8 22.0 24.7
 General economic and labor
 affairs 3.6 4.3 4.6 5.2 5.5
 Agriculture 1.4 1.5 1.7 1.9 2.1
 Energy -0.1 -0.1 -0.1 -0.1 -0.2
 Natural resources 1.3 1.4 1.6 1.9 2.1
 Transportation 10.4 11.2 12.5 14.7 17.0
 Highways 10.0 10.7 11.9 13.9 16.0
 Air 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.1
 Transit and railroad 0.3 0.4 0.6 0.7 0.9
 Other -1.1 -1.2 -1.5 -1.6 -1.7

Housing and community
 services 0.1 0.1 0.1 0.1 0.1
 Water 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.1 0.1 0.1 0.1 0.2
 Sanitation 0.0 0.0 0.0 0.0 0.0
 Other 0.0 0.0 0.0 0.0 0.0

Health 24.7 27.6 30.8 35.2 40.3

Recreation and culture 0.4 0.5 0.5 0.6 0.6

Education 20.5 22.3 24.5 27.0 29.9
 Elementary and secondary 0.6 0.6 0.7 0.8 0.8
 Higher 14.7 16.0 17.7 19.7 22.0
 Libraries 0.1 0.1 0.1 0.1 0.1
 Other 5.2 5.6 6.0 6.4 6.9

Income security 14.7 15.9 17.4 20.4 22.3
 Disability 2.2 2.4 2.8 3.1 3.5
 Welfare and social services 12.5 13.5 14.6 17.3 18.7
 Other 0.0 0.0 0.0 0.0 0.0

 1982 1983 1984 1985 1986

 State 146.7 157.8 168.4 182.7 198.5

General public service 8.8 11.0 12.3 13.1 15.5
 Executive and legislative 1.5 1.6 1.7 1.9 2.1
 Tax collection and
 financial management 4.5 5.0 5.4 6.3 7.1
 Net interest paid -5.7 -5.2 -6.1 -7.5 -7.3
 Other 8.6 9.6 11.3 12.3 13.6

Public order and safety 11.2 12.6 14.0 15.8 17.5
 Police 2.7 2.9 3.1 3.4 3.6
 Fire 0.0 0.0 0.0 0.0 0.0
 Law courts 2.7 3.1 3.4 3.7 4.0
 Prisons 5.8 6.6 7.5 8.7 9.8

Economic affairs 26.4 26.6 26.6 27.5 29.2
 General economic and labor
 affairs 5.5 5.4 5.5 5.8 6.2
 Agriculture 2.3 2.5 2.6 2.8 3.0
 Energy -0.2 -0.3 -0.5 -0.5 -0.4
 Natural resources 2.3 2.4 2.6 2.8 3.1
 Transportation 18.6 19.4 19.9 21.0 22.4
 Highways 17.5 18.1 18.5 19.6 20.9
 Air 0.1 0.0 0.0 0.0 0.0
 Water 0.1 0.1 0.1 0.1 0.1
 Transit and railroad 1.0 1.2 1.3 1.3 1.4
 Other -2.2 -2.8 -3.5 -4.5 -5.1

Housing and community
 services 0.1 0.0 0.1 0.2 0.3
 Water 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.2 0.2 0.2 0.2 0.2
 Sanitation 0.0 0.0 0.0 0.0 0.0
 Other -0.1 -0.1 -0.1 0.0 0.1

Health 43.6 47.2 50.8 55.4 60.5

Recreation and culture 0.7 0.7 0.8 0.9 1.0

Education 32.2 33.6 36.0 39.8 42.3
 Elementary and secondary 0.9 0.9 1.0 1.1 1.2
 Higher 24.0 25.3 27.1 29.9 31.6
 Libraries 0.2 0.2 0.2 0.2 0.2
 Other 7.1 7.2 7.7 8.5 9.2

Income security 23.8 26.0 27.9 30.0 32.2
 Disability 4.1 4.4 4.9 5.4 6.0
 Welfare and social services 19.8 21.6 23.0 24.6 26.1
 Other 0.0 0.0 0.0 0.0 0.0

 1987 1988 1989 1990 1991

 State 213.3 227.7 246.4 276.8 312.9

General public service 17.4 17.3 17.8 19.4 22.1
 Executive and legislative 2.3 2.4 2.6 2.9 3.0
 Tax collection and
 financial management 7.5 8.0 8.5 9.0 9.7
 Net interest paid -7.2 -8.2 -9.5 -9.4 -8.0
 Other 14.7 15.0 16.2 16.9 17.4

Public order and safety 19.5 21.5 23.9 27.1 29.4
 Police 4.0 4.2 4.5 5.0 5.3
 Fire 0.0 0.0 0.0 0.0 0.0
 Law courts 4.4 5.0 5.5 6.1 6.6
 Prisons 11.1 12.3 13.9 16.1 17.6

Economic affairs 30.4 30.7 31.2 33.3 35.0
 General economic and labor
 affairs 6.6 6.9 7.6 8.1 8.5
 Agriculture 3.2 3.2 3.4 3.7 3.9
 Energy -0.4 -0.5 -0.4 -0.4 -0.4
 Natural resources 3.4 3.8 3.9 4.0 4.3
 Transportation 23.3 24.0 24.4 25.8 26.9
 Highways 21.7 22.3 22.6 23.8 24.9
 Air 0.0 -0.1 -0.1 -0.1 -0.2
 Water 0.1 0.1 0.1 0.1 0.1
 Transit and railroad 1.5 1.7 1.8 2.0 2.1
 Other -5.6 -6.7 -7.6 -8.0 -8.2

Housing and community
 services 0.6 0.8 1.0 1.3 1.5
 Water 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.3 0.3 0.3 0.4 0.4
 Sanitation 0.0 0.2 0.3 0.6 0.9
 Other 0.3 0.4 0.4 0.3 0.2

Health 66.1 72.4 81.1 95.1 118.2

Recreation and culture 1.1 1.2 1.4 1.6 1.6

Education 44.0 46.7 50.3 54.4 55.6
 Elementary and secondary 1.3 1.3 1.5 1.6 1.8
 Higher 32.6 34.8 37.2 40.1 40.8
 Libraries 0.3 0.3 0.2 0.3 0.3
 Other 9.8 10.4 11.4 12.4 12.8

Income security 34.3 37.0 39.8 44.6 49.3
 Disability 7.0 8.0 8.8 10.4 11.8
 Welfare and social services 27.2 29.1 31.0 34.2 37.6
 Other 0.0 0.0 0.0 0.0 0.0

 1992 1993 1994 1995 1996

 State 342.3 366.1 386.5 403.9 417.3

General public service 24.5 26.2 27.2 25.4 25.3
 Executive and legislative 3.0 3.1 3.3 3.3 3.5
 Tax collection and
 financial management 10.1 10.5 11.5 11.6 11.5
 Net interest paid -6.9 -6.3 -7.3 -9.6 -9.9
 Other 18.3 18.9 19.8 20.1 20.3

Public order and safety 31.3 33.5 36.1 39.3 42.3
 Police 5.4 5.6 5.9 6.4 6.9
 Fire 0.0 0.0 0.0 0.0 0.0
 Law courts 7.0 7.4 7.7 8.3 8.8
 Prisons 18.9 20.5 22.5 24.7 26.7

Economic affairs 36.6 37.6 38.5 40.0 40.7
 General economic and labor
 affairs 9.3 9.6 9.7 9.8 10.0
 Agriculture 4.0 4.0 4.1 4.1 4.2
 Energy -0.4 -0.4 -0.3 -0.3 -0.4
 Natural resources 4.7 5.1 5.5 5.8 5.8
 Transportation 28.1 29.1 30.4 32.0 33.4
 Highways 26.1 27.1 28.2 29.8 31.0
 Air -0.2 -0.1 -0.1 -0.1 -0.1
 Water 0.1 0.1 0.1 0.1 0.1
 Transit and railroad 2.1 2.1 2.2 2.3 2.4
 Other -9.0 -9.8 -10.8 -11.6 -12.4

Housing and community
 services 1.5 1.6 1.9 2.1 2.1
 Water 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.4 0.5 0.7 0.7 0.7
 Sanitation 0.9 0.9 1.0 1.1 1.2
 Other 0.2 0.2 0.2 0.2 0.2

Health 136.3 148.6 157.4 167.4 175.4

Recreation and culture 1.6 1.7 1.8 1.9 1.9

Education 57.1 61.2 64.9 67.8 69.9
 Elementary and secondary 1.9 1.9 1.9 2.3 2.5
 Higher 41.6 44.6 46.9 47.8 48.9
 Libraries 0.3 0.3 0.3 0.3 0.3
 Other 13.4 14.5 15.8 17.5 18.2

Income security 53.4 55.7 58.7 60.0 59.8
 Disability 13.0 13.0 12.8 13.0 13.3
 Welfare and social services 40.4 42.6 45.9 47.0 46.5
 Other 0.0 0.0 0.0 0.0 0.0

 1997 1998 1999 2000 2001

 State 429.1 446.2 482.4 525.3 585.1

General public service 26.7 29.0 31.5 34.7 38.9
 Executive and legislative 3.6 3.6 3.9 4.3 4.6
 Tax collection and
 financial management 12.6 12.3 13.3 14.5 14.7
 Net interest paid -11.7 -11.6 -12.9 -14.7 -14.8
 Other 22.2 24.8 27.2 30.6 34.4

Public order and safety 45.2 46.8 51.4 56.5 60.6
 Police 7.2 7.4 8.2 9.1 10.1
 Fire 0.0 0.0 0.0 0.0 0.0
 Law courts 9.7 10.7 12.1 13.4 14.3
 Prisons 28.2 28.7 31.1 34.0 36.2

Economic affairs 41.9 42.9 47.1 52.5 63.4
 General economic and labor
 affairs 10.2 10.0 10.5 11.2 11.6
 Agriculture 4.4 4.4 5.0 5.7 5.6
 Energy -0.4 -0.5 -0.4 -0.3 6.9
 Natural resources 5.8 5.8 6.1 6.6 7.2
 Transportation 34.8 36.0 38.8 42.6 45.7
 Highways 32.4 33.5 36.0 39.5 42.4
 Air -0.1 -0.1 -0.1 -0.1 -0.1
 Water 0.1 0.1 0.1 0.1 0.1
 Transit and railroad 2.4 2.6 2.8 3.1 3.3
 Other -12.9 -12.9 -13.0 -13.3 -13.6

Housing and community
 services 2.3 2.7 3.0 3.5 3.6
 Water 0.0 0.0 0.0 0.0 0.0
 Sewerage 0.7 0.6 0.7 0.7 0.7
 Sanitation 1.3 1.4 1.7 2.0 2.1
 Other 0.3 4.6 0.6 0.8 0.8

Health 178.3 182.9 199.2 218.0 248.2

Recreation and culture 2.0 2.1 2.3 2.5 2.7

Education 71.7 76.4 80.7 86.4 92.2
 Elementary and secondary 2.7 3.0 3.1 3.3 3.4
 Higher 50.3 53.5 56.3 59.9 63.9
 Libraries 0.3 0.3 0.3 0.4 0.4
 Other 18.4 19.6 21.1 22.9 24.5

Income security 61.0 63.4 67.1 71.1 75.4
 Disability 13.3 13.4 13.5 13.9 14.3
 Welfare and social services 47.7 50.0 53.6 57.3 61.1
 Other 0.0 0.0 0.0 0.0 0.0

Table 7. Local Government Current Expenditures by Function

[Billions of dollars]

 1959 1960 1961 1962 1963 1964

 Local 22.8 24.9 27.5 29.2 31.1 34.1

General public service 2.7 2.9 3.4 3.5 3.6 3.8
 Executive and legislative 0.5 0.6 0.6 0.6 0.6 0.6
 Tax collection and
 financial management 0.7 0.8 0.8 0.9 0.9 1.0
 Net interest paid 0.7 0.7 0.8 0.9 0.9 0.9
 Other 0.8 0.8 1.1 1.2 1.2 1.3

Public order and safety 3.1 3.4 3.6 3.8 4.0 4.3
 Police 1.6 1.7 1.8 1.9 2.1 2.2
 Fire 0.9 1.0 1.1 1.1 1.2 1.3
 Law courts 0.4 0.4 0.5 0.5 0.5 0.5
 Prisons 0.2 0.2 0.3 0.3 0.3 0.3

Economic affairs 2.0 2.1 2.2 2.3 2.3 2.5
 General economic and labor
 affairs 0.1 0.1 0.1 0.1 0.1 0.1
 Agriculture 0.0 0.0 0.0 0.0 0.0 0.0
 Energy -0.4 -0.5 -0.5 -0.5 -0.6 -0.6
 Natural resources 0.1 0.2 0.2 0.2 0.2 0.2
 Transportation 2.3 2.4 2.5 2.5 2.7 2.8
 Highways 2.2 2.4 2.5 2.5 2.7 2.8
 Air 0.0 0.0 0.0 0.0 0.0 0.0
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Transit and railroad 0.0 0.1 0.0 0.0 0.1 0.1
 Other 0.0 0.0 -0.1 0.0 0.0 0.0

Housing and community
 services 0.3 0.3 0.3 0.3 0.2 0.2
 Water -0.4 -0.4 -0.4 -0.5 -0.5 -0.6
 Sewerage 0.3 0.3 0.3 0.3 0.2 0.3
 Sanitation 0.5 0.5 0.5 0.6 6.0 0.6
 Other -0.1 -0.1 -0.1 -0.1 -0.1 -0.1

Health 1.1 1.2 1.3 1.3 1.4 1.5

Recreation and culture 0.5 0.5 0.6 0.6 0.6 0.7

Education 12.0 13.4 14.8 16.1 17.6 19.5
 Elementary and secondary 11.6 13.0 14.3 15.6 17.0 18.8
 Higher 0.2 0.2 0.2 0.2 0.3 0.3
 Libraries 0.2 0.2 0.3 0.3 0.3 0.3
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Income security 1.0 1.1 1.2 1.3 1.4 1.6
 Disability 0.0 0.0 0.0 0.0 0.0 0.0
 Welfare and social services 1.0 1.1 1.2 1.3 1.4 1.6
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1965 1966 1967 1968 1969 1970

 Local 37.2 41.7 46.2 52.8 59.5 68.7

General public service 4.0 4.3 4.6 5.9 6.5 7.5
 Executive and legislative 0.7 0.7 0.8 1.0 1.1 1.2
 Tax collection and
 financial management 1.0 1.1 1.2 1.4 1.6 1.8
 Net interest paid 0.9 0.9 0.9 1.4 1.5 1.7
 Other 1.5 1.6 1.8 2.1 2.3 2.8

Public order and safety 4.6 5.0 5.6 6.5 7.1 8.1
 Police 2.4 2.6 2.9 3.5 3.8 4.3
 Fire 1.4 1.5 1.6 1.8 2.0 2.2
 Law courts 0.6 0.6 0.7 0.8 0.9 1.0
 Prisons 0.3 0.4 0.4 0.5 0.5 0.6

Economic affairs 2.8 3.1 3.4 3.7 4.3 4.7
 General economic and labor
 affairs 0.2 0.2 0.2 0.3 0.3 0.3
 Agriculture 0.0 0.0 0.0 0.0 0.0 0.0
 Energy -0.7 -0.6 -0.7 -0.7 -0.7 -0.7
 Natural resources 0.2 0.3 0.3 0.3 0.3 0.3
 Transportation 3.0 3.2 3.5 3.8 4.2 4.6
 Highways 2.9 3.2 3.4 3.6 4.0 4.4
 Air 0.0 0.0 -1.0 -0.1 -0.1 -0.1
 Water 0.0 0.0 0.0 0.0 0.0 0.0
 Transit and railroad 0.1 0.1 0.2 0.2 0.3 0.3
 Other 0.0 0.0 0.0 0.1 0.2 0.2

Housing and community
 services 0.3 0.4 0.6 0.7 0.7 0.8
 Water -0.6 -0.6 -0.6 -0.6 -0.6 -0.7
 Sewerage 0.3 0.3 0.4 0.5 0.4 0.4
 Sanitation 0.6 0.7 0.8 0.9 0.9 1.0
 Other -0.1 0.0 0.0 0.0 0.0 0.0

Health 1.6 1.7 1.8 2.2 2.4 2.8

Recreation and culture 0.7 0.8 0.9 1.0 1.1 1.3

Education 21.4 24.3 26.9 29.8 33.7 38.9
 Elementary and secondary 20.6 23.3 25.7 28.4 32.2 36.9
 Higher 0.4 0.6 0.7 0.9 1.0 1.4
 Libraries 0.4 0.4 0.4 0.5 0.5 0.6
 Other 0.0 0.0 0.0 0.0 0.0 0.0

Income security 1.8 2.0 2.4 3.0 3.7 4.7
 Disability 0.0 0.0 0.0 0.0 0.0 0.0
 Welfare and social services 1.8 2.0 2.4 3.0 3.7 4.7
 Other 0.0 0.0 0.0 0.0 0.0 0.0

 1971 1972 1973 1974 1975

 Local 78.2 86.9 95.9 107.1 123.2

General public service 8.8 10.7 11.5 12.5 14.9
 Executive and legislative 1.3 1.5 1.7 2.1 2.4
 Tax collection and
 financial management 1.9 2.1 2.3 2.5 2.9
 Net interest paid 2.2 2.7 2.3 1.8 2.5
 Other 3.4 4.5 5.2 6.0 7.2

Public order and safety 9.2 10.1 11.3 12.8 14.6
 Police 4.9 5.4 6.0 6.8 7.7
 Fire 2.5 2.7 3.0 3.3 3.8
 Law courts 1.1 1.2 1.4 1.6 1.8
 Prisons 0.7 0.8 0.9 1.1 1.3

Economic affairs 5.3 5.7 6.4 8.0 9.4
 General economic and labor
 affairs 0.3 0.3 0.4 0.5 0.8
 Agriculture 0.0 0.0 0.0 0.0 0.0
 Energy -0.7 -0.8 -0.9 -0.8 -0.9
 Natural resources 0.4 0.4 0.5 0.6 0.7
 Transportation 5.1 5.6 6.2 7.6 8.6
 Highways 4.7 5.0 5.6 6.5 7.2
 Air -0.1 -0.1 -0.2 -0.2 -0.1
 Water 0.0 0.0 0.0 0.0 0.0
 Transit and railroad 0.5 0.7 0.9 1.3 1.5
 Other 0.2 0.2 0.1 0.2 0.2

Housing and community
 services 0.8 0.8 1.1 1.3 1.7
 Water -0.7 -0.7 -0.7 -0.7 -0.5
 Sewerage 0.4 0.4 0.5 0.7 0.8
 Sanitation 1.1 1.2 1.3 1.4 1.6
 Other 0.0 -0.1 0.0 -0.2 -0.1

Health 3.2 3.5 3.8 4.3 4.8

Recreation and culture 1.4 1.5 1.7 2.0 2.3

Education 43.5 48.0 53.0 58.6 66.8
 Elementary and secondary 41.2 45.3 49.8 54.9 62.5
 Higher 1.7 2.0 2.4 2.8 3.3
 Libraries 0.6 0.7 0.8 0.9 1.0
 Other 0.0 0.0 0.0 0.0 0.0

Income security 5.8 6.5 6.9 7.6 8.8
 Disability 0.0 0.0 0.0 0.0 0.0
 Welfare and social services 5.8 6.5 6.9 7.6 8.8
 Other 0.0 0.0 0.0 0.0 0.0

 1976 1977 1978 1979 1980

 Local 134.8 146.9 158.1 170.8 185.9

General public service 17.1 19.0 19.0 19.0 18.3
 Executive and legislative 2.6 2.8 2.7 2.9 3.2
 Tax collection and
 financial management 3.1 3.5 4.2 4.6 5.0
 Net interest paid 3.3 3.3 2.4 1.3 -0.8
 Other 8.2 9.4 9.7 10.3 10.9

Public order and safety 16.0 17.5 19.6 21.4 23.7
 Police 8.4 9.3 10.1 11.1 12.1
 Fire 4.2 4.5 4.9 5.4 5.9
 Law courts 2.0 2.1 2.9 3.1 3.5
 Prisons 1.4 1.6 1.7 1.9 2.2

Economic affairs 9.8 10.4 12.2 13.5 15.0
 General economic and labor
 affairs 1.0 1.1 1.8 1.8 1.9
 Agriculture 0.0 0.0 0.0 0.0 0.0
 Energy -1.0 -1.1 -1.1 -1.2 -1.1
 Natural resources 0.7 0.6 0.7 0.8 0.9
 Transportation 8.9 9.5 10.6 11.8 13.0
 Highways 7.6 8.1 9.0 9.8 10.8
 Air -0.2 -2.0 -0.2 -0.3 -0.3
 Water 0.0 0.0 -0.1 -0.1 -0.1
 Transit and railroad 1.5 1.6 1.8 2.3 2.6
 Other 0.2 0.2 0.2 0.2 0.2

Housing and community
 services 2.2 2.4 2.8 3.2 3.9
 Water -0.4 -0.5 -0.5 -0.5 -0.4
 Sewerage 1.0 1.2 1.3 1.5 1.7
 Sanitation 1.7 1.8 2.0 2.1 2.4
 Other -0.1 -0.1 0.0 0.1 0.3

Health 4.5 5.2 5.5 5.4 6.0

Recreation and culture 2.4 2.6 2.9 3.2 3.5

Education 73.4 79.5 85.5 94.0 102.8
 Elementary and secondary 68.8 74.5 80.1 88.2 96.3
 Higher 3.6 4.0 4.2 4.5 5.0
 Libraries 1.0 1.1 1.2 1.3 1.5
 Other 0.0 0.0 0.0 0.0 0.0

Income security 9.5 10.3 10.6 11.1 12.6
 Disability 0.0 0.0 0.0 0.0 0.0
 Welfare and social services 9.5 10.3 10.6 11.1 12.6
 Other 0.0 0.0 0.0 0.0 0.0

 1981 1982 1983 1984 1985

 Local 201.4 215.8 229.5 244.2 264.3

General public service 18.7 20.4 23.4 23.8 26.2
 Executive and legislative 3.7 4.2 4.2 4.2 4.6
 Tax collection and
 financial management 5.3 6.0 6.5 7.1 8.2
 Net interest paid -2.1 -1.8 -2.0 -8.0 -5.0
 Other 11.7 11.9 12.9 13.2 13.9

Public order and safety 26.8 29.9 32.1 34.4 37.9
 Police 13.7 15.2 16.2 17.2 18.9
 Fire 6.7 7.4 8.0 8.5 9.3
 Law courts 3.9 4.4 4.7 5.0 5.5
 Prisons 2.5 2.9 3.3 3.7 4.3

Economic affairs 16.8 18.2 18.8 19.0 20.3
 General economic and labor
 affairs 1.7 1.6 1.5 1.4 1.6
 Agriculture 0.0 0.0 0.0 0.0 0.0
 Energy -1.3 -1.6 -1.9 -2.5 -2.7
 Natural resources 1.1 1.1 1.2 1.3 1.4
 Transportation 15.1 16.8 17.9 18.6 19.8
 Highways 11.8 13.0 13.4 14.0 15.1
 Air -0.3 -3.0 -0.4 -0.5 -0.6
 Water 0.0 0.0 0.0 0.0 -0.1
 Transit and railroad 3.6 4.1 4.8 5.2 5.5
 Other 0.3 0.2 0.2 0.2 0.2

Housing and community
 services 4.5 3.9 3.0 2.6 2.2
 Water -0.4 -0.4 -0.8 -1.4 -1.8
 Sewerage 2.0 2.1 1.8 1.5 1.3
 Sanitation 2.6 2.6 2.6 2.6 2.8
 Other 0.3 -0.3 -0.6 -0.2 -0.1

Health 6.2 6.3 5.9 6.3 6.9

Recreation and culture 3.8 4.3 4.6 5.0 5.6

Education 110.9 119.0 126.2 136.9 147.9
 Elementary and secondary 103.8 111.2 118.5 129.0 139.4
 Higher 5.5 5.9 5.7 5.8 6.2
 Libraries 1.6 1.8 1.9 2.1 2.3
 Other 0.0 0.0 0.0 0.0 0.0

Income security 13.6 14.0 15.5 16.3 17.4
 Disability 0.0 0.0 0.0 0.0 0.0
 Welfare and social services 13.6 14.0 15.5 16.3 17.4
 Other 0.0 0.0 0.0 0.0 0.0

 1986 1987 1988 1989 1990

 Local 288.6 310.5 330.4 353.1 384.0

General public service 30.7 34.2 36.3 37.4 40.1
 Executive and legislative 5.0 5.4 5.8 6.2 7.0
 Tax collection and
 financial management 9.3 9.9 10.2 10.7 11.1
 Net interest paid 1.7 3.9 4.2 2.7 3.0
 Other 14.8 15.0 16.1 17.7 19.0

Public order and safety 41.2 44.5 47.8 52.4 57.4
 Police 20.3 21.6 23.1 24.9 27.2
 Fire 10.2 11.0 11.4 12.3 13.4
 Law courts 5.9 6.3 7.0 7.9 8.8
 Prisons 4.8 5.5 6.2 7.2 8.1

Economic affairs 21.8 21.9 22.5 23.4 25.3
 General economic and labor
 affairs 1.7 1.7 1.8 1.9 2.0
 Agriculture 0.0 0.0 0.0 0.0 0.0
 Energy -3.0 -3.7 -4.3 -4.7 -5.0
 Natural resources 1.4 1.5 1.6 1.7 1.9
 Transportation 21.5 22.3 23.5 24.5 26.4
 Highways 16.1 16.6 17.5 18.4 19.7
 Air -0.8 -0.8 -0.8 -1.0 -1.2
 Water -0.1 -0.1 -0.1 -0.1 -0.1
 Transit and railroad 6.3 6.7 7.0 7.2 8.0
 Other 0.2 0.1 0.0 0.0 0.0

Housing and community
 services 2.7 3.2 3.2 3.1 3.1
 Water -2.1 -2.4 -2.7 -2.7 -2.4
 Sewerage 1.2 1.0 0.6 0.4 0.1
 Sanitation 3.0 3.1 3.4 3.7 3.9
 Other 0.7 1.6 1.8 1.7 1.5

Health 7.0 7.8 8.6 9.5 11.1

Recreation and culture 6.0 6.2 6.6 7.2 7.9

Education 160.6 173.1 184.9 198.2 214.7
 Elementary and secondary 151.3 163.2 174.0 186.4 201.9
 Higher 6.8 7.2 7.9 8.6 9.4
 Libraries 2.5 2.7 2.9 3.2 3.4
 Other 0.0 0.0 0.0 0.0 0.0

Income security 18.7 19.5 20.5 22.0 24.5
 Disability 0.0 0.0 0.0 0.0 0.0
 Welfare and social services 18.7 19.5 20.5 22.0 24.5
 Other 0.0 0.0 0.0 0.0 0.0

 1991 1992 1993 1994

 Local 410.9 434.9 455.6 478.7

General public service 45.2 51.3 55.5 57.7
 Executive and legislative 7.5 7.8 8.1 8.6
 Tax collection and
 financial management 12.1 12.9 13.3 14.1
 Net interest paid 5.7 9.5 11.7 11.5
 Other 19.9 21.2 22.4 23.5

Public order and safety 62.0 67.3 70.8 75.4
 Police 29.5 31.9 33.6 35.8
 Fire 14.1 15.4 16.1 16.8
 Law courts 9.6 10.3 10.9 11.7
 Prisons 8.8 9.6 10.2 11.1

Economic affairs 27.2 28.4 28.8 31.0
 General economic and labor
 affairs 2.0 2.0 2.0 2.1
 Agriculture 0.0 0.0 0.0 0.0
 Energy -5.3 -5.5 -5.7 -5.8
 Natural resources 2.0 2.1 2.0 2.3
 Transportation 28.5 29.9 30.6 32.6
 Highways 20.7 21.5 22.4 23.5
 Air -1.2 -1.1 -1.4 -1.5
 Water -0.1 -0.1 -0.1 -0.2
 Transit and railroad 9.1 9.6 9.8 10.7
 Other -0.1 -0.1 -0.1 -0.2

Housing and community
 services 2.7 2.7 2.3 2.4
 Water -2.4 -2.5 -3.0 -3.1
 Sewerage -3.0 -0.3 -0.4 -0.9
 Sanitation 4.1 4.2 4.1 4.2
 Other 1.3 1.2 1.5 2.3

Health 12.2 12.7 12.3 13.1

Recreation and culture 8.5 9.1 9.3 9.9

Education 226.5 235.0 246.8 258.8
 Elementary and secondary 212.8 222.1 233.2 244.3
 Higher 10.0 9.0 9.6 10.2
 Libraries 3.7 3.9 4.0 4.2
 Other 0.0 0.0 0.1 0.1

Income security 26.7 28.4 29.8 30.5
 Disability 0.0 0.0 0.0 0.0
 Welfare and social services 26.7 28.4 29.8 30.5
 Other 0.0 0.0 0.0 0.0

 1995 1996 1997 1998

 Local 498.7 521.6 551.3 587.5

General public service 58.2 60.7 66.9 71.3
 Executive and legislative 9.0 9.6 10.1 11.3
 Tax collection and
 financial management 14.9 15.4 16.4 17.0
 Net interest paid 9.8 10.5 10.4 11.6
 Other 24.4 25.2 29.9 31.3

Public order and safety 79.6 85.0 89.7 97.3
 Police 38.1 41.3 44.1 47.7
 Fire 17.3 18.0 18.8 20.5
 Law courts 12.3 13.0 13.6 14.5
 Prisons 11.8 12.6 13.3 14.6

Economic affairs 32.1 33.4 36.0 38.2
 General economic and labor
 affairs 2.2 2.1 3.4 3.8
 Agriculture 0.0 0.0 0.0 0.0
 Energy -6.3 -6.7 -6.5 -6.9
 Natural resources 2.4 2.6 2.7 2.8
 Transportation 34.0 35.6 36.8 38.9
 Highways 24.8 26.2 27.2 28.6
 Air -1.6 -1.7 -2.0 -2.2
 Water -0.2 -0.3 -0.2 -0.2
 Transit and railroad 11.1 11.4 11.8 12.7
 Other -0.3 -0.3 -0.4 -0.4

Housing and community
 services 1.6 0.7 1.2 3.4
 Water -3.6 -4.0 -4.4 -4.7
 Sewerage -1.4 -1.7 -1.7 -1.8
 Sanitation 4.1 4.3 4.5 4.5
 Other 2.5 2.1 2.8 5.3

Health 12.2 13.0 12.5 13.9

Recreation and culture 10.4 10.8 11.0 11.8

Education 273.8 288.2 305.0 321.6
 Elementary and secondary 258.9 272.9 288.6 304.2
 Higher 10.3 10.5 11.1 11.8
 Libraries 4.5 4.8 5.2 5.5
 Other 0.1 0.1 0.1 0.1

Income security 30.8 29.9 29.0 30.2
 Disability 0.0 0.0 0.0 0.0
 Welfare and social services 30.8 29.9 29.0 30.2
 Other 0.0 0.0 0.0 0.0

 1999 2000 2001

 Local 623.4 670.9 707.5

General public service 76.1 82.5 85.4
 Executive and legislative 12.3 13.4 14.2
 Tax collection and
 financial management 18.2 20.4 19.9
 Net interest paid 11.8 11.4 12.2
 Other 33.8 37.2 39.0

Public order and safety 103.3 112.2 121.2
 Police 51.0 55.9 61.4
 Fire 21.5 23.2 24.8
 Law courts 15.1 16.1 16.9
 Prisons 15.6 17.0 18.1

Economic affairs 40.0 42.4 44.4
 General economic and labor
 affairs 4.0 4.2 4.6
 Agriculture 0.0 0.0 0.0
 Energy -7.6 -8.4 -9.0
 Natural resources 3.0 3.3 3.5
 Transportation 41.2 43.8 46.0
 Highways 30.2 32.3 33.6
 Air -2.3 -2.4 -2.3
 Water -0.3 -0.3 -0.3
 Transit and railroad 13.6 14.2 14.9
 Other -0.5 -0.5 -0.6

Housing and community
 services 3.0 4.3 3.9
 Water -5.3 -5.4 -5.6
 Sewerage -1.9 -1.9 -2.1
 Sanitation 4.6 5.0 5.0
 Other 5.6 6.7 6.6

Health 16.4 18.6 19.8

Recreation and culture 12.4 13.5 14.1

Education 340.3 363.1 382.6
 Elementary and secondary 322.2 344.0 362.9
 Higher 12.1 12.7 13.0
 Libraries 5.8 6.3 6.6
 Other 0.1 0.1 0.1

Income security 32.0 34.4 36.2
 Disability 0.0 0.0 0.0
 Welfare and social services 32.0 34.4 36.2
 Other 0.0 0.0 0.0

(1.) Separate estimates of State and local government finances were last published in Donald L. Peters, "Receipts and Expenditures of State Governments and of Local Governments: Revised and Updated Estimates, 1984-87" SURVEY OF CURRENT BUSINESS 68 (September 1988): 23-25.

(2.) U.S. Bureau of the Census, Compendium of Government Finances: 1997 Census of Governments, (Washington, DC, 2000).

(3.) Special districts are local governmental units with powers to raise revenue and make expenditures for special functions, such as water distribution, airports, ports, and cemeteries.

(4.) The estimates presented in table 1 exclude grants. Expenditures are attributed to the level of government that makes the expenditure, regardless of the source of funds. Negative numbers for local governments reflect revenue from government enterprises and interest earnings.

(5.) However, there are some grants from local governments to state governments, and occasionally, some from the states to the Federal Government.

(6.) Legal requirements vary among states. Some states require governors to submit balanced budgets, while others require legislatures to pass balanced budgets. Still others require that general fund revenues be sufficient to cover expenditures.

(7.) Calendar years for states are estimated as a simple average of adjacent fiscal years. Forty-six states have fiscal years ending in June; two have earlier ending dates, and two have later ending dates. For local governments, an average of 1/3 for year t-1 and 2/3 for year t is used because of the prevalence of fiscal years ending in December.

(8.) Another widely recognized source of state data is the National Conference of State Legislatures (NCSL). NASBO and NCSL produce similar estimates.

(9.) A complete reconciliation of the NIPA receipts and expenditures to the GF data is shown in NIPA table 3.19 on BEA's Web site at <www.bea.gov>.

(10.) The adjusted NIPA surplus includes net investment and sales.

(11.) The NASBO surplus or deficit estimates are estimated as the yearly change in the combined balance of general and "rainy day" funds.

RELATED ARTICLE: Preparing the state and local government estimates.

Preparing the estimates for the NIPA's is like putting together a puzzle. The pieces of the puzzle are derived from many data sources. Sometimes, the pieces do not fit neatly together, resulting in statistical inconsistencies, and sometimes, pieces are missing.

Eventually, all of the puzzle pieces become available. In the State and local government sector, the estimates are mainly derived from a single data source--the Census Bureau's Government Finances--so when these data are incorporated into the accounts, the internal discrepancies are few. (1) The series of surveys in Government Finances provides full coverage of the 50 states and sample-based coverage of local governmental units--municipalities, counties, townships, school districts, and "special districts." Government Finances contains detailed data on receipts by source and on spending by function. Unfortunately, the data are only available on a fiscal year basis and with a lag of up to 2 years for state government data and of up to 3 years for local government data.

Before the Government Finances data become available, state and local government estimates must be derived from other source data. Fortunately, data are available for estimating many of the larger components. For example, the estimates of wages and salaries are derived from current monthly estimates of state and local government employment and a quarterly employment cost index from the Bureau of Labor Statistics, and the estimates of construction are derived from monthly estimates of construction put in place from the Census Bureau. Information on the other large spending components--especially for transfer payments, such as Medicaid--is available from other Federal sources. For receipts, quarterly tax data for the major types of taxes are available from the Census Bureau, and monthly Federal grants data are available from the Treasury Department. The estimates of other puzzle pieces are based on judgmental trends.

Separate estimates of the state government accounts and of the local government accounts are not prepared regularly, because of resource constraints and because of the lack of current source data on a disaggregated basis.

(1.) These data are supplemented with data from other sources, particularly data on wages from the Bureau of Labor Statistics and detail on transfers from other Federal sources. BEA also imputes the estimates of some nonmonetary items, such as consumption of fixed capital and "services furnished without payment by financial intermediaries."

Donald L. Peters and Steven J. Andrews prepared the estimates presented in this article.