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Orange 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:

6,730.61

The expenses per resident at the local level is:

6,840.44

The outstanding debt per resident at the local level is:

6,837.94

 
OrangeFloridaNational



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

Revenue9,873,3136,730.61100.00133,893,2065,989.76100.001.121.002,344,548,4806,947.35100.000.971.000.861.00

  General revenue8,571,9995,843.5186.82122,976,7975,501.4291.851.060.952,168,968,4006,427.0792.510.910.940.860.99

    Intergovernmental revenue2,632,1591,794.3426.6634,668,8311,550.9225.891.161.03808,559,1482,395.9234.490.750.770.650.75
      From Federal government750,013511.287.608,961,878400.916.691.281.13146,274,793433.446.241.181.220.921.07
      From State government1,882,1461,283.0519.0625,706,9531,150.0119.201.120.99662,284,3551,962.4828.250.650.670.590.68
      From local government00.000.0000.000.000.000.0000.000.000.000.000.000.00

    General revenue from own sources5,939,8404,049.1760.1688,307,9663,950.4965.951.020.911,360,409,2524,031.1558.021.001.040.981.14
      Taxes3,688,9942,514.7837.3649,372,7032,208.7136.871.141.01894,124,7052,649.4638.140.950.980.830.97
        Property2,650,9451,807.1426.8537,261,6561,666.9127.831.080.96627,434,2421,859.2126.760.971.000.901.04
        Sales & gross receipts749,888511.207.608,982,302401.836.711.271.13165,801,503491.307.071.041.070.820.95
          General sales332,412226.603.374,725,625211.403.531.070.95125,994,306373.355.370.610.630.570.66
          Selective sales417,476284.594.234,256,677190.423.181.491.3339,807,197117.961.702.412.491.611.87
            Motor fuel sales41,61828.370.42917,96041.070.690.690.611,892,6875.610.085.065.227.328.49
            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 utilities188,066128.201.902,091,23293.551.561.371.2215,744,64746.650.672.752.842.012.33
            Other selective sales187,792128.021.901,247,48555.810.932.292.0421,006,01162.240.902.062.120.901.04
        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 license00.000.0000.000.000.000.002,263,6136.710.100.000.000.000.00
        Other taxes288,161196.442.923,128,745139.972.341.401.2542,885,228127.081.831.551.601.101.28

      Charges & misc general revenue2,250,8461,534.4022.8038,935,2631,741.7829.080.880.78466,284,5471,381.6919.891.111.151.261.46
        Current charges1,414,638964.3514.3327,685,0421,238.5020.680.780.69365,048,3361,081.7115.570.890.921.141.33
          Education87,00059.310.881,248,10555.830.931.060.9519,143,89456.730.821.051.080.981.14
            Institution of higher education78,62753.600.80677,01530.290.511.771.577,681,25722.760.332.352.431.331.54
            School lunch sales (gross)1,2670.860.0167,7493.030.050.280.251,566,4414.640.070.190.190.650.76
          Hospitals00.000.0010,163,688454.687.590.000.00124,953,811370.265.330.000.001.231.42
          Highways2,4171.650.02168,4797.540.130.220.1910,287,28930.480.440.050.060.250.29
          Air transportation (airports)449,276306.274.552,161,97896.721.613.172.8222,414,40266.420.964.614.761.461.69
          Parking facilities15,09210.290.15274,61112.280.210.840.752,924,3498.670.121.191.231.421.64
          Sea and inland port facilities00.000.00415,46118.590.310.000.004,760,82614.110.200.000.001.321.53
          Natural resources38,61226.320.39628,34728.110.470.940.832,531,1967.500.113.513.623.754.35
          Parks and recreation41,22728.100.42631,48128.250.470.990.899,708,20828.770.410.981.010.981.14
          Housing and comm development19,28713.150.20360,33216.120.270.820.737,308,73521.660.310.610.630.740.86
          Sewerage302,117205.953.063,972,536177.712.971.161.0368,695,647203.562.931.011.040.871.01
          Solid waste management160,163109.181.622,809,527125.692.100.870.7721,694,93864.290.931.701.751.962.27
          Other charges299,447204.133.034,850,497216.993.620.940.8470,625,041209.283.010.981.011.041.20

        Miscellaneous general revenue836,208570.048.4711,250,221503.288.401.131.01101,236,211299.984.321.901.961.681.95
          Interest earnings86,91459.250.88825,72136.940.621.601.4310,227,01630.300.441.962.021.221.41
          Special assessments319,176217.583.234,769,769213.383.561.020.9115,026,42544.530.644.895.044.795.56
          Sale of property15,86510.820.16218,0759.760.161.110.993,784,73711.210.160.961.000.871.01
          Other general revenue414,253282.404.205,436,656243.214.061.161.0372,198,033213.943.081.321.361.141.32

  Utility revenue1,301,314887.1013.1810,916,409488.358.151.821.62173,592,043514.397.401.721.780.951.10
    Water supply256,288174.712.605,761,809257.764.300.680.6080,167,107237.553.420.740.761.091.26
    Electric power977,058666.069.904,701,461210.323.513.172.8278,135,733231.533.332.882.970.911.05
    Gas supply29,16419.880.30275,59312.330.211.611.447,630,12322.610.330.880.910.550.63
    Transit38,80426.450.39177,5467.940.133.332.967,659,08022.700.331.171.200.350.41

  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

Expenditure10,034,4326,840.44100.00127,995,8955,725.95100.001.191.002,254,418,5176,680.28100.001.021.000.861.00

  Intergovernmental expenditure00.000.0000.000.000.000.0000.000.000.000.000.000.00
  Direct expenditure10,034,4326,840.44100.00127,995,8955,725.95100.001.191.002,254,418,5176,680.28100.001.021.000.861.00
    Current operation7,993,0465,448.8479.66107,643,3604,815.4784.101.130.951,887,390,8875,592.7083.720.970.950.861.00
    Capital outlay1,734,3961,182.3317.2816,244,182726.6912.691.631.36284,581,195843.2712.621.401.370.861.01
      Construction1,734,3961,182.3317.2816,244,182726.6912.691.631.36284,581,195843.2712.621.401.370.861.01
    Assistance and subsidies-28,616-19.51-0.29266,39411.920.21-1.64-1.372,376,9447.040.11-2.77-2.701.691.97
    Interest on debt335,606228.783.343,841,959171.873.001.331.1180,069,491237.263.550.960.940.720.85
    Insurance benefits and repayments00.000.0000.000.000.000.0039,9940.120.000.000.000.000.00
    Exhibit: salaries & wages1,567,8041,068.7715.6221,917,576980.4917.121.090.91525,546,0041,557.2923.310.690.670.630.73

  Direct expenditure by function10,034,4326,840.44100.00127,995,8955,725.95100.001.191.002,254,418,5176,680.28100.001.021.000.861.00
    Direct general expenditure8,754,2235,967.7387.24116,546,0515,213.7391.051.140.962,024,660,7925,999.4689.810.990.970.871.01
      Capital outlay1,482,4921,010.6114.7714,427,571645.4211.271.571.31233,677,777692.4310.371.461.430.931.09


Education services:
      Other direct general expenditure7,271,7314,957.1272.47102,118,4804,568.3179.781.090.911,790,983,0155,307.0379.440.930.910.861.00
      Education2,974,9782,028.0329.6538,786,5211,735.1330.301.170.98862,837,2522,556.7538.270.790.770.680.79
          Capital outlay216,393147.512.163,465,418155.032.710.950.8089,314,081264.653.960.560.540.590.68
        Higher education380,478259.373.793,342,383149.522.611.731.4546,067,730136.512.041.901.861.101.28
          Capital outlay18,57512.660.19164,8707.380.131.721.445,394,84215.990.240.790.770.460.54
        Elementary & Secondary education2,623,1161,788.1726.1435,177,7441,573.6927.481.140.95814,392,5782,413.2036.120.740.720.650.76
          Capital outlay197,818134.851.973,300,548147.652.580.910.7683,919,239248.673.720.540.530.590.69
        Other education-28,616-19.51-0.29266,39411.920.21-1.64-1.372,376,9447.040.11-2.77-2.701.691.97
      Libraries38,87126.500.39664,69829.740.520.890.7513,625,82240.380.600.660.640.740.86


Social services and income maintenance:
      Public welfare118,17980.561.181,804,02280.701.411.000.8467,699,317200.613.000.400.390.400.47
        Other public welfare118,17980.561.181,804,02280.701.411.000.8467,699,317200.613.000.400.390.400.47
      Hospitals2,3031.570.0211,605,342519.179.070.000.00141,312,054418.736.270.000.001.241.45
        Capital outlay1,5821.080.02795,68935.600.620.030.036,546,84619.400.290.060.051.832.14
      Health99,34967.730.992,085,47793.291.630.730.6177,108,561228.493.420.300.290.410.48
      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:
      Highways286,840195.542.863,907,968174.823.051.120.9482,616,882244.813.660.800.780.710.83
        Capital outlay71,77548.930.721,598,23771.501.250.680.5730,060,50189.081.330.550.540.800.94
      Air transportation (airports)1,079,204735.6910.762,926,955130.942.295.624.7028,556,24984.621.278.698.491.551.81
      Parking facilities19,32713.180.19203,1239.090.161.451.212,108,1706.250.092.112.061.451.70
      Sea and inland port facilities00.000.00603,73827.010.470.000.004,034,90811.960.180.000.002.262.64

Public safety:
      Police protection601,362409.955.9910,123,200452.877.910.910.76119,298,947353.515.291.161.131.281.49
      Fire protection399,340272.233.985,353,431239.494.181.140.9564,033,823189.742.841.431.401.261.47
      Correction193,570131.961.932,167,23196.951.691.361.1432,595,24396.591.451.371.331.001.17
        Capital outlay1,4721.000.0162,8962.810.050.360.30915,2972.710.040.370.361.041.21
      Protective inspection & regulation57,79339.400.58880,96139.410.691.000.847,062,87020.930.311.881.841.882.20

Environment and housing:
      Natural resources210,925143.792.104,406,951197.153.440.730.6113,342,66139.540.593.643.554.995.82
        Capital outlay71,50348.740.712,049,92891.701.600.530.444,485,96313.290.203.673.586.908.05
      Parks and recreation212,287144.722.123,607,795161.402.820.900.7543,717,263129.541.941.121.091.251.45
        Capital outlay34,43323.470.34812,78736.360.640.650.5410,096,60129.920.450.780.771.221.42
      Housing and comm development159,938109.031.592,703,049120.922.110.900.7558,336,344172.862.590.630.620.700.82
      Sewerage507,897346.235.064,984,082222.963.891.551.3068,504,527202.993.041.711.671.101.28
        Capital outlay141,77996.651.41947,78942.400.742.281.9123,319,98269.101.031.401.370.610.72
      Solid waste management154,660105.431.542,917,625130.522.280.810.6828,653,83084.911.271.241.211.541.79
        Capital outlay1,9141.300.02102,4414.580.080.280.241,863,1165.520.080.240.230.830.97

Governmental administration:
      Financial administration166,466113.481.663,956,298176.993.090.640.5423,707,42470.251.051.621.582.522.94
      Judicial and legal60,46241.220.601,110,03249.660.870.830.6927,887,73782.641.240.500.490.600.70
      General public buildings22,50715.340.22250,50611.210.201.371.1513,643,40540.430.610.380.370.280.32
      Other governmental administration135,65492.471.351,291,72457.791.011.601.3437,267,357110.431.650.840.820.520.61
      Interest on general debt271,123184.822.702,906,868130.042.271.421.1966,807,524197.962.960.930.910.660.77

General expenditures, n.e.c.:
      Misc commercial activities00.000.00810.000.000.000.002,707,8798.020.120.000.000.000.00
      Other and unallocable981,188668.879.787,298,373326.505.702.051.71137,158,796406.436.081.651.610.800.94

Utility expenditures:
    Utility expenditure1,280,209872.7112.7611,449,844512.218.951.701.43228,078,201675.8410.121.291.260.760.88
        Capital outlay251,904171.722.511,816,61181.271.422.111.7750,897,505150.822.261.141.110.540.63
      Water supply150,739102.761.504,539,914203.093.550.510.4282,479,587244.403.660.420.410.830.97
      Electric power872,335594.678.694,540,547203.123.552.932.4573,696,368218.383.272.722.660.931.09
      Gas supply26,45018.030.26235,37210.530.181.711.437,182,24421.280.320.850.830.490.58
      Transit230,685157.262.302,134,01195.471.671.651.3864,720,002191.782.870.820.800.500.58

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 outstanding10,030,7536,837.94100.00104,523,0594,675.88100.001.461.002,042,775,1706,053.14100.001.131.000.771.00

  Short-term debt outstanding73,98350.430.74165,9597.420.166.794.6528,356,92884.031.390.600.530.090.11
  Long-term debt outstanding9,956,7706,787.5099.26104,357,1004,668.4699.841.450.992,014,418,2425,969.1198.611.141.010.781.01

Long-term debt issued1,177,538NANA11,343,984NANANANA264,717,314NANANANANANA
Long-term debt retired1,056,218NANA10,382,574NANANANA218,916,559NANANANANANA


Sources: STI: PopStats and STI: Colossus