In 1987, school aids/credits (33.1%) and MA (9.2%) claimed 42.3% of state general fund ("GPR") spending. Last year, the state devoted 58.1% of its budget to these two programs—43.5% to school aids/credits and 14.6% to Medicaid. At the same time, budget shares for shared revenues and the UW dropped from a combined 27.4% to 14.2%.

The priority shift is easily explained by the relative spending increases of these various programs. During the 1987-2007 period, state general fund expenditures rose 165.6% (5.0% annual average), or $8.39 billion, to $13.5 billion. However, school aids/credits jumped 249.1% (6.5% yearly average), while MA climbed even faster, 320.9% (7.5% annual average). Put another way, while these two items accounted for about two-fifths (42.3%) of spending 20 years ago, they received more than two-thirds (67.8%) of all new money spent since then.

By contrast, shared revenues increased only 22.2% (1.0% annual average), and UW funding from the state only 56.3% (a 2.3% annual average). In raw dollar terms, state GPR going to shared revenues was actually lower last year ($952.6 million) than in 1994-95 ($972.3 million), while state tax support of the UW peaked at $1.06 billion in 2002-03 and was budgeted at $0.95 billion for 2006-07.

The WISTAX report also noted an unusual and uneven trend in state corrections spending. Although it averaged double-digit annual increases until 2002, corrections funding has largely stabilized in the past five years. At 3.1% annual average growth, it actually trailed overall GPR increases (3.3%).