K - Chapter 25 - Local Government and Finance.pptx

Chapter 25: Local Government and Finance
Opener

Now, we fine ourselves on the brink of great change and we
stand at the edge of greatness. …We can choose to try
new ideas, new approaches, new ways of doing things.
-Philadelphia Mayor Michael Nutter

Copyright © Pearson Education, Inc. Slide 3
Chapter 25, Opener
Essential Question
• How local should government be?

Chapter 25, Opener
Guiding Questions
• Section 1: Counties, Towns, and
Townships
– What are the similarities and differences of
local governments, special districts, and tribal
governments?
• They are similar in that they have elected officials
and provide basic services to their local
populations. They are different in that tribal
governments are not created by the states and
special districts are set up to provide one ore more
very specific services.

Chapter 25, Opener
Guiding Questions
• Section 2: Cities and Metropolitan Areas
– How do city governments serve the needs of
residents and other Americans?
• Using various forms of city government, cities
provide a wide range of services to their
residents, while also planning for growth and
development.

Chapter 25, Opener
Guiding Questions
• Section 3: Providing Vital Services
– What services do State and local
governments provide?
• State and local governments provide public
education and welfare assistance, build and
maintain roads and highways, and protect public
health and safety.

Chapter 25, Opener
Guiding Questions
• Section 4: Financing State and Local
Government
– How do State governments raise money to
pay for services?
• State governments levy a variety of taxes,
particularly income and sales taxes, as well as
operating public enterprises, charging licensing,
operating, and usage fees, running lotteries, and
issuing bonds.

Section 1

Chapter 25, Opener
Objectives – I CAN:
1. Describe the typical county, its
governmental structure, and functions.
2. Analyze the need for reform in county
government.
3. Identify the responsibilities of tribal
governments.
4. Examine the governments of towns,
townships, and special districts.

Chapter 25, Opener
Key Terms
• county: a major unit of local government
in most States
• township: a subdivision of a county found
in many mid-Atlantic and Midwestern
States
• municipality: a separate urban political
unit within a township
• special district: an independent unit
created to perform one or more
government functions at a local level

Chapter 25, Opener
Introduction
• What are the similarities and differences of
local governments, special districts, and
tribal governments?
– These governments are similar in that they have
elected officials and provide basic services to
their populations.
– Special districts focus on providing a single type
of service to residents.
– Tribal governments are not created by the States
and are independent of the States.

Chapter 25, Opener
Local Governments
• In 2007 the U.S. Census counted 89,247 local
governments.
• Local governments include counties, cities, towns,
townships, school districts, and other special
districts.
• The U.S. Constitution says nothing about local
governments.
• The States have the sole right to create and abolish
local governments within their borders.
• Local governments have only the authority granted
to them by the State government.

Chapter 25, Opener
Counties
• There are 3,033 counties in the United
States.
• Counties vary greatly in physical size and
population,
• The number of counties per State varies.
• In Alaska, counties are called boroughs.
• In Louisiana they are parishes.
• Connecticut, Rhode Island, and some
other areas have no counties.

Chapter 25, Opener
County Structure
• Each county has a governing body.
– Names for this body vary, though county
board is common.
– Board members are elected from county
districts, usually for four year terms.
– Boards of commissioners have 3 to 5
members, while less common boards of
supervisors average about 15 members.

Chapter 25, Opener
• All county boards levy taxes, borrow
money, and pass local laws.
• They also hire county employees,
supervise road programs, and manage
county property.
County Structure, cont.

Chapter 25, Opener
County Structure, cont.
• Counties have other elected officials.
• Nationwide, counties employ some 3 million
people.
• There are also many
county agencies and
commissions that
oversee specific
services, such as
fairs and libraries.

Chapter 25, Opener

Chapter 25, Opener
County Functions
• Counties carry out State and county laws.
• Most counties serve rural areas.
• Common county duties include law
enforcement, tax assessment, tax
collection, building and repairing
roads, and maintaining schools
• More heavily populated counties provide
many of the same services offered by city
governments.

Chapter 25, Opener
Problems
• Checkpoint: Why do most county
governments need reform?
– Poor organization: Authority is divided
among many independent, popularly elected
boards and officials.
– Inexperienced officials: Popularly elected
officers may have little governing experience.
– Geographic problems: Most counties are
geographically ill-suited to the realities of the
modern world.

Chapter 25, Opener
Reforms
• County government reforms include:
– Allowing county home rule, so individual
counties can organize their own governments
in a way that more efficiently meets their
needs.
– Hiring professional county managers to act as
chief administrators for counties.
– Combining large cities and the counties that
surround them into single units of government
to consolidate resources.

Chapter 25, Opener
Tribal Governments
• Native American tribes are considered
independent nations.
– Federally recognized tribes are not subject to
State laws and regulations.
– They can also receive federal funding.
• There are some 560 recognized tribal
governments with 1.7 million citizens.
– Tribes usually have an elected chairman and a
council.
– Other details regarding structure and services
vary from tribe to tribe.

Chapter 25, Opener
Native American Reservations
• Native American
governments enjoy a
sovereign status and
a special relationship
with the federal and
State governments.
– Why are reservations
organized differently
from other forms of
local government?

Chapter 25, Opener
Towns
• Towns are a major unit of local government in
New England States.
– Towns deliver many services provided by cities and
counties elsewhere.
• Town meetings have been used since colonial
times to govern these towns.
– In small towns, all eligible voters gather in an
assembly to levy taxes, make budget decisions, and
elect officers.
– In larger towns, officers have more power and voters
do not vote directly on as many issues.

Chapter 25, Opener
Townships
• Townships are found in the Northeast and
Midwest. They tend to be rural.
• Townships either hold annual township
meetings—like town meetings—or elect a board
of trustees to govern.
• Townships typically provide services involving
roads, drainage, and minor law enforcement.
• Many rural townships have been abolished.

Chapter 25, Opener
Municipalities and Townships
• Municipalities such as
New Castle, Indiana
provide a high level of
services to the town
center and residential
neighborhoods within city
boundaries.
• Townships such as
Henry Township,
Indiana, often surround
municipalities, providing a
smaller number of
services to a
predominantly rural
population.

Chapter 25, Opener
Special Districts
• There are many
thousands of special
districts throughout the
nation, providing a wide
range of services.
– School districts are the
most common form of
special district.
– Other special districts
provide services such as
fire and police
protection.

Chapter 25, Opener
Special Districts, cont.
• Special districts are formed when:
– A service must be provided to an area larger or
smaller than a county or city
– Other local governments cannot or will not provide the
desired services.
• Special districts are usually governed by an
elected board.
– These boards can raise taxes, charge fees, and
spend the money needed to provide services.

Chapter 25, Opener
Review
• Now that you have learned about the
similarities and differences of local
governments, special districts, and tribal
governments, go back and answer the
Chapter Essential Question.
– How local should government be?

Chapter 25, Opener
Section 2

Chapter 25, Opener
1. Explain the process of incorporation and
the function of city charters.
2. Contrast the major forms of city
government.
3. Evaluate the need for city planning and
list some major municipal functions.
4. Outline the challenges that face suburbs
and metropolitan areas.

Chapter 25, Opener
Key Terms
• incorporation: the process by which the State
establishes a city as a legal body
• charter: a city’s constitution
• mayor-council government: city government
with an elected mayor as chief executive and an
elected council as the legislative body
• strong-mayor government: city government
where a mayor heads the city administration and
has considerable authority
• weak-mayor government: city government
where the mayor shares executive power and
has less influence

Chapter 25, Opener
Key Terms, cont.
• commission government: city government
where elected officials both run individual
departments and act together as the city council
• council-manager government: city system
where the city council hires a professional
manager to be the city’s chief administrator
• zoning: practice of setting aside areas of a city
for specific uses, such as residential,
commercial, or industrial
• metropolitan areas: cities and the areas
around them

Chapter 25, Opener
Introduction
• How do city governments serve the needs of
residents and other Americans?
– Cities provide a wide range of public services to
their residents.
– Cities also plan for their own growth and
development through zoning laws.
– They do so by setting policies using various forms
of city government to divide executive and
legislative power.

Chapter 25, Opener
Incorporation and Charters
• Checkpoint: How are cities established?
– Each State constitution sets out its own rules of
incorporation.
– This usually requires that a minimum number of
people live within a given area and that they request
to become a city.
– Each city creates a charter that names the city, sets
its boundaries, creates its legal identity, and describes
its powers and the structure of its government.

Chapter 25, Opener
Mayor-Council Form
• The mayor-council government is the most common
form of city government.
• It features a mayor as the chief executive and an
elected council as the legislative body.
• Its disadvantages are that it requires a good mayor,
can be stalled by a mayor-council dispute, and can
be hard for citizens to understand.
• The city council usually has from five to nine
members, each elected from a city district to a four-
year term.

Chapter 25, Opener
Mayors
• Voters usually elect the mayor.
• Mayors preside at council meetings and recommend
legislation.
• Mayor-council
governments are
often described as
strong-mayor or
weak-mayor.
• Richard Daley (right)
served as mayor of
Chicago from 1955 to
1976.

Chapter 25, Opener
Commission Form
• A commission government is a rare form of local
government that has between three and nine
popularly elected commissioners, each heading
a different department of city government.
• One commissioner is chosen as mayor.
• It has three key weaknesses:
– It lacks a chief executive
– Each commissioner tends to protect the interests of their
own departments
– City government lacks coordination

Chapter 25, Opener
Council Manager Form
• The council manager form of city government
has a weak mayor chosen by voters, a strong
elected council, and a professional manager
named by the council.
• The city council makes the policies that are then
carried out by the manager.
• The manager can be dismissed by the council at
any time.
• This system is widely used.
• It is simple, fairly transparent in operation, and
relies on trained experts.

Chapter 25, Opener
Council Manager Form, cont.
• The city manager directs all city departments and has
the power to hire and fire all city employees.
• The city manager also prepares the city budget.
• In practice the manager also influences the policies
created by the city council.
• Critics dislike the fact that the chief executive—the
manager—is not popularly elected.
• They also argue that this form lacks strong political
leadership.

Chapter 25, Opener

Chapter 25, Opener
City Planning
• Early cities grew
without any plan for
development.
• Now most cities have
formed planning
agencies to correct past
mistakes and guide
future growth.
– Most federal grant and
loan programs require
cities to have
development plans.

Chapter 25, Opener
Zoning
• Checkpoint: What is the purpose of zoning?
– Zoning ordinances set certain areas in cities aside for
specific uses to aid in city planning.
– Common zones are industrial, residential, and commercial.
– Zoning laws also set limits on the size and type
of buildings in an area.
– Zoning laws can put limits on a person’s use of their
property, but must be reasonable in
doing so.

Chapter 25, Opener
Municipal Functions
• Cities provide many different public services for
their residents.
– They offer police and fire protection.
– They build and maintain streets, side-walks, libraries,
bridges, hospitals, libraries, parks, schools, public
housing projects, and so forth.
– They also operate water, gas, electrical, sanitation,
sewer, garbage collection, public health, and
transportation systems.

Chapter 25, Opener
Suburbs
• The suburban boom began after World War II.
• Today, about half of all Americans live in
suburbs.
• People moved to suburbs for more room,
cheaper land, better schools, lower taxes, and
less crime.
• Businesses and industries also followed this
population shift.
• The move to the suburbs has taken financial and
social resources away from city centers.

Chapter 25, Opener
Metropolitan Areas
• As cities have grown,
they have taken control of
outlying areas.
• Some cities create
special districts.
– Oregon’s Metro agency
(right) handles
transportation planning
in and around the city of
Portland.
• In some cases, counties
have begun providing
expanded services.

Chapter 25, Opener
Review
• Now that you have learned about how city
governments serve the needs of residents
and other Americans, go back and answer
the Chapter Essential Question.

Chapter 25, Opener
Section 3

Chapter 25, Opener
1. Explain why State and local governments
have a major role in providing important
services.
2. Identify State and local services in the
fields of education, public welfare, public
safety, and highways.

Chapter 25, Opener
Key Terms
• Medicaid: a joint federal and State
program that provides medical care and
other health services to low-income
families
• welfare: cash assistance given to the poor
• entitlement: a program whose benefits
are available to anyone who meets the
eligibility requirements

Chapter 25, Opener
Introduction
• What services do State and local
governments provide?
– State and local governments provide public
education and welfare assistance, build and
maintain roads and highways, and protect
public health and safety.
– Authorities deliver these services directly
through State agencies and through the many
forms of local government in each State.

Chapter 25, Opener
Education
• Public education is
the most expensive
item in every State
budget.
– Funding and spending
per public school
student has increased
greatly in the past 25
years.
– Every State also funds
a public higher
education system.

Chapter 25, Opener
Education, cont.
• Checkpoint: What are a State’s responsibilities
for education?
– The level of State funding for primary and secondary
education varies from State to State. Most funding
comes from local property taxes.
– States set legal guidelines for teacher qualifications,
curricula, content standards, educational materials,
statewide skills tests, and the length of the school
year.

Chapter 25, Opener
Public Welfare
• States pass laws, conduct inspections, and
issue licenses to protect the public welfare.
• Most States have public health programs.
– States operate public hospitals, immunize children,
and help run medical assistance programs for the
poor, such as Medicaid.
• States also provide welfare benefits.
– From 1936 to 1996, States shared the cost of the Aid
to Families with Dependent Children welfare program
with the federal government.

Chapter 25, Opener
Public Welfare, cont.
• In 1996, the Federal government began the Temporary
Assistance to Needy Families (TANF) program.
• Under TANF, each State receives a fixed amount of
money each year to spend on welfare benefits.
• No one can receive more than five years of benefits and
recipients must work or take part in vocational training or
community service.
• The number of people on welfare has dropped, but
States face a challenge helping those who remain.

Chapter 25, Opener

Chapter 25, Opener
Public Safety
• Each State has a variety of police forces that
preserve law and order.
– State police patrol roads and highways.
– In rural areas, they may be the primary police force or
provide key support to local law-enforcement
agencies.
• Each State also operates corrections facilities,
which hold convicted criminals.
– More than 2.5 million people are in jail, more than half
in State prisons.

Chapter 25, Opener
Prisons
• Prison populations are growing, leading to
overcrowding.
– This is due to an increase in the number of people
convicted of violent crimes and the longer length of
the average prison sentence.
• State corrections spending has more than
doubled in the past 20 years to over
$40 billion.
– As a result, many States are hiring private contractors
to operate prisons.

Chapter 25, Opener
Highways
• The federal government
shares the cost of
major highway projects,
such as Boston’s Big
Dig, with the States.
• The largely federally
funded Interstate
Highway System began
in 1956 and is nearing
completion today.

Chapter 25, Opener
Highways, cont.
• The interstate highway system makes up only
some 45,000 miles of more than 4 million miles
of American roads.
• Many roads are built and maintained with State
funds.
• State and local governments also ensure public
safety on the roads.
– They license drivers, patrol the roads, set speed
limits, and inspect vehicles.

Chapter 25, Opener
Review
• Now that you have learned about how
State governments raise money to pay for
services, go back and answer the Chapter
Essential Question.

Chapter 25, Opener
Section 4

Chapter 25, Opener
1. Describe the major Federal and State
limits on raising revenue.
2. List the four principles of sound taxation.
3. Identify major tax and nontax sources of
State and local revenue.
4. Explain the State budget process.

Chapter 25, Opener
Key Terms
• sales tax: a tax placed on the sale of
various goods, paid by the buyer
• regressive tax: a fixed tax for which the
percentage of income paid in taxes
decreases as income increases
• income tax: a tax levied on the income of
individuals and corporations
• progressive tax: a tax that increases as
the income of the taxpayer increases

Chapter 25, Opener
Key Terms, cont.
• property tax: a tax on real or personal
property
• assessment: the process of determining
the value of property to be taxed
• inheritance tax: a tax levied on the heir’s
share of an estate
• estate tax: a tax levied directly on an
estate
• budget: a financial plan for using public
money

Chapter 25, Opener
Introduction
• How do State governments raise money to pay
for services?
– State governments use a variety of taxes,
particularly income and sales taxes, to raise
revenue.
– States also operate public enterprises, charge
licensing, operating, and usage fees, run lotteries,
and issue bonds.
– States also receive federal grants.

Chapter 25, Opener
Limits on Taxation
• Checkpoint: What are the constitutional limits
on State taxes?
– States cannot tax interstate and foreign trade.
– The 14th Amendment requires taxes to be applied
fairly regardless of race, religion, or other factors.
– Taxes cannot be unreasonably heavy and must
be used only for public purposes.
– State constitutions also limit maximum tax rates
and the taxing power of local governments.

Chapter 25, Opener
Principles of Taxation
• Adam Smith outlined four basic principles of a
fair tax system:
– Everyone should contribute a fair share of taxes,
proportional to their income.
– Taxes should not be arbitrary.
– Every tax should be levied in a time and fashion that
is convenient for the person paying it.
– Every tax should cost the people as little as possible
while paying for government expenses.

Chapter 25, Opener
Sales Tax
• Sales taxes account for
the largest portion of
State tax revenue.
• Some 45 States levy a
sales tax, usually of 5
or 6 percent.
– A general sales tax
applies to most goods.
– A selective sales tax is
levied on only certain
goods.

Chapter 25, Opener
Sales Tax, cont.
• All States impose a selective sales tax on some
items.
– These include things like gas, cigarettes, and
alcohol.
• Sales taxes are regressive, falling most heavily
on those least able to pay.
• States cannot tax most Internet purchases.
Many States complain that this ban costs them
needed revenue.

Chapter 25, Opener
Income Tax
• Taxes on the incomes of individuals and corporations
provides a third of State tax revenue.
• Some 43 States have a personal income tax.
• Individual income State tax rates are progressive—the
higher the income, the more tax is paid.
– These rates ranges from 2 to 9 percent.
• Corporate income tax rates are usually fixed.

Chapter 25, Opener
Property Taxes
• Property taxes are levied mainly by local
governments. They provide about three-
fourths of all local government income.
• Real property includes
land and buildings.

Chapter 25, Opener
Property Taxes, cont.
• Personal property includes tangible property
(such as computers, cars, and books) and
intangible property (stocks, bonds, mortgages,
and bank accounts).
• Local officials assess the value of property to be
taxed.
• Critics claim that it is hard to assess fair values
for all property.
• Supporters argue that government both protects
property and increases its value, and so has a
right to tax it.

Chapter 25, Opener
Other Taxes
• Every State has some form of estate or
inheritance tax.
• Most States use a variety of business taxes
beyond corporate income tax.
– States tax the removal of natural resources such as
timber, oil, and ore.
– States require various business and occupational
licenses for businesses to operate.
• States also use payroll taxes and require
licenses for drivers and motor vehicles.

Chapter 25, Opener
Other Sources of Income
• States receive large amounts of federal grant
money.
• Some 42 States run lotteries.
• State and local governments also make money
from public enterprises.
– These include ferries, toll roads and bridges, and
State-owned liquor stores.
– Many cities run their own water, electricity, and bus
systems.
– Users must pay fees for public services such as
hospitals, airports, parks, sewers, and garbage
disposal.

Chapter 25, Opener
Borrowing
• Checkpoint: How and why do State and local
governments borrow money?
– States and local governments often issue bonds to
borrow money for major projects.
– Most State constitutions put strict limits on how much
governments can borrow.
– States debts total about $900 billion
– Local governments owe more than a trillion dollars.

Chapter 25, Opener
State Budgets
• A budget is both a financial and political plan in which the
State sets its spending priorities.
• The State budget process was once poorly organized.
• All but three States now use the executive budget.
• This gives the governor the power to prepare the State
budget and to manage the spending of funds.

Chapter 25, Opener
Budget Process
• The budget process typically works as
follows:
– Each agency prepares budget estimates.
– These are reviewed and revised, then
combined into a State budget that the
governor presents to the legislature.

Chapter 25, Opener
• The legislature decides what parts of
the budget to approve or expand,
passing revenue measures as needed.
• The governor supervises the spending
of funds, subject to an independent
check of spending practices called a
post audit.
Budget Process, cont.

Chapter 25, Opener
Review
• Now that you have learned about how
State governments raise money to pay for
services, go back and answer the Chapter
Essential Question.

K - Chapter 25 - Local Government and Finance.pptx

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