Developing a state budget involves several different characteristics. One of them is based around the priorities of the state government. For example, a state government controlled by Democrats may focus more on spending this money on public services (such as school funding, providing employment money to citizens, etc.). A person's political affiliation will play a huge role in how money is spent.
Along with this, state government officials must consider the wants/needs of their citizens. Considering that individuals in the state government are picked by the people, it would be wise of these politicians to poll/gather data on what citizens in their legislative district want to spend the money on.