State and Local Government Financing

State and local government financing involves raising and managing funds needed to provide public services like education, transportation, and public safety. They do this primarily through taxes, fees, and bonds. Taxes are ongoing revenue from residents and businesses, while bonds are loans borrowed from investors that are paid back over time with interest. Proper financing ensures government entities can fund essential projects and operations without causing financial instability. It requires careful planning to balance revenue and expenses, ensuring sustainable public service delivery for communities.