What are tax and expenditure limits? Q.What are tax and expenditure limits? A.Tax and expenditure limits (TELs) restrict the growth of government revenues or spending by either capping them at fixed-dollar amounts or limiting their growth rate to match increases in population, inflation, personal income, or some combination of those factors. As of 2020, 31 states had at least one kind of TEL, including those states requiring a supermajority vote of the legislature to raise new taxes or revenues. Read more about What are tax and expenditure limits?
What types of federal grants are made to state and local governments and how do they work? Q.What types of federal grants are made to state and local governments and how do they work? A.The federal government distributes grants to states and localities for many purposes. Some grants are delivered directly to these governments, but others are “pass-through” grants that first go to state governments, who then direct the funds to local governments. Some federal grants are restricted to a narrow purpose, but block grants give governments more latitude in spending decisions and meeting program objectives. Regardless of type, the bulk of all federal grants are related to health care. Read more about What types of federal grants are made to state and local governments and how do they work?
What are municipal bonds and how are they used? Q.What are municipal bonds and how are they used? A.Municipal bonds (a term that encompasses both state and local government debt) are obligations that entitle owners to periodic interest payments plus repayment of principal at a specified date. States and localities (cities, townships, counties, school districts, and special districts) issue bonds primarily to pay for large, expensive, and long-lived capital projects. Read more about What are municipal bonds and how are they used?