Three revenue sources in public budgeting
Property tax can be defined as a levy that the government issues on a person’s property. The value assessed to the property is taxed. Revenue of local governments like cities and counties are derived from property taxes. The revenue is used for administration in government and expenses concerning law enforcement, paramedics etc.; and also to fund courts in local governments and helps for the payment of services which include civic centers, community programs, libraries, parks and recreation, and schools. Property taxes are also often used to pay some state programs such as Medicaid (in New York for example) and also to provide public assistance such as assistance to needy family (TANF), child welfare services and other social services such as supported employment, adult protective services, domestic violence and personal care assistance. This revenue can also be tracked in public safety like in juvenile detention, probation services and other mandates (corrections/ county jail, law library in county jail, staffing for state and county court, prosecution services, community colleges etc.). Property tax revenue can be tracked in many ways, it depends on each state but all states generally use these revenues to fund almost the same programs.
Intergovernmental revenue is the funds obtained from other governments. These funds usually include grants, taxes which are shared, and contingent loans and advances. Here, funding emanates from all governments (federal, state and local governments). “Financial arrangements for funding and delivering intergovernmental services can be complex according to the variability of government structure, organization, roles and responsibilities. For example, government support concerning elementary and secondary schools includes direct funds from the federal government that are passed through state and local governments to local educational...
References: Wilson, E. R., Kattelus, S. C., & Reck, J. L. (2007). Accounting for governmental and nonprofit entities. (14th ed.). Boston, MA: McGraw-Hill Irwin.
Please join StudyMode to read the full document