BOS 2017

THE BOOK OF THE STATES 2017

Table of Contents

Chapter 1 » State Constitutions

Chapter 2 » Federalism and Intergovernmental Relations

Chapter 3 » State Legisaltive Branch

Chapter 4 » State Executive Branch

Chapter 5 » State Judicial Branch

Chapter 6 » Elections

Chapter 7 » State Finance

Chapter 8 » State Management, Administration, and Demographics

Chapter 9 » Selected State Policies and Programs

Chapter 10 » State Pages

 

There are few areas of state government more important to finances and operations than procurement. Although there are no aggregated figures for 50-state spending on goods and services, the importance of the state procurement function is demonstrated by the substantial sums posted by individual states. An audit several years ago in Arizona put procurement spending at $9.8 billion, about 27 percent of the total state budget.1 An October 2016 report from New Mexico’s Legislative Finance Committee estimated the slice of the budget spent on goods and services at as much as $13 billion out of a total budget of $18 billion.2

The current economic cost of professional and occupational regulation directly impacts one quarter1 of the working population in the U.S. The number of professions or occupations requiring a government license is nearly one quarter2 of the current working population. The majority3 of this increase has been the result of the increasing number of professions or occupations requiring a license. Recent domestic evidence also shows that states vary dramatically in their rates of licensure, ranging from 12 percent to 33 percent.

Chapter 8 of The Book of the States 2017 contains the following articles and tables:

“Sin taxes” are often viewed as budget savers, despite their rather small role in the state budgets. In fiscal year 2016, states raised $25 billion in tax revenues from the two most commonly taxed so called “sins,” like tobacco and alcohol, which represented slightly over 2.7 percent of total state tax revenues. States are more likely to raise taxes on tobacco products than on alcohol, even though both pose a significant public health threat. Since 2000, 48 states increased cigarette tax rates about 130 times, while very few states increased tax rates on alcohol. Despite the increases in tax rates on tobacco, inflation-adjusted tobacco tax revenues declined by 0.8 percent between fiscal years 2008 and 2016. The opposite is true for alcohol taxes. Despite the relatively stable tax rates on alcoholic beverages, inflation-adjusted alcohol tax revenues grew by 12.2 percent over the same period. Tobacco tax revenues declined because declines in consumption more than made up for higher tax rates. The growth in alcohol tax revenues is largely attributable to growth in alcohol consumption.

How do states develop and manage their budgets, and how does this process vary across states? The latest edition of NASBO’s Budget Processes in the States report provides self-reported data from all 50 states and the District of Columbia on many aspects of state budget practices, such as: the budget calendar, revenue forecasting, gubernatorial budget authority, balanced budget requirements, tax and expenditure limitations, debt restrictions, approaches to budget development, rainy day funds, tools to monitor and control expenditures, and the use of performance measures.

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