Review of State Spending: 2014

Why we did this study

The Code of Virginia requires the Joint Legislative Audit and Review Commission (JLARC) to produce an annual report on growth in state spending over the prior five biennia, identify the largest and fastest growing functions and programs in the budget, and analyze long-term trends and causes of spending in these programs.

Prior reports reviewed spending and budget growth for all the previous 10-year periods between FY 1981 and FY 2013. This report is the 14th in the series and focuses on trends in the state’s operating budget during the past 10 years, from FY 2005 through FY 2014.

What we found

  • Over the past decade, Virginia’s operating budget increased by $14.1 billion (48%)—a 28% increase in general funds and a 66% increase in nongeneral funds. When controlling for growth in population and inflation, the total budget grew by 11%, the nongeneral fund budget increased by 24%, and the general fund budget decreased by 4%, over the 10-year period.
  • A variety of economic factors and policies contributed to this growth. With population growth of 9% from 2005 to 2013 (2014 data is not available), Virginia had approximately 683,300 more residents. The personal income of Virginians increased by 34% over the period while inflation increased by 23%.
  • When general funds declined during the past decade, the total budget continued to increase due to the growth in non-general funds. However, nongeneral fund increases have slowed in recent years as a result of slower growth in higher education operating appropriations (largely tuition and fees) and declining federal stimulus funds.
  • The 10 largest state agencies (out of 155) accounted for 68% of the total state budget in FY 2014 and 70% of all budget growth between FY 2005 and FY 2014.
  • Growth in general fund appropriations is concentrated in a few large state agencies. Several agencies experienced substantial growth in general and non-general fund appropriations over the past 10 years.
  • The general fund appropriations for 37 agencies either grew more slowly than inflation or declined.
  • Budget growth was concentrated in a few large programs: eight (of 204) in health care, education, and transportation accounted for 80% of total budget growth.

Online data appendixes

 

Appendix D: The Basis of Virginia’s Budget

Appendix E:  Ten Largest Annual General Fund Increases, 2005 – 2014 Biennial Totals ($ in Millions)

Appendix F: State Expenditures by Governmental Function, Including Capital ($ in Millions, Unadjusted for Inflation)

Appendix G: Final Legislative Operating Appropriations by Fund ($ in Millions, Unadjusted for Inflation)

Appendix H:  Final Legislative Operating Appropriations by Secretarial Area ($ in Millions, Unadjusted for Inflation)

Appendix I: Major Uses of Non-General Funds, FY 2014

Appendix J: Total Appropriations, General, and Non-General Funds for 10 Agencies With the Most Growth, FY 2005–FY 2014 ($ in Millions)