Federal and Local Government Funding

Federal and Local Government Funding Learning where America’s dollars are going is important. There is much to be discussed when considering local, federal, and state government funding and how each compares to each other as well as the differences between the three. Local, state, and federal budgeting systems truly work hand-in-hand in regards to the way they function. Local Security Organizations Budget Security organizations on the local level, such as the McKinney Police Department receives funding for operations through the general fund of the City of McKinney rather than a standalone budget.

The general fund generates revenue through property taxes, permits and licenses, charges and fines, sales tax, other taxes and transfers. The McKinney Police Department costs represent 24% of the overall general fund expenditures for Fiscal Year 2015. (Muehleneck, n. d. ) On the county level, the security organization is typically the Sherriff’s Department which also is part of the overall county budget rather than having their own standalone budget. The county also operates with a general fund which receives revenue through property tax, fines and forfeitures, licenses, sales tax and franchise taxes.

According to the Collin County Budget, public safety encompasses 34. 1% of the overall general fund expenditures of Collin County for Fiscal Year 2015. (Arris, n. d. ) Comparing and Contrasting Local to City Budgeting Both the city and county governments are the umbrella for the respective security organizations. Both receive funding through the generation of revenue from the general fund of the city and the county through property tax, fines, licenses, sales taxes and franchise taxes. The FEDERAL AND LOCAL GOVERNMENT FUNDING 2 security organizations for the city and county represent a significant portion of the overall expenditures.

The citizens of both the city and county benefit from the services provided by the police and sheriff’s deputies. The Sheriff’s Deputies respond to calls in the county, even if the address is the city as the police department must focus on calls within the city limits. The budget for the county is larger than that of the city due to the fact that the county typically covers a larger physical area, however does not necessarily have more officers working. The county also manages the jail where all individuals who have been arrested are housed.

The county must also support the Judicial Branch as most of the courts are on the county and district level. Federal Security Organizations Budget Security organizations on a federal level, such as the Federal Bureau of Investigations or the Central Intelligence Agency receive funding through the federal government. The Center on Budget and Policy and Policy Priorities (2015) states that “the three main sources of federal tax revenue are individual income taxes, payroll taxes, and corporate income taxes; other sources of tax revenue include excise tax, the estate tax, and other taxes and fees”.

According to The Center on Budget and Policy Priorities (2015), “the federal government collects taxes to finance various public services”. The Center on Budget and Policy Priorities (2015) states that “18 percent of the federal budget, or $615 billion, paid for defense and security-related international activities. The bulk of the spending in this category reflects the underlying costs of the Defense Department. The total also includes the cost of supporting operations in Afghanistan and other related FEDERAL AND LOCAL GOVERNMENT FUNDING 3 activities, described as the Overseas Contingency Operations in the budget, funding for which totaled $92 billion in 2014”.

Comparing and Contrasting Federal to Local and State Budgeting Like the state and local governments, the federal government funds the security organizations that protect the nation. A large portion of funding for all three levels of security organizations come from taxes. The budget at the federal level is larger than the state or local level due to having to deal with national as well as international security. The budget at the federal level deals with expenditures that include war personnel and international crimes that are against our nation.

The federal level of security as office inland as well as overseas that have to be funded by the federal government to protect the nation. State Security Organizations Budget Taxes are the primary source of revenue for state governments and state governments rely upon the federal government for most of their funding. The United States Census reports that in 2009, state governments received 31. 8 percent of their revenue from the federal government (Blumerman & Barnett, 2011). The rest of the funding is provided by a variety of sources that include utility revenue, liquor store revenue, and insurance trust revenue.

Comparing and Contrasting State to Local and Federal Budgeting FEDERAL AND LOCAL GOVERNMENT FUNDING 4 In comparison, state and local governments heavily rely upon federal funding in regards to each of their revenue sources. Both entities also rely upon taxes and charges when depending on whether or not state and local governments are solvent. In contrast, the United States Census Bureau reports that “state and local governments differ in their dependence on federal funding for their support. In 2009, state governments received 31. 8 percent of their general revenue from the federal government; whereas, local governments received 4.

3 percent of the general revenue directly as federal support” (Blumerman & Barnett, 2011). Summary Each government system is designed to focus on specific issues when it comes to budgeting however it is noted that both local and state governments heavily rely upon federal government funding to implement many programs, practices, and guidelines. The federal funding mainly is compiled from taxes; primarily individual income, payroll and corporate income taxes. The federal government also relies on the money that is borrowed. When the funding is collected, it is then distributed through mandatory and discretionary spending and interest on debt; it is through these outlets that funding reaches the state and local governments.

The topic of government funding is much debated; many citizens are eager to learn where their tax dollars are being spent and it is only through keeping a close eye on it and becoming engaged that one can learn the ins and outs of government budgeting! FEDERAL AND LOCAL GOVERNMENT FUNDING 5 References: Arris, M. (n. d. ). Collin County Texas FY 2015 Budget in Brief. Retrieved from http://www. collincountytx. gov/budget/Documents/budgets/FY2015BudgetinBrief. pdf Blumerman, J. & Barnett, J.

(2011). The Funding of our State and Local Governments. Retrieved from http://blogs. census. gov/2011/10/31/ Muehleneck, T. (n. d. ). City of McKinney, Texas. Annual Budget Fiscal Year 2014-15. Retrieved from http://mckinneytexas. org/ArchiveCenter/ViewFile/Item/945 Policy Basics: Where Do Federal Tax Revenues Come From? Center on Budget and Policy Priorities. (2015, March 11). Retrieved from http://www. cbpp. org/cms/? fa=view&id=3822 Policy Basics: Where Do Our Federal Tax Dollars Go? Center on Budget and Policy Priorities. (2015, March 11).

Retrieved from http://www. cbpp. org/cms/index.cfm? fa=view&id=1258 \ View as multi-pages TOPICS IN THIS DOCUMENT Federal government of the United States, Local government, Tax, Corporate tax, Federal government, Value added tax, Income tax, Taxation in the United States RELATED DOCUMENTS The Role of Federal and State Government …? The role of state and local governments has provided a vital role in defining federal relations. The relationship has been defined by a few factors: Congress, the Supreme Court or other courts, and funding policies The courts must address questions concerning the powers of the state and federal government.

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