1. State and Local Government Expenditures
Chapter 10.3 pages
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

2. 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

3. 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

4. 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

5. 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

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