State spending up 6.5% amid record surpluses

Federal aid continues to be an important driver.
(AP Photo/Elise Amendola, File)

Total state spending jumped by 6.5% last fiscal year to $2.96 trillion as state leaders spent down record surpluses, according to an annual report released Wednesday by the National Association of State Budget Officers.

The typical state spent 7.5% more money in Fiscal Year 2023, which for most states ended on June 30, than the year before. Eight red states — Alaska, Idaho, Louisiana, Mississippi, Montana, South Carolina, Tennessee and Utah — spent at least 20% more money.

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