A line and bar chart showing state and local government surpluses and deficits compared with receipts and expenditures. In 1995 the surplus was close to $16 billion; total receipts were $900 billion and expenditures were $899 billion. Through first quarter 2001, receipts and expenditures rose steadily and in parallel. From 2001 through 2002, however, expenditures rose at faster than receipts. By first quarter 2002, expenditures were at $1 trillion 380 billion, while receipts were at $1 trillion 300 billion. Meanwhile, surpluses rose from $16 billion in 1995 to a high of $56 billion in 1998 before beginning to decline. By first quarter 2002, there was a deficit of $47 billion.