Ersys Logo Ersys Name
Pierce County – Government Finance

Picture of valves

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:

7,118.36

The expenses per resident at the local level is:

6,642.35

The outstanding debt per resident at the local level is:

6,695.59

 
PierceWashingtonNational



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

Revenue6,664,6227,118.36100.00210,8205,536.38100.001.291.0069,865,6608,894.06100.000.801.000.621.00

  General revenue5,952,5236,357.7889.32205,8105,404.8297.621.180.9161,567,6607,837.7188.120.811.010.691.11

    Intergovernmental revenue2,638,7792,818.4339.59140,9553,701.6566.860.760.5924,254,3943,087.6434.720.911.141.201.93
      From Federal government245,721262.453.694,092107.461.942.441.904,235,164539.156.060.490.610.200.32
      From State government2,393,0582,555.9835.91136,8633,594.1964.920.710.5520,019,2302,548.4928.651.001.251.412.27
      From local government00.000.0000.030.000.000.0000.000.000.000.000.000.00

    General revenue from own sources3,313,7443,539.3549.7264,8551,703.1730.762.081.6237,313,2664,750.0753.410.750.930.360.58
      Taxes2,092,8992,235.3931.4053,5381,405.9725.401.591.2421,661,9532,757.6231.010.811.010.510.82
        Property1,309,8781,399.0619.6551,6041,355.1824.481.030.8011,129,9721,416.8715.930.991.230.961.54
        Sales & gross receipts579,636619.108.701,54740.630.7315.2411.858,440,7471,074.5312.080.580.720.040.06
          General sales482,381515.227.2484722.240.4023.1618.026,398,287814.529.160.630.790.030.04
          Selective sales97,255103.881.4670018.380.335.654.392,042,460260.012.920.400.500.070.11
            Motor fuel sales00.000.0000.030.000.000.0000.000.000.000.000.000.00
            Alcoholic beverage sales00.000.0000.030.000.000.0000.000.000.000.000.000.00
            Tobacco product sales00.000.0000.030.000.000.0000.000.000.000.000.000.00
            Public utilities73,11178.091.1000.030.002,973.532,312.70940,471119.721.350.650.810.000.00
            Other selective sales24,14425.790.3670018.380.331.401.091,101,989140.291.580.180.230.130.21
        Individual income tax00.000.0000.030.000.000.0000.000.000.000.000.000.00
        Corporate income tax00.000.0000.030.000.000.0000.000.000.000.000.000.00
        Motor vehicle license10,66311.390.1610.030.00433.68337.30141,31117.990.200.630.790.000.00
        Other taxes192,722205.842.8938610.140.1820.3115.791,949,923248.232.790.831.040.040.07

      Charges & misc general revenue1,220,8451,303.9618.3211,317297.205.374.393.4115,651,3131,992.4522.400.650.820.150.24
        Current charges1,036,3921,106.9515.557,686201.843.655.484.2713,414,2301,707.6619.200.650.810.120.19
          Education15,77716.850.2482521.670.390.780.60185,64023.630.270.710.890.921.47
            Institution of higher education00.000.0000.030.000.000.0000.000.000.000.000.000.00
            School lunch sales (gross)5140.550.013168.300.150.070.057,9151.010.010.540.688.2413.23
          Hospitals00.000.0000.030.000.000.004,026,805512.625.760.000.000.000.00
          Highways9,95810.640.1550.130.0081.0063.00229,08829.160.330.360.460.000.01
          Air transportation (airports)1,3371.430.0200.030.0054.3842.29690,91487.950.990.020.020.000.00
          Parking facilities3,9144.180.0660.160.0026.5320.6431,8164.050.051.031.290.040.06
          Sea and inland port facilities290,301310.074.3600.030.0011,806.979,183.00658,76383.860.943.704.620.000.00
          Natural resources3,7313.990.0600.030.00151.75118.02181,09123.050.260.170.220.000.00
          Parks and recreation36,49638.980.551925.040.097.736.01217,11927.640.311.411.760.180.29
          Housing and comm development22,37423.900.3494424.790.450.960.75438,59755.830.630.430.530.440.71
          Sewerage320,798342.644.813,971104.281.883.292.563,259,237414.914.670.831.030.250.40
          Solid waste management91,96798.231.381173.070.0631.9724.861,043,845132.881.490.740.920.020.04
          Other charges239,739256.063.601,62642.700.776.004.662,451,315312.063.510.821.030.140.22

        Miscellaneous general revenue184,453197.012.773,63195.351.722.071.612,237,083284.793.200.690.860.330.54
          Interest earnings38,38040.990.5842811.240.203.652.84262,99533.480.381.221.530.340.54
          Special assessments12,88513.760.192075.440.102.531.97318,39940.530.460.340.420.130.22
          Sale of property3,5043.740.05150.390.019.507.39205,59526.170.290.140.180.020.02
          Other general revenue129,684138.511.952,98178.281.411.771.381,450,094184.602.080.750.940.420.68

  Utility revenue712,099760.5810.685,010131.572.385.784.508,298,0001,056.3511.880.720.900.120.20
    Water supply175,556187.512.635,010131.572.381.431.111,825,712232.422.610.811.010.570.91
    Electric power482,852515.737.2500.030.0019,638.3115,273.916,087,053774.908.710.670.830.000.00
    Gas supply00.000.0000.030.000.000.009,4211.200.010.000.000.000.00
    Transit53,69157.350.8100.030.002,183.691,698.39375,81447.840.541.201.500.000.00

  Liquor store revenue00.000.0000.030.000.000.0000.000.000.000.000.000.00

  Insurance trust revenue00.000.0000.030.000.000.0000.000.000.000.000.000.00
    Unemployment compensation00.000.0000.030.000.000.0000.000.000.000.000.000.00
    Employee retirement00.000.0000.030.000.000.0000.000.000.000.000.000.00
    Workers' compensation00.000.0000.030.000.000.0000.000.000.000.000.000.00
    Other insurance trust revenue00.000.0000.030.000.000.0000.000.000.000.000.000.00

Expenditure6,218,9586,642.35100.00185,1904,863.31100.001.371.0064,664,0328,231.88100.000.811.000.591.00

  Intergovernmental expenditure00.000.0000.030.000.000.0000.000.000.000.000.000.00
  Direct expenditure6,218,9586,642.35100.00185,1904,863.31100.001.371.0064,664,0328,231.88100.000.811.000.591.00
    Current operation5,007,9725,348.9280.53176,9804,647.7195.571.150.8450,544,0066,434.3778.160.831.030.721.22
    Capital outlay988,6081,055.9115.906,775177.923.665.934.3511,865,3951,510.4918.350.700.870.120.20
      Construction988,6081,055.9115.906,775177.923.665.934.3511,865,3951,510.4918.350.700.870.120.20
    Assistance and subsidies00.000.0000.030.000.000.0000.000.000.000.000.000.00
    Interest on debt222,378237.523.581,43537.680.776.304.612,254,631287.023.490.831.030.130.22
    Insurance benefits and repayments00.000.0000.030.000.000.0000.000.000.000.000.000.00
    Exhibit: salaries & wages2,492,8112,662.5340.0858,3781,533.0831.521.741.2720,855,1742,654.9132.251.001.240.580.98

  Direct expenditure by function6,218,9586,642.35100.00185,1904,863.31100.001.371.0064,664,0328,231.88100.000.811.000.591.00
    Direct general expenditure5,332,2445,695.2785.74179,8574,723.2697.121.210.8852,994,5176,746.3381.950.841.050.701.19
      Capital outlay780,070833.1812.546,775177.923.664.683.437,993,5311,017.6012.360.821.010.170.30


Education services:
      Other direct general expenditure4,552,1744,862.0973.20173,0824,545.3493.461.070.7845,000,9865,728.7369.590.851.050.791.34
      Education2,573,0002,748.1741.37124,3043,264.3767.120.840.6221,497,5212,736.6833.241.001.241.192.02
          Capital outlay380,799406.726.121,30434.240.7011.888.702,695,903343.194.171.191.470.100.17
        Higher education00.000.0000.030.000.000.0000.000.000.000.000.000.00
          Capital outlay00.000.0000.030.000.000.0000.000.000.000.000.000.00
        Elementary & Secondary education2,573,0002,748.1741.37124,3043,264.3767.120.840.6221,497,5212,736.6833.241.001.241.192.02
          Capital outlay380,799406.726.121,30434.240.7011.888.702,695,903343.194.171.191.470.100.17
        Other education00.000.0000.030.000.000.0000.000.000.000.000.000.00
      Libraries53,72757.380.8655614.600.303.932.88527,65867.170.820.851.060.220.37


Social services and income maintenance:
      Public welfare22,53224.070.361463.830.086.284.60498,37763.440.770.380.470.060.10
        Other public welfare22,53224.070.361463.830.086.284.60498,37763.440.770.380.470.060.10
      Hospitals00.000.0000.030.000.000.004,195,379534.086.490.000.000.000.00
        Capital outlay00.000.0000.030.000.000.00175,05622.290.270.000.000.000.00
      Health130,544139.432.103408.930.1815.6211.431,885,800240.072.920.580.720.040.06
      Social insurance administration00.000.0000.030.000.000.0000.000.000.000.000.000.00
      Veterans' services00.000.0000.030.000.000.0000.000.000.000.000.000.00

Transportaion:
      Highways229,648245.283.6914,858390.198.020.630.462,407,171306.443.720.800.991.272.16
        Capital outlay111,411119.001.791,39136.530.753.262.391,162,557148.001.800.801.000.250.42
      Air transportation (airports)2,0392.180.0300.030.0082.9360.72881,204112.181.360.020.020.000.00
      Parking facilities5,6136.000.09190.500.0112.028.8026,1473.330.041.802.230.150.25
      Sea and inland port facilities97,390104.021.5700.030.003,961.002,900.11512,07565.190.791.601.980.000.00

Public safety:
      Police protection340,324363.495.478,433221.464.551.641.202,352,439299.473.641.211.500.741.25
      Fire protection379,708405.566.112,92376.761.585.283.872,333,737297.093.611.371.690.260.44
      Correction98,538105.251.5800.030.004,007.692,934.29870,660110.841.350.951.180.000.00
        Capital outlay690.070.0000.030.002.812.0521,8072.780.030.030.030.000.00
      Protective inspection & regulation18,70719.980.3000.030.00760.84557.06155,97319.860.241.011.250.000.00

Environment and housing:
      Natural resources66,58171.111.071894.960.1014.3310.49623,68279.400.960.901.110.060.11
        Capital outlay43,02145.950.6900.030.001,749.731,281.09261,64333.310.401.381.710.000.00
      Parks and recreation211,449225.843.402,83774.501.533.032.221,337,279170.242.071.331.640.440.74
        Capital outlay93,836100.221.51300.790.02127.2193.14430,20954.770.671.832.270.010.02
      Housing and comm development242,374258.883.904,542119.282.452.171.592,676,140340.684.140.760.940.350.59
      Sewerage222,066237.183.573,38288.821.832.671.962,383,525303.433.690.780.970.290.50
        Capital outlay41,91644.770.672737.170.156.244.57701,58789.311.080.500.620.080.14
      Solid waste management75,11180.221.2193024.420.503.282.41862,453109.791.330.730.910.220.38
        Capital outlay11,92212.730.1950.130.0096.9871.0039,9295.080.062.513.100.030.04

Governmental administration:
      Financial administration54,69058.410.8870618.540.383.152.31598,93976.250.930.770.950.240.41
      Judicial and legal76,77082.001.231985.200.1115.7711.55864,920110.111.340.740.920.050.08
      General public buildings3,6603.910.062,47164.891.330.060.04141,17017.970.220.220.273.616.11
      Other governmental administration57,54161.460.937,569198.774.090.310.23634,83380.820.980.760.942.464.16
      Interest on general debt181,190193.532.911,22132.060.666.044.421,607,889204.692.490.951.170.160.27

General expenditures, n.e.c.:
      Misc commercial activities39,37042.050.63170.450.0194.1968.96154,62219.680.242.142.650.020.04
      Other and unallocable149,672159.862.414,216110.722.281.441.062,964,924377.444.590.420.520.290.50

Utility expenditures:
    Utility expenditure886,714947.0814.265,333140.052.886.764.9511,669,5151,485.5618.050.640.790.090.16
        Capital outlay208,538222.743.3500.030.008,481.556,209.913,871,864492.905.990.450.560.000.00
      Water supply194,720207.983.135,333140.052.881.491.091,695,474215.842.620.961.190.651.10
      Electric power487,975521.207.8500.030.0019,846.6714,531.075,945,292756.859.190.690.850.000.00
      Gas supply00.000.0000.030.000.000.007,0530.900.010.000.000.000.00
      Transit204,019217.913.2800.030.008,297.766,075.344,021,696511.976.220.430.530.000.00

Liquor store expenditures:
    Liquor store expenditure00.000.0000.030.000.000.0000.000.000.000.000.000.00

Insurance trust expenditures:
    Insurance trust expenditure00.000.0000.030.000.000.0000.000.000.000.000.000.00
      Unemployment compensation00.000.0000.030.000.000.0000.000.000.000.000.000.00
      Employee retirement00.000.0000.030.000.000.0000.000.000.000.000.000.00
      Workers' compensation00.000.0000.030.000.000.0000.000.000.000.000.000.00
      Other insurance trust00.000.0000.030.000.000.0000.000.000.000.000.000.00

Debt outstanding6,268,8046,695.59100.0048,8681,283.33100.005.221.0061,492,9997,828.20100.000.861.000.161.00

  Short-term debt outstanding1390.150.00260.680.050.220.04308,65939.290.500.000.000.020.11
  Long-term debt outstanding6,268,6656,695.45100.0048,8421,282.6599.955.221.0061,184,3407,788.9199.500.861.010.161.00

Long-term debt issued745,952NANA1,184NANANANA9,961,307NANANANANANA
Long-term debt retired796,734NANA5,877NANANANA9,711,345NANANANANANA


Sources: STI: PopStats and STI: Colossus