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The Fiscal Problems Facing States and Local Governments Today Are

question 47

Essay

The fiscal problems facing states and local governments today are not short term-they are systemic. Revenue systems are archaic. Some programs are underfunded, while others may have outlived their value but still hang on. Voters want services but often refuse to approve the resources necessary to pay for them. You are running for governor and writing your campaign platform on the principle of transparency and honesty. What do you say?


Definitions:

Transfer Price

The price at which goods or services are sold between divisions within the same company or between affiliated companies.

Minimum Return

The least amount of profit or yield expected from an investment, project, or venture to consider it desirable or viable.

Invested Assets

Resources that are obtained with the goal of producing income or profit.

Operating Income

Income generated from the normal business operations of a company, excluding expenses such as interest and taxes.

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