This chapter discusses different levels of local government in the United States, including counties, towns, townships, and special districts. It describes the typical structure of county government and common functions of counties like maintaining jails, assessing property taxes, and building infrastructure. The chapter also covers the governments of towns, townships, and special districts. It discusses the major services provided by state and local governments and how their budgets can vary depending on factors like urbanization and geography. The chapter also explains the system of financing for state and local governments, including limits on revenue sources, principles of taxation, and the budget process.