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Franklin 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:

3,497.76

The expenses per resident at the local level is:

3,134.89

The outstanding debt per resident at the local level is:

289.65

 
FranklinMississippiNational



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

Revenue27,2793,497.76100.0015,555,0795,177.13100.000.681.002,344,548,4806,947.35100.000.501.000.751.00

  General revenue26,7793,433.6598.1714,740,9754,906.1794.770.701.042,168,968,4006,427.0792.510.531.060.761.02

    Intergovernmental revenue17,0092,180.9262.356,383,2272,124.5041.041.031.52808,559,1482,395.9234.490.911.810.891.19
      From Federal government52967.831.94862,290286.995.540.240.35146,274,793433.446.240.160.310.660.89
      From State government16,4802,113.0960.415,520,9371,837.5135.491.151.70662,284,3551,962.4828.251.082.140.941.26
      From local government00.000.0000.000.000.000.0000.000.000.000.000.000.00

    General revenue from own sources9,7701,252.7235.828,357,7482,781.6753.730.450.671,360,409,2524,031.1558.020.310.620.690.93
      Taxes6,732863.1924.683,819,1971,271.1324.550.681.01894,124,7052,649.4638.140.330.650.480.64
        Property6,585844.3424.143,578,7531,191.1023.010.711.05627,434,2421,859.2126.760.450.900.640.86
        Sales & gross receipts283.590.10130,14643.320.840.080.12165,801,503491.307.070.010.010.090.12
          General sales00.000.0000.000.000.000.00125,994,306373.355.370.000.000.000.00
          Selective sales283.590.10130,14643.320.840.080.1239,807,197117.961.700.030.060.370.49
            Motor fuel sales30.380.018,1992.730.050.140.211,892,6875.610.080.070.140.490.65
            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 utilities253.210.0962,68220.860.400.150.2315,744,64746.650.670.070.140.450.60
            Other selective sales00.000.0059,26519.720.380.000.0021,006,01162.240.900.000.000.320.43
        Individual income tax00.000.0000.000.000.000.0044,730,192132.541.910.000.000.000.00
        Corporate income tax00.000.0000.000.000.000.0011,009,92732.620.470.000.000.000.00
        Motor vehicle license00.000.0000.000.000.000.002,263,6136.710.100.000.000.000.00
        Other taxes11915.260.44110,29836.710.710.420.6242,885,228127.081.830.120.240.290.39

      Charges & misc general revenue3,038389.5411.144,538,5511,510.5529.180.260.38466,284,5471,381.6919.890.280.561.091.47
        Current charges1,714219.776.284,058,6401,350.8226.090.160.24365,048,3361,081.7115.570.200.401.251.68
          Education973124.763.57299,58799.711.931.251.8519,143,89456.730.822.204.371.762.36
            Institution of higher education00.000.00168,18255.981.080.000.007,681,25722.760.330.000.002.463.30
            School lunch sales (gross)121.540.049,5303.170.060.490.721,566,4414.640.070.330.660.680.92
          Hospitals00.000.002,892,611962.7318.600.000.00124,953,811370.265.330.000.002.603.49
          Highways00.000.001,5070.500.010.000.0010,287,28930.480.440.000.000.020.02
          Air transportation (airports)00.000.0042,41414.120.270.000.0022,414,40266.420.960.000.000.210.29
          Parking facilities00.000.006430.210.000.000.002,924,3498.670.120.000.000.020.03
          Sea and inland port facilities00.000.0021,7997.260.140.000.004,760,82614.110.200.000.000.510.69
          Natural resources00.000.001,2550.420.010.000.002,531,1967.500.110.000.000.060.07
          Parks and recreation00.000.0038,11712.690.250.000.009,708,20828.770.410.000.000.440.59
          Housing and comm development00.000.0038,15212.700.250.000.007,308,73521.660.310.000.000.590.79
          Sewerage14017.950.51333,514111.002.140.160.2468,695,647203.562.930.090.180.550.73
          Solid waste management47761.161.75180,94860.221.161.021.5021,694,93864.290.930.951.890.941.26
          Other charges12415.900.45208,09369.261.340.230.3470,625,041209.283.010.080.150.330.44

        Miscellaneous general revenue1,324169.774.85479,911159.733.091.061.57101,236,211299.984.320.571.120.530.71
          Interest earnings56272.062.0684,83828.240.552.553.7810,227,01630.300.442.384.720.931.25
          Special assessments00.000.007,0592.350.050.000.0015,026,42544.530.640.000.000.050.07
          Sale of property00.000.0034,26411.400.220.000.003,784,73711.210.160.000.001.021.36
          Other general revenue76297.702.79353,750117.742.270.831.2372,198,033213.943.080.460.910.550.74

  Utility revenue50064.111.83814,104270.955.230.240.35173,592,043514.397.400.120.250.530.71
    Water supply49263.091.80309,150102.891.990.610.9180,167,107237.553.420.270.530.430.58
    Electric power70.900.03391,681130.362.520.010.0178,135,733231.533.330.000.010.560.76
    Gas supply10.130.00111,99537.270.720.000.017,630,12322.610.330.010.011.652.21
    Transit00.000.001,2780.430.010.000.007,659,08022.700.330.000.000.020.03

  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

Expenditure24,4493,134.89100.0014,931,7844,969.68100.000.631.002,254,418,5176,680.28100.000.471.000.741.00

  Intergovernmental expenditure00.000.0000.000.000.000.0000.000.000.000.000.000.00
  Direct expenditure24,4493,134.89100.0014,931,7844,969.68100.000.631.002,254,418,5176,680.28100.000.471.000.741.00
    Current operation23,7273,042.3197.0513,051,7154,343.9487.410.701.111,887,390,8875,592.7083.720.541.160.781.04
    Capital outlay59776.552.441,608,994535.5110.780.140.23284,581,195843.2712.620.090.190.640.85
      Construction59776.552.441,608,994535.5110.780.140.23284,581,195843.2712.620.090.190.640.85
    Assistance and subsidies00.000.00-11,336-3.77-0.08-0.00-0.002,376,9447.040.110.000.00-0.54-0.72
    Interest on debt12516.030.51282,41193.991.890.170.2780,069,491237.263.550.070.140.400.53
    Insurance benefits and repayments00.000.0000.000.000.000.0039,9940.120.000.000.000.000.00
    Exhibit: salaries & wages9,3091,193.6138.083,613,1771,202.5624.200.991.57525,546,0041,557.2923.310.771.630.771.04

  Direct expenditure by function24,4493,134.89100.0014,931,7844,969.68100.000.631.002,254,418,5176,680.28100.000.471.000.741.00
    Direct general expenditure23,9843,075.2798.1014,105,3044,694.6194.460.661.042,024,660,7925,999.4689.810.511.090.781.05
      Capital outlay59175.782.421,506,380501.3610.090.150.24233,677,777692.4310.370.110.230.720.97


Education services:
      Other direct general expenditure23,3932,999.4995.6812,598,9244,193.2484.380.721.131,790,983,0155,307.0379.440.571.200.791.06
      Education15,2431,954.4862.356,150,1692,046.9341.190.951.51862,837,2522,556.7538.270.761.630.801.08
          Capital outlay56272.062.30673,404224.134.510.320.5189,314,081264.653.960.270.580.851.14
        Higher education00.000.00810,680269.825.430.000.0046,067,730136.512.040.000.001.982.66
          Capital outlay00.000.00119,85139.890.800.000.005,394,84215.990.240.000.002.503.35
        Elementary & Secondary education15,2431,954.4862.355,350,8251,780.8935.841.101.74814,392,5782,413.2036.120.811.730.740.99
          Capital outlay56272.062.30553,553184.243.710.390.6283,919,239248.673.720.290.620.741.00
        Other education00.000.00-11,336-3.77-0.08-0.00-0.002,376,9447.040.110.000.00-0.54-0.72
      Libraries00.000.0056,63718.850.380.000.0013,625,82240.380.600.000.000.470.63


Social services and income maintenance:
      Public welfare00.000.0020,4186.800.140.000.0067,699,317200.613.000.000.000.030.05
        Other public welfare00.000.0020,4186.800.140.000.0067,699,317200.613.000.000.000.030.05
      Hospitals00.000.003,073,0661,022.7920.580.000.00141,312,054418.736.270.000.002.443.28
        Capital outlay00.000.0088,30829.390.590.000.006,546,84619.400.290.000.001.522.04
      Health31640.521.2994,46431.440.631.292.0477,108,561228.493.420.180.380.140.18
      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:
      Highways3,364431.3413.76841,138279.955.631.542.4482,616,882244.813.661.763.751.141.54
        Capital outlay00.000.00253,28284.301.700.000.0030,060,50189.081.330.000.000.951.27
      Air transportation (airports)00.000.0080,19926.690.540.000.0028,556,24984.621.270.000.000.320.42
      Parking facilities00.000.001,5260.510.010.000.002,108,1706.250.090.000.000.080.11
      Sea and inland port facilities00.000.0044,39714.780.300.000.004,034,90811.960.180.000.001.241.66

Public safety:
      Police protection1,176150.794.81667,379222.124.470.681.08119,298,947353.515.290.430.910.630.84
      Fire protection14318.340.58330,115109.872.210.170.2664,033,823189.742.840.100.210.580.78
      Correction13917.820.57188,12162.611.260.280.4532,595,24396.591.450.180.390.650.87
        Capital outlay00.000.007570.250.010.000.00915,2972.710.040.000.000.090.12
      Protective inspection & regulation00.000.0015,5585.180.100.000.007,062,87020.930.310.000.000.250.33

Environment and housing:
      Natural resources9912.690.4027,3159.090.181.402.2113,342,66139.540.590.320.680.230.31
        Capital outlay00.000.003,9541.320.030.000.004,485,96313.290.200.000.000.100.13
      Parks and recreation91.150.04234,92678.191.570.010.0243,717,263129.541.940.010.020.600.81
        Capital outlay00.000.0066,93122.280.450.000.0010,096,60129.920.450.000.000.741.00
      Housing and comm development00.000.00298,11499.222.000.000.0058,336,344172.862.590.000.000.570.77
      Sewerage18824.110.77343,900114.462.300.210.3368,504,527202.993.040.120.250.560.76
        Capital outlay00.000.00138,76846.190.930.000.0023,319,98269.101.030.000.000.670.90
      Solid waste management69188.602.83221,13473.601.481.201.9128,653,83084.911.271.042.220.871.17
        Capital outlay00.000.009,6693.220.060.000.001,863,1165.520.080.000.000.580.78

Governmental administration:
      Financial administration1,474189.006.03206,69668.791.382.754.3623,707,42470.251.052.695.730.981.32
      Judicial and legal31940.901.30169,18256.311.130.731.1527,887,73782.641.240.491.050.680.92
      General public buildings12215.640.50104,34734.730.700.450.7113,643,40540.430.610.390.820.861.15
      Other governmental administration50965.262.08250,51483.381.680.781.2437,267,357110.431.650.591.260.761.01
      Interest on general debt11715.000.48253,93484.521.700.180.2866,807,524197.962.960.080.160.430.57

General expenditures, n.e.c.:
      Misc commercial activities00.000.009,4893.160.060.000.002,707,8798.020.120.000.000.390.53
      Other and unallocable759.620.31422,566140.642.830.070.11137,158,796406.436.080.020.050.350.47

Utility expenditures:
    Utility expenditure46559.621.90826,480275.075.540.220.34228,078,201675.8410.120.090.190.410.55
        Capital outlay60.770.02102,61434.150.690.020.0450,897,505150.822.260.010.010.230.30
      Water supply46559.621.90335,814111.772.250.530.8582,479,587244.403.660.240.520.460.61
      Electric power00.000.00370,173123.202.480.000.0073,696,368218.383.270.000.000.560.76
      Gas supply00.000.0093,38331.080.630.000.007,182,24421.280.320.000.001.461.96
      Transit00.000.0027,1109.020.180.000.0064,720,002191.782.870.000.000.050.06

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 outstanding2,259289.65100.007,204,8842,397.97100.000.121.002,042,775,1706,053.14100.000.051.000.401.00

  Short-term debt outstanding00.000.0019,1326.370.270.000.0028,356,92884.031.390.000.000.080.19
  Long-term debt outstanding2,259289.65100.007,185,7522,391.6099.730.121.002,014,418,2425,969.1198.610.051.010.401.01

Long-term debt issued0NANA953,807NANANANA264,717,314NANANANANANA
Long-term debt retired307NANA1,049,618NANANANA218,916,559NANANANANANA


Sources: STI: PopStats and STI: Colossus