A New Measure of Policy Spending Priorities in the American States

In this paper, we develop and test a general measure of policy expenditures in the American states. Our approach is to construct a spatial proximity model of yearly state program spending. The empirical analysis reveals that state spending patterns vary along a clear and readily-interpretable unidimensional continuum which differentiates policies that provide particularized benefits to needy constituencies from policies that provide broader collective goods. Based upon standard evaluative criteria, the variable created from our model possesses some highly desirable characteristics. And, it compares favorably to other measures of state policy activity. The net result is a yearly score for each state which summarizes that state's spending across all major program areas. More generally, we believe that our variable can be interpreted as valid and reliable representational measurement of state policy priorities. In this capacity, it could occupy an important position within models of state politics.