Policy Basics: Where Do Our State Tax Dollars Go?

Source: Center on Budget and Policy Priorities, April 13, 2009

Given the budget problems states face due to the recession, policymakers will confront important choices about how to pay for important government services and programs. To inform this crucial decision making, it is useful to examine where state tax dollars go as well as changing trends over time.

In total, the 50 states and the District of Columbia spent a little more than $1 trillion in state revenues in fiscal year 2007, according to the most recent survey by the National Association of State Budget Officers (NASBO).

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