1. NC State and Local Government Budgets Chapter 14 Section 3 and Chapter 25 Section 2

2. Budget  Budget- plan for managing and spending money  Part I: Money expected to come in (Revenue)  Part II: Money to spend (Expenditures)  Fiscal year- state and local budgets year which begins July 1 st and ends June 30 th  Budget Surplus- amount revenue exceeds expenditures  Budget Shortage- amount expenditures exceeds revenue

3. State Budget

4. State Budget Process  Governor and budget staff meet to discuss revenue and expenditures  NC law requires that the Governor approves a balanced budget  Governor proposes the budget to the General Assembly  General Assembly proposes ways to raise revenue and cut expenditures  General Assembly passes the budget  General Assembly frequently has trouble agreeing on the budget and it does not usually pass by July 1 st

5. State Government Revenues  Intergovernmental Revenue  Money that one level of government gets from another level of government  States get most of their revenue from the federal government  Taxes  Sales tax on purchases  Income tax on paychecks *Special tax on gasoline pays for road work

6. State Gov’t Expenditures  Education  Public schools and colleges  Health and Human Services  Disability, welfare, unemployment, etc.  Public Safety and Justice  Police and fire protection, courts, prison  State employees  Paychecks and retirement

9. Local Budget

10. Local Government Budget  Each NC county and municipality must make a budget every year  Local governments are required to pass a balanced budget by July 1 st

11. Local Gov’t Revenues  Intergovernmental Revenue  Money that one level of government gets from another level of government  Local governments get most of their revenue from state and federal government  Taxes  Property taxes on property owned: land, houses, vehicles, etc.  Get a portion of sales and income taxes  Utilities  Water, sewage, trash, etc.

12. Local Gov’t Expenditures  Education  Local public schools  Health and Human Services  Disability, welfare, unemployment, etc.  Public Safety  Local police and fire protection  Services  Roads, libraries, parks, etc.