– In fiscal 2015, total state spending increased at its fastest rate since 1992, primarily due to growth in federal Medicaid funds resulting from the Affordable Care Act (ACA).
– Spending from states’ own funds moderately grew in fiscal 2015, while federal funds to states rapidly increased due to the ACA.
– Medicaid represented over half of all federal funds to states in fiscal 2015.
– State revenue growth accelerated in fiscal 2015, although it was hampered somewhat by the decline in oil prices.
From the summary:
Total State Spending in Fiscal 2015 Increased at Its Fastest Rate Since 1992, Driven by Federal Medicaid Growth
Estimated total state spending (including general funds, other state funds, bonds, and federal funds) sharply increased in fiscal 2015. The year-over-year percentage growth rate of 7.8 percent was the highest rate since fiscal 1992. The rise in total state spending resulted from a combination of a rapid increase in federal funds to states, and modest growth in states’ own fund sources. The acceleration of federal funds to states in fiscal 2015 was almost solely due to states receiving significantly more federal Medicaid dollars as part of the first full-year of Medicaid expansion under the Affordable Care Act (ACA).