States’ fiscal year 2015 expenditures on capital projects, including construction, rose 3%, to an estimated $98.2 billion, the National Association of State Budget Officers has reported. Capital spending increased in sectors such as transportation and higher education but declined in environmental and housing programs.
NASBO’s latest annual roundup of state capital expenditures, released on Nov. 19, shows that Florida led, with $12.8 billion. Texas ranked second, with $8.5 billion, followed by New York at $7.5 billion, California at $6.1 billion and Illinois at $4.8 billion.
Federal funding was the largest revenue source for states’ overall 2015 capital spending, accounting for 37.6% of the total. Bonds ranked second, at 29.5%.
Spending on transportation, the largest sector, moved up 2.5%, to an estimated $61.3 billion, in 2015, with federal funds accounting for 40%. Higher education climbed 7.8%, to about $12 billion. Environmental-project spending dipped an estimated 4.9%, to $4.5 billion, and housing expenditures fell 10.5%, to $856 million.