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William J. Baroody Files (Ford Administration)
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The original documents are located in Box 39, folder "Weekly Briefing Notes,
2/27/1976" of the William J. Baroody Files at the Gerald R. Ford Presidential
Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 39 of the William J. Baroody Files at the Gerald R. Ford Presidential Library
*
71
*
#
THE VICE preSIdENT
#
4
*
WASHINGTON
*
*
= *
March 11, 1976
MEMORANDUM FOR BILL BAROODY
Attached is a copy of the Weekly
Briefing Notes special report entitled
State and Local Government Finances.
The regular weekly report will
be sent tomorrow.
lesson
STATE
AND LOCAL
GOVERNMENT
FINANCES
Prepared for the President
and the Vice President
GERALD LISSEN TEAM
February 27, 1976
COMPILED BY THE FEDERAL STATISTICAL SYSTEM
Coordinated by the Bureau of the Census
at the request of the Statistical Policy Division,
Office of Management and Budget
Vincent P. Barabba, Director
Joseph W. Duncan,
Bureau of the Census
Deputy Associate Director
for Statistical Policy
Office of Management and Budget
GERALD
LIBRARY
February 27, 1976
SOURCES OF DATA
U.S. Department of Commerce, Bureau of the Census
Governmental Finances
"Governmental Finances in 1963-64" through
"Governmental Finances in 1973-74"
Census of Governments, 1972, vol. 4, Government Finances, No. 5:
"Compendium of Government Finances"
Census of Governments, 1972, vol. 6, Topical Studies, No. 4:
"Historical Statistics on Governmental Finances and Employment"
State Government Finances
"State Government Finances in 1974"
Finances of Municipalities
"City Government Finances in 1973-74"
Census of Governments, 1972, vol. 4, Governmental Finances, No. 4:
"Finances of Municipalities and Township Governments"
County Finances
"County Government Finances in 1973-74"
Census of Governments, 1972, vol. 4, Governmental Finances, No. 3:
"Finances of County Governments"
Special District Finances
Census of Governments, 1972, vol. 4, Governmental Finances, No. 2:
"Finances of Special Districts"
School District Finances
Census of Governments, 1972, vol. 4, Governmental Finances, No. 1:
"Finances of School Districts"
Employment
"Public Employment in 1974"
BERALD,
Census of Governments, 1972, vol. 3, Public Employment, No. 2:
"Compendium of Public Employment"
Government Organization
Census of Governments, 1972, vol. 1:
"Governmental Organization"
For further information, please contact Sherman Landau, Chief, Governments Division,
Bureau of the Census, 763-7366.
TABLE OF CONTENTS
Explanatory Notes
FEDERAL, STATE, AND LOCAL GOVERNMENT - TRENDS
AND COMPARISONS
A.1 Total Revenue and Expenditure by Financial Sectors: 1974
A.2 Number of Public Employees by Level of Government: 1957, 1962, 1967, 1972, and
1974
A.3 Per Capita Governmental General Revenue: 1964 to 1974
A.4 Tax Revenue by Level of Government: 1970 to 1974
A.5 Per Capita Governmental General Expenditure: 1964 to 1974
A.6 Federal Intergovernmental Expenditure by Function: 1962 to 1974
A.7 General Expenditure by Level of Government: 1967 and 1974
STATE GOVERNMENT FINANCES
B.1 State Government Revenue and Expenditure: 1974
B.2 Trends in State Government Revenue, Expenditure, and Long-Term Indebt-
edness: 1965 to 1974
B.3 Selected Components of State General Revenue: 1965 to 1974
B.4 Selected Components of State General Expenditure: 1965 to 1974
GERALD
LOCAL GOVERNMENT FINANCES
C.1 Local Governments by Type: 1957, 1962, 1967, and 1972
C.2 Local Government Revenue and Expenditure: 1974
C.3 Trends in Local Government General Revenue, Expenditure, and Long-Term Indebt-
edness: 1965 to 1974
TABLE OF CONTENTS-Continued
Local Government Finances-Continued
C.4 Trends in General Revenue, General Expenditure, and Long-Term Indebtedness
of County Governments: 1965 to 1974
C.5 Selected Components of County General Revenue: 1965 to 1974
C.6 Selected Components of County General Expenditure: 1965 to 1974
C.7 Trends in Municipal General Revenue, General Expenditure, and Long-Term
Indebtedness: 1965 to 1974
C.8 Selected Components of Municipal General Revenue: 1965 to 1974
C.9 Selected Components of Municipal General Expenditure: 1965 to 1974
C.10 Trends in General Revenue Direct General Expenditure, and Long-Term Indebtedness
of Townships: 1965 to 1974
C.11 Trends in General Revenue, Direct General Expenditure, and Long-Term Indebtedness
of Special Districts: 1965 to 1974
C.12 Trends in General Revenue, Direct General Expenditure, and Long-Term Indebtedness
of School Districts: 1965 to 1974
APPENDIX A. State and Local Governmental General Revenue, Expenditure, and Indebt-
edness by State: 1967 and 1974 (Per $1,000 Personal Income and Per Capita)
APPENDIX B. Definitions of Selected Terms
Explanatory Notes
1. All years displayed in the charts or cited in the accompanying
narrative are fiscal years. For local governments, the financial
statistics for each year relate to fiscal years which ended some-
time in the 12-month period ending June 30 of the year cited. All
State governments except Alabama, Texas, and New York have fiscal
years which end June 30. These three States are treated as though
they were part of the June 30 group.
2. Total revenue and expenditure comprise actual receipts and payments
(net of such correcting transactions as recoveries or refunds) of
a government and its agencies, including government-operated enter-
prises, utilities, and public trust funds. Transactions excluded
are debt issuance and retirement, loans and investments, agency
and private trust transactions, and internal transfers between
government funds.
Aggregates for groups of governments exclude intergovernmental
transactions between the governments involved.
3. The percentages in the pie charts that display components of
governmental revenue and expenditure in 1974 are calculated on the
basis of total government revenue and expenditures, which include
utility, liquor store, and insurance trust revenue and expenditure
(except contributions from governments to insurance funds they
administer; see definitions). The percentages for components of
revenue and expenditure displayed in the line charts will vary
slightly from the pie charts because they are computed as percent-
ages of general revenue and expenditure which exclude utility,
liquor store, and insurance trust revenue and expenditure (see
definitions).
4. Long-term indebtedness amounts that are displayed in the various
charts include both full faith and credit obligations which are
secured by the government's power of taxation, and nonguaranteed
debt, which is payable solely from earnings of revenue-producing
activities (see definitions).
5. Other measures of Federal Grants-in-Aid calculated on slightly
different conceptual bases are shown in Special Analysis 0 of
the Budget of the United States: Fiscal Year 1977.
A.1 - Total Revenue and Expenditure by Financial Sectors: 1974
Federal Government
Total Revenue
$289.1 Billion
Insurance Trust
Revenue
$70.7
24.5 %
Individual
Income Taxes
$119.0
41.2 %
Post Office
Receipts
$8.6
3.0 %
Other Charges and
Miscellaneous
$25.0
8.6 %
Corporate
Income Taxes
Other Taxes
$38.6
$6.7
13.4 %
2.3 %
Sales Taxes
$20.5
7.1 %
Total Expenditure
FORD is LIBRARY CERALD
$297.2 Billion
Insurance Trust
Expenditure
National Defense
$74.1
$87.0
24.9 %
29.3 %
Interest on
Education
General Debt
$13.3
$22.5
4.5 %
7.6 %
Public Welfare
$19.1
Other General
6.4 %
Expenditure
$68.4
23.0 %
Natural Resources
$12.8
4.3%
Source: Bureau of the Census
27 February 1976
A.1-Total Revenue and Expenditure by Financial Sectors: 1974
State and Local Governments
Total Revenue
Insurance Trust
$237.9 Billion
Revenue
$18.4
7.7 %
Individual
Income Taxes
$19.5
Utility And Liquor
8.2 %
Store Revenue
The different patterns of revenue and expenditure of the Federal
$11.8
5.0 %
Government compared to State and local governments reflect their
Property Taxes
different functions and roles.
$47.7
From Federal
20.1 %
Government
$41.8
Federal, State, and local governments receive most of their tax
17.6 %
revenues from different sources.
Individual and Corporate Income Taxes comprise 54.6
percent of the Federal Government's income.
Charges And
Miscellaneous
Sales Taxes
$35.2
$46.1
14.8 %
19.4 %
Local governments rely on property tax, while State govern-
ments depend upon a combination of general and selective
sales taxes.
Other Taxes
$17.4
7.3 %
The Federal Insurance Trust Programs (primarily Old Age,
Survivor's, Disability, and Health Insurance) accounted for
nearly one-fourth of all Federal revenue and expenditure.
Insurance Trust Programs at the State and local government
Total Expenditure
level accounted for only 7.7 percent of revenue and 5.6
$226.0 Billion
percent of total expenditure.
Insurance trust
Expenditure
State and local governments disburse three-fourths of total
$12.7
5.6 %
governmental expenditures for delivery of public services such
as Education, Public Welfare, Health and Hospitals, etc.
Utility And
Liquor Stores
$14.4
Education and Public Welfare account for about 45 percent
6.4 %
Education
of State and local government outlays, compared to only 11
$75.8
percent for the Federal Government.
33.5 %
Other General
Federal payments to State and local governments ($41.8 billion in
Expenditure
1974) have increased from 12.6 percent to 17.6 percent of total
$62.2
State and local revenue since 1965.
27.5 %
Public Welfare
$25.1
11.1 %
Health and Hospitals
$15.9
Highways
7.0 %
$19.9
8.8 %
GERALO FORD LIBRARY
Source: Bureau of the Census
27 February 1976
A.2 - Number of Public Employees by Level of Government:
1957, 1962, 1967, 1972, and 1974
Federal
1957
2.439
1962
2.539
1967
2.993
1972
2.795
1974
2.874
FORD & LIBRARY GERALD
State
1957
1-300
1962
1-680
1967
2-335
1972
2.957
1974
3.155
Local
1957
4-307
1962
5-169
1967
6.539
1972
8.007
1974
8.639
0
1
2
3
4
5
6
7
8
9
Millions of Persons
Source: Bureau of the Census
27 February 1976
FORD LIBRARY is GERALD
The number of Public Employees of State and local governments
has more than doubled between 1957 and 1974.
The increase at the Federal level was only 18 percent
over the same period.
A.3 - Per Capita Governmental General Revenue: 1964 to 1974
Charges and Miscellaneous
State and Local Taxes
Thousands
Federal Taxes
of Dollars
2
$1-816
18
FORD LIBRARY is BERALD
$1648
10
$1-486
14
$1.341$1.346
$1279
12
$1-087
$1043
1
$0-961
$0-875
$0-840
08
00
or
02
0
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
Total Per Capita General Revenue has risen nearly as much in the 3
years between 1971 and 1974 as in the 7-year period from 1964 to 1971.
Between 1964 and 1974, the Federal Tax share of per capita revenue
of all governments has decreased from 56.3 percent to 48.2 percent.
The State and Local Tax share has increased from 29.8 percent
in 1964 to 34.0 percent in Fiscal 1974.
Combined Federal, State, and local revenue from Charges and Miscella-
neous sources increased from 13.9 percent to 17.8 percent of per capita
General Revenue.
FORD is LIBRARY QERALD
A.4 - Tax Revenue by Level of Government: 1970 to 1974
Other Taxes
Sales Taxes
FORD & LIBRARY GERALD
Income Tax (Federal and State)
Billions
Property Tax (Local)
of Dollars
200
200
184.8
180
180
165.5
160
160
153.7
146.1
140
137.3
140
120
120
100
100
80
80
74.2
68.1
59.9
60
56.5
60
51.5
53.0
48.0
48.9
43.4
40
38.8
40
20
20
0
0
Federal
Federal
Federal
Federal
Federal
State
State
State
State
State
Local
Local
Local
Local
Local
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
FORD LIBRARY is GERALD
During the 1970's, State and Local Tax Revenues were expanding at a
rate nearly twice that of Federal Tax Revenues.
Between 1970 and 1974 Federal tax revenue rose 26.7 percent to
$184.8 billion, while State and local tax revenues combined
increased 50.6 percent to a total of $130.7 billion.
While the absolute dollar amounts of total tax revenue have been in-
creasing, the proportions of revenue from various types of taxes at
each level of government have remained relatively constant.
A.5 - Per Capita Governmental General Expenditure: 1964 to 1974
State and Local
Other Federal
Thousands
National Defense and
of Dollars
International Relations
2
$1793
18
16
GERALD R. LIDRARY FORD
$1660
$1.558
$1.473
14
$1.353
$1.267
12
$1.182
$1-096
1
$0-968
$0-868
$0-896
08
06
04
02
0
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
On a per capita basis, State and local General Expenditure now accounts
for more than half (52.4 percent) of all governmental spending, up from
41.7 percent in 1964.
Excluding National Defense and International Relations, State and
local government spending comprise more than two-thirds of total
expenditure.
Federal expenditure for National Defense and International Relations as
a share of total per capita governmental expenditure has decreased
sharply from 34.5 percent to 23.0 percent between 1964 and 1974.
All other Federal Expenditure has remained relatively unchanged
at approximately 24 percent of Total General Expenditure.
FORD is LIBRARY QERALD
A.6 - Federal Intergovernmental Expenditure by Function: 1962 to 1974
THIS
CHANGE
CHANGE
HIGHWAYS - -
R.FORD & LIBRARY BERALD
PERIOD
LAST PER.
YEAR AGO
$4.6
N/A
-5.2%
PUBLIC WELFARE
$12.8
N/A
6.1%
ALL OTHER
$11.9
N/A
8.4%
EDUCATION -
$7.5
N/A
10.4%
BILLIONS
GENERAL REVENUE SHARING
$6.1
N/A
-8.0%
BILLIONS
OF DOLLARS
OF DOLLARS
15
15
10
10
5
5
0
0
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
FORD & LIBRARY GERALD
The Federal Government distributed a total of $42 billion to State and
local governments in 1974, a four-fold increase over the past 10 years.
Following a 3-year period, 1970 to 1973, of accelerating
growth averaging 21 percent, Federal intergovernmental
expenditure leveled off, increasing only 3.8 percent in
1974.
About 30 percent of this total, or $12.8 billion, was earmarked
for Public Welfare programs, which, in 1967, became the largest
intergovernmental expenditure.
The sharp rise in Public Welfare Expenditure in 1972 and
subsequent decline the following year, was due to a large
1973 advance payment made in 1972.
Another $7.5 billion, or 18 percent, was disbursed for Education,
an increase of 10.4 percent from 1973.
Grants-in-Aid to local schools amounted to $6.4 billion,
or 86 percent of the total.
Upon inception in 1973, General Revenue Sharing became the third
largest intergovernmental outlay.
Of the $6.1 billion distributed in 1974, $2.0 billion was
transferred to the States with $4.1 billion going to.local
governments.
Housing and Urban Renewal, Health and Hospitals, and Waste Water
Treatment Facilities are the primary components contributing to
the sharp rise in the "A11 Other" category since 1969.
Federal payments for Highway programs have remained relatively
stable since 1962, dropping from the largest single component of
Intergovernmental Expenditure.
A.7 - General Expenditure by Level of Government: 1967 and 1974
1967
FORD is LIBRARY OERALD
1974
Per Capita
Per $1,000 Personal Income
$1,098
$374
All Governments
$1,793
$358
$624
$213
Federal
$853
$170
$474
$161
State and Local
$940
$188
2,000
1,500
1,000
500
0
0
100
200
300
400
Per Capita
Per $1,000 Income
Source: Bureau of the Census
27 February 1976
FORD & LIBRARY GERALD
In 1974, General Expenditure of All Governments amounted to $1,793 for
each person in the U.S., 63 percent above the $1,098 expended in 1967.
Conversely, relative to personal income, Total Governmental Expenditure
has actually declined over the same period.
$358 per $1,000 of personal income in 1974 compared to $374 in
1967.
A 20-percent decline in Federal Expenditures (excluding amounts
transferred to State and local governments) per $1,000 of
personal income was responsible for the overall decrease.
State and local expenditures per $1,000 of personal income
rose 17 percent.
B.1 - State Government Revenue and Expenditure: 1974
Total Revenue
$140.8 Billion
Other Taxes
$10.6 7.5%
Insurance Trust
Revenue
Intergovernmental
$16.4 11.7%
$33.2 23.6%
Liquor Stores
Revenue
$2.0 1.4%
Charges and
Miscellaneous
$15.0 10.6%
Income Taxes
$23.1 16.4%
Sales Taxes
$40.5 28.8%
FORD is LIBRARY GERALD
Total Expenditure
$132.1 Billion
Insurance Trust
And Liquor Stores
$12.2 9.2%
All Other Functions
$26.3 19.9%
Education
$46.9 35.5%
Health And
Hospitals
$8.4 6.4%
Highways
$15.8 12.0%
Public Welfare
$22.5 17.0%
Source: Bureau of the Census
27 February 1976
FORD & 038870 LIBRARY
In 1974 Total State Revenue exceeded Total Expenditure by $8.7 billion,
considerably lower than the $11.0 billion excess in 1973.
Total Revenue of $140.8 billion (including Insurance Trust and
Liquor Store Revenue) was 8.5 percent above 1973.
Tax Revenue from all sources provided 52.7 percent ($74.2
billion) of Total Revenue.
95 percent of the $33.2 billion in Intergovernmental
Revenue came from the Federal Government.
Total Expenditure, including payments to local governments,
amounted to $132.1 billion, an 11.2-percent rise from 1973.
At $46.9 billion, a 12.6-percent increase from 1973,
Education continued to account for a larger fraction of
State spending than any other function.
Public Welfare, totaling $22.5 billion, or 17.0 percent of
the total, was the second largest single expenditure.
Spending on Health and Hospitals was up 14.9 percent,
the largest annual change among the major functions.
B.2 - Trends in State Government Revenue, Expenditure, and
Long-Term Indebtedness: 1965 to 1974
FORD is LIBRARY GERALD
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
GENERAL REVENUE
$122.3
N/A
8.1%
GENERAL EXPENDITURE
$119.9
N/A
10.9%
BILLIONS
LONG-TERM INDEBTEDNESS
$61.7
N/A
11.4%
BILLIONS
OF DOLLARS
OF DOLLARS
160
160
140
140
120
120
100
100
80
80
60
60
40
40
20
20
0
0
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
FORD is LIBRARY GERALD
Both State General Revenue and Expenditure have tripled since 1965.
Long-Term Indebtedness has increased at a slower pace.
The ratio of General Revenue to Long-Term Indebtedness has risen
from 1.54 in 1965 to 1.98 in 1974.
B.3 - Selected Components of State General Revenue: 1965 to 1974
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
FORD is LIBRARY GERALD
INTERGOVERNMENTAL REVENUE
-
--
$33.2
N/A
1.4%
GENERAL SALES TAXES
$22.6
N/A
14.2%
* INCOME TAXES
$23.1
N/A
9.9%
MOTOR FUEL SALES TAXES
$8.2
N/A
1.8%
MOTOR VEHICLE AND
$3.8
N/A
3.3%
OPERATORS' LICENSES - - -
BILLIONS
BILLIONS
OF DOLLARS
OF DOLLARS
35
35
30
30
25
25
20
20
15
15
10
10
5
5
0
0
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
*Includes both individual and corporate
27 February 1976
net income taxes.
FORD & LIBRARY GERALD
After increasing at an average annual rate of 17.3 percent between 1970
and 1973, State Intergovernmental Revenue began to level off, rising
only 1.4 percent in 1974.
Sales and Income Taxes became an increasingly important source of funds,
accounting for 52 percent of General Revenue in 1974 compared to 50.4
percent in 1965.
B.4 . Selected Components of State General Expenditure: 1965 to 1974
THIS
CHANGE
CHANGE
FORD LIBRARY & GERALD
PERIOD
LAST PER.
YEAR AGO
EDUCATION
$46.9
N/A
12.6%
HIGHWAYS -
$15.8
N/A
5.5%
PUBLIC WELFARE
$22.5
N/A
4.0%
HEALTH AND HOSPITALS
$8.4
N/A
14.9%
BILLIONS
INTEREST ON DEBT
-- -
$2.9
N/A
17.6%
BILLIONS
OF DOLLARS
OF DOLLARS
50
50
45
45
40
40
35
35
30
30
25
25
20
20
15
15
10
10
5
5
0
0
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
BERALD FORD LIBRARY
Over the 10-year period 1965 to 1974, Public Welfare expenditures have
shown a four-fold increase to become the second largest State expendi-
ture.
Public Welfare now accounts for 18.8 percent of State General
Expenditure compared to 13.5 percent in 1965.
Education has shown a three-fold increase from 1965 to 1974.
In 1974, Education accounted for 39.1 percent of State General
Expenditure, an increase of 3.1 percentage points over the 36.0
percent in 1965.
Of the total $46.9 billion State expenditure for Education
in 1974, $27.1 billion, or 57.8 percent, was State fiscal
aid to local governments for support of public schools.
C.1 - Local Governments by Type: 1957, 1962, 1967, and 1972
Counties
1957
3.1
1962
3.0
1967
3.0
FORD is LIBRARY GERALD
1972
3.0
Municipalities
1957
17.2
1962
18.0
1967
18.0
1972
18.5
Townships
1957
17.2
1962
17.1
1967
17.1
1972
17.0
Special Districts
1957
14.4
1962
18.3
1967
21.3
1972
23.9
School Districts
1957
50.5
1962
34.7
1967
21.8
1972
15.8
0
5
10
15
20
25
30
35
40
45
50
8
Thousands
Does Not Include School Systems
Dependent on Other Governments.
Source: Bureau of the Census
27 February 1976
FORD is LIBRARY 03RA70
Between 1957 and 1972, the overall number of local governments decreased
by 24,072, or 23.6 percent.
There have been only small changes in the number of townships,
municipalities, and counties.
However, the number of school districts decreased nearly 70
percent.
The decrease in the number of school districts has been
taking place over the last 30 years, primarily as a result
of school district consolidation and reorganization.
Four States--California, Illinois, Nebraska, and Texas--
account for nearly one-third of all school districts in
the United States.
During the same period, the number of special districts rose 79
percent.
In part, the increasing number of special districts reflects
the increased public demand for the provision of specialized
services either not offered or not performed on a satisfac-
tory scale by existing governments.
Also, debt and tax rate limits applicable to counties
and municipalities are further stimulants to creating
districts for raising funds for both capital construction
and operation expenditure.
C.2 - Local Government Revenue and Expenditure: 1974
Total Revenue
$143.2 Billion
Utility,Liquor Store And
Insurance Trust
GERALD FORD LIBRARY
From Federal
Revenue
Government
8.2 %
7.1 %
Charges And
Miscellaneous
142 %
From State
Other Taxes
Governments
3.1 %
31.1 %
Sales Taxes
3.9 %
Property Taxes
32.4 %
Total Expenditure
$140.4 Billion
Intergovernmental
Expenditure
.6%
Other General
Expenditures
26.4 %
Education
40.0 %
Utilities, Liquor
Stores, And Insurance
Trust Systems
10.6 %
Police Protection
4.4 %
Public Welfare
Highways
6.8 %
5.2 %
Health And Hospitals
6.0 %
Source: Bureau of the Census
27 February 1976
FORD is GERALD LIBRARY
In 1974, local government Revenue exceeded Expenditure by $2.8 billion.
Total Revenue amounted to $143.2 billion.
Intergovernmental Revenue was the largest source of funds,
a total of $54.8 billion, or 38.2 percent of all revenues.
State Governments contributed the major portion, $44.6
billion, which includes Federal funds routed through
the States. Federal payments made directly to local
governments amounted to $10.2 billion.
Property Taxes were the next most important source of funds,
accounting for 32.4 percent of Total Revenue .
Sales and Other Taxes contributed only 7 percent.
Total Expenditure amounted to $140.4 billion.
Education was by far the largest single expenditure,
constituting 40 percent of all spending.
Other General Expenditure, 26.4 percent of the total,
mainly consisted of Fire Protection ($3.0 billion),
Sewerage ($4.1 billion), Sanitation Other Than Sewerage
($1.9 billion), Local Parks and Recreation ($3.0 billion),
Housing and Urban Renewal ($3.1 billion, and Interest on
General Debt ($4.8 billion).
C.3 - Trends in Local Government General Revenue, Expenditure,
Long-Term Indebtedness: 1965 to 1974
THIS
CHANGE
CHANGE
FORD is LIBRARY GERALD
PERIOD
LAST PER.
YEAR AGO
LONG-TERM INDEBTEDNESS- - -
$128.3
N/A
9.7%
GENERAL EXPENDITURE
$125.6
N/A
9.5%
GENERAL REVENUE
$131.5
N/A
11.1%
BILLIONS
BILLIONS
OF DOLLARS
OF DOLLARS
140
140
130
130
120
120
110
110
100
100
90
90
80
80
70
70
60
60
50
50
40
40
30
30
1966
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
FORD & LIBRARY 038870
In 1973, local government General Revenue exceeded General Expenditure
for the first time in the 10-year period from 1965 to 1974.
This is partly a result of the Federal Government's Revenue
Sharing Program: Federal funds were channeled into local govern-
ments which, for various reasons, have not been spending the new
funds pending the establishment of priorities.
Over the period 1965 to 1974, General Expenditure and Revenue have
increased at a faster rate than Indebtedness.
General Revenue has increased 174.3 percent while Long-Term
Indebtedness has increased by 88.7 percent.
All three components have increased more rapidly between 1970
and 1974 than between 1965 and 1970.
C.4 - Trends in General Revenue, General Expenditure,
and Long-Term Indebtedness of County Governments: 1965 to 1974
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
FORD & LIBRARY BERALD
GENERAL REVENUE
$30.1
N/A
12.0%
GENERAL EXPENDITURE
$28.9
N/A
10.5%
BILLIONS
LONG-TERM INDEBTEDNESS
$16.4
N/A
12.8%
BILLIONS
OF DOLLARS
OF DOLLARS
50
50
40
40
30
30
20
20
10
10
0
0
1966
1966
1967
1968
1969
1970
1971
1972
1973
1974
C.5 - Selected Components of County General Revenue: 1965 to 1974
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
PROPERTY TAX
$9.6
N/A
3.1%
INTERGOVERNMENTAL
$13.8
N/A
17.6%
CHARGES AND MISCELLANEOUS
$4.7
N/A
14.0%
BILLIONS
OTHER TAXES - -
$2.1
N/A
17.4%
BILLIONS
OF DOLLARS
OF DOLLARS
16
15
10
10
5
6
0
0
1966
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
C.6 - Selected Components of County General
Expenditure: 1965 to 1974
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
PUBLIC WELFARE -
$6.3
N/A
1.8%
HIGHWAYS
$3.1
N/A
12.7%
LIBRARY GERALD ? FORD
EDUCATION
$4.8
N/A
12.1%
BILLIONS
HEALTH AND HOSPITALS - -
$4.0
N/A
10.1%
BILLIONS
OF DOLLARS
OF DOLLARS
10
10
8
8
6
6
4
4
2
2
0
0
1965
1966
1967
1968
1968
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
Sixty percent of the rise in County General Revenue since 1972 is ac-
counted for by the rise in Intergovernmental Revenue.
Intergovernmental Revenue provided $13.8 billion, or 45.8 percent
of the 1974 total General Revenue of counties.
Property Tax as a proportion of total county General Revenue,
has declined from 43.4 percent in 1965 to 31.8 percent in 1974.
From 1965 to 1974, Total General Expenditure has nearly tripled.
Sharply higher outlays for Public Welfare, Education, and Health
and Hospitals were the major factor.
Highway Expenditures rose more moderately, increasing 80 percent
over this period.
C.7 - Trends in Municipal General Revenue, General
Expenditure, and Long-Term Indebtedness: 1965 to 1974
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
BERALD R.FORD LIBRARY
LONG-TERM INDEBTEDNESS
$53.4
N/A
8.3%
GENERAL REVENUE
$44.2
N/A
9.4%
BILLIONS
GENERAL EXPENDITURE
$42.5
N/A
9.0%
BILLIONS
OF DOLLARS
OF DOLLARS
60
60
50
50
40
40
30
30
20
20
10
10
0
0
1966
1966
1967
1968
1969
1970
1971
1972
1973
1974
C.8 - Selected Components of Municipal General Revenue
1965 to 1974
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
PROPERTY TAX
$12.2
N/A
3.1%
INTERGOVERNMENTAL
$16.6
N/A
13.1%
CHARGES AND MISCELLANEOUS
$8.1
N/A
17.4%
BILLIONS
OTHER TAX - -
$7.2
N/A
9.0%
BILLIONS
OF DOLLARS
OF DOLLARS
25
25
20
20
15
15
10
10
5
5
0
0
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
C.9 - Selected Components of Municipal General Expenditure:
1965 to 1974
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
FORD & LIBRARY GERALD
POLICE AND FIRE PROTECTION
$7.2
N/A
6.9%
EDUCATION
$6.4
N/A
7.4%
HIGHWAYS
$3.3
N/A
14.0%
HEALTH AND HOSPITALS
$3.1
N/A
2.3%
BILLIONS
PUBLIC WELFARE
$3.4
N/A
2.3%
BILLIONS
OF DOLLARS
OF DOLLARS
12
12
10
10
8
8
6
6
4
4
2
2
0
0
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
As in the case of counties, Intergovernmental Revenue has become a
major source of municipal funds.
From 1965 to 1974, Intergovernmental Revenue increased from
22.2 percent to 37.6 percent of total municipal General Revenue.
Property Taxes, another major source of municipal revenue,
as a proportion of total municipal General Revenue, has declined
from 41.2 to 27.7 percent.
From 1965 to 1974, general expenditure for Public Welfare increased
nearly four-fold; Police and Fire Protection rose two and one-half
times; Health and Hospitals nearly tripled; and Highways rose 84 per-
cent.
Municipal expenditures for Education are concentrated in a small number
of large cities, including New York City, that directly administer
public schools. In most cities public schools are administered by
independent school districts.
Similarly, Public Welfare expenditures are concentrated in large
cities.
New York City alone accounts for nearly three-fourths of all
municipal expenditures for Public Welfare.
C.10 - Trends in General Revenue, Direct General Expenditure,
and Long-Term Indebtedness of Townships: 1965 to 1974
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
FORD is LIBRARY GERALD
GENERAL REVENUE
$5.1
N/A
11.9%
DIRECT GENERAL EXPENDITURE
$4.4
N/A
7.0%
BILLIONS
LONG-TERM INDEBTEDNESS
$2.8
N/A
1.1%
BILLIONS.
OF DOLLARS
OF DOLLARS
8
8
6
6
4
4
2
2
0
0
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
About 90 percent of township Revenue and Expenditure are concentrated
in the New England area and New Jersey, Pennsylvania, Michigan,
New York, and Wisconsin. In these areas, townships are vested with
relatively broad powers and perform functions usually associated with
municipal governments.
Over the past 2 years General Revenue has increased at a faster rate
than Direct General Expenditure.
Although Property Taxes remained the largest source of town-
ship Revenue, accounting for 58 percent of the total, Inter-
governmental Revenue is becoming increasingly important.
Amounts spent for Education and Highways together constituted 53
percent of total township Expenditure of $4.4 billion in 1974.
Another 11 percent was spent on Police and Fire Protection.
C.11 - Trends in General Revenue, Direct General Expenditure,
and Long-Term Indebtedness of Special Districts: 1965 to 1974 FORD
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
GERALD
LIBRARY
LONG-TERM INDEBTEDNESS
$29.6
N/A
13.9%
DIRECT GENERAL EXPENDITURE
$6.4
N/A
12.7%
BILLIONS
GENERAL REVENUE
$7.0
N/A
24.0%
BILLIONS
OF DOLLARS
OF DOLLARS
35
35
30
30
25
25
20
20
15
15
10
10
5
5
0
0
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
Special districts comprise the most diverse group of local governments
in the Nation. The services provided by these districts range from
such basic social needs as hospitals and fire protection to the less:
conspicuous tasks of mosquito abatement and upkeep of cemeteries.
In contrast to other local government units, the main revenue source
of special districts is Charges and Miscellaneous General Revenue,
which constituted half of all General Revenue in 1974. Property taxes
constituted only 15 percent of all special district General Revenue,
as opposed to 36.5 percent for all other local governments.
Direct General Expenditure and General Revenue do not include utilities
(including transit systems) and
liquor
stores.
However,
in
contrast to other local governments, these components are a large
portion of total Revenue and Expenditure (see definitions of General
Revenue and General Expenditure).
For example, in 1974 utility and liquor store expenditure of
$4.1 billion was two-thirds as large as the $6.4 billion in
Direct General Expenditure.
Capital outlay and interest on debt comprise slightly more than one-
half of total special district expenditure, compared to one-fifth
of the expenditures of all other local governments combined.
C.12 - Trends in General Revenue, Direct General Expenditure,
and Long-Term Indebtedness of School Districts: 1965 to 1974
THIS
CHANGE
CHANGE
PERIOD
LAST PER.
YEAR AGO
FORD is LIBRARY GERALD
DIRECT GENERAL EXPENDITURE
$44.9
N/A
9.4%
GENERAL REVENUE
$47.6
N/A
14.1%
BILLIONS
LONG-TERM INDEBTEDNESS
$26.1
N/A
7.2%
BILLIONS
OF DOLLARS
OF DOLLARS
50
50
45
45
40
40
35
35
30
30
25
25
20
20
15
15
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
Source: Bureau of the Census
27 February 1976
In 1972, school districts accounted for approximately 38 million
pupils, or 81 percent of total public school enrollment. The remain-
ing 19 percent were enrolled in school systems that operated as
dependent agencies of county, municipal, township, or State governments.
In 1974 Intergovernmental Revenue became the major source of school
district funds, accounting for nearly half of all General Revenue.
Property Tax Revenue amounted to $20.6 billion, or 43.3 percent
of total General Revenue.
In 1972, current operations consumed about 87 percent of all school
district expenditure.
About three-fourths of current expenses were for salaries and
other compensation for personal services.
Capital Outlays accounted for approximately 13 percent of total
expenditure.
APPENDIX A. State and Local Governmental General Revenue,
General Expenditure, and Indebtedness: 1967 and 1974
There is substantial interstate variation in the level of activity of
each State and its local governments as measured on a per capita basis
and per $1,000 of personal income.
On a per capita basis the lowest values are found in the South,
but when calculated per $1,000 of Personal Income the North
Central region is shown to have the lowest level of State and
local government activity.
The highest values for both measures are generally found in the
West and Northeast.
With few exceptions, Per Capita General Revenue, General Expenditure,
and Total Indebtedness are up sharply from 1967 to 1974:
Median State Value
1967
1974
General Revenue
$463
$932
General Expenditure
$472
$867
Indebtedness
$489
$788
When measured against each $1,000 of Personal Income, the increases are
less striking and many States show declines over this period.
Median State Value
1967
1974
General Revenue
$168
$199
General Expenditure
$177
$187
Indebtedness
$182
$180
APPENDIX A. State and Local Governmental General Revenue,
General Expenditure, and Indebtedness: 1967 and 1974
Per $1,000 Personal Income and Per Capita
1974
1974
1967
1967
FORD is LIBRARY BERALD
General Revenue
General Expenditure
Indebtedness
Northeast
$246
$1416
$252
N.Y.
$1448
$360
$2069
$284
$1137
$266
Vt.
$1064
$310
$1241
$208
$1096
$201
Mass.
$1058
$218
$1149
$167
$989
$161
Conn.
$955
$243
$1436
$172
$1012
$167
N.J.
$977
$194
$1137
$190
$953
$180
RJ.
$903
$180
$905
600
400
200
0
0
500
1000
1500
Per $1,000 Income
Per Capita
Source: Bureau of the Census
*Decline from 1967.
27 February 1976
APPENDIX A. State and Local Governmental General Revenue,
General Expenditure, and Indebtedness: 1967 and 1974
Per $1,000 Personal Income and Per Capita
N.E., cont'd
$232
$932
FORD is LIBRARY GERALD
$206
Maine
$824
$161
$645
$185
$930
$176
Penn.
$885
$239
$1198
$166
$765
$169
N.H.
$775
*$138
$636
South
$285
$1863
$268
D.C.
$1753
$410
$2683
$190
$1106
$182
Dela.
$1056
$270
$1565
$190
$1039
$193
Md.
$1055
$209
$1141
$228
$897
$209
La.
$822
$261
$1024
$190
$809
$181
Okla.
$773
$181
$772
$199
$856
$184
Ga.
$794
*$171
$735
600
400
200
0
0
500
1000
1500
Per $1,000 Income
Per Capita
Source: Bureau of the Census
*Decline from 1967.
27 February 1976
APPENDIX A. State and Local Governmental General Revenue,
General Expenditure, and Indebtedness: 1967 and 1974
Per $1,000 Personal Income and Per Capita
South. cont'd
$177
$825
$168
Fla.
$783
$160
$747
FORD is LIBRARY GERALD
$211
$836
$205
W. Va.
$815
$194
$769
$170
$816
$171
Va.
$821
*$143
$683
$226
$790
$210
Miss.
$734
$185
$644
$173
$775
$161
Texas
$720
$204
$911
$195
$745
$186
Ala.
$712
*
$207
$794
$199
$797
$178
Ky.
$713
$272
$1091
$184
$751
$180
Tenn.
$735
$216
$884
$177
$745
$163
N.C.
$685
$93
$392
600
400
200
0
0
500
1000
1500
Per $1,000 Income
Per Capita
Source: Bureau of the Census
*Decline from 1967.
27 February 1976
APPENDIX A. State and Local Governmental General Revenue,
General Expenditure, and Indebtedness: 1967 and 1974
Per $1,000 Personal Income and Per Capita
South cont'd
$178
$694
$156
Ark.
$609
$126
$491
FORD LIBRARY & GERALD
$193
$735
$195
S.C.
$739
$170
$646
N. Central
$217
$1110
$204
Minn.
$1042
$192
$982
$195
$1077
$187
Mich.
$1030
$161
$887
$217
$1032
$206
Wisc.
$979
$141
$673
$179
$1042
$162
m.
$946
$135
$788
$181
$1035
$155
N.D.
$889
*$74
$424
$200
$948
$183
S.D.
$867
42
$201
$168
$902
*
$159
Iowa
$851
*$80
$427
600
400
200
0
0
500
1000
1500
Per $1,000 Income
Per Capita
Source: Bureau of the Census
*Decline from 1967.
27 February 1976
APPENDIX A- State and Local Governmental General Revenue,
General Expenditure, and Indebtedness: 1967 and 1974
Per $1,000 Personal Income and Per Capita
N Cent. cont'd.
$170
$896
$157
Neb.
$826
$267
$1405
FORD & LIBRARY GERALD
$167
$890
$156
Kans.
$830
$133
$707
$166
$825
$144
Ind.
$715
*100
$498
$161
$777
$150
Mo.
$722
*$120
$577
$157
$796
$149
Ohio
$754
$139
$703
West
$333
$1937
$430
Alaska
$2501
$534
$3104
$238
$1289
$249
Hawaii
$1349
$296
$1603
$218
$1188
$206
Calif.
$1119
$170
$923
*$253
$1169
$240
Wyo.
$1107
$206
$949
600
400
200
0
0
500
1000
1500
Per $1,000 Income
Per Capita
Source: Bureau of the Census
*Decline from 1967.
27 February 1976
APPENDIX A. State and Local Governmental General Revenue,
General Expenditure, and Indebtedness: 1967 and 1974
Per $1,000 Personal Income and Per Capita
West cont'd
$217
$1190
$208
Nev.
$1145
$182
$999
FORD & LIBRARY GERALD
$221
$1013
$196
Mont.
$899
*$124
$568
$205
$1042
$205
Wash.
$1042
$305
$1550
$256
$973
$221
N.M.
$839
$132
$500
$204
$1001
$194
Colo.
$954
$143
$702
$214
$1017
$209
Ore.
$990
$211
$1001
$201
$901
$199
Ariz.
$892
$174
$779
$215
$864
$209
Utah
$840
$109
$438
$202
$857
$193
Idaho
$819
**$66
$279
600
400
200
0
0
500
1000
1500
Per $1,000 Income
Per Capita
Source: Bureau of the Census
*Decline from 1967.
27 February 1976
APPENDIX B
Definitions of Selected Terms
Cash and Security Holdings-Cash and deposits (including
General Revenue Sharing-Funds distributed to States and local
demand and time deposits) and governmental and private
general purpose governments by the Federal Government under
securities (bonds, notes, stocks, mortgages, etc.), except hold-
the State and Local Fiscal Assistance Act of 1972.
ings of agency and private trust funds.
Health-Health services, other than hospital care, including
Charges and Miscellaneous General Revenue-Current charges,
health research, clinics, nursing, immunization, and other cate-
special assessments, and all other general revenue except taxes
gorical, environmental, and general public health activities.
and intergovernmental revenue. Current Charges comprise
School health services provided by health agencies (rather than
amounts received from the public for performance of specific
school agencies) are included here.
services benefiting the person charged and from sales of com-
Highways-Streets, highways, and structures necessary for their
modities and services except those by liquor store systems and
use, street lighting, snow and ice removal, toll highway and
local utilities. Interest Earnings consist of earnings on deposits
bridge facilities, and ferries.
and securities, other than such earnings of insurance trust funds.
Special Assessments are compulsory contributions collected
Hospitals-Establishment and operation of hospital facilities,
from owners of property benefited by specific public improve-
provision of hospital care, and support of public or private
ments (paving, drainage or irrigation facilities, etc.) to defray
hospitals. However, see Public Welfare concerning vendor pay-
the costs of such improvements, and apportioned according to
ments under welfare programs.
the assumed benefits to the property affected.
Housing and Urban Renewal-Housing and redevelopment pro-
Direct General Expenditure-Paymentsto employees, suppliers,
jects and any promotion or support of private housing and
contractors, beneficiaries, and other final recipients of govern-
redevelopment activities.
mental payments (i.e., expenditure other than intergovern-
mental) by the general government; excludes utility expenditure,
Insurance Trust System-A government-administered program
liquor stores expenditure, and insurance trust expenditure.
for employee retirement and social insurance protection relating
to unemployment compensation, workmen's compensation, Old
Education-Provision or support of schools and other educa-
Age, Survivors', Disability, Health Insurance, and the lik
tional facilities and services. The Local Schools category com-
Insurance Trust Revenue comprises amounts from contributions
prises all direct expenditure by local governments for education,
required of employers and employees for financing these social
other than any direct spending for institutions of higher educa-
insurance programs, and earnings on assets of such systems.
tion, and any direct State government spending for operation
Insurance Trust Expenditure comprises only cash payments to
of, or facilities and supplies for, elementary and secondary
beneficiaries (including withdrawals of contributions). Insurance
public schools. Institutions of Higher Education include facilities
trust revenue and expenditure do not include any contributions
and activities of all educational institutions beyond the high
of a government to a system it administers.
school level operated by State or local governments, except that
agricultural experiment stations and agricultural extension
Interest Expenditure-Amounts paid for use of borrowed
services are classed under natural resources, and university-
money. Interst, excpet that paid on debt incurred distinctively
operated hospitals serving the public are classed under hospitals.
for local utility purposes, is classed under general expenditure.
These educational categories include related services such as
General expenditure for interest is not allocated to particular
pupil transportation, school milk and lunch programs, cafeterias,
functions (education, highways, etc.) but is classed separately
and health and recreational programs.
as interest on general debt.
Expenditure-All amounts of money paid out by a government-
Intergovernmental Transactions-Intergovernmenta Revenue
net of recoveries and other correcting transactions-other than
and Intergovernmental Expenditure comprise, respectively, pay-
for retirement of debt, investment in securities, extension of
ments from one government to another as grants-in-aid, shared
credit, or as agency transactions. Expenditure includes only
revenues, payments in lieu of taxes, or reimbursements for
external transactions of a government and excludes noncash
governmental services. Exludes amounts for the purchase of
transactions such as the provision of perquisites or other pay-
commodities, property, or utility services, any tax levied as such
ments in kind. Aggregates for groups of governments exclude
on facilities of the payer, and employer contributions by the
intergovernmental transactions among the governments involved.
government for social insurance. Intergovernmental Revenue
From State Government includes any amounts originating with
General Expenditure-All expenditure of a government other
the Federal Government but channeled through the State for
than utility expenditure, liquor stores expenditure, and
distribution to local governments.
insurance-trust expenditure.
Liquor Stores-Alcoholic beverage distribution facilities are
General Revenue-All revenue of a government except utility
operated by 17 State governments and by some counties a
revenue, liquor stores revenue, and insurance-trust revenue.
small municipalities in a few States. Liquor Stores Expenditure
All tax revenue and all intergovernmental revenue even if
comprises purchase of beverages for resale and provision and
designated for employee-retirement of local utility purposes, is
operation of liquor stores. Excludes expenditures for law
classed as general revenue.
enforcement and licensing activities, which are classed under
general expenditure. Liquor Stores Revenue consists of amounts
noncash transactions such as receipts of services, commodities,
received from sales of liquor stores (exclusive of any distinctive
or other "receipts in kind".
*ax revenue they collect).
Sales and Gross Receipts Taxes-Taxes, including "licenses"
Long-term indebtedness-Comprises long-term credit obligations
at more than nominal rates, based on volume or value of trans-
of the government and its agencies. Excludes all obligations
fers of goods or services, upon gross receipts therefrom, or upon
repayable within one year. Full faith and credit debt is long-
gross income, and related taxes based upon use, storage, produc-
term debt for which the credit of the government, implying the
tion (other' than severance of natural resources), importation,
power of taxation, is unconditionally pledged. Includes debt
or consumption of goods. General Sales or Gross Receipts Taxes
payable initially from specific taxes or nontax sources, but
comprise such taxes which are applicable with only specified
representing a liability payable from any other available re-
exceptions to all types of goods, or of goods and services, or
sources if the pledged sources are insufficient. Nonguaranteed
of all gross income. Taxes imposed distinctively upon sales
debt consists of long-term debt payable solely from earnings of
of or gross receipts from selected commodities, services, or
revenue producing activities, from special assessments, or from
businesses are categorized as Selective Sales and Gross Receipts
Taxes.
specific nonproperty taxes.
Social Insurance Administration-For State and local govern-
Property Taxes-Taxes conditioned on ownership of property
ments, consists of Employment Security Administration
and measured by its value. Includes general property taxes
activities, which comprise only administration of unemploy-
relating to property as a whole, real and personal, tangible or
ment compensation programs and employment offices. Includes
intangible, whether taxed at a single rate or at classified rates,
also Federal administration of Old Age, Survivors', Disability,
and taxes on selected types of property, such as motor vehicles
and Health Insurance and other social insurance programs.
or certain intangibles.
Taxes-Compulsory contributions exacted by a government
for public purposes. All tax revenue is classified under general
Public Welfare-Support of and assistance to needy persons
revenue and comprises amounts received (including interest and
contingent upon their need. Excludes pensions to former em-
penalties but excluding refunds) from taxes imposed by the
ployees and other benefits not contingent on need. Expendi-
recipient government. Amounts received by a government from
tures under this heading include: Cash Assistance Payments
a tax it imposes are counted as tax revenue of that government,
directly to needy persons under categorical and other welfare
even though initially collected by another government; in such
programs; vendor payments made directly to private purveyors
instances, however, any amounts retained by the collecting
or medical care, burials, and other services provided under
government are treated as its tax revenue.
elfare programs; welfare institutions; and any intergovern-
mental or other direct expenditure for welfare purposes. Any
Utility-A water supply, electric light and power, gas supply,
services provided directly by the government through its
or transit system owned and operated by a local government:
Hospitals and Health agencies are classed under those headings.
Utility Revenue comprises receipts from the sale of utility ser-
vices or commodities to the public or to other governments.
Utility Expenditure consists of capital outlay for utility
Revenue-All amounts of money received by a government from
facilities, interest paid on utility debt, and current operation
external sources-net of refunds and other correcting trans-
expenditure of the utility, net of identifiable costs for provid-
actions-other than from issue of debt, liquidation of invest-
ing services to the parent government (which are treated as
ments, and as agency and private trust transactions. Excludes
general expenditure for the function served).