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Friday, Nov 21 2014

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State Spending Swells -- Mostly Driven By Medicaid Expansion Fund Infusion

According to a report from the National Association of State Budget Officers, state spending has not increased at a rate this fast since before the recession.

State spending last year grew at its fastest pace since before the recession, thanks mostly to an infusion of spending through Obamacare. Overall, spending was up 5.7 percent in fiscal 2014, according to a new report from the National Association of State Budget Officers. That鈥檚 up from 2.2 percent the year before and 1.1 percent before that. (Chokshi, 11/20)

Federal dollars given to states for Medicaid swelled nearly 18 percent this year to cover millions of newly eligible people, helping to reverse a years-long trend of shrinking state budgets. Medicaid now makes up one-quarter of all state spending, with about $41.8 billion coming from the federal government over the last year, according to a report from the National Association of State Budget Officers. All other spending dropped $3.4 billion. (Ferris, 11/20)

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