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Orange County – Government Finance

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Government finances play a pivotal role in shaping the local economy, influencing economic growth, stability, and the overall well-being of communities. The impact of government finances on the local economy can be analyzed through several key mechanisms, including public spending, taxation, debt management, and fiscal policies. These elements collectively determine the flow of resources, the level of economic activity, and the quality of life for residents.

  1. Public Spending and Investment One of the most direct ways government finances affect the local economy is through public spending. Governments allocate funds to infrastructure projects, education, healthcare, public safety, and social services. These investments create jobs, stimulate demand for goods and services, and enhance the productivity of the local workforce. For instance, building roads, bridges, and public transportation systems not only provides immediate employment opportunities but also improves connectivity, reducing transportation costs for businesses and facilitating trade. Similarly, investments in education and healthcare contribute to a skilled and healthy workforce, which is essential for long-term economic growth.

  2. Taxation Policies Taxation is another critical component of government finances that impacts the local economy. Taxes fund public services and infrastructure, but they also influence the behavior of individuals and businesses. High tax rates can discourage investment and consumption, potentially stifling economic growth. Conversely, low tax rates may attract businesses and stimulate spending but can lead to budget deficits if not managed properly. Progressive taxation, where higher-income individuals pay a larger share, can reduce income inequality and increase disposable income for lower-income households, boosting local demand for goods and services.

  3. Debt Management Government borrowing and debt management also have significant implications for the local economy. When governments borrow to finance deficits or invest in long-term projects, they can stimulate economic activity in the short term. However, excessive debt can lead to higher interest rates, crowding out private investment, and increasing the risk of financial instability. Effective debt management ensures that borrowing is sustainable and that funds are used efficiently to generate economic returns.

  4. Fiscal Policies Fiscal policies, including government spending and taxation, are tools used to manage economic cycles. During economic downturns, expansionary fiscal policies, such as increased spending and tax cuts, can stimulate demand and help the economy recover. Conversely, during periods of high inflation, contractionary fiscal policies, such as reduced spending and higher taxes, can help cool down the economy. The timing and effectiveness of these policies are crucial in stabilizing the local economy and maintaining public confidence.

  5. Social and Economic Equity Government finances also play a role in promoting social and economic equity. Redistributive policies, such as social welfare programs and subsidies, can reduce poverty and inequality, leading to a more inclusive economy. By providing a safety net for vulnerable populations, governments can ensure that all residents have access to basic needs, which in turn supports overall economic stability and growth.

  6. Conclusion In summary, government finances have a profound impact on the local economy through public spending, taxation, debt management, and fiscal policies. Effective management of these financial tools can stimulate economic growth, reduce inequality, and enhance the quality of life for residents. Conversely, poor financial management can lead to economic instability, reduced investment, and social unrest. Therefore, it is essential for governments to adopt prudent fiscal policies and ensure that financial resources are allocated efficiently and equitably to support sustainable economic development.

A key indicator for comparison is how much government collects, spends and and establishes debt for each resident under its perview.

The revenue per resident at the local level is:

4,437.48

The expenses per resident at the local level is:

3,690.92

The outstanding debt per resident at the local level is:

2,832.34

 
OrangeIndianaNational



LocalLocalLocalLocalStateState
PerContri-PerContri-PerContri-
LocalPer CentStatePer CentCapitabutionNationalPer CentCapitabutionCapitabution
Description(,000's)Per Capitato Total(,000's)Per Capitato TotalIndexIndex(,000's)Per Capitato TotalIndexIndexIndexIndex

Revenue88,2664,437.48100.0039,112,3625,669.14100.000.781.002,344,548,4806,947.35100.000.641.000.821.00

  General revenue80,3594,039.9791.0436,230,3505,251.4092.630.770.982,168,968,4006,427.0792.510.630.980.821.00

    Intergovernmental revenue54,0042,715.0061.1814,640,7212,122.1037.431.281.63808,559,1482,395.9234.491.131.770.891.09
      From Federal government2,018101.452.29924,920134.062.360.760.97146,274,793433.446.240.230.370.310.38
      From State government51,9862,613.5458.9013,715,8011,988.0435.071.311.68662,284,3551,962.4828.251.332.091.011.24
      From local government00.000.0000.000.000.000.0000.000.000.000.000.000.00

    General revenue from own sources26,3551,324.9729.8621,589,6293,129.3155.200.420.541,360,409,2524,031.1558.020.330.510.780.95
      Taxes17,829896.3420.2010,301,6101,493.1726.340.600.77894,124,7052,649.4638.140.340.530.560.69
        Property15,557782.1117.638,583,7751,244.1721.950.630.80627,434,2421,859.2126.760.420.660.670.82
        Sales & gross receipts2,065103.822.34194,76328.230.503.684.70165,801,503491.307.070.210.330.060.07
          General sales00.000.002260.030.000.000.00125,994,306373.355.370.000.000.000.00
          Selective sales2,065103.822.34194,53728.200.503.684.7039,807,197117.961.700.881.380.240.29
            Motor fuel sales00.000.0000.000.000.000.001,892,6875.610.080.000.000.000.00
            Alcoholic beverage sales00.000.0000.000.000.000.00845,0352.500.040.000.000.000.00
            Tobacco product sales00.000.0000.000.000.000.00318,8170.940.010.000.000.000.00
            Public utilities73136.750.8350,0847.260.135.066.4715,744,64746.650.670.791.230.160.19
            Other selective sales1,33467.071.51144,45320.940.373.204.0921,006,01162.240.901.081.690.340.41
        Individual income tax572.870.061,201,658174.173.070.020.0244,730,192132.541.910.020.031.311.61
        Corporate income tax00.000.0000.000.000.000.0011,009,92732.620.470.000.000.000.00
        Motor vehicle license10.050.0065,6419.510.170.010.012,263,6136.710.100.010.011.421.74
        Other taxes1497.490.17255,77337.070.650.200.2642,885,228127.081.830.060.090.290.36

      Charges & misc general revenue8,526428.649.6611,288,0191,636.1428.860.260.33466,284,5471,381.6919.890.310.491.181.45
        Current charges5,562279.626.309,434,0181,367.4124.120.200.26365,048,3361,081.7115.570.260.401.261.55
          Education81641.020.92216,68831.410.551.311.6719,143,89456.730.820.721.130.550.68
            Institution of higher education00.000.0000.000.000.000.007,681,25722.760.330.000.000.000.00
            School lunch sales (gross)1718.600.1962,2549.020.160.951.221,566,4414.640.071.852.901.942.38
          Hospitals00.000.006,169,400894.2215.770.000.00124,953,811370.265.330.000.002.422.96
          Highways462.310.0514,4892.100.041.101.4110,287,28930.480.440.080.120.070.08
          Air transportation (airports)1979.900.22180,12526.110.460.380.4822,414,40266.420.960.150.230.390.48
          Parking facilities00.000.0015,2822.220.040.000.002,924,3498.670.120.000.000.260.31
          Sea and inland port facilities00.000.0020,1512.920.050.000.004,760,82614.110.200.000.000.210.25
          Natural resources00.000.001,3080.190.000.000.002,531,1967.500.110.000.000.030.03
          Parks and recreation00.000.00122,32917.730.310.000.009,708,20828.770.410.000.000.620.76
          Housing and comm development00.000.0054,0877.840.140.000.007,308,73521.660.310.000.000.360.44
          Sewerage3,500175.963.972,109,559305.775.390.580.7468,695,647203.562.930.861.351.501.84
          Solid waste management52126.190.59156,69022.710.401.151.4721,694,93864.290.930.410.640.350.43
          Other charges48224.230.55373,91054.200.960.450.5770,625,041209.283.010.120.180.260.32

        Miscellaneous general revenue2,964149.013.361,854,001268.734.740.550.71101,236,211299.984.320.500.780.901.10
          Interest earnings1899.500.21264,54238.340.680.250.3210,227,01630.300.440.310.491.271.55
          Special assessments00.000.0023,7693.450.060.000.0015,026,42544.530.640.000.000.080.09
          Sale of property673.370.08106,11515.380.270.220.283,784,73711.210.160.300.471.371.68
          Other general revenue2,708136.143.071,459,575211.563.730.640.8272,198,033213.943.080.641.000.991.21

  Utility revenue7,907397.528.962,882,012417.737.370.951.22173,592,043514.397.400.771.210.811.00
    Water supply4,030202.604.571,204,297174.563.081.161.4880,167,107237.553.420.851.340.730.90
    Electric power3,877194.914.391,305,192189.183.341.031.3278,135,733231.533.330.841.320.821.00
    Gas supply00.000.00344,54549.940.880.000.007,630,12322.610.330.000.002.212.71
    Transit00.000.0027,9784.060.070.000.007,659,08022.700.330.000.000.180.22

  Liquor store revenue00.000.0000.000.000.000.001,988,0375.890.080.000.000.000.00

  Insurance trust revenue00.000.0000.000.000.000.00162,8580.480.010.000.000.000.00
    Unemployment compensation00.000.0000.000.000.000.00162,8580.480.010.000.000.000.00
    Employee retirement00.000.0000.000.000.000.0000.000.000.000.000.000.00
    Workers' compensation00.000.0000.000.000.000.0000.000.000.000.000.000.00
    Other insurance trust revenue00.000.0000.000.000.000.0000.000.000.000.000.000.00

Expenditure73,4163,690.92100.0035,463,2885,140.22100.000.721.002,254,418,5176,680.28100.000.551.000.771.00

  Intergovernmental expenditure00.000.0000.000.000.000.0000.000.000.000.000.000.00
  Direct expenditure73,4163,690.92100.0035,463,2885,140.22100.000.721.002,254,418,5176,680.28100.000.551.000.771.00
    Current operation63,0983,172.1985.9529,756,5384,313.0683.910.741.021,887,390,8875,592.7083.720.571.030.771.00
    Capital outlay8,932449.0512.174,477,249648.9512.630.690.96284,581,195843.2712.620.530.960.771.00
      Construction8,932449.0512.174,477,249648.9512.630.690.96284,581,195843.2712.620.530.960.771.00
    Assistance and subsidies00.000.0000.000.000.000.002,376,9447.040.110.000.000.000.00
    Interest on debt1,38669.681.891,229,501178.213.470.390.5480,069,491237.263.550.290.530.750.98
    Insurance benefits and repayments00.000.0000.000.000.000.0039,9940.120.000.000.000.000.00
    Exhibit: salaries & wages22,4031,126.2930.528,844,5901,281.9824.940.881.22525,546,0041,557.2923.310.721.310.821.07

  Direct expenditure by function73,4163,690.92100.0035,463,2885,140.22100.000.721.002,254,418,5176,680.28100.000.551.000.771.00
    Direct general expenditure66,1783,327.0390.1432,777,9724,751.0092.430.700.982,024,660,7925,999.4689.810.551.000.791.03
      Capital outlay8,830443.9212.034,022,310583.0111.340.761.06233,677,777692.4310.370.641.160.841.09


Education services:
      Other direct general expenditure57,3482,883.1178.1128,755,6624,167.9981.090.690.961,790,983,0155,307.0379.440.540.980.791.02
      Education39,9692,009.4054.4413,118,5601,901.4736.991.061.47862,837,2522,556.7538.270.791.420.740.97
          Capital outlay5,340268.467.271,996,581289.395.630.931.2989,314,081264.653.961.011.841.091.42
        Higher education00.000.0000.000.000.000.0046,067,730136.512.040.000.000.000.00
          Capital outlay00.000.0000.000.000.000.005,394,84215.990.240.000.000.000.00
        Elementary & Secondary education39,9692,009.4054.4413,118,5601,901.4736.991.061.47814,392,5782,413.2036.120.831.510.791.02
          Capital outlay5,340268.467.271,996,581289.395.630.931.2983,919,239248.673.721.081.951.161.51
        Other education00.000.0000.000.000.000.002,376,9447.040.110.000.000.000.00
      Libraries51425.840.70449,10865.101.270.400.5513,625,82240.380.600.641.161.612.10


Social services and income maintenance:
      Public welfare30.150.0026,4933.840.070.040.0567,699,317200.613.000.000.000.020.02
        Other public welfare30.150.0026,4933.840.070.040.0567,699,317200.613.000.000.000.020.02
      Hospitals00.000.005,760,680834.9816.240.000.00141,312,054418.736.270.000.001.992.59
        Capital outlay00.000.00208,38630.200.590.000.006,546,84619.400.290.000.001.562.02
      Health26213.170.36427,91362.021.210.210.3077,108,561228.493.420.060.100.270.35
      Social insurance administration00.000.0000.000.000.000.0035,9470.110.000.000.000.000.00
      Veterans' services00.000.0000.000.000.000.0000.000.000.000.000.000.00

Transportaion:
      Highways3,497175.814.761,214,317176.013.421.001.3982,616,882244.813.660.721.300.720.93
        Capital outlay52026.140.71305,91444.340.860.590.8230,060,50189.081.330.290.530.500.65
      Air transportation (airports)85342.881.16274,06939.720.771.081.5028,556,24984.621.270.510.920.470.61
      Parking facilities00.000.0013,2221.920.040.000.002,108,1706.250.090.000.000.310.40
      Sea and inland port facilities00.000.0019,9272.890.060.000.004,034,90811.960.180.000.000.240.31

Public safety:
      Police protection1,13657.111.551,470,136213.094.150.270.37119,298,947353.515.290.160.290.600.78
      Fire protection73637.001.001,017,614147.502.870.250.3564,033,823189.742.840.200.350.781.01
      Correction1,13156.861.54527,86076.511.490.741.0332,595,24396.591.450.591.070.791.03
        Capital outlay00.000.006,2120.900.020.000.00915,2972.710.040.000.000.330.43
      Protective inspection & regulation00.000.0032,2744.680.090.000.007,062,87020.930.310.000.000.220.29

Environment and housing:
      Natural resources23011.560.3164,9529.410.181.231.7113,342,66139.540.590.290.530.240.31
        Capital outlay00.000.009,1031.320.030.000.004,485,96313.290.200.000.000.100.13
      Parks and recreation88844.641.21461,18666.851.300.670.9343,717,263129.541.940.340.620.520.67
        Capital outlay00.000.0050,6307.340.140.000.0010,096,60129.920.450.000.000.250.32
      Housing and comm development180.900.02566,59482.121.600.010.0258,336,344172.862.590.010.010.480.62
      Sewerage1,83092.002.491,496,031216.844.220.420.5968,504,527202.993.040.450.821.071.39
        Capital outlay00.000.00565,68581.991.600.000.0023,319,98269.101.030.000.001.191.54
      Solid waste management73336.851.00239,14834.660.671.061.4828,653,83084.911.270.430.790.410.53
        Capital outlay140.700.029,8731.430.030.490.681,863,1165.520.080.130.230.260.34

Governmental administration:
      Financial administration38019.100.52256,86037.230.720.510.7123,707,42470.251.050.270.490.530.69
      Judicial and legal1,07754.151.47456,85866.221.290.821.1427,887,73782.641.240.661.190.801.04
      General public buildings40.200.0182,02411.890.230.020.0213,643,40540.430.610.000.010.290.38
      Other governmental administration3,651183.554.97952,787138.102.691.331.8537,267,357110.431.651.663.011.251.63
      Interest on general debt1,06653.591.451,007,692146.062.840.370.5166,807,524197.962.960.270.490.740.96

General expenditures, n.e.c.:
      Misc commercial activities653.270.0937,2955.410.110.600.842,707,8798.020.120.410.740.670.88
      Other and unallocable8,135408.9811.082,804,372406.487.911.011.40137,158,796406.436.081.011.821.001.30

Utility expenditures:
    Utility expenditure7,238363.889.862,685,316389.227.570.931.30228,078,201675.8410.120.540.970.580.75
        Capital outlay1025.130.14454,93965.941.280.080.1150,897,505150.822.260.030.060.440.57
      Water supply3,529177.424.81985,769142.882.781.241.7382,479,587244.403.660.731.310.580.76
      Electric power3,709186.475.051,093,396158.483.081.181.6473,696,368218.383.270.851.550.730.94
      Gas supply00.000.00286,63041.550.810.000.007,182,24421.280.320.000.001.952.54
      Transit00.000.00319,52146.310.900.000.0064,720,002191.782.870.000.000.240.31

Liquor store expenditures:
    Liquor store expenditure00.000.0000.000.000.000.001,679,5244.980.070.000.000.000.00

Insurance trust expenditures:
    Insurance trust expenditure00.000.0000.000.000.000.0039,9940.120.000.000.000.000.00
      Unemployment compensation00.000.0000.000.000.000.0039,9940.120.000.000.000.000.00
      Employee retirement00.000.0000.000.000.000.0000.000.000.000.000.000.00
      Workers' compensation00.000.0000.000.000.000.0000.000.000.000.000.000.00
      Other insurance trust00.000.0000.000.000.000.0000.000.000.000.000.000.00

Debt outstanding56,3382,832.34100.0030,684,1164,447.51100.000.641.002,042,775,1706,053.14100.000.471.000.731.00

  Short-term debt outstanding371.860.07313,97545.511.020.040.0628,356,92884.031.390.020.050.540.74
  Long-term debt outstanding56,3012,830.4899.9330,370,1414,402.0098.980.641.012,014,418,2425,969.1198.610.471.010.741.00

Long-term debt issued0NANA3,479,927NANANANA264,717,314NANANANANANA
Long-term debt retired2,072NANA1,771,096NANANANA218,916,559NANANANANANA


Sources: STI: PopStats and STI: Colossus