Question

When it comes to state and local funding, which of the following statements are true? Select all that apply: Fewer than half of all states have balanced budget laws. Education accounts for about one-third of total state and local government spending. States and municipalities fund Medicare and Social Security. State and local funding has increased during the last four decades from around 8% to around 14%.

Please Answer ASAP

Answer 1

Answer: When it comes to state and local funding, the below statements are highlighted as per their correctness

1. Fewer than half of all states have balanced budget laws

This is incorrect. All states (except Vermont) have balanced budget laws. This means 49 out of 50 states have balanced budget laws in their state constitution or state statues

2. Education accounts for about one-third of total state and local government spending

This is correct. The single biggest item that accounts for total state and local government spending is education, which accounts for about one-third of the total. The rest covers programs like highways, libraries, hospitals and healthcare, parks, and police and fire protection

3. States and municipalities fund Medicare and Social Security

This is incorrect. Medicare is funded by the Social Security Administration. The federal government is expected to provide state and local governments in federal grants a wide range of public policies, such as health care, transportation, income security, education, job training, social services, community development, and environmental protection.

4. State and local funding has increased during the last four decades from around 8% to around 14%.

This is correct. The diagram below shows that state and local government spending has increased during the last four decades from around 8% to around 14%.