13.6 - State and Local Governments Spending and Revenue

State and Local Governments Lesson 6 State and Local Spending and Revenue Learning Objectives Explain why State and local governments have a major role in providing important services. Identify State and local services in the fields of education, public welfare, public safety, and highways. Describe the major federal and State limits on raising revenue. List the four principles of sound taxation. Identify major tax and nontax sources of State and local revenues. Explain the State budget process.

State and Local Governments Lesson 6 State and Local Spending and Revenue Key Terms Medicaid welfare entitlement sales tax regressive tax income tax progressive tax property tax assessment inheritance tax estate tax budget

Education, Public Health, and Welfare The 50 State governments and their tens of thousands of local governments are principally responsible for many of the public services with which most Americans are familiar. The many differences among States means that there can be variations in both the quantity and the quality of those public services, but they include, especially, those in the areas of education, public safety, welfare, streets and highways, and __________________ _______________________. The several States deliver services to their residents in two ways: (1) directly, through State agencies conducting State-operated programs, and (2) through the many local governments the States have created.

Education, Public Health, and Welfare Public Education Funding College and University Support Public Health Cash Assistance _________________________________ to Needy Families (TANF) Other Efforts

Education, Public Health, and Welfare Education accounts for ____________________ of State and local government spending. Analyze Graphs According to the graph, on which category do State and local governments spend the least?

Education, Public Health, and Welfare Students walk between classes on a college campus. During the recession of 2008–2009, States had a much harder time _______________________ their public university systems.

Public Safety, Highways, and Other Services One of the oldest law-enforcement groups, the legendary Texas Rangers, was established in 1835. Today, a variety of police forces, from the local sheriff to academy-trained ___________________ ____________________, operate in every State to preserve law and order.

Public Safety, Highways, and Other Services ________________________ System Interstate Highway System Driver Safety

Public Safety, Highways, and Other Services Through ____________________________units, such as this one in Arkansas, officers can be more accessible to citizens, providing opportunities for positive interactions with the community.

Financing State and Local Government Altogether, despite the recent recession, the 50 States and their thousands of local governments take in and spend well over $3 ________________________ per year. Such huge sums are difficult to comprehend. Where do those governments get all that money, and what do they do with it?

Financing State and Local Government Federal Tax Limitations State Tax Limitations Principles of _________________ Taxation

Financing State and Local Government State and local governments do not rely solely on taxes for revenue. Analyze Graphs Which sources of revenue draw most heavily from young people?

Financing State and Local Government Chief Justice John Marshall wrote the Supreme Court's opinion in McCulloch v. _________________

Financing State and Local Government The 18th-century economist Adam Smith attempted to establish uniform rules that would govern a _____________ system of taxation. Analyze Information Which principles ensure fairness to taxpayers?

Sources of State Revenue Beyond the limits noted, a State can levy taxes as it chooses. The legislature decides what taxes the State will impose, and at what rates. It decides, too, what taxes _____________________________ can levy.

Sources of State Revenue Sales Tax Revenue Income Tax Revenue Property Tax Revenue Inheritance or ____________________Tax Revenue Business Tax Revenue Other Tax Revenues Nontax Revenues Borrowing Funds

Sources of State Revenue Taxes, a large source of State revenue, include sales tax and taxes on ______________________ and houses. Analyze Graphs What factors might affect this source of income?

Sources of State Revenue Gasoline taxes are an example of a State tax with a ______________________________classification. Analyze Maps What generalization can you make about the States with the highest gasoline taxes?

Sources of State Revenue Property tax is a significant source of income for most _______________________. Analyze Political Cartoons What point is the cartoonist making about the property tax as a source of funding?

State Budgets A public budget is much more than bookkeeping entries and dollar signs. It is a ______________________, a plan for the control and use of public money, public personnel, and public property. It is also a political document, a highly significant statement of public policy. In the State budget, the State's leaders establish their State's priorities and decide who gets what, and who doesn’t.

State Budgets The Budget Process in the Past The Budget__________________Today

State Budgets ______________________, governor of California, introduces his 2014–2015 budget proposal, one of the largest in State history, at the State capitol in Sacramento, California.

State Budgets Many individuals are involved in deciding how State _________________ are spent. Analyze Charts How is the State budget process similar to that of the Federal Government?

Quiz: Education, Public Health, and Welfare Which of the following would be MOST affected by variations in local government property tax revenues? A. public welfare B. entitlements C. education D. State prisons

Quiz: Public Safety, Highways, and Other Services The construction of U.S. highways and roads is an example of federalism at work because A. road construction is a federal responsibility, while road maintenance is the responsibility of the States. B. some roads are patrolled by federal officers, while others are patrolled by State police. C. road construction is a federal responsibility, while driver safety is the responsibility of the States. D. some roads are built with federal funds, while others are built with State funds.

A. Taxes must not apply to noncitizens. Quiz: Financing State and Local Government Which of the following is one way that the 14th Amendment limits the States' power to tax? A. Taxes must not apply to noncitizens. B. Taxes must all come from the same source. C. Taxes must be progressive taxes. D. Taxes must be imposed only for public purposes.

Quiz: Sources of State Revenue Generating revenue from a variety of sources allows States to A. distribute the tax liability among many citizens. B. restrict the tax liability to just a few citizens. C. exempt the wealthiest citizens from taxes. D. require every citizen to pay equal amounts.

Quiz: State Budgets One reason it is important that a State's legislature shares budget-making responsibility with the governor is that A. the legislature has a better understanding of financial matters. B. special interest groups can influence legislators. C. the legislature reflects the will of the people. D. the job is too big for the governor to handle alone.