Washington State and Local Finance Data
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  Expenditures Compared to Revenues Comparison Approach

 

 Comparison Approach

What value is there in looking at expenditures compared to revenues?

 This section displays revenues coming into the operating funds group, subtracts expenditures going out from the same funds and calculates a difference for each year of the study period. When revenues are greater than expenditures, the annual difference is a surplus. When expenditures exceed revenues, the difference is a deficit.

In addition to revenue and expenditure activity, this section also shows the impact of transfers. Transfers into operating funds act as additions to revenues. Transfers out of the operating funds act like expenditures and reduce available balances. An example of the net result of transfers out less transfers in is shown in the table below. The remainder, or net change, is the amount by which all sources coming into operating funds in a given year exceed the sum of all sources leaving the operating fund group in that year.

The following table illustrates the calculations referenced above:

 
Expenditures Compared to Revenues – State and Local Combined
Total All Funds
(Dollars in Billions)

  2005
Annual Revenues In
 
 47.5
 
Less: Annual Expenditures Out
 44.2
= Difference as Surplus or (Deficit)
 
 3.3
 
Less: Net Transfers Out
 (1.1)
= Net change as Surplus or (Deficit) 4.4

 

  
 December 2007