A new study suggests that states with high levels of public corruption like Kentucky tend to spend more money on capital construction projects and police protection at the expense of social services.
The journal Public Administration Review found a correlation between states with higher instances of corruption and the scale of a state's spending in certain economic sectors. It also found that between 1997 and 2008, corruption actually inflated a state's total annual expenditures.
"During that time, the 10 most corrupt states could have reduced their total annual expenditure by an average of $1,308 per capita—5.2 percent of the mean per capita state expenditure—if corruption had been at the average level of the states," the study states.
"Moreover, at the expense of social sectors, corruption is likely to distort states’ public resource allocations in favor of higher-potential “bribe-generating” spending and items directly beneficial to public officials, such as capital, construction, highways, borrowing, and total salaries and wages."