The state's major sources of revenue are Taxes, Operating Grants and Contributions, and Charges for Services. All three sources have increased steadily over five years. As a result, the state's total revenues have increased from $14.2 billion in Fiscal Year 2001-02 to $18.6 billion in Fiscal Year 2005-06 (a 23.7 percent increase).

The amounts shown as taxes generally are collected without any requirements as to how they will be spent. They are the primary source of money for the Legislature and Governor when they decide where state money will be spent. Operating Grants and Contributions are monies that usually must be spent on the purpose for which the money was received. Most of this money comes from the federal government. Restricted revenues include certain taxes dedicated to education and highways. Capital Grants and Contributions include money that is required to be spent on capital assets such as buildings or equipment. Most of this money comes from the federal government.

For more information about state revenue see: