Cato Institute
Policy Analysis
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Figure 5
State Spending Growth Up Slightly in the 1990s
3.5%
3.5%
3.4%
3.0%
2.5%
2.5%
1980­90
2.4%
1990­97
2.0%
1.5%
1.3%
1.0%
0.5%
0.1%
0.0%
Total State Spending
Per Capita State Spending
State Spending per $1,000 Personal
Income
from 1990 to 1997 and the 10 states where it
position improved from 19th highest to
increased the least.
32nd highest.
·
Real per capita spending grew by more
Another way to express government spend-
The spending
than 35 percent in four states: Mississippi
ing and tax figures, which controls for differ-
trends in
(43.0 percent), Oregon (39.9 percent),
ences in the size of state economies, is on a per
individual states
Arkansas (38.2 percent), and West Virgin-
$1,000 of personal income basis. Table 4
ia (36.3 percent). Mississippi moved from
shows the 10 states where state spending per
varied from a high
the 41st highest spending state in 1990 to
$1,000 of personal income increased the most
of 58.8 percent in
the 26th in 1997. Oregon moved up 16
from 1990 to 1997--led by once-frugal New
rankings: from the 29th to the 13th high-
Hampshire--and the 10 states where it
Oregon to
est spending state.
increased the least.
Alaska's 0.6 per-
· Real per capita spending declined in three
cent decline in real
·
states: Alaska (9.8 percent), Arizona (1.2
State spending per $1,000 of personal
percent), and Wyoming (0.3 percent) and
income grew by more than 20 percent in
spending.
grew by less than 6 percent in two others:
six states: New Hampshire (24.5 per-
Nevada (3.6 percent) and Vermont (5.8
cent), West Virginia (22.2 percent),
percent). Arizona's per capita spending
Oregon (22.1 percent), Mississippi (21.9
ranking improved from 26th to 46th in
percent), Missouri (21.8 percent), and
the nation. Nevada's per capita spending
Arkansas (21.0 percent).
6