Yearly Report PART II Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Expenditures by segment

Published on Tue, April 14, 2020 12:52PM PDT | Updated Fri, April 17, 2020 7:09PM PDT

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Expenditures by segment > Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations > PART II > Government 10-K

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Expenditures by segment42

 

 

2017

 

 

2016

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In billions, except percentages)

 

Total

 

Federal 1

 

State and

Local

 

 

Total

 

Federal 1

 

State and

Local

 

 

Total

 

Federal 1

 

State and

Local

 

Total

 

Federal 1

 

State and

Local

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Justice and Domestic Tranquility

 

$

448

 

$

55

 

 

$

393

 

 

$

425

 

$

48

 

 

$

377

 

 

$

23

 

$

7

 

 

$

16

 

5%

 

15%

 

 

 

4%

Common Defense

 

 

835

 

 

834

 

 

 

1

 

 

 

828

 

 

827

 

 

 

1

 

 

 

7

 

 

7

 

 

 

 

1%

 

1%

 

 

 

—%

General Welfare

 

 

1,408

 

 

440

 

 

 

968

 

 

 

1,358

 

 

442

 

 

 

916

 

 

 

50

 

 

(2)

 

 

 

52

 

4%

 

—%

 

 

 

6%

Blessings of Liberty

 

 

3,236

 

 

1,980

 

 

 

1,256

 

 

 

3,104

 

 

1,885

 

 

 

1,219

 

 

 

132

 

 

95

 

 

 

37

 

4%

 

5%

 

 

 

3%

General government support and other

 

 

143

 

 

(9)

 

 

 

152

 

 

 

145

 

 

(7)

 

 

 

152

 

 

 

(2)

 

 

(2)

 

 

 

 

(1)%

 

(29)%

 

 

 

—%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenditures

 

$

6,070

 

$

3,300

 

 

$

2,770

 

 

$

5,860

 

$

3,195

 

 

$

2,665

 

 

$

210

 

$

105

 

 

$

105

 

4%

 

3%

 

 

 

4%

 

Estimated impact of inflation on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

$

121

 

$

66

 

 

$

55

 

2%

 

2%

 

 

 

2%

 

Estimated impact of population growth on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37

 

 

20

 

 

 

17

 

1%

 

1%

 

 

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

2012

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In billions, except percentages)

 

Total

 

Federal 1

 

State and

Local

 

 

Total

 

Federal 1

 

State and

Local

 

 

Total

 

Federal 1

 

State and

Local

 

Total

 

Federal 1

 

State and

Local

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Justice and Domestic Tranquility

 

$

448

 

$

55

 

 

$

393

 

 

$

382

 

$

45

 

 

$

337

 

 

$

66

 

$

10

 

 

$

56

 

17%

 

22%

 

 

 

17%

Common Defense

 

 

835

 

 

834

 

 

 

1

 

 

 

854

 

 

853

 

 

 

1

 

 

 

(19)

 

 

(19)

 

 

 

 

(2)%

 

(2)%

 

 

 

—%

General Welfare

 

 

1,408

 

 

440

 

 

 

968

 

 

 

1,275

 

 

519

 

 

 

756

 

 

 

133

 

 

(79)

 

 

 

212

 

10%

 

(15)%

 

 

 

28%

Blessings of Liberty

 

 

3,236

 

 

1,980

 

 

 

1,256

 

 

 

2,666

 

 

1,578

 

 

 

1,088

 

 

 

570

 

 

402

 

 

 

168

 

21%

 

25%

 

 

 

15%

General government support and other

 

 

143

 

 

(9)

 

 

 

152

 

 

 

138

 

 

(13)

 

 

 

151

 

 

 

5

 

 

4

 

 

 

1

 

4%

 

(31)%

 

 

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenditures

 

$

6,070

 

$

3,300

 

 

$

2,770

 

 

$

5,315

 

$

2,982

 

 

$

2,333

 

 

$

755

 

$

318

 

 

$

437

 

14%

 

11%

 

 

 

19%

 

Estimated impact of inflation on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

$

358

 

$

201

 

 

$

157

 

7%

 

7%

 

 

 

7%

 

Estimated impact of population growth on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

189

 

 

106

 

 

 

83

 

4%

 

4%

 

 

 

4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

2007

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In billions, except percentages)

 

Total

 

Federal 1

 

State and

Local

 

 

Total

 

Federal 1

 

State and

Local

 

 

Total

 

Federal 1

 

State and

Local

 

Total

 

Federal 1

 

State and

Local

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Justice and Domestic Tranquility

 

$

448

 

$

55

 

 

$

393

 

 

$

347

 

$

41

 

 

$

306

 

 

$

101

 

$

14

 

 

$

87

 

29%

 

34%

 

 

 

28%

Common Defense

 

 

835

 

 

834

 

 

 

1

 

 

 

662

 

 

661

 

 

 

1

 

 

 

173

 

 

173

 

 

 

 

26%

 

26%

 

 

 

—%

General Welfare

 

 

1,408

 

 

440

 

 

 

968

 

 

 

898

 

 

286

 

 

 

612

 

 

 

510

 

 

154

 

 

 

356

 

57%

 

54%

 

 

 

58%

Blessings of Liberty

 

 

3,236

 

 

1,980

 

 

 

1,256

 

 

 

2,212

 

 

1,316

 

 

 

896

 

 

 

1,024

 

 

664

 

 

 

360

 

46%

 

50%

 

 

 

40%

General government support and other

 

 

143

 

 

(9)

 

 

 

152

 

 

 

154

 

 

5

 

 

 

149

 

 

 

(11)

 

 

(14)

 

 

 

3

 

(7)%

 

(280)%

 

 

 

2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenditures

 

$

6,070

 

$

3,300

 

 

$

2,770

 

 

$

4,273

 

$

2,309

 

 

$

1,964

 

 

$

1,797

 

$

991

 

 

$

806

 

42%

 

43%

 

 

 

41%

 

Estimated impact of inflation on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

$

803

 

$

434

 

 

$

369

 

19%

 

19%

 

 

 

19%

 

Estimated impact of population growth on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

337

 

 

182

 

 

 

155

 

8%

 

8%

 

 

 

8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Federal expenditures exclude transfers to state and local governments. See separate schedule and discussion of intergovernmental transfers at Note 23 – Intergovernmental transfers (Part II, Item 8 within this Annual Report).

Justice and Domestic Tranquility (JDT)

This segment’s expenditures comprise a small portion (7%) of the overall Government budget. The majority (slightly more than 65%) of this segment’s expenditures comprises state and local government crime and disaster expenditures, of which more than 65% are law enforcement and corrections expenditures. See Exhibit 99.05 for more information on the largest items in each of this segment’s expenditure categories.

Fiscal year 2017 compared with fiscal year 2016

 

 

 

2017

 

 

 

2016

 

 

 

Changes 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In billions, except percentages)

 

 

Total

 

 

Federal 1

 

 

State and

Local

 

 

 

Total

 

 

Federal 1

 

 

State and

Local

 

 

 

Total

 

 

Federal 1

 

 

State and

Local

 

Total

 

Federal 1

 

State and

Local

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crime and disaster

 

$

338

 

$

46

 

 

$

292

 

 

$

321

 

$

40

 

 

$

281

 

 

$

17

 

$

6

 

 

$

11

 

5%

 

15%

 

 

 

4%

Child safety and miscellaneous social services

 

 

87

 

 

1

 

 

 

86

 

 

 

82

 

 

1

 

 

 

81

 

 

 

5

 

 

 

 

 

5

 

6%

 

—%

 

 

 

6%

Safeguarding consumers and employees

 

 

23

 

 

8

 

 

 

15

 

 

 

22

 

 

7

 

 

 

15

 

 

 

1

 

 

1

 

 

 

 

5%

 

14%

 

 

 

—%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Justice and Domestic Tranquility

 

$

448

 

$

55

 

 

$

393

 

 

$

425

 

$

48

 

 

$

377

 

 

$

23

 

$

7

 

 

$

16

 

5%

 

15%

 

 

 

4%

As a percentage of total expenditures

 

 

7%

 

 

2%

 

 

 

14%

 

 

 

7%

 

 

2%

 

 

 

14%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated impact of inflation on segment expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

$

9

 

$

1

 

 

$

8

 

2%

 

2%

 

 

 

2%

 

Estimated impact of population growth on segment expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

2

 

1%

 

1%

 

 

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Federal expenditures exclude transfers to state and local governments. See separate schedule and discussion of intergovernmental transfers at Note 23 – Intergovernmental transfers (Part II, Item 8 within this annual report).

2 Key changes are highlighted in gray in the table above and are discussed in the sections below.

Federal crime and disaster

The $6 billion increase in federal crime and disaster expenditures was driven primarily by a $2 billion or 32% increase in disaster relief expenditures and a $2 billion increase in national flood insurance reserve expenditures, both within the Department of Homeland Security. The number of billion-dollar weather and climate disaster incidents increased by 1 or 7% during this period. 45

State and local crime and disaster

The $11 billion increase in state and local crime and disaster expenditures was driven primarily by a $6 billion or 3% increase in law enforcement and corrections costs and a $3 billion or 6% increase in fire protection costs.

The $6 billion increase in law enforcement and corrections costs was driven mainly by a $6 billion or 5% increase in police protection operations costs. Annualized gross payroll costs (including wages and healthcare costs, excluding pension benefits) for state and local police protection employees grew $2 billion or 4% during this period, while the number of state and local police protection employees increased 1%. During this period, the violent crime rate remained flat, while the property crime rate decreased 3%, and arrests for violent crimes increased 1%, while arrests for property crimes decreased 8%.

The $3 billion increase in fire protection costs reflects a $1 billion or 4% increase in annualized gross payroll costs for state and local fire protection employees, while the number of state and local fire protection employees increased 1%. Overall non-natural disaster fire incidents decreased 2% during this period, however, “other structure” fires increased 15%.

Fiscal year 2017 compared with fiscal year 2012

 

 

2017

 

 

2012

 

 

Changes 2