State Expenditures as a Percent of Gross State Product

PA's Rank Stays At th Compared To

What Is This

State expenditures of state funds for fiscal year 2018, excluding federal funds and bonds.

Why It's Important

Measures the size and activity-level of state government as well as the potential tax burden on business.

Trend

During the period of study, from 2009 to 2012, the commonwealth’s ranking improved from 20th in 2009 to 19th in 2015, peaking at 14th in 2011. During 2012 to 2014 internal Pennsylvania adjustments led to an approximate doubling of the category “Other State Funds”. This in turn resulted in much higher expenditures as a percentage of gross state product, causing the rank to fall to 37th in 2012, remaining there in 2014. These internal adjustments appear to have changed again starting in 2015 and, as a result, the commonwealth’s rank has returned to its previous position in the top 20 of states. For 2018, Pennsylvania ranks 17th with state expenditures as a percent of GSP at 6.49%. The national median is at its lowest point since 2009, coming in at 7.32%.

Source

“2018 State Expenditure Report”, National Association of State Budget Officers, 2018 | View website