Ch 5: State and Local Budgets Flashcards
T or F, there are more federal employees than local government employees
False, there are 2.7 M federal employees, 5.1M State and 14.8M local employees.
Tenth Amendment
Federal government is limited to the powers explicitly granted by the constitution
Number of cities
19,419 in the US
1,199 in Texas
Los Ybanez, Dawson County Texas was incorporated by
family who wanted to have a business serving alcohol in a dry area.
Some states place fiscal constraints on localities through
limits on debt, spending, growth and caps on revenue sources
T or F, local government expenditures are dominated by elementary and secondary education
True-around 40%
State government expenditures are dominated by
public welfare programs (43%) and higher education (18%)
In many states, Governors have extraordinary fiscal powers
Due to part time legislatures; power to call special sessions; supplemental appropriation powers
T or F, most governors have line-item veto power
True–44 governors have it
Variety of budget features
Annual or biennial
Single or multiple appropriations
Dual budget systems-operating & capital
Use of rainy day funds
Citizen input
Spending caps may be linked to
personal income
population
inflation
forecast revenues
All but these states have balanced budget requirements
Indiana and Vermont
T or F, states are borrowing more than in the late 1970s
True
States use ____________ to borrow money for capital improvements
Bonds
Defined contribution
Benefit level depends on the amount accumulated in the fund.
