Vermont ranks highest in education spending percentage

Vermont spent $2.2 billion, or 36.7 percent, of public expenditures on education, the highest percentage of any state, though the third lowest total. State and local government spending increased by 6.5 percent in 2008, totaling more than $2.8 trillion, according to the US Census Bureau. Education topped government spending ($826.1 billion), followed by public welfare ($404.6 billion), insurance trust expenditures ($234.6 billion), utilities ($193.4 billion) and highways ($153.5 billion).
These data provide a detailed look at state and local government spending priorities," said Lisa Blumerman, chief of the U.S. Census Bureau's Governments Division.

These findings come from the 2008 Annual Surveys of State and Local Government Finances, which includes data on revenues, expenditures, debt and assets (cash and security holdings) for state and local governments.
Among state and local government spending, housing and community development increased 11.0 percent. Additionally, spending on hospitals increased 8.4 percent and spending on insurance trust systems increased by 9.8 percent (See Table 1[Excel]).
Nationwide, state and local governments spent 2.8 percent on health services (other than hospital care), an increase of 7.4 percent.
State and local governments took in $2.7 trillion in total revenues in fiscal year 2008, a
13.4 percent decline since 2007. This was largely the result of a decrease in insurance trust revenue (See Table 2 [Excel]).
Revenue from taxes, the largest share of state and local government revenue, rose
3.7 percent to $1.3 trillion. Sales and gross receipts made up the largest share of tax revenue ($448.7 billion), followed by property taxes ($409.7 billion) and individual income tax revenue ($304.6 billion) (See Table 2 [Excel]).
Debt outstanding for state and local governments rose 5.8 percent to $2.6 trillion, while assets declined 1.7 percent to $5.4 trillion.
Other highlights for state and local government finances:

Public welfare spending increased 5.2 percent from $384.8 billion to $404.6 billion.
Higher education spending increased 9.1 percent from $204.7 billion to $223.3 billion.
Spending on education totaled more than 35 percent of expenditures in Vermont (36.7 percent) and Virginia (35.9 percent) (See Table 3 [Excel]).
The leading state in expenditures for housing and community development was Louisiana (11.8 percent) (See Table 4[Excel]).

Data in this report are subject to sampling variability as well as nonsampling errors. Sources of nonsampling errors include errors of response, nonreporting and coverage. More details covering the design methodology are available online at http://www2.census.gov/govs/estimate/2008_Local_Finance_Methodology.pdf. All comparative statements in this report have undergone statistical testing, and unless otherwise noted, all comparisons are statistically significant at the 10 percent significance level.
Source: US Census. /PRNewswire-USNewswire/ -- 7.14.2010. The information can be accessed at http://www.census.gov/govs/estimate/.

RELEASED: July 14, 2010 (WEDNESDAY)

(Dollar amounts are in thousands.)

Table 3. State and Local Government Expenditures on Education 2008

Area
Total Expenditures
Expenditures on Education
Percent of Total Expenditures

United States
2,838,835,748
826,063,178
29.1

Alabama
38,201,262
13,021,210
34.1

Alaska
12,902,612
3,010,437
23.3

Arizona
52,533,341
14,040,853
26.7

Arkansas
20,171,693
6,986,178
34.6

California
415,436,973
103,871,032
25.0

Colorado
42,536,683
12,602,587
29.6

Connecticut
35,080,819
11,126,438
31.7

Delaware
9,071,609
2,878,324
31.7

Dist. Of Columbia
12,948,650
2,226,646
17.2

Florida
158,174,504
41,309,887
26.1

Georgia
77,708,516
25,650,665
33.0

Hawaii
13,214,951
3,393,565
25.7

Idaho
10,781,357
3,168,770
29.4

Illinois
115,626,761
32,736,157
28.3

Indiana
49,265,601
15,418,944
31.3

Iowa
25,785,440
8,689,821
33.7

Kansas
23,473,117
7,506,496
32.0

Kentucky
34,358,625
10,632,513
30.9

Louisiana
45,938,065
11,810,100
25.7

Maine
11,175,171
3,188,930
28.5

Maryland
51,224,896
17,201,575
33.6

Massachusetts
67,895,215
17,305,941
25.5

Michigan
83,962,165
28,310,913
33.7

Minnesota
50,844,301
14,802,409
29.1

Mississippi
25,171,039
7,154,566
28.4

Missouri
45,101,940
13,938,656
30.9

Montana
8,116,199
2,522,784
31.1

Nebraska
18,351,450
5,090,389
27.7

Nevada
21,462,154
6,226,566
29.0

New Hampshire
9,967,742
3,419,245
34.3

New Jersey
91,728,638
30,503,321
33.3

New Mexico
19,264,191
5,911,778
30.7

New York
263,436,826
64,743,134
24.6

North Carolina
72,873,169
22,785,386
31.3

North Dakota
5,615,939
1,844,941
32.9

Ohio
102,919,573
30,882,319
30.0

Oklahoma
27,429,577
9,144,590
33.3

Oregon
34,560,605
9,674,161
28.0

Pennsylvania
111,863,060
33,107,240
29.6

Rhode Island
10,576,149
2,936,240
27.8

South Carolina
39,740,999
12,252,525
30.8

South Dakota
5,833,025
1,753,268
30.1

Tennessee
49,128,077
12,375,698
25.2

Texas
188,686,230
65,970,133
35.0

Utah
22,203,709
7,470,556
33.6

Vermont
6,039,076
2,214,713
36.7

Virginia
63,272,066
22,692,652
35.9

Washington
66,692,198
18,041,972
27.1

West Virginia
13,686,366
4,683,675
34.2

Wisconsin
49,283,373
15,592,365
31.6

Wyoming
7,520,051
2,239,914
29.8

Source: 2008 Annual Surveys of State and Local Government Finances. Data users who create their own estimates using data from this report should cite the U.S. Census Bureau as the source of the original data only. The data in this table are based on information from public records and contain no confidential data. The state government data in this table come from a survey of all state governments and are not subject to sampling error. The local government data in this table are from a sample of local governments, and as such, are subject to sampling variability. Additional information on sampling and nonsampling error, response rates, and definitions may be found at and .