Georgia government revenue expenditures
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Georgia Government Revenue & Expenditures. How the state provides services to residents. Important Terms to Know. Revenue —source of income for the government Expenditure —plan for spending revenue Fiscal year —the budgetary spending year; this is typically not a traditional calendar year

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Georgia government revenue expenditures

Georgia Government Revenue & Expenditures

How the state provides services to residents

Important terms to know
Important Terms to Know

  • Revenue—source of income for the government

  • Expenditure—plan for spending revenue

  • Fiscal year—the budgetary spending year; this is typically not a traditional calendar year

  • Scarcity—occurs when wants & needs are unlimited but resources are limited

  • Surplus—tax collections exceed the state’s spending needs

  • Deficit—when expenditures exceed revenue collections

The state budget
The State Budget

  • Each year a state budget is created that allows GA to use collected revenues to meet the needs of GA’s residents

  • The budget can be changed due to changes in economic conditions

  • GA constitution requires a balanced budget that matches expenditures with revenues

State budget cont
State Budget Cont.

  • 3 types of budgets:

    • Original budget--planned spending for 1 fiscal year

    • Amended budget—when changes are made to the original budget to add, delete, or transfer funds to keep the budget in line w/ state law

    • Supplementary budget—changes made to original budget to cover new spending when additional or unspent funds are available

Georgia s revenue sources
Georgia’s Revenue Sources

  • 3 sources:

    • State funds & Federal funds: these monies are used to plan the budget

      • Include income taxes, sales taxes, other taxes & fees, lottery receipts, indigent care trust funds, & tobacco settlement funds

    • Special Fees collected by agencies—these are typically kept by the collecting agency such as state parks collecting their entrance fees

  • About 90% of GA’s revenues come from taxes

Distribution of revenue
Distribution of Revenue

  • State, county and municipal gov’ts all use collected revenues to provide services for residents

  • Education is the largest expenditure for the state gov’t (also for county gov’ts)

  • Other expenditures include wages & salaries for employees, public safety, & transportation

How choices are made given limited revenue
How Choices Are Made Given Limited Revenue

  • Scarcity occurs when revenues fall short of needs

  • GA required by law to provide essential services: education, road construction & repair, & health services

  • Taxes can be raised to provide these/meet increased demand; residents typically will agree to tax increases to meet these needs

  • Spending monitored through reports submitted to the state each quarter

    • Ensures money is used appropriately

    • Each agency has enough/needs more/ has a surplus

    • Reports used to decide spending for the next fiscal year

  • Surpluses occur when tax collection exceed spending needs; surplus funds are generally placed the State Reserve Funds (like a savings acct) to use for future needs

  • Deficits occur when the state spends more money than it takes in

    • GA cannot have a deficit so the governor and lawmakers use surplus funds to balance the budget or make cuts in spending, even on important public services

  • GA maintains a stable economy during recessions/depressions because of the use of a fiscal budget, a supplementary budget & saving surplus funds.