Introduction
Fiscal management is just as crucial to the region’s prosperity as the resources and people living there. According to Simon et al. (2018), one can judge the quality of a local public administration by the nearest infrastructure. This paper explores the fundamentals of regional economies, namely how states and county governments get money and the possibility of satisfying demands for government services with current only monetary sources.
About The Source of Revenue
The primary monetary source for state and municipal governments is taxes. Since 1996, taxes have contributed over 45% of the state and county government’s income (Park, 2017). Additional sources include intergovernmental reimbursements from federal, national, state, and local authorities. There are also selective payroll taxes, direct utilities, license fees, forfeitures and payments to establishments like colleges and universities and insurance investors.
About Balance
Balancing revenues and expenditures is one of the primary fiscal objectives of states and local governments. It is feasible to reconcile the needs for government services with the available revenue sources. According to Park (2017), manipulating interstate transactions, fees, and fines makes it possible for local leaders to maintain the financial balance of their regions. Despite monetary backup, revenue growth is still vital because demand for government services grows with the economy.
Conclusion
This short essay is a small study of the basic mechanisms of local economies. In America, the sources of income are various taxes, fees and fines, and intergovernmental transactions. This system balances local budgets and meets infrastructural and institutional needs of communities.
References
Park, S. (2017). Local revenue structure under economic hardship: Reliance on alternative revenue sources in California counties. Local Government Studies, 43(4), 645–667. Web.
Simon, A., Steel, B. S., & Lovrich, N. P. (2018). State and local government and politics (2nd ed.). OSU Press.