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Kern County – Government Finance

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Government finances play a pivotal role in shaping the local economy, influencing economic growth, stability, and the overall well-being of communities. The impact of government finances on the local economy can be analyzed through several key mechanisms, including public spending, taxation, debt management, and fiscal policies. These elements collectively determine the flow of resources, the level of economic activity, and the quality of life for residents.

  1. Public Spending and Investment One of the most direct ways government finances affect the local economy is through public spending. Governments allocate funds to infrastructure projects, education, healthcare, public safety, and social services. These investments create jobs, stimulate demand for goods and services, and enhance the productivity of the local workforce. For instance, building roads, bridges, and public transportation systems not only provides immediate employment opportunities but also improves connectivity, reducing transportation costs for businesses and facilitating trade. Similarly, investments in education and healthcare contribute to a skilled and healthy workforce, which is essential for long-term economic growth.

  2. Taxation Policies Taxation is another critical component of government finances that impacts the local economy. Taxes fund public services and infrastructure, but they also influence the behavior of individuals and businesses. High tax rates can discourage investment and consumption, potentially stifling economic growth. Conversely, low tax rates may attract businesses and stimulate spending but can lead to budget deficits if not managed properly. Progressive taxation, where higher-income individuals pay a larger share, can reduce income inequality and increase disposable income for lower-income households, boosting local demand for goods and services.

  3. Debt Management Government borrowing and debt management also have significant implications for the local economy. When governments borrow to finance deficits or invest in long-term projects, they can stimulate economic activity in the short term. However, excessive debt can lead to higher interest rates, crowding out private investment, and increasing the risk of financial instability. Effective debt management ensures that borrowing is sustainable and that funds are used efficiently to generate economic returns.

  4. Fiscal Policies Fiscal policies, including government spending and taxation, are tools used to manage economic cycles. During economic downturns, expansionary fiscal policies, such as increased spending and tax cuts, can stimulate demand and help the economy recover. Conversely, during periods of high inflation, contractionary fiscal policies, such as reduced spending and higher taxes, can help cool down the economy. The timing and effectiveness of these policies are crucial in stabilizing the local economy and maintaining public confidence.

  5. Social and Economic Equity Government finances also play a role in promoting social and economic equity. Redistributive policies, such as social welfare programs and subsidies, can reduce poverty and inequality, leading to a more inclusive economy. By providing a safety net for vulnerable populations, governments can ensure that all residents have access to basic needs, which in turn supports overall economic stability and growth.

  6. Conclusion In summary, government finances have a profound impact on the local economy through public spending, taxation, debt management, and fiscal policies. Effective management of these financial tools can stimulate economic growth, reduce inequality, and enhance the quality of life for residents. Conversely, poor financial management can lead to economic instability, reduced investment, and social unrest. Therefore, it is essential for governments to adopt prudent fiscal policies and ensure that financial resources are allocated efficiently and equitably to support sustainable economic development.

A key indicator for comparison is how much government collects, spends and and establishes debt for each resident under its perview.

The revenue per resident at the local level is:

9,234.06

The expenses per resident at the local level is:

11,118.23

The outstanding debt per resident at the local level is:

3,442.65

 
KernCaliforniaNational



LocalLocalLocalLocalStateState
PerContri-PerContri-PerContri-
LocalPer CentStatePer CentCapitabutionNationalPer CentCapitabutionCapitabution
Description(,000's)Per Capitato Total(,000's)Per Capitato TotalIndexIndex(,000's)Per Capitato TotalIndexIndexIndexIndex

Revenue8,543,7559,234.06100.00415,727,70510,464.59100.000.881.002,344,548,4806,947.35100.001.331.001.511.00

  General revenue7,858,9888,493.9691.99379,292,3239,547.4591.240.891.012,168,968,4006,427.0792.511.320.991.490.99

    Intergovernmental revenue4,801,9335,189.9156.20171,171,6284,308.6941.171.201.37808,559,1482,395.9234.492.171.631.801.19
      From Federal government310,964336.093.6429,304,968737.667.050.460.52146,274,793433.446.240.780.581.701.13
      From State government4,490,9694,853.8252.56141,866,6603,571.0334.121.361.54662,284,3551,962.4828.252.471.861.821.21
      From local government00.000.0000.000.000.000.0000.000.000.000.000.000.00

    General revenue from own sources3,057,0553,304.0535.78208,120,6955,238.7650.060.630.711,360,409,2524,031.1558.020.820.621.300.86
      Taxes1,730,1361,869.9220.25120,629,1743,036.4529.020.620.70894,124,7052,649.4638.140.710.531.150.76
        Property1,236,1371,336.0114.4780,438,7142,024.7819.350.660.75627,434,2421,859.2126.760.720.541.090.72
        Sales & gross receipts405,755438.544.7528,631,750720.716.890.610.69165,801,503491.307.070.890.671.470.97
          General sales356,427385.224.1721,504,815541.315.170.710.81125,994,306373.355.371.030.781.450.96
          Selective sales49,32853.310.587,126,935179.401.710.300.3439,807,197117.961.700.450.341.521.01
            Motor fuel sales00.000.0000.000.000.000.001,892,6875.610.080.000.000.000.00
            Alcoholic beverage sales00.000.0000.000.000.000.00845,0352.500.040.000.000.000.00
            Tobacco product sales00.000.0000.000.000.000.00318,8170.940.010.000.000.000.00
            Public utilities29,76132.170.353,826,69496.320.920.330.3815,744,64746.650.670.690.522.061.37
            Other selective sales19,56721.150.233,300,24183.070.790.250.2921,006,01162.240.900.340.261.330.89
        Individual income tax00.000.0000.000.000.000.0044,730,192132.541.910.000.000.000.00
        Corporate income tax00.000.0000.000.000.000.0011,009,92732.620.470.000.000.000.00
        Motor vehicle license7870.850.0158,2351.470.010.580.662,263,6136.710.100.130.100.220.15
        Other taxes87,45794.521.0211,500,475289.492.770.330.3742,885,228127.081.830.740.562.281.51

      Charges & misc general revenue1,326,9191,434.1315.5387,491,5212,202.3121.050.650.74466,284,5471,381.6919.891.040.781.591.06
        Current charges977,6771,056.6711.4471,747,5861,806.0117.260.590.66365,048,3361,081.7115.570.980.731.671.11
          Education35,68038.560.421,811,78645.610.440.850.9619,143,89456.730.820.680.510.800.53
            Institution of higher education9,52410.290.11919,16323.140.220.440.507,681,25722.760.330.450.341.020.67
            School lunch sales (gross)2,5932.800.0349,2381.240.012.262.561,566,4414.640.070.600.450.270.18
          Hospitals353,899382.494.1421,959,512552.765.280.690.78124,953,811370.265.331.030.781.490.99
          Highways2,8703.100.031,106,44927.850.270.110.1310,287,28930.480.440.100.080.910.61
          Air transportation (airports)23,58425.490.284,298,517108.201.030.240.2722,414,40266.420.960.380.291.631.08
          Parking facilities00.000.00593,79614.950.140.000.002,924,3498.670.120.000.001.721.15
          Sea and inland port facilities00.000.001,886,37747.480.450.000.004,760,82614.110.200.000.003.372.23
          Natural resources1,8351.980.02715,26818.000.170.110.122,531,1967.500.110.260.202.401.59
          Parks and recreation8,4279.110.101,412,41035.550.340.260.299,708,20828.770.410.320.241.240.82
          Housing and comm development14,18715.330.171,093,40027.520.260.560.637,308,73521.660.310.710.531.270.84
          Sewerage101,787110.011.1910,346,881260.452.490.420.4868,695,647203.562.930.540.411.280.85
          Solid waste management162,079175.171.903,897,83898.120.941.792.0221,694,93864.290.932.722.051.531.01
          Other charges273,329295.413.2022,625,352569.525.440.520.5970,625,041209.283.011.411.062.721.81

        Miscellaneous general revenue349,242377.464.0915,743,935396.303.790.951.08101,236,211299.984.321.260.951.320.88
          Interest earnings33,31536.010.391,370,97934.510.331.041.1810,227,01630.300.441.190.891.140.76
          Special assessments157,922170.681.853,831,25196.440.921.772.0115,026,42544.530.643.832.882.171.44
          Sale of property1,8712.020.02490,28812.340.120.160.193,784,73711.210.160.180.141.100.73
          Other general revenue156,134168.751.8310,051,417253.012.420.670.7672,198,033213.943.080.790.591.180.79

  Utility revenue684,767740.098.0136,435,382917.148.760.810.91173,592,043514.397.401.441.081.781.18
    Water supply674,588729.097.9018,952,389477.064.561.531.7380,167,107237.553.423.072.312.011.33
    Electric power2,6962.910.0315,108,961380.323.630.010.0178,135,733231.533.330.010.011.641.09
    Gas supply1080.120.00398,80810.040.100.010.017,630,12322.610.330.010.000.440.29
    Transit7,3757.970.091,975,22449.720.480.160.187,659,08022.700.330.350.262.191.45

  Liquor store revenue00.000.0000.000.000.000.001,988,0375.890.080.000.000.000.00

  Insurance trust revenue00.000.0000.000.000.000.00162,8580.480.010.000.000.000.00
    Unemployment compensation00.000.0000.000.000.000.00162,8580.480.010.000.000.000.00
    Employee retirement00.000.0000.000.000.000.0000.000.000.000.000.000.00
    Workers' compensation00.000.0000.000.000.000.0000.000.000.000.000.000.00
    Other insurance trust revenue00.000.0000.000.000.000.0000.000.000.000.000.000.00

Expenditure10,287,07911,118.23100.00397,412,50110,003.56100.001.111.002,254,418,5176,680.28100.001.661.001.501.00

  Intergovernmental expenditure00.000.0000.000.000.000.0000.000.000.000.000.000.00
  Direct expenditure10,287,07911,118.23100.00397,412,50110,003.56100.001.111.002,254,418,5176,680.28100.001.661.001.501.00
    Current operation9,428,02110,189.7791.65339,502,0138,545.8585.431.191.071,887,390,8875,592.7083.721.821.091.531.02
    Capital outlay662,968716.536.4443,035,7171,083.2810.830.660.60284,581,195843.2712.620.850.511.280.86
      Construction662,968716.536.4443,035,7171,083.2810.830.660.60284,581,195843.2712.620.850.511.280.86
    Assistance and subsidies55,90360.420.541,107,53627.880.282.171.952,376,9447.040.118.585.153.962.64
    Interest on debt140,187151.511.3613,767,235346.553.460.440.3980,069,491237.263.550.640.381.460.98
    Insurance benefits and repayments00.000.0000.000.000.000.0039,9940.120.000.000.000.000.00
    Exhibit: salaries & wages1,630,9101,762.6815.8550,334,3911,267.0012.671.391.25525,546,0041,557.2923.311.130.680.810.54

  Direct expenditure by function10,287,07911,118.23100.00397,412,50110,003.56100.001.111.002,254,418,5176,680.28100.001.661.001.501.00
    Direct general expenditure9,368,68010,125.6391.07344,686,2228,676.3586.731.171.052,024,660,7925,999.4689.811.691.011.450.97
      Capital outlay627,623678.336.1031,232,843786.187.860.860.78233,677,777692.4310.370.980.591.140.76


Education services:
      Other direct general expenditure8,741,0579,447.3084.97313,453,3797,890.1778.871.201.081,790,983,0155,307.0379.441.781.071.490.99
      Education6,435,9906,955.9962.56123,638,2003,112.1931.112.242.01862,837,2522,556.7538.272.721.631.220.81
          Capital outlay414,101447.564.0312,250,902308.383.081.451.3189,314,081264.653.961.691.021.170.78
        Higher education320,615346.523.1213,341,749335.833.361.030.9346,067,730136.512.042.541.532.461.64
          Capital outlay78,39484.730.761,920,06048.330.481.751.585,394,84215.990.245.303.183.022.02
        Elementary & Secondary education6,059,4726,549.0558.90109,188,9152,748.4727.472.382.14814,392,5782,413.2036.122.711.631.140.76
          Capital outlay335,707362.833.2610,330,842260.052.601.401.2683,919,239248.673.721.460.881.050.70
        Other education55,90360.420.541,107,53627.880.282.171.952,376,9447.040.118.585.153.962.64
      Libraries6,3306.840.061,910,63448.090.480.140.1313,625,82240.380.600.170.101.190.80


Social services and income maintenance:
      Public welfare464,268501.784.5121,922,849551.845.520.910.8267,699,317200.613.002.501.502.751.84
        Other public welfare464,268501.784.5121,922,849551.845.520.910.8267,699,317200.613.002.501.502.751.84
      Hospitals520,798562.885.0618,647,588469.394.691.201.08141,312,054418.736.271.340.811.120.75
        Capital outlay2550.280.00100,7452.540.030.110.106,546,84619.400.290.010.010.130.09
      Health344,366372.193.3533,019,396831.168.310.450.4077,108,561228.493.421.630.983.642.43
      Social insurance administration00.000.0000.000.000.000.0035,9470.110.000.000.000.000.00
      Veterans' services00.000.0000.000.000.000.0000.000.000.000.000.000.00

Transportaion:
      Highways232,653251.452.2612,709,265319.913.200.790.7182,616,882244.813.661.030.621.310.87
        Capital outlay127,215137.491.244,494,247113.131.131.221.0930,060,50189.081.331.540.931.270.85
      Air transportation (airports)23,19025.060.234,187,897105.421.050.240.2128,556,24984.621.270.300.181.250.83
      Parking facilities00.000.00492,51212.400.120.000.002,108,1706.250.090.000.001.981.33
      Sea and inland port facilities00.000.001,000,59725.190.250.000.004,034,90811.960.180.000.002.111.41

Public safety:
      Police protection304,887329.522.9621,902,409551.325.510.600.54119,298,947353.515.290.930.561.561.04
      Fire protection61,24466.190.6011,274,931283.812.840.230.2164,033,823189.742.840.350.211.501.00
      Correction187,028202.141.826,999,094176.181.761.151.0332,595,24396.591.452.091.261.821.22
        Capital outlay490.050.0089,6942.260.020.020.02915,2972.710.040.020.010.830.56
      Protective inspection & regulation16,43317.760.161,946,59549.000.490.360.337,062,87020.930.310.850.512.341.56

Environment and housing:
      Natural resources5,7186.180.061,987,67150.030.500.120.1113,342,66139.540.590.160.091.270.85
        Capital outlay00.000.00317,5657.990.080.000.004,485,96313.290.200.000.000.600.40
      Parks and recreation61,35066.310.607,146,271179.881.800.370.3343,717,263129.541.940.510.311.390.93
        Capital outlay9,55010.320.091,377,27034.670.350.300.2710,096,60129.920.450.340.211.160.77
      Housing and comm development57,12461.740.5611,307,938284.642.850.220.2058,336,344172.862.590.360.211.651.10
      Sewerage51,49255.650.509,661,509243.202.430.230.2168,504,527202.993.040.270.161.200.80
        Capital outlay2,5082.710.023,340,40284.080.840.030.0323,319,98269.101.030.040.021.220.81
      Solid waste management134,292145.141.313,770,09194.900.951.531.3828,653,83084.911.271.711.031.120.75
        Capital outlay00.000.0025,3130.640.010.000.001,863,1165.520.080.000.000.120.08

Governmental administration:
      Financial administration11,33112.250.112,376,74459.830.600.200.1823,707,42470.251.050.170.100.850.57
      Judicial and legal25,50927.570.254,659,749117.291.170.240.2127,887,73782.641.240.330.201.420.95
      General public buildings27,76530.010.27836,71021.060.211.421.2813,643,40540.430.610.740.450.520.35
      Other governmental administration102,813111.121.009,298,798234.072.340.470.4337,267,357110.431.651.010.602.121.42
      Interest on general debt115,398124.721.1210,942,612275.442.750.450.4166,807,524197.962.960.630.381.390.93

General expenditures, n.e.c.:
      Misc commercial activities5,2015.620.051,109,20427.920.280.200.182,707,8798.020.120.700.423.482.32
      Other and unallocable173,500187.521.6921,936,958552.195.520.340.31137,158,796406.436.080.460.281.360.91

Utility expenditures:
    Utility expenditure918,399992.608.9352,726,2791,327.2113.270.750.67228,078,201675.8410.121.470.881.961.31
        Capital outlay35,34538.200.3411,802,874297.102.970.130.1250,897,505150.822.260.250.151.971.32
      Water supply807,635872.897.8519,906,326501.085.011.741.5782,479,587244.403.663.572.152.051.37
      Electric power64,58169.800.6313,422,594337.873.380.210.1973,696,368218.383.270.320.191.551.03
      Gas supply1340.140.00375,6519.460.090.020.017,182,24421.280.320.010.000.440.30
      Transit46,04949.770.4519,021,708478.814.790.100.0964,720,002191.782.870.260.162.501.67

Liquor store expenditures:
    Liquor store expenditure00.000.0000.000.000.000.001,679,5244.980.070.000.000.000.00

Insurance trust expenditures:
    Insurance trust expenditure00.000.0000.000.000.000.0039,9940.120.000.000.000.000.00
      Unemployment compensation00.000.0000.000.000.000.0039,9940.120.000.000.000.000.00
      Employee retirement00.000.0000.000.000.000.0000.000.000.000.000.000.00
      Workers' compensation00.000.0000.000.000.000.0000.000.000.000.000.000.00
      Other insurance trust00.000.0000.000.000.000.0000.000.000.000.000.000.00

Debt outstanding3,185,2893,442.65100.00399,089,08810,045.76100.000.341.002,042,775,1706,053.14100.000.571.001.661.00

  Short-term debt outstanding00.000.001,052,62226.500.260.000.0028,356,92884.031.390.000.000.320.19
  Long-term debt outstanding3,185,2893,442.65100.00398,036,46610,019.2799.740.341.002,014,418,2425,969.1198.610.581.011.681.01

Long-term debt issued163,155NANA51,131,067NANANANA264,717,314NANANANANANA
Long-term debt retired321,635NANA41,971,776NANANANA218,916,559NANANANANANA


Sources: STI: PopStats and STI: Colossus