Study: Connecticut’s Spending on Public Services Low Compared with Other States

By: Richard Veilleux

In a study seeking to define the optimal amount of funding states should devote to public services without adversely affecting a state’s economy, Steven P. Lanza, executive editor of the magazine, collected 16 years (1993-2008) of personal income statistics for the 50 states from the U.S. Bureau of Economic Analysis, and government spending data for the same period from the U.S. Census of Governments. He found that Connecticut under-spends on most government activities, including education and infrastructure, while spending more than the optimal amount on health care.

“Public spending in the Nutmeg state averaged just 17.6 percent of income in the years surveyed, more than six points below the optimal share,” Lanza writes.

The right amount of spending on public services can actually benefit the economy, by helping the private sector grow, he says: “With such a lean public sector, Connecticut essentially forfeited an additional 1.2 percent in yearly income it would otherwise have earned, had it adopted the optimal mix.”

That optimal mix, Lanza says, is 24 percent. The national average is 22 percent, still significantly higher than Connecticut’s 17.6 percent.

Read More at UConn Today.

More News Stories

Upcoming Events

  1. Aug 26 Applications Open - OUR Supply/Travel Awards12:00am
  2. Aug 29 Part Time Job Fair11:30am
  3. Aug 29 Dr. Nkoli Aniekwu: ‘The Globalization of African Studies: An Affirmative Approach’4:30pm
  4. Sep 3 Career Fest3:00pm
  5. Sep 4 Involvement Fair12:00pm