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

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

Expenditures by segment

Published on Mon, May 17, 2021 9:00AM PDT | Updated Mon, May 17, 2021 9:08AM PDT

Expenditures by segment45

 

 

2018

 

 

2017

 

 

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

 

$

473

 

$

67

 

 

$

406

 

 

$

447

 

$

55

 

 

$

392

 

 

$

26

 

$

12

 

 

$

14

 

6%

 

22%

 

 

 

4%

Common Defense

 

 

874

 

 

873

 

 

 

1

 

 

 

835

 

 

834

 

 

 

1

 

 

 

39

 

 

39

 

 

 

 

5%

 

5%

 

 

 

—%

General Welfare

 

 

1,447

 

 

429

 

 

 

1,018

 

 

 

1,410

 

 

440

 

 

 

970

 

 

 

37

 

 

(11)

 

 

 

48

 

3%

 

(3)%

 

 

 

5%

Blessings of Liberty

 

 

3,355

 

 

2,052

 

 

 

1,303

 

 

 

3,238

 

 

1,979

 

 

 

1,259

 

 

 

117

 

 

73

 

 

 

44

 

4%

 

4%

 

 

 

3%

General government support and other

 

 

143

 

 

(20)

 

 

 

163

 

 

 

139

 

 

(10)

 

 

 

149

 

 

 

4

 

 

(10)

 

 

 

14

 

3%

 

(100)%

 

 

 

9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenditures

 

$

6,292

 

$

3,401

 

 

$

2,891

 

 

$

6,069

 

$

3,298

 

 

$

2,771

 

 

$

223

 

$

103

 

 

$

120

 

4%

 

3%

 

 

 

4%

 

Estimated impact of inflation on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

$

145

 

$

79

 

 

$

66

 

2%

 

2%

 

 

 

2%

 

Estimated impact of population growth on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32

 

 

17

 

 

 

15

 

1%

 

1%

 

 

 

1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2013

 

 

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

 

$

473

 

$

67

 

 

$

406

 

 

$

400

 

$

55

 

 

$

345

 

 

$

73

 

$

12

 

 

$

61

 

18%

 

22%

 

 

 

18%

Common Defense

 

 

874

 

 

873

 

 

 

1

 

 

 

833

 

 

832

 

 

 

1

 

 

 

41

 

 

41

 

 

 

 

5%

 

5%

 

 

 

%

General Welfare

 

 

1,447

 

 

429

 

 

 

1,018

 

 

 

1,232

 

 

451

 

 

 

781

 

 

 

215

 

 

(22)

 

 

 

237

 

17%

 

(5)%

 

 

 

30%

Blessings of Liberty

 

 

3,355

 

 

2,052

 

 

 

1,303

 

 

 

2,678

 

 

1,576

 

 

 

1,102

 

 

 

677

 

 

476

 

 

 

201

 

25%

 

30%

 

 

 

18%

General government support and other

 

 

143

 

 

(20)

 

 

 

163

 

 

 

137

 

 

(10)

 

 

 

147

 

 

 

6

 

 

(10)

 

 

 

16

 

4%

 

100%

 

 

 

11%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenditures

 

$

6,292

 

$

3,401

 

 

$

2,891

 

 

$

5,280

 

$

2,904

 

 

$

2,376

 

 

$

1,012

 

$

497

 

 

$

515

 

19%

 

17%

 

 

 

22%

 

Estimated impact of inflation on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

$

398

 

$

219

 

 

$

179

 

8%

 

8%

 

 

 

8%

 

Estimated impact of population growth on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

180

 

 

99

 

 

 

81

 

3%

 

3%

 

 

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

2008

 

 

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

 

$

473

 

$

67

 

 

$

406

 

 

$

366

 

$

40

 

 

$

326

 

 

$

107

 

$

27

 

 

$

80

 

29%

 

68%

 

 

 

25%

Common Defense

 

 

874

 

 

873

 

 

 

1

 

 

 

741

 

 

740

 

 

 

1

 

 

 

133

 

 

133

 

 

 

 

18%

 

18%

 

 

 

%

General Welfare

 

 

1,447

 

 

429

 

 

 

1,018

 

 

 

1,021

 

 

368

 

 

 

653

 

 

 

426

 

 

61

 

 

 

365

 

42%

 

17%

 

 

 

56%

Blessings of Liberty

 

 

3,355

 

 

2,052

 

 

 

1,303

 

 

 

2,358

 

 

1,390

 

 

 

968

 

 

 

997

 

 

662

 

 

 

335

 

42%

 

48%

 

 

 

35%

General government support and other

 

 

143

 

 

(20)

 

 

 

163

 

 

 

164

 

 

12

 

 

 

152

 

 

 

(21)

 

 

(32)

 

 

 

11

 

(13)%

 

(267)%

 

 

 

7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenditures

 

$

6,292

 

$

3,401

 

 

$

2,891

 

 

$

4,650

 

$

2,550

 

 

$

2,100

 

 

$

1,642

 

$

851

 

 

$

791

 

35%

 

33%

 

 

 

38%

 

Estimated impact of inflation on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

$

766

 

$

420

 

 

$

346

 

16%

 

16%

 

 

 

16%

 

Estimated impact of population growth on total expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

348

 

 

191

 

 

 

157

 

7%

 

7%

 

 

 

7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 (8%) of the overall Government budget. The majority (more than 60%) 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 2018 compared with fiscal year 2017

 

 

 

2018

 

 

 

2017

 

 

 

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

 

$

361

 

$

60

 

 

$

301

 

 

$

338

 

$

46

 

 

$

292

 

 

$

23

 

$

14

 

 

$

9

 

7%

 

30%

 

 

 

3%

Child safety and miscellaneous social services

 

 

91

 

 

1

 

 

 

90

 

 

 

87

 

 

1

 

 

 

86

 

 

 

4

 

 

 

 

 

4

 

5%

 

—%

 

 

 

5%

Safeguarding consumers and employees

 

 

21

 

 

6

 

 

 

15

 

 

 

22

 

 

8

 

 

 

14

 

 

 

(1)

 

 

(2)

 

 

 

1

 

(5)%

 

(25)%

 

 

 

7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Justice and Domestic Tranquility

 

$

473

 

$

67

 

 

$

406

 

 

$

447

 

$

55

 

 

$

392

 

 

$

26

 

$

12

 

 

$

14

 

6%

 

22%

 

 

 

4%

As a percentage of total expenditures

 

 

8%

 

 

2%

 

 

 

14%

 

 

 

7%

 

 

2%

 

 

 

14%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated impact of inflation on segment expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

$

10

 

$

1

 

 

$

9

 

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 $14 billion increase in federal crime and disaster expenditures was driven primarily by a $13 billion or 177% increase in disaster relief expenditures. The number of billion-dollar weather and climate disaster incidents decreased by 2 or 13% during this period.48 Hurricanes Harvey, Maria, and Irma all occurred in late fiscal year 2017, and the costs associated with addressing these disasters were part of the fiscal year 2018 results.

State and local crime and disaster

The $9 billion increase in state and local crime and disaster expenditures was driven primarily by a $7 billion or 4% increase in law enforcement and corrections costs, reflecting a $5 billion or 4% increase in law enforcement expenditures and a $2 billion or 3% increase in corrections expenditures.

The $5 billion increase in law enforcement expenditures was driven mainly by a $4 billion or 4% 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 3% during this period, while the number of state and local police protection employees increased 1%. During this period, the violent crime rate decreased 4% and related arrests increased 1%, while the property crime rate decreased 7% and related arrests decreased 7%.

The $2 billion increase in corrections expenditures comprised mainly a $2 billion or 3% increase in correctional operations costs. Annualized gross payroll costs for state and local corrections employees grew $1 billion or 3% during this period, while the number of correctional employees decreased 1%. Comparing these years, there was a 2% and 1% decrease in the number of people incarcerated in state prisons and local jails, respectively.

Fiscal year 2018 compared with fiscal year 2013

 

 

2018

 

 

2013

 

 

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

 

$

361

 

$

60

 

 

$

301

 

 

$

306

 

$

50

 

 

$

256

 

 

$

55

 

$

10

 

 

$

45

 

18%

 

20%

 

 

 

18%

Child safety and miscellaneous social

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

services

 

 

91

 

 

1

 

 

 

90

 

 

 

75

 

 

1

 

 

 

74

 

 

 

16

 

 

 

 

 

16

 

21%

 

—%

 

 

 

22%

Safeguarding consumers and employees

 

 

21

 

 

6

 

 

 

15

 

 

 

19

 

 

4

 

 

 

15

 

 

 

2

 

 

2

 

 

 

 

11%

 

50%

 

 

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Justice and Domestic Tranquility

 

$

473

 

$

67

 

 

$

406

 

 

$

400

 

$

55

 

 

$

345

 

 

$

73

 

$

12

 

 

$

61

 

18%

 

22%

 

 

 

18%

As a percentage of total expenditures

 

 

8%

 

 

2%

 

 

 

14%

 

 

 

8%

 

 

2%

 

 

 

15%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated impact of inflation on segment expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

$

30

 

$

4

 

 

$

26

 

8%

 

8%

 

 

 

8%

 

Estimated impact of population growth on segment expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

2

 

 

 

12

 

3%

 

3%

 

 

 

3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

State and local crime and disaster

The $45 billion increase in state and local crime and disaster expenditures was driven primarily by a $29 billion or 17% increase in law enforcement and corrections costs, reflecting a $20 billion or 20% increase in law enforcement expenditures and a $9 billion or 12% increase in corrections expenditures. In addition, fire protection costs increased $10 billion or 22%.

The $20 billion increase in law enforcement expenditures was driven mainly by a $20 billion or 21% increase in police protection operations costs. Annualized gross payroll costs for state and local police protection employees grew $10 billion or 17% during this period, while the number of state and local police protection employees increased 4%. During this period, the violent crime rate remained flat and related arrests increased 6%, while the property crime rate decreased 19% and related arrests decreased 25%.

The $9 billion increase in corrections expenditures comprised mainly an $8 billion or 14% increase in correctional operations costs. Annualized gross payroll costs for state and local corrections employees grew $6 billion or 16% during this period, while the number of correctional employees remained flat. Comparing these years, there was a 7% decrease in the number of people incarcerated in state prisons, while the number of people incarcerated in local jails increased 1%.

The $10 billion increase in fire protection costs reflects an increase of $4 billion or 18% in annualized gross payroll costs for state and local fire protection employees, while the number of state and local fire protection employees increased 3%. Overall non-natural disaster fire incidents increased 1% during this period.

State and local child safety and miscellaneous social services

The $16 billion increase in state and local child safety and miscellaneous social services expenditures was due to a $15 billion or 20% increase in the costs of public welfare operations.

Fiscal year 2018 compared with fiscal year 2008

 

 

 

2018

 

 

 

2008

 

 

 

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

 

$

361

 

$

60

 

 

$

301

 

 

$

278

 

$