Health costs take growing share of budgets
Health costs take growing share of budgets
Education spending continues to dominate state budgets, but rising health care costs now represent more that 25% of most state budgets, says a recent survey released by the National Governors Association (NGA). Since 1993, Medicaid alone has been the second largest component of state spending. In fiscal 1999, Medicaid spending increased by almost 5% (as opposed to increases between 3% and 4% in 1996 and 1998) and the Congressional Budget Office (CBO) estimates an increase of 7.5% for fiscal 2000.
The December 1999 edition of "The Fiscal Survey of States" reveals that states are in sound fiscal health, although some state economies are expected to witness slower economic growth next year. The governors estimate they will increase spending by 5.5% in fiscal 2000 over the previous year, compared to increases of 7.7% and 5.7% in fiscal years 1999 and 1998, respectively.
A copy of the full report is available from the NGA Office of Public Affairs at (202) 624-5300.
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