NFIB

NFIB Study Shows Decades-Long State Spending Spree
03/04/2003

Mardi-Gras-Like Binge Leaves Painful Hangover

The small-business group NFIB today marked the climax of Mardi Gras by releasing a new study showing that most states consumed taxpayer dollars over the past two and a half decades in the same over-indulgent way Bourbon-Street revelers consume hurricanes on Fat Tuesday.

The study, titled "Laissez Les Bon Temps Roulez," or "Let the Good Times Roll," was named after one of former Louisiana Governor Edwin Edwards' favorite expressions and sums up the freewheeling mentality that seems to have pervaded state capitals during past periods of economic growth.

NFIB's study shows that state spending increased an average of 55 percent between 1977 and 2000, even after accounting for inflation and population growth. The study includes charts and data showing government spending in all 50 states over the past two and a half decades, and should prove valuable in the group's fight against proposed tax increases in many states.

"NFIB represents small business in all 50 state capitals, so any time a governor or state legislator proposes a tax hike to clean up the mess they made, we're going to be right there making sure that everybody knows the state budget problem is rooted in lavish spending - not low taxes," said NFIB Senior Vice President Dan Danner.

The study also shows a significant acceleration of spending increases between 1986 and 2000, when per capita spending grew more than 40 percent in just 15 years. From 1977 until 1984, state spending was relatively stable.

"The heady days started in the mid-80s and continued right through 2000," said NFIB Research Foundation Senior Fellow William J. Dennis. "Hopefully, states will finally realize that they need to spend taxpayer dollars in moderation for the first time in a generation, as opposed to raising taxes to finance their lavish spending habits."

EDITOR'S NOTE: For a copy of "Laissez Les Bon Temps Roulez: Past State Spending as the Basis for Current State Deficits," call Michelle Dimarob, (202) 554-9000, or read it here (PDF).