Medicaid is fastest growing budget item for states

The National Association of State Budget Officers reported state spending hit a record $2 trillion in fiscal 2018, thanks largely to growth in Medicaid spending, according to Reuters.

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State spending grew 4.8 percent in 2018, a faster clip than the 3.8 percent growth in fiscal 2017. Medicaid spending grew the most of any category, at 7.3 percent, according to the report.

The top spending categories were elementary and secondary education, higher education, public assistance, Medicaid, corrections and transportation. Medicaid accounted for 29.7 percent of total state expenditures in fiscal 2018. Elementary and secondary education are the largest budget item, according to the report.

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