Question

Discuss the ways your local or state government generates revenues. How do they balance that with expenditures? What is the impact of privatization on the budget? Give examples from your state or locality. One example would be the privatization of prisons in many states.

Answer 1

Local and state government get their revenue from taxes like sales tax, property tax and gross receipts. They even get their funding from central government where central government will give money to states.

State government will give revenue to local government and help them to develop their localities. Most of the cases state government will use the revenue for expenditure purpose of state and local for their development. If the expenditure are more than their revenue than they will take loan from banks or federal bank and pay them.

If there is privatization of prison than it will be a problem as prisoners who have influence and money will use that and get things whatever they want into prison. There won't be any rules and regulations followed as private people always run after money.

Example: Auckland central remand prison.