Overview of State Spending

When considering the Governor’s recommendation for the FY 2015 budget, it is important to remember that the funding levels proposed do not encompass the entirety of Massachusetts’s state spending for the next fiscal year. In fact, a meaningful 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-budgetary sources falls into three general categories:

The following charts show that the state operating budget makes up the largest portion of state spending in comparison to all other funding sources in any given year. Yet over 23% 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 there are further resources that are annually available to the state and its agencies beyond those subject to the annual budgeting process.

Title: Total FY 2013 Spending - Description: Dollars in millions.  $32,568 Budgetary.  $2,463 Federal Grants.  $2,877 Capital.  $6,091 Trust Funds.

Title: Total FY 2014 Spending. - Description: Dollars in millions.  $34,682 Budgetary.  $2,219 Federal Grants.  $3,287 Capital.  $6,460 Trust Funds.

Title: Total FY 2015 Spending - Description: Dollars in millions.  $36,373 Budgetary.  $2,083 Federal Grants.  $3,171 Capital.  $6,158 Trust Funds.