General Revenue

General Revenue

Definition

In the context of state and local governments, general revenue refers to all revenue received except for that derived from specific services. Specifically, it excludes:

• Revenue from utilities: This includes income from government-owned utilities such as water, electricity, and gas.
• Sales of alcoholic beverages: This pertains to income from government-monopolized alcoholic beverage sales.
• Insurance trusts: Includes income from government-managed insurance programs, such as public employee retirement systems or unemployment compensation.

Examples

1. Property Taxes: Revenue collected from property taxes goes into the general revenue fund.
2. Sales Taxes: General sales taxes imposed by state or local governments are included in the general revenue.
3. Income Taxes: Personal and corporate state income taxes contribute to general revenue.
4. Fees and Fines: Revenue from parking fines, various license fees, and other service fees constitutes general revenue.

Frequently Asked Questions (FAQs)

Q1: What is the significance of general revenue?

A1: General revenue is critical as it constitutes the bulk of funding for general government operations, including public safety, education, and infrastructure maintenance.

Q2: How is general revenue different from special revenue?

A2: General revenue can be used for any governmental purpose not restricted by law, while special revenue is earmarked for specific purposes, such as road maintenance or school funding.

Q3: Can revenues from gasoline taxes be included in general revenue?

A3: It depends. If the gasoline tax revenue is earmarked for specific transportation projects, it typically wouldn’t be included in general revenue.

Q4: Do grants from federal government contribute to general revenue?

A4: Yes, general federal grants can contribute to general revenue unless they are designated for specific projects or purposes.

Q5: Why are utilities and sales of alcoholic beverages excluded from general revenue?

A5: These are considered enterprise-type activities, meant to be self-sustaining, and their revenue is usually dedicated to their operation or specific purposes.

Related Terms

• Special Revenue: Funds collected that are restricted for specific activities or projects.
• Enterprise Fund: A fund established for government-owned enterprises such as utilities, which operate similarly to private businesses.
• Property Tax: A levy on property that the owner is required to pay and which contributes to general revenue.
• Earmarking: Designating specific funds for particular purposes or projects.

Online References

1. National Center for State Courts - Glossary of Terms
2. U.S. Census Bureau - Government Finance Glossary
3. Municipal Research and Services Center - General and Special Revenue Funds

Suggested Books for Further Studies

1. “Public Finance and Public Policy” by Jonathan Gruber
   A comprehensive book covering various aspects of public finance including taxation, social insurance, and general revenue.

2. “State and Local Public Finance” by Ronald C. Fisher
   This book offers an in-depth look into the financial operations of state and local governments.

3. “Public Budgeting Systems” by Robert D. Lee Jr., Ronald W. Johnson, and Philip G. Joyce
   This text provides a detailed overview of budgeting processes and fiscal management in the public sector.

Fundamentals of General Revenue: Public Finance Basics Quiz

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