Who Decides What To Do With City Or County Tax Dollars?

The county budget is sensitive to the economic, legal, social, and political environment of the county or city. Before giving the insight on factors that influence county financial decision, here is illustrative break down of where your tax dollars are spent.

City or county taxes are used for different purposes than federal or country taxes. County taxes are invested for public services and betterment of infrastructure around your home, offices, and parks. But sometimes your taxes can also be used by federal government and vice versa. Whereas your state tax is used for funding projects at the national level and to support the bureaucracy.

Major County’s investment include:

Infrastructure:

City tax dollars are primarily used in the infrastructure of the county or city. It includes water lines, sewers, public parks, libraries, electricity, road development, and maintenance. Apart from taxes, county grows its financial resources by renting out properties owned by the county and are not in use. But contribute a small portion, rest is by the budget that comes from taxpayers.

City Administration

City offices are run from the tax dollars paid by the public. Sometimes property taxes are increased by the administration for their personal benefits and they earn huge salaries. Dealing with municipal finances requires a precise balance between competent people are attracted by paying high salaries for betterment and low salaries to conciliate the common person.

Public Security

Firefighters and police are those municipal departments that get their pay from tax dollars. These two departments are supported and funded by the will of people because no one mind paying their money for their protectors. For a burglarized house or for a house on fire they are the social bodies that provide you security.

County Taxes And State Taxes

At the hour of need and at the time of distress, county and state support each other by transferring their funds. So a state may share it’s the fund for the county’s infrastructure and conversely county support bureaucracy when needed.

Factors That Decide What To Do With County Tax Dollars

Political Involvement

County legislative board and managers use the budget in a way to satisfy citizens and public rather government. Budget allocation is affected by this way. County city and city size also affect the budget. Local politicians and local government provide a wide variety and quality of services to develop a good image and reputation. Then they see citizen involvement to get feedback by their public. The feedback is obtained through town hall meetings, neighborhood forums, interactive websites, and citizen survey.

Economic Influence:

There are four factors that decide economic influence

  • Economic cycle
  • Interest rates
  • Inflation
  • Competition among local governments

Economic ups and downs affect county budget because when there is a decline in revenues especially income tax and sales, economic cycle gets interrupted. During a recession, government funds to the county are reduced.

Rapid Increase in cost of living creates a state of uncertainty for county revenue and forecast of expenditure. The county budget is also affected by fluctuation in interest rates. Although, the effect is not as worse as compared to the federal government, where they need a continual borrowing.

Demographic And Social Change

Local budgets are affected by personal income, age distribution, and population. These factors exert a long-lasting effect.

Spending your fund on public safety, public education, and recreational services are the fund categories that are influenced by age distribution.  Reports have shown a significant increase in a county or local budget as the personal income of citizen increases. And person earning a high salary want to improve their lifestyle and expect an upgrade in local government services and are willing to pay taxes.

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