Alternate Revenue Sources Status: In-Compliance The department conducted an internal review to pull together a budget designed for priorities and goals for the agency. The department has prepared departmental budgets with information on current services to lay the groundwork for budget expenditures.
Estimating Local Revenues and Expenditures Since the end of World War II, local government expenditures for various have been increasing at phenomenal rates, often outstripping the overall growth of the national economy.
The combined total for all local public functions has grown regularly at a faster rate than the Gross Domestic Product GDP. Between andlocal government expenditures financed from all sources increased at a compound rate of 9. These differential rates of increase were further exacerbated during the seventies by the downturn in the economy, coupled with the continued spiraling inflation.
In the s, the annual growth rate for local governmental expenditures continued to out pace the GDP, averaging 8. When local government expenditures are increasing at a faster rate than the GDP, the value of ELS will be greater than one.
Between andthe ELS for all local governments had a value of 1. The decade of the s recorded an ELS for local governments of only 1. Heilbrun also suggests that it is possible to define the elasticity of local revenue sources in a similar fashion, i. If the value of the elasticity of local revenue sources is equal to the value of the elasticity of local spending, and if all expenditures are paid out of local sources, then local government could finance the growth of expenditures year-by-year with no increase in tax rates.
The growth of the GDP would induce just enough expansion in the local tax base to provide the revenues needed to pay for growing expenditures. However, since the end of World War II, the elasticity of local revenues has been far below that of local spending, thus contributing to the persistent financial problems encountered by most local governments.
Estimates of the elasticity of property taxes throughout the United States vary from a low of 0. On a national basis, the general sales tax collected by local governments is estimated to have an elasticity of between 1. In other words, the growth of revenues from the general sales taxes closely parallels the growth of the GDP.
Other sources of general revenue excluding intergovernmental aidsuch as taxes on particular commodities and miscellaneous fees and charges, tend to have elasticities well below 1.
When these parts are added together, it appears that the elasticity for the aggregate of local taxes and charges, at best, is about 1. With an expenditure elasticity of about 1. Efforts of local governments during the past thirty years to develop other tax sources have been successful in only a limited number of larger cities.
The dependence of local governments on the property tax stems from one inescapable fact--the lack of viable options. No other form of taxation is readily available for productive use at the local level. Unilateral taxation of income, sales, or business receipts by local governments may prove dysfunctional to the financial well-being of such municipalities.
That is, if one municipality in a region introduces such taxes, new economic activities tend to locate beyond its taxing jurisdiction. Real property, however, is quite immobile. Differential taxes seldom induce migration out of a local geographic area.To download the Historical Tables as a PDF, click here ( pages, MB) Spreadsheets To download all Historical Tables in XLS format as a single ZIP fil.
governments, which in many cases continued to take on most expenditures responsibilities with fewer resources. The focus on the revenue side of decentralization and the neglect of a is which revenue sources can and should be assigned to subnational levels of government and how these assignments are to be effected.
A. Local governments collected more than $ trillion of general revenue in Revenue from local property, sales, and other taxes totaled $ billion, about 41 percent of general revenue (figure 1). The Building Multiple Revenue Sources guidebook will be helpful to any nonprofit seeking to learn about new sources of revenue and how to pursue them.
Who developed the Building Multiple Revenue Sources guidebook? The guidebook was originally developed by the National Resource Center with assistance from Paul Edwards.
The General Fund and Special Revenue Funds Chapter 3.
Expenditures when underlying liability is incurred, except for long-term debt principal and interest payments (when due) Basic Accounting Equation between Other Financing Sources (Uses) and Net Change in Fund Balance.
PeopleSoft. The PeopleSoft Enterprise Resource Planning System has been used by the state since It is used by State Government and Higher Education entities primarily for financial .