Aided by healthier revenue growth and federal funding, spending levels rebounded for many states in fiscal year 2013.

A report published last week by the National Association of State Budget Officers (NASBO) estimates 41 states saw total expenditures rise in fiscal 2013. Twenty-two states recorded an annual increase of at least 3 percent, led by Wyoming (42.9 percent), Nevada (16.7 percent) and Idaho (15.6 percent). (See table below)

In all, total state spending climbed 4.7 percent for the fiscal year. That represents a stark contrast from fiscal year 2012, when aggregate expenditures dipped 1.7 percent – the first decline recorded in the 26-year history of the NASBO report.

Shifts in federal funding account for part of the reversal, as states' federally-funded spending ticked up 2.3 percent after falling 9.1 percent in fiscal 2012 as Recovery Act grant money dried up.

Meanwhile, total state general fund spending also increased an estimated 4.4 percent as state tax revenues saw notable gains, according to the report.

NASBO expressed caution, though, regarding states' ability to sustain spending growth for the long term. “Although in many ways state fiscal conditions have stabilized in fiscal 2013, states remain concerned about both the short and long term outlook due to the slow pace of economic growth, the uncertainty of federal fund levels, questions regarding the future performance of state revenue, and increased spending demands," the report stated.

The following summary provides an overview of reported changes in state expenditures for a few of the major spending categories:

Elementary/Secondary Education: State spending for this category is estimated to have increased 4.2 percent in fiscal 2013 after incurring cuts during the recession. General funds account for the bulk of elementary-secondary education spending -- about 71 percent in 2012. For fiscal 2013, states reporting the largest year-over-year percentage increase in elementary/secondary education spending included California, Maine, Minnesota and Wyoming. Thirteen states reported a drop in state spending. Higher Education: After declining nearly 4 percent in fiscal 2012, NASBO estimates state higher education spending increased 2.6 percent. States registering large spending hikes in this area include Florida (18 percent), Virginia (23 percent) and South Dakota (45 percent). Medicaid: It’s no surprise that state Medicaid spending continued to increase in fiscal 2013. State-funded spending climbed an estimated 8 percent, while federally-funded spending increased 7.2 percent from fiscal 2012 levels. NASBO data estimates all states will record annual increases in total Medicaid spending, with the exceptions of Georgia, Iowa, Kentucky, Minnesota, New Jersey, New York and Tennessee. Public Assistance: Federal funds account for the bulk of state public assistance spending, so less money from Washington meant states needed to either increase their contribution or cut spending. For the Temporary Assistance for Needy Families (TANF) program, total expenditures tied to state funds jumped an estimated 10.1 percent in fiscal 2013. However, federal fund spending plummeted 11.3 percent, enough to push total state TANF spending down 5.7 percent for the year. Transportation: Spending from both state and federal sources were expected to increase for fiscal 2013, pushing total state transportation expenditures up 6.1 percent. Costs states count as transportation spending vary greatly by state. Spending data for each state is listed beginning on page 64 of the NASBO report.

Change in Total State Spending: FY 2012 - FY 2013 The following table shows annual changes in state spending. Most figures represent estimates reported by states in the NASBO report, not actual amounts.

State Total % Change General Fund % Change State Funds % Change Federal Funds % Change 2013 Total ($) 2012 Total ($)
Connecticut 2.1 1.3 1.7 -2.9 28,138 27,558
Maine -3.8 -1.5 -3.3 -3.2 7,798 8,106
Massachusetts 1.7 6.2 4.1 -3.8 60,298 59,271
New Hampshire 1.0 -1.4 3.0 -3.0 5,024 4,975
Rhode Island 2.9 5.1 5.5 2.3 8,133 7,907
Vermont -1.1 9.9 3.0 -9.2 4,960 5,017
Delaware 2.5 1.9 -0.6 0.3 9,162 8,942
Maryland 6.0 1.1 -3.3 30.4 36,974 34,877
New Jersey 7.1 4.4 6.0 13.5 52,085 48,612
New York -0.3 4.4 2.2 -4.3 133,097 133,504
Pennsylvania 1.4 2.7 3.7 -0.1 67,880 66,948
Illinois 1.1 0.0 11.0 -20.6 66,447 65,730
Indiana 5.6 4.5 2.2 11.7 27,766 26,305
Michigan 3.1 6.3 -0.7 9.9 48,748 47,286
Ohio 0.6 1.5 2.6 -3.8 58,268 57,921
Wisconsin 3.5 4.9 3.9 2.3 42,769 41,324
Iowa 3.5 3.7 14.0 -13.3 19,609 18,940
Kansas 0.1 1.6 5.7 -13.3 14,405 14,396
Minnesota 14.2 13.0 16.7 5.7 35,766 31,329
Missouri -1.8 1.1 -0.6 -4.4 22,943 23,364
Nebraska 2.9 4.2 3.8 0.9 10,163 9,877
North Dakota -1.5 -0.1 3.9 -14.0 5,939 6,027
South Dakota 11.7 7.2 20.0 -0.1 4,131 3,698
Alabama -0.3 -5.2 -1.1 2.5 24,117 24,178
Arkansas 4.3 3.6 6.4 -1.4 21,585 20,688
Florida 11.1 7.2 19.9 0.5 69,975 62,989
Georgia 1.9 6.2 6.2 -5.8 31,885 31,299
Kentucky 0.1 1.0 4.2 -7.9 25,673 25,649
Louisiana 9.6 -2.3 5.0 16.0 29,662 27,073
Mississippi 5.6 4.5 2.7 4.1 19,417 18,386
North Carolina 10.4 2.0 5.6 20.3 51,389 46,567
South Carolina 1.0 15.1 14.4 -16.1 22,300 22,088
Tennessee 3.4 8.0 3.8 1.9 31,453 30,419
Virginia 2.7 4.2 2.9 3.6 44,595 43,425
West Virginia 7.1 0.4 6.8 8.1 23,363 21,821
Arizona 2.6 1.8 4.6 0.3 29,293 28,540
New Mexico 2.7 4.1 3.8 0.9 14,543 14,164
Oklahoma 2.4 6.1 5.0 -3.0 21,430 20,931
Texas 4.3 -0.8 3.5 5.1 96,925 92,963
Colorado -1.0 8.6 0.3 -4.6 28,479 28,777
Idaho 15.6 7.7 14.6 17.2 7,242 6,267
Montana 2.0 10.4 3.6 -0.8 6,040 5,919
Utah 6.6 5.2 12.2 -5.1 12,603 11,822
Wyoming 42.9 36.7 39.7 52.1 8,611 6,026
Alaska 3.0 -1.3 -0.4 -3.8 12,142 11,789
California 14.3 10.7 11.7 11.3 227,881 199,424
Hawaii 0.8 2.8 1.6 -1.0 11,584 11,494
Nevada 16.7 3.8 18.0 14.3 8,893 7,623
Oregon -4.5 -13.9 -3.8 -3.9 25,806 27,014
Washington -5.0 2.3 -6.2 -3.8 33,202 34,943

Source: NASBO, State Expenditure Report.