Transparency Portal

Fixed Costs as % of Budget

2019 Fixed Costs as % of Budget

50-State Median
2019 Fixed Costs as % of Budget

What are Fixed Costs?

For many states, an increasing share of spending is committed to programs that must be funded annually, regardless of broader economic circumstances. Such fixed costs include items like debt service and pension contributions. A higher percentage means less flexibility to address emerging issues or to set aside for rainy day reserves.

Source: S&P state budget information and National Association of State Budget Officers (NASBO) Expenditure Reports. In Petek, G. (2018). “Medicaid: What State Fiscal Leaders Need To Know.” S&P Global Ratings Presentation at NCSL Midwest States Fiscal Leaders Meeting.
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