1. STATE TRENDS National Conference of State Legislatures William T. Pound, Executive Director

2. 2004 Legislative Party Control Split--11 Republican--21 Democrat--17

3. Divided Government Divided--30 Unified R--12 Unified D--7

4. Percentage of Legislative Seats Held by Party 1938-2003 Source: NCSL, 2003

5. Government Receipts as % of GDP 19912001 State and Local9.8%10.0% Federal17.8%19.6%

6. Government Expenditures 2001 State and Local 9.8% Federal18.4% In 2001, Federal Grants to State and Local Government were 17% of the Federal budget. Of this, Medicaid was 45.7% and Highway-Mass Transit was 10.5%.

7. Total State Spending FY 1991 - FY 2001

8. Allocation of State Spending, FY 1991 And FY 2001

9. Changes in Total State Spending FY1991- FY2001 Selected Programs, Millions of Dollars

10. STATE SPENDING PATTERNS K-12 EDUCATION30.6% MEDICAID14.0% HIGHER EDUCATION11.7% CORRECTIONS 6.0% 62.3% All other categories - 37.8%

11. TRENDS 1.A continuous decline in Federal general purpose grant support to State and Local government. 2.Federal support grows in areas requiring significant State Match 3.Growth in Federal Mandates requiring major State expenditures

12. TRENDS (continued) Unfunded Mandate IDEA (Special Education) $11-25 billion No Child Left Behind $ 5-35 billion HAVA (Election Reform) $ 1-15 billion Homeland Security $ 9-20 billion