Regional Patterns in the Expenditures of American States

Abstract

HIS IS A STUDY of regional patterns in the expenditures of American state governments. The available literature on government revenue and spending indicates that jurisdictions having high levels of personal income, industrialization, and urbanization score highest with respect to government spending per capita.1 However, existing studies fall short of supporting the simple conclusion that states in the regions that score high on these economic characteristics spend the most money per capita. Fabricant, Fisher, Sachs and Harris deal with the aggregates of state and local government expenditures within each state.2 As a result, their findings may not apply to the expenditures of state governments, per se. Dawson and Robinson, Dye, and Hofferbert examine relationships between economic conditions and certain state government finances, but they are more concerned with the impact of selected political and economic characteristics on revenue, spending and program qualities than with obtaining the fullest possible explanation of variations in financial activity.3 Because they limit themselves to a consideration of too few political characteristics (two-party competition and/or the equity of legislative apportionment), their findings concerning the overriding importance of economic characteristics are only suggestive. As part of a continuing study of influences upon state government activities, this examination of regional patterns in expenditures should clarify some of the politicaleconomic processes that accompany spending decisions. Its focal questions are: (1) What patterns exist in the regions of the United States with respect to state government expenditures? (2) What characteristics account for the regional patterns in state government expenditures?