Paying for State and Local Government

State and local government spending primarily focuses on __________.

Education, Social Services, Public Safety, and Transportation.

Taxes are the largest source of revenue for state and local governments, and their policy can be classified into three categories: __________, __________, and __________.

Progressive, Regressive, Proportional.

A __________ tax takes a larger share of income from low-income earners.

Regressive.

In Connecticut, property taxes are calculated by multiplying the mill rate by the assessed value, divided by __________.

1,000.

The __________ value of a property is the dollar value placed on it for tax purposes by a local government assessor.

Assessed.

The __________ rate is the amount charged per thousand dollars of assessed value of property.

Mill.

Hartford has the highest __________ rate in Connecticut and one of the highest in the United States.

Mill.

State sales taxes are generally the most important source of tax revenue for most state governments, excluding __________.

Connecticut.

State constitutions typically require government budgets to be __________.

Balanced.

Bonds issued by a state or local government can be classified as either __________ or __________ bonds.

General obligation, Revenue.

General obligation bonds are backed by the government’s "full faith and credit," while revenue bonds are backed by __________ generated from the projects they fund.

Revenue.

Fiscal stress can lead to states implementing __________ measures to manage their budgets.

Cost cutting.

Cities may declare __________ when they have run out of financial options to continue operating.

Bankruptcy.