The main difference between the federal budget and the state and local budgets is the issue of a monetary deficit

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The main difference between the federal budget and the state and local budgets is the issue of a monetary deficit, in which expenditures in the budget exceeds revenues that were estimated. State and local governments are required to balance their budgets. The federal government is allowed to borrow money to meet its obligations and have a deficit. The federal government collects the most tax revenue, but state and local governments have a greater range of revenue options for funding their budgets. The federal government relies mainly on income taxes, capital gains and Social Security taxes. State and local governments collect sales taxes, taxes on fuel, property taxes and fees from special licenses and permits. Also, many state and local …show more content…

The next largest portion at almost 10% of the budget is allotted to Criminal Justice. In the state of Georgia we have 159 state funded prisons that house over 57,000 inmates (Ga Prison Fact Sheet). This also includes over 13,000 state employees that run these facilities (AJC Prison). Each inmate takes approximately $51 a day. This includes housing, meals and general day to day activities (Ga Prison Fact Sheet). Forth largest in the Georgia budget is for Debt Services. Debt services include the payments of the principal and interest of any general or long term obligation that the state has accrued. This amount is over $64 million in 2012. Lastly, the fifth largest budget allocation is for transportation. Transportation encompasses road repair, improving the efficiency of the movement of goods, construction of new roads and Highways and reducing congestion within the state. Along with these services, the salaries and benefits of their employees are figured into this section of the budget (Georgia Budget site). Figure 3: Local Budget (Cobb County Budget). This budget shows the breakdown on the spending in Cobb County Georgia. Cobb County includes portions of Atlanta and is just north of Fulton County, which contains the largest portion of the city of Atlanta. The largest portion of the Cobb County budget goes

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