Analysis of Census Bureau Data

The institutional factors identified in Part 2 interact in complex ways, and untangling their relative contributions to revenue-oriented policing in any given jurisdiction is a challenging empirical problem. Looking directly at revenue data is a practical approach for identifying where fiscal dependence on enforcement revenue has materialized regardless of the combination of factors that may have produced it. To that end, the analysis below draws on Census Bureau data to present a national overview of fines and forfeitures revenue and state-by-state profiles of local government reliance.

The national and state-level estimates presented in this section are drawn from the Census Bureau’s Annual Survey of State and Local Government Finances, which has tracked revenues and expenditures for state and local governments across the United States since 1957. Every five years, in years ending in 2 and 7, the Census Bureau conducts a comprehensive enumeration of all state and local governments. In intervening years, a rotating sample of approximately 12,000 governments is surveyed, with a new sample selected every five years in years ending in 4 and 9. The data used here are from fiscal year 2022, a census year, which provides broader coverage than a typical survey year. Trend data covering fiscal years 2013 through 2022 are also presented to place current figures in historical context.

The Census Bureau’s data are the most comprehensive source available for analyzing local government finances at the national and state level. Because the data follow a consistent methodology and classification system across all governments and years, they allow for meaningful comparisons across jurisdictions and over time that would not otherwise be possible.

3.1 National Overview

Across the 50 states, excluding the District of Columbia, local governments collected $8.3B in fines and forfeitures revenue in 2022, an increase from $7.6B in 2021. This uptick follows a period of historically low collections during the COVID-19 pandemic, when many courts operated at reduced capacity and law enforcement activity declined. Prior to 2021, local fines and forfeitures remained fairly stable, hovering around $9 billion annually throughout the late 2010s.

In per capita terms, local governments in the 50 states, excluding the District of Columbia, collected $24.77 per resident in 2022, also reflecting a partial recovery from the pandemic low while remaining below the pre-pandemic figures that held relatively steady at around $28 per resident from 2013 through 2019.

Despite the substantial dollar amount collected across these states, fines and forfeitures represent a small fraction of local government budgets overall. Across the 50 states, excluding the District of Columbia, fines and forfeitures comprised just 0.38% of local governments’ general revenue in 2022, indicating that the vast majority of jurisdictions do not meaningfully rely on law enforcement revenue to fund operations.

3.2 State Profiles

Explore state-level analyses of local fines and forfeitures data. Colors indicate the percentage of general revenue derived from fines and forfeitures.

Among states, local governments in Arkansas, Illinois, New York, Tennessee, and Georgia collect the highest shares of general revenue from fines and forfeitures on average, each exceeding 0.65% of general revenue. Arkansas leads all states at 0.78%, followed closely by Illinois at 0.73%. Tennessee, New York, and Georgia round out the top five, each falling between 0.66% and 0.69%.

Eight of the 10 highest-reliance states (Arkansas, Tennessee, Georgia, Oklahoma, Texas, Mississippi, Louisiana, and South Carolina) are in the South or South-Central region. Illinois and New York are notable regional outliers, ranking second and third nationally.

Per capita collections tell a somewhat different story. Local governments in New York lead all states at $75.81 per resident, about 1.4 times the next highest state, Illinois, at $53.76. Georgia, Wyoming, and Texas follow at $35.59, $35.39, and $33.17 respectively. Wyoming’s appearance near the top of the per capita rankings, despite ranking 17th by reliance share, illustrates how the two measures can diverge. A state with relatively modest total fines revenue spread across a small population can rank highly on a per capita basis even where fines comprise a modest fraction of local budgets. The 50-state weighted average, excluding the District of Columbia, was $24.77 per resident in 2022.

Local governments in Nebraska, Connecticut, Vermont, New Hampshire, and Hawaii collect the smallest shares of general revenue from fines and forfeitures on average. Nebraska ranks last at just 0.03%, meaning fines and forfeitures amount to less than one-third of one-tenth of one percent of local general revenue on average. Connecticut, Vermont, New Hampshire, and Hawaii each fall below 0.07%. Kentucky, New Mexico, and Maine also rank among the lowest, all below 0.09%.

Per capita collections at the low end of the distribution follow a similar geographic pattern. Local governments in Nebraska collect just $1.91 per resident on average, the lowest of any state. Connecticut ($2.51), Hawaii ($2.66), Vermont ($2.75), Kentucky ($2.99), and New Hampshire ($3.28) also rank among the lowest. All six collect less than one-fifth of the 50-state weighted average of $24.77 per resident.

While most jurisdictions collect minimal revenue from fines and forfeitures, a subset of local governments relies heavily on these funds. The state-level data presented here offer a useful starting point for identifying where that reliance is concentrated, but they cannot reliably identify specific high-reliance jurisdictions. Even in census years, a substantial amount of individual government values are imputed rather than directly reported, estimated by the Census Bureau using data from prior years or comparable governments rather than collected from the government itself. Additionally, the Census Bureau applies its own revenue classification system, which does not map directly onto the accounting standards that govern how local governments prepare their official financial statements, introducing potential inconsistencies between Census figures and governments' own records.

These constraints mean that identifying specific high-reliance jurisdictions requires a different approach. Part 4 addresses this directly, drawing on audited financial statements collected by Reason Foundation from thousands of individual cities and counties to provide a reliable picture of fines and forfeitures reliance at the local government level.