Of all 50 states, Utah dedicates the largest portion of its budget to education, according to fiscal year 2013 data released by the Census Bureau. Utah spends 40.8 percent of its budget on education, with Vermont close behind at 40 percent.
On the other end of the spectrum, New York spends just 22.4 percent of its budget on education. Not that New York spends too little on education — it actually spends $19,396 per pupil, more than any other state. Nearly one-third of New York’s budget goes toward welfare programs. For comparison, only 18 percent of Utah’s budget is spent on welfare.
Education in the Northeast generally takes up a smaller portion of the budget because state governments spend more on other initiatives. In addition to New York, Connecticut, Maine, Massachusetts and Rhode Island all spend more on welfare programs than on education.
Nationwide, state governments collectively spend almost 30 percent of their budgets on education.
Differences between state budgets can vary widely within a region. For instance, in the Midwest, Illinois spends just 22.9 percent of its budget on education, fourth least in the country. In contrast, neighboring Indiana spends 39.7 percent of its budget on education, third most in the country. New York and Vermont in the Northeast are another example of vast differences within a region.
California, which spends the most overall on education, spends 28.3 percent of its budget on education, 15th most in the country.
Expenditure data includes funding received by state governments from federal grants and other education programs. The data also include funds transferred from state governments to local governments for education. However, funds raised by local governments for education are not included, such as funds raised through property taxes.
