Romney greatly expanded the size of state government while governor. His first state budget, for fiscal year 1963, was $550 million, a $20 million increase over that of his predecessor Swainson. Romney had also inherited an $85 million budget deficit, but left office with a surplus. In the following fiscal years, the state budget increased to $684 million for 1964, $820 million for 1965, $1 billion for 1966, $1.1 billion for 1967, and was proposed as $1.3 billion for 1968. Romney led the way for a large increase in state spending on education, and Michigan began to develop one of the nation's most comprehensive systems of higher education. There was a significant increase in funding support for local governments and there were generous benefits for the poor and unemployed. Romney's spending was enabled by the that generated continued government surpluses and by a consensus of both parties in Michigan to maintain extensive state bureaucracies and expand public sector services.