State and Local Government Spending Increases by 6.5 Percent in 2008, Census Bureau Reports: “State and local government spending increased by 6.5 percent in 2008, totaling more than $2.8 trillion, according to the U.S. Census Bureau. Education topped government spending ($826.1 billion), followed by public welfare ($404.6 billion), insurance trust expenditures ($234.6 billion), utilities ($193.4 billion) and highways ($153.5 billion). These findings come from the 2008 Annual Surveys of State and Local Government Finances, which includes data on revenues, expenditures, debt and assets (cash and security holdings) for state and local governments. Among state and local government spending, housing and community development increased 11.0 percent. Additionally, spending on hospitals increased 8.4 percent and spending on insurance trust systems increased by 9.8 percent…”