PROOF OF SKYROCKETING STATE SPENDING

Subject: History of Total State Spending
Date: Tue, 14 May 2019 10:37:38 -0600
From: Greg Sobetski <greg.sobetski@state.co.us><mailto:greg.sobetski@state.co.us>
To: taxcutter@msn.com<mailto:taxcutter@msn.com>

Hello Representative Bruce,

When we report "total spending" numbers, we often exclude interfund transfers. While these amounts constitute "spending" for accounting purposes, we try to avoid counting the expenditure of the same dollars multiple times. If you allow this exclusion, total state expenditures for FY 1993-94 were $8.5 billion, and total state expenditures for FY 2017-18 were $40.1 billion. This represents a compound average annual growth rate of 6.7 percent over 24 years, or a simple growth rate of 7.0 percent from FY 2016-17 to FY 2017-18.

Finally, our March forecast anticipates that FY 2018-19 state fiscal year spending will equal the fiscal year spending limit, which we project at $11.8 billion. We further anticipate that the state will retain and spend $2.6 billion under the excess state revenues cap, and that the state will owe a refund obligation of $64.8 million. Our forecast does not estimate enterprise expenditures or exempt state district expenditures.

I hope this information is useful to you. Please let me know if I can assist further,

Greg

Gregory J. Sobetski
Senior Economist
Legislative Council Staff
303-866-4105