Financial Statement Overview

Comprehensive State Spending

When considering the Governor’s recommendation for the fiscal year 2012 budget it is important to remember that the funding levels proposed in House 1 do not encompass the entire Massachusetts state spending for next year. In fact, a substantial amount of state spending every year is done “off-budget”, or through fund sources that are not subject to the annual appropriations adopted by the Legislature. The spending that is done by the state from non-operating sources falls into three general categories:

As shown by the charts below, the annual state operating budget makes up the largest portion of annual state spending in comparison to all funding sources in any given year. Yet over 30 percent of total state spending occurs from non-budgetary sources. In the financial statements following this discussion, only the operating budgeted fund revenues and expenditures are displayed. It is important to note that, however, that there are further resources that annually available to the state and its agencies beyond those subject to the annual budgeting process.

Pie chart depicting All Funds State Spending for fiscal year 2010.  Total 45.2 billion dollars.  Operating 65%, Trust Fund 23%, Capital Spending 5%, Federal Grants 7%.

Pie chart depicting All Funds State Spending for fiscal year 2011.  Total 45.6 billion dollars.  Operating 66%, Trust Fund 21%, Capital Spending 6%, Federal Grants 7%.

Pie chart depicting All Funds State Spending, for fiscal year 2012.  Total 44.4 billion dollars.  Operating 68%, Trust Fund 20%, Capital Spending 6%, Federal Grants 6%.