Without careful monitoring, state government spending could increase beyond what is necessary to carry out the Legislature's mandates and statutory responsibilities. The three largest categories of spending were public assistance payments, intergovernmental payments, and state employee salaries and wages. In fiscal 1998, only public assistance, such as Medicaid and Temporary Assistance to Needy Families payments, and intergovernmental transfers, such as Foundation School Program transfers to school districts, cost the taxpayers more than state employee salaries and wages. In the case of public assistance payments, the money paid for the cost of medical needs or other support programs. In the case of intergovernmental payments, the money went directly to other units of government, such as school districts, to pay the state's share of costs.
Intergovernmental payments account for the largest amount of state expenditures.
These payments had grown dramatically in the past two decades. Public assistance payments have required expenditures of nearly the same amount, and grew even more dramatically. The remainder of salary and wage expenditures went to pay a variety of costs, including hourly and part-time employees, hazardous duty pay, and longevity pay. A few agencies, however, reduced personnel. Exhibit 1 shows some notable staff increases and decreases.