State and Local Government Expenditures Chapter 10.3 pages 267-270 Approving Spending – most states spending policies follow the Federal Government model Some states have made constitutional amendment that requires that annual spending not exceed revenues. States cannot spend money they don’t have

Spending When states come up short of funds they are forced to cut state spending Income to local government comes from property taxes If they come up short it could affect hiring of teachers, police officers and other state and local workers

State Government Expenditures Largest expenditures are intergovernmental. These funds are generated from sales taxes and are then distributed to towns and other communities for educational and municipal expenditures

State Expenditure Public Expenditures in public welfare This is cash assistance, payments for medical care, maintenance to welfare institutions and other welfare programs Many states have their own retirement funds Higher education such as colleges and universities are under State funding Highway construction and road improvements are also under the state

Local Government Expenditures Largest expenditures elementary and secondary schools, hospitals, utilities, police, public welfare and highways One-third of local funding goes to schools for buildings, salaries, and textbooks If state or local governments need money they have to borrow, the interest off these loans become another expenditure

Class work Page 270 complete questions 2 and questions 3 and 5 Pg. 271 read and answer the two questions Examining the News clip