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This Critical Reflection Assignment will allow you to identify, critically analyze, and reflect upon the concept of state budgeting in terms of fiscal responsibility for implementing policies.

You will examine fiscal revenue and critically reflect upon current sources of revenue for state governments and local governments in a federal system. You will consider and evaluate what this means for localities.

Respond to the Following:

How are a variety of local policies being financed in a federal system?

  • Why must states balance their budgets and how does that work? Can a state just fail?
  • What are the main sources of revenue for implementing policies such as services at the local level?
  • According to the Urban Institute, what do state and local governments tend to spend money on? Are certain policy areas main priorities?
  • How does state spending differ from local spending and why?