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Total State Spending Adjusted for Population Growth and Inflation, by Fiscal Year
Total State Spending Adjusted for 2000 Dollars, by Fiscal Year
Inflation-Adjusted All Funds Per Capita Spending By Biennium
State Spending Adjusted for Population and Inflation Increases
The chart above illustrates the difference between actual total state spending vs. projected total spending if the state’s budget grew no faster that inflation and population. A number of states have considered spending limitations like this, which would require voter approval to allow spending to exceed the growth in inflation and population. Although Texas does have a spending limitation in place, it is significantly weaker than the tax and expenditure limit described and illustrated above, as evidenced by the $35 billion difference between actual state spending and the projected spending were the limitation in place today.
Had Texas government been able to restrain growth to only population and inflation between fiscal year 1990 and 2007, more than $320 billion dollars of taxpayer funds could have remained in taxpayer pockets.
For the upcoming 2008-09 biennium, total state spending is set to exceed $167 billion dollars, or more than $75 billion in excess of what the state’s budget would have been if growth were limited to inflation and population only.
State Spending Adjusted for Constant Dollars (2000 $)
State spending has increased significantly over the past twenty fiscal years. Using the Consumer Price Index to reflect constant 2000 dollar values, this graph illustrates actual spending and inflation-adjusted spending to show that the growth of the state budget is not merely a function of inflation, but is growing in real terms.
Note that the graph illustrates state spending on an annual basis, but the Texas Legislature appropriates funding based on a biennial budget. Although amount of money appropriated or spent may fluctuate between the first and second years of the budget as a matter of accounting (just as the graph shows happening with higher spending in 2008 than 2009) the budget steadily increases from one biennium to the next.
The graph above reflects the cost of state government divided by every man, woman, and child in the state of Texas in constant 2000 dollars. On a per capita basis, the total cost of state government grew by almost $1,700 since 1988-89, and by more than $600 in the last ten years.
As the previous graphs show, the state’s population is growing steadily, but the growth of the state budget is outpacing both inflation and population growth. As a result, the burden on each Texan increases with every new budget.
The pie chart illustrates the state budget broken down by revenue source. State tax collections account for just more than half of the entire biennial budget, with federal funds accounting for roughly one-third of the total budget.