EMBARGOED UNTIL: 12:01 A.M. EDT, JULY 18, 2001 (WEDNESDAY) Public Information Office CB01-122 301-457-3030/301-457-3670 (fax) 301-457-1037 (TDD) e-mail: pio@census.gov John R. Kennedy 301-457-1485 State and Local Governments Spend $1.5 Trillion, Census Bureau Reports Spending by the nation's state and local governments increased 4.7 percent in 1998, to $1.5 trillion and California led all states, spending $204 billion, according to tabulations released today by the Commerce Department's Census Bureau. Meanwhile, revenues received by state and local governments increased 6.6 percent, to $1.7 trillion. California also led the nation in revenues, with state and local receipts totaling $232 billion. Other findings: - State and local governments spent more than one-half of their money in four areas -- education ($450 billion), public welfare ($205 billion), highways ($87 billion) and hospitals ($70 billion). - Taxes continued as the primary source of government revenue, with state governments relying primarily on general sales taxes ($155 billion) and individual income taxes ($160 billion). Georgia relied most heavily on these two taxes, with 40 percent of its total revenues coming from these sources. Local government, on the other hand, relied primarily on property taxes ($219 billion). New Hampshire, where property taxes accounted for 68 percent of total local revenues, relied most heavily on this revenue source. - The second most important source of state and local government revenues was money supplied by other governments. A ratio of more than $1 out of every $5 in state government revenues ($224 billion) came from the federal government, and about one-third of local government revenues ($306 billion) were derived from state governments or federal sources. - State and local governments showed an outstanding debt of $1.3 trillion, with interest payments on debt of $75 billion and cash and security holdings of $2.9 trillion (mostly holdings of public employee retirement systems). California state and local governments reported the most debt ($161 billion), followed by New York ($156 billion). Cash and security holdings displayed a similar order, with California state and local governments reporting holdings of $441 billion and New York, $270 billion. The tabulations from the 1998 Annual Survey of Government Finances, released on the Internet, show detailed revenue by type and source (e.g., taxes, charges and federal aid); expenditure by function (e.g., police, fire and education) and by object category (current operation and capital outlay); indebtedness; and assets (cash and security holdings). Tables and downloadable files include summary data for the nation by level of government (state and local) and summary estimates by state areas. The data are subject to sampling variability, as well as nonsampling errors. Sources of nonsampling error include errors of response, nonreporting and coverage. Measures of sampling variability are shown in the tables, presented as relative standard errors.
-X-
[an error occurred while processing this directive]
