State Budget and Revenue Concepts

Stephen Fowler explains the importance of the state budget, which is the only mandatory legislative task each year. The budget is based on two principles: revenue intake and expenditure. Revenue comes from taxes, business payments, and federal grants, while expenses cover state agency needs. The state cannot spend more than it earns, and an economist predicts future revenues to guide budget planning. The fiscal year runs from July to June, and any surplus goes into a rainy day fund. Budget increases are tied to revenue growth, allowing for potential raises for state workers and infrastructure projects.

What is the only mandatory task for the legislature and governor during a legislative session?

• Passing new laws

• Electing new officials

• Approving the state budget

• Reviewing past budgets

What are the two main principles that the state budget operates on?

• Loans and debts

• Savings and investments

• Revenue and expenses

• Taxes and grants

Which of the following is a source of state revenue?

• Private donations

• Federal grants

• International aid

• State loans

What do state agencies request money for?

• Tourism

• Payroll and infrastructure

• Investments

• Foreign aid

Who is responsible for predicting future tax revenues for the state?

• The federal government

• The legislature

• The state economist

• The governor

What is the role of the governor in the budget process?

• To manage the rainy day fund

• To collect taxes

• To request budget needs from state agencies

• To approve the final budget

How does the fiscal year differ from the calendar year?

• It starts in January and ends in December

• It starts in July and ends in June

• It starts in April and ends in March

• It starts in October and ends in September

What is the purpose of Georgia's rainy day fund?

• To fund new projects

• To provide emergency money

• To reduce taxes

• To pay state workers

What happens when there is an increase in state revenue?

• The budget is used to pay off debts

• The budget can expand for more projects

• The budget decreases

• The budget remains the same