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

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State Budget

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NC State and Local Government Budgets Chapter 14 Section 3 and Chapter 25 Section 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 State Budget 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 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 State Govt 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 Local Budget 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 Local Govt 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. Local Govt 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.