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Read your state budget in one evening

The budget is the one document where every promise carries a dollar figure. Here's how to read it without a finance degree or a free weekend.

By Marcus Vale · Editor-in-Chief5 min read
Read your state budget in one evening

Quick answer: Skip the 1,000-page bill. Find your state's "budget in brief," then ask three questions of it. Where does the money come from? Where does it go? What's growing fastest? You can have real answers in about an hour.

Don't start with the bill

The appropriations act is a legal document. It's built for lawyers and budget analysts, and reading it cold is like learning to drive from the transmission service manual.

Start with the summary. Every state publishes one, and the name changes by state: "Budget in Brief," "Citizen's Guide," "Executive Budget Summary." Search your state's name plus "budget office" and look for the newest enacted budget, not the governor's first proposal. Those two documents can differ a lot.

Also find your state's legislative fiscal office. The budget office works for the governor. The fiscal office works for the legislature, and its summaries are often plainer and blunter. Read both and see where they disagree.

Know who does what

In most states the governor proposes a budget, the legislature rewrites it and passes it, and the governor signs it or vetoes it. Most governors can also strike individual line items without killing the whole bill.

The principle is the old one. The federal Constitution puts it in Article I, Section 9: "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law." Your state constitution has its own version, usually in the article on the legislature or on finance. The legislature holds the purse. That's by design, and it means your representative has a vote on every line you're about to read. (More on that in Your State Legislature Runs More of Your Life Than Congress Does.)

Check the fiscal year too. Most states run July 1 to June 30, but a few start in April, September or October. Some budget two years at a time. If you read last year's numbers by mistake, you'll argue with a ghost.

Pass one: where the money comes from

Find the revenue table. You'll see sales tax, income tax (if your state has one), fuel taxes, fees, and a big block labeled federal funds.

That last one is the trap. The headline number in the news, "a $60 billion budget," usually includes federal money that Washington sends for the state to administer, mostly for Medicaid and highways. It's real money, but it comes with strings. Separate it out. Divide federal funds by the total, and you know how much of your state's budget is really decided in your capitol and how much arrives with instructions attached.

Then look at the general fund. That's the flexible money, the part the legislature actually fights over. Special funds, such as fuel taxes dedicated to roads, can only be spent on what the law says.

Property tax is mostly a local matter, and it's set by a different process entirely. Your Property Tax Is Set Long Before the Bill Arrives covers it.

Pass two: where it goes

Now the spending table, usually sorted by agency or function. In most states two items dwarf everything else: K-12 education and Medicaid. Transportation, higher education, corrections and public safety come next. Everything else, the parks, the licensing boards, the agriculture department, fits in what's left.

Don't skim past the small lines. Pick any agency you've dealt with, the DMV or the state police or the department that licenses contractors, and find its line. Note two numbers: this year's amount and last year's.

Pass three: what's growing

This is the pass that tells you something. Take any line and compute the change:

(new − old) ÷ old

Say a line goes from $400 million to $440 million. That's ten percent. Now ask whether the population grew ten percent. Did prices? If not, somebody decided that program deserved more of your neighbors' paychecks, and you're entitled to ask why.

Do it for the five biggest lines and the five fastest-growing lines. They're often not the same list. Write them on a legal pad. That page is your civics homework, and it's more than most voters ever do.

The fine print that matters

  • One-time versus ongoing. Watch for one-time money, like a surplus or a federal windfall, paying for programs that will cost the same next year. The money won't be there. The program will.
  • The rainy day fund. Find the balance. Is it growing, or has it been raided?
  • Transfers. Money moved from a special fund into the general fund to make the math work is worth a question.
  • Appropriated isn't spent. A budget is a plan. The real record is the state's annual financial report, usually called the Annual Comprehensive Financial Report, and many states run a searchable online "checkbook" showing actual payments.

Our take (opinion)

Nearly every state has some kind of balanced-budget requirement. Good. But "balanced" is a low bar. A state can balance this year by borrowing from next year's pension payment, draining a special fund, or covering permanent costs with temporary revenue. The books close and the problem gets bigger.

We think the test of a sound budget is simple. Could the state pay for its ongoing programs from ongoing revenue, with a full rainy day fund left over? If the answer depends on a one-time windfall, the legislature is spending your future income without asking you.

We also think programs that grow every year on autopilot deserve a hard look every year. Spending other people's money is easy. Spending it carefully takes discipline, and discipline comes from voters who read the document. That's an argument about policy and habits, not about the people who work in state government, most of whom are doing a job they were handed.

Use what you found

You've got your legal pad. Now do something with it.

  1. Email your representative with a specific question. "Why did line 14 grow eleven percent?" gets a better answer than "Cut spending." Name the page and the line. Staff can answer a specific question in a day.
  2. Go to a hearing. Budget committees hold public hearings, usually early in the session, and most livestream. Public comment is typically three minutes. Say the one thing you found. Be brief, be courteous, and thank the clerk on your way out.
  3. Start local. The school board's budget is smaller and more readable than the state's, and a single parent with a question can change the discussion. County and city budgets work the same way.
  4. Come back next year. The second read takes twenty minutes, because you've got last year's numbers to compare.

Be polite and don't be a pushover. If the answer you get is a runaround, ask again, in writing. Public money means public answers.

A budget is the most honest thing a government ever publishes. It's the only place where a politician's priorities show up in dollars, and it's free to read.

Marcus Vale

Editor-in-Chief

Twenty years in magazines, most of it deciding what to cut. Writes about work, discipline and the decisions that compound.

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Brookings Institution

The federal budget: Where the money comes from and where it goes