A New Measure of Policy Spending Priorities in the American States

In this paper, we develop and test a general measure of policyexpenditures in the American states. Our approach is to constructa spatial proximity model of yearly state program spending.The empirical analysis reveals that state spending patternsvary along a clear and readily-interpretable unidimensionalcontinuum which differentiates policies that provide particularizedbenefits to needy constituencies from policies that providebroader collective goods. Based upon standard evaluative criteria,the variable created from our model possesses some highly desirablecharacteristics. And, it compares favorably to other measuresof state policy activity. The net result is a yearly score foreach state which summarizes that state's spending across allmajor program areas. More generally, we believe that our variablecan be interpreted as valid and reliable representational measurementof state policy priorities. In this capacity, it could occupyan important position within models of state politics. Author's note: Many colleagues provided useful feedback on earlierversions of this paper. We particularly appreciate the excellentcomments and suggestions from Robert Erikson, Richard Fording,Kim Hill, David Lowery, Andrea McAtee, and George Rabinowitz.We would also like to thank Daniel Lewis and William Myers fortheir assistance with the data collection. The yearly statepolicy priority scores obtained from the unfolding analysis,along with the data used to create the scores, the SAS macroto carry out the unfolding procedure, and all other supplemental materialsare available on the authors’ web sites: http://polisci.msu.edu/jacobyand http://polisci.msu.edu/schneider. All these materials arealso available on the Political Analysis Web site.