Today Americans for Tax Reform released an updated list of states ranked by their size of state government, using state spending as a percentage of state GDP as the metric for comparison.
When looking at how the size of all 50 state budgets compares to the size of those state economies, ATR included both general fund spending and federal transfer funds included in state budgets, which comprised more than 30% of total state expenditures in 2017, the most recent year for which data is available.
In addition to looking at the size of all 50 state governments today, ATR examined how the size of all 50 state governments has changed over the past decade.
50 States Ranked By Size (State Spending/State GDP)
1. West Virginia (23.3%)
2. New Mexico (20.8%)
3. Arkansas (20.3%)
4. Alaska (18.9%)
5. Mississippi (18.5%)
6. Oregon (17.7%)
7. Vermont (17.0%)
8. Hawaii (16.4%)
9. Kentucky (16.3%)
10. Rhode Island (14.9%)
11. Delaware (14.8%)
12. Montana (14.8%)
13. Wisconsin (14.6%)
14. Maine (13.4%)
15. North Dakota (13.2%)
16. Arizona (12.9%)
17. Alabama (12.6%)
18. Oklahoma (12.4%)
19. Iowa (12.4%)
20. Connecticut (11.9%)
21. Louisiana (11.9%)
22. Wyoming (11.8%)
23. South Carolina (11.1%)
24. Maryland (10.9%)
25. Michigan (10.8%)
26. Pennsylvania (10.7%)
27. Minnesota (10.6%)
28. Ohio (10.6%)
29. Colorado (10.5%)
30. Idaho (10.3%)
31. Massachusetts (10.3%)
32. Nebraska (10.0%)
33. New Jersey (9.9%)
34. Virginia (9.9%)
35. New York (9.8%)
36. Kansas (9.7%)
37. Tennessee (9.4%)
38. California (9.3%)
39. Indiana (9.1%)
40. North Carolina (8.9%)
41. Nevada (8.9%)
42. Georgia (8.8%)
43. Utah (8.6%)
44. Washington (8.6%)
45. South Dakota (8.5%)
46. Missouri (8.4%)
47. Illinois (8.2%)
48. Florida (7.8%)
49. New Hampshire (7.3%)
50. Texas (6.7%)
Fastest Growing State Governments Of The Past Five Years
These ten states had the greatest increase in state spending as a percentage of GDP from 2012-2017 (% growth in size of state government):
- Nevada (48.86%) 6. Kentucky (12.17%)
- New Mexico (26.65%) 7. Arkansas (6.80%)
- Arizona (22.96%) 8. Connecticut (5.87%)
- Oregon (14.41%) 9. New Jersey (5.68%)
- North Dakota (12.24%) 10. Hawaii (5.44%)
Fastest Shrinking State Governments Of The Past Five Years
These ten states had the greatest decline in state spending as a percentage of GDP from 2012-2017:
- West Virginia (-26.21%) 6. Maine (-12.83%)
- Wyoming (-21.37%) 7. South Carolina (-12.14%)
- North Carolina (-21.15%) 8. Tennessee (-11.94%)
- Massachusetts (-20.11%) 9. Alaska (-7.77%)
- Pennsylvania (-19.20%) 10. Utah (-6.54%)
Source of information: Bureau of Economic Analysis, National Association of State Budget Officers.