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Allegheny 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:

7,427.06

The expenses per resident at the local level is:

7,563.84

The outstanding debt per resident at the local level is:

7,287.21

 
AlleghenyPennsylvaniaNational



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

Revenue9,248,4457,427.06100.0080,748,6456,163.10100.001.211.002,344,548,4806,947.35100.001.071.000.891.00

  General revenue8,879,0857,130.4496.0177,690,0065,929.6596.211.201.002,168,968,4006,427.0792.511.111.040.921.04

    Intergovernmental revenue3,988,9763,203.3943.1334,261,1392,614.9642.431.231.02808,559,1482,395.9234.491.341.251.091.23
      From Federal government1,015,697815.6710.985,287,045403.536.552.021.68146,274,793433.446.241.881.760.931.05
      From State government2,973,2792,387.7232.1528,974,0942,211.4335.881.080.90662,284,3551,962.4828.251.221.141.131.27
      From local government00.000.0000.000.000.000.0000.000.000.000.000.000.00

    General revenue from own sources4,890,1093,927.0552.8743,428,8673,314.6853.781.180.981,360,409,2524,031.1558.020.970.910.820.93
      Taxes3,617,7372,905.2639.1232,670,0912,493.5340.461.170.97894,124,7052,649.4638.141.101.030.941.06
        Property2,484,0891,994.8726.8622,258,3731,698.8627.571.170.97627,434,2421,859.2126.761.071.000.911.03
        Sales & gross receipts223,189179.232.411,527,424116.581.891.541.28165,801,503491.307.070.360.340.240.27
          General sales64,94752.160.701,010,64677.141.250.680.56125,994,306373.355.370.140.130.210.23
          Selective sales158,242127.081.71516,77839.440.643.222.6739,807,197117.961.701.081.010.330.38
            Motor fuel sales00.000.0000.000.000.000.001,892,6875.610.080.000.000.000.00
            Alcoholic beverage sales36,88629.620.4036,8862.820.0510.528.73845,0352.500.0411.8311.071.121.27
            Tobacco product sales00.000.0000.000.000.000.00318,8170.940.010.000.000.000.00
            Public utilities1,8761.510.0217,4201.330.021.130.9415,744,64746.650.670.030.030.030.03
            Other selective sales119,48095.951.29462,47235.300.572.722.2621,006,01162.240.901.541.440.570.64
        Individual income tax645,048518.016.975,895,638449.987.301.150.9644,730,192132.541.913.913.663.393.83
        Corporate income tax00.000.00746,17156.950.920.000.0011,009,92732.620.470.000.001.751.97
        Motor vehicle license00.000.0000.000.000.000.002,263,6136.710.100.000.000.000.00
        Other taxes265,411213.142.872,242,485171.162.781.251.0342,885,228127.081.831.681.571.351.52

      Charges & misc general revenue1,272,3721,021.7913.7610,758,776821.1613.321.241.03466,284,5471,381.6919.890.740.690.590.67
        Current charges1,061,368852.3411.488,558,069653.1910.601.301.08365,048,3361,081.7115.570.790.740.600.68
          Education53,91143.290.58598,57645.690.740.950.7919,143,89456.730.820.760.710.810.91
            Institution of higher education27,08621.750.29342,11726.110.420.830.697,681,25722.760.330.960.891.151.29
            School lunch sales (gross)10,0068.040.1180,6146.150.101.311.081,566,4414.640.071.731.621.331.49
          Hospitals7850.630.0133,7082.570.040.250.20124,953,811370.265.330.000.000.010.01
          Highways7,6996.180.08224,56217.140.280.360.3010,287,28930.480.440.200.190.560.63
          Air transportation (airports)120,84997.051.31521,31739.790.652.442.0222,414,40266.420.961.461.370.600.68
          Parking facilities49,10439.430.53412,38931.480.511.251.042,924,3498.670.124.554.263.634.09
          Sea and inland port facilities00.000.0019,4881.490.020.000.004,760,82614.110.200.000.000.110.12
          Natural resources1,2561.010.013,4740.270.003.803.162,531,1967.500.110.130.130.040.04
          Parks and recreation37,80530.360.41176,75813.490.222.251.879,708,20828.770.411.060.990.470.53
          Housing and comm development25,95820.850.28292,70322.340.360.930.777,308,73521.660.310.960.901.031.16
          Sewerage508,939408.715.503,046,295232.513.771.761.4668,695,647203.562.932.011.881.141.29
          Solid waste management26,91221.610.29780,40159.560.970.360.3021,694,93864.290.930.340.310.931.04
          Other charges228,150183.222.472,448,398186.873.030.980.8170,625,041209.283.010.880.820.891.01

        Miscellaneous general revenue211,004169.452.282,200,707167.972.731.010.84101,236,211299.984.320.560.530.560.63
          Interest earnings19,84915.940.21337,09425.730.420.620.5110,227,01630.300.440.530.490.850.96
          Special assessments8,6596.950.09111,8858.540.140.810.6815,026,42544.530.640.160.150.190.22
          Sale of property6,7355.410.07226,66917.300.280.310.263,784,73711.210.160.480.451.541.74
          Other general revenue175,761141.151.901,525,059116.401.891.211.0172,198,033213.943.080.660.620.540.61

  Utility revenue369,360296.623.993,058,639233.453.791.271.05173,592,043514.397.400.580.540.450.51
    Water supply308,427247.693.331,826,972139.442.261.781.4780,167,107237.553.421.040.980.590.66
    Electric power6,1854.970.07193,93114.800.240.340.2878,135,733231.533.330.020.020.060.07
    Gas supply590.050.00655,33550.020.810.000.007,630,12322.610.330.000.002.212.49
    Transit54,68943.920.59382,40129.190.471.501.257,659,08022.700.331.941.811.291.45

  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

Expenditure9,418,7777,563.84100.0079,370,6836,057.92100.001.251.002,254,418,5176,680.28100.001.131.000.911.00

  Intergovernmental expenditure00.000.0000.000.000.000.0000.000.000.000.000.000.00
  Direct expenditure9,418,7777,563.84100.0079,370,6836,057.92100.001.251.002,254,418,5176,680.28100.001.131.000.911.00
    Current operation8,241,1616,618.1587.5069,406,8895,297.4487.451.251.001,887,390,8875,592.7083.721.181.050.951.04
    Capital outlay854,493686.219.077,210,313550.329.081.251.00284,581,195843.2712.620.810.720.650.72
      Construction854,493686.219.077,210,313550.329.081.251.00284,581,195843.2712.620.810.720.650.72
    Assistance and subsidies-2,370-1.90-0.0324,9661.910.03-1.00-0.802,376,9447.040.11-0.27-0.240.270.30
    Interest on debt325,493261.393.462,728,515208.253.441.261.0180,069,491237.263.551.100.970.880.97
    Insurance benefits and repayments00.000.0000.000.000.000.0039,9940.120.000.000.000.000.00
    Exhibit: salaries & wages2,644,3052,123.5428.0723,398,2131,785.8629.481.190.95525,546,0041,557.2923.311.361.201.151.26

  Direct expenditure by function9,418,7777,563.84100.0079,370,6836,057.92100.001.251.002,254,418,5176,680.28100.001.131.000.911.00
    Direct general expenditure8,497,9296,824.3590.2274,189,1005,662.4493.471.210.972,024,660,7925,999.4689.811.141.000.941.04
      Capital outlay597,259479.636.345,933,320452.867.481.060.85233,677,777692.4310.370.690.610.650.72


Education services:
      Other direct general expenditure7,900,6706,344.7183.8868,255,7805,209.5886.001.220.981,790,983,0155,307.0379.441.201.060.981.08
      Education3,421,5042,747.6736.3336,704,5342,801.4546.240.980.79862,837,2522,556.7538.271.070.951.101.21
          Capital outlay229,094183.982.432,836,025216.463.570.850.6889,314,081264.653.960.700.610.820.90
        Higher education161,974130.071.721,143,83087.301.441.491.1946,067,730136.512.040.950.840.640.71
          Capital outlay32,45726.060.34105,7738.070.133.232.595,394,84215.990.241.631.440.510.56
        Elementary & Secondary education3,261,9002,619.5034.6335,535,7382,712.2544.770.970.77814,392,5782,413.2036.121.090.961.121.24
          Capital outlay196,637157.912.092,730,252208.383.440.760.6183,919,239248.673.720.640.560.840.92
        Other education-2,370-1.90-0.0324,9661.910.03-1.00-0.802,376,9447.040.11-0.27-0.240.270.30
      Libraries19,55415.700.21191,98514.650.241.070.8613,625,82240.380.600.390.340.360.40


Social services and income maintenance:
      Public welfare1,007,692809.2410.704,980,041380.106.272.131.7167,699,317200.613.004.033.561.892.09
        Other public welfare1,007,692809.2410.704,980,041380.106.272.131.7167,699,317200.613.004.033.561.892.09
      Hospitals8310.670.015,2900.400.011.651.32141,312,054418.736.270.000.000.000.00
        Capital outlay00.000.003,5870.270.000.000.006,546,84619.400.290.000.000.010.02
      Health520,887418.305.533,935,563300.384.961.391.1277,108,561228.493.421.831.621.311.45
      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:
      Highways431,748346.724.582,918,172222.733.681.561.2582,616,882244.813.661.421.250.911.00
        Capital outlay82,86166.540.88613,66646.840.771.421.1430,060,50189.081.330.750.660.530.58
      Air transportation (airports)305,454245.303.24875,19266.801.103.672.9428,556,24984.621.272.902.560.790.87
      Parking facilities26,63521.390.28229,40217.510.291.220.982,108,1706.250.093.423.022.803.09
      Sea and inland port facilities760.060.0078,1575.970.100.010.014,034,90811.960.180.010.000.500.55

Public safety:
      Police protection440,224353.534.673,286,140250.814.141.411.13119,298,947353.515.291.000.880.710.78
      Fire protection132,318106.261.401,062,01881.061.341.311.0564,033,823189.742.840.560.490.430.47
      Correction94,16975.621.001,615,994123.342.040.610.4932,595,24396.591.450.780.691.281.41
        Capital outlay00.000.0033,0802.520.040.000.00915,2972.710.040.000.000.931.03
      Protective inspection & regulation13,64110.950.14177,05813.510.220.810.657,062,87020.930.310.520.460.650.71

Environment and housing:
      Natural resources6,8125.470.07231,67617.680.290.310.2513,342,66139.540.590.140.120.450.49
        Capital outlay00.000.0012,9170.990.020.000.004,485,96313.290.200.000.000.070.08
      Parks and recreation119,65396.091.27851,62665.001.071.481.1843,717,263129.541.940.740.660.500.55
        Capital outlay25,57120.540.27189,25714.440.241.421.1410,096,60129.920.450.690.610.480.53
      Housing and comm development272,429218.782.892,447,964186.843.081.170.9458,336,344172.862.591.271.121.081.19
      Sewerage456,281366.424.843,047,171232.573.841.581.2668,504,527202.993.041.811.591.151.26
        Capital outlay57,54546.210.61682,62152.100.860.890.7123,319,98269.101.030.670.590.750.83
      Solid waste management74,05559.470.791,010,07177.091.270.770.6228,653,83084.911.270.700.620.911.00
        Capital outlay5180.420.0152,9754.040.070.100.081,863,1165.520.080.080.070.730.81

Governmental administration:
      Financial administration57,06445.830.61519,92239.680.661.150.9223,707,42470.251.050.650.580.560.62
      Judicial and legal140,018112.441.491,677,008128.002.110.880.7027,887,73782.641.241.361.201.551.71
      General public buildings103,47583.101.10969,60674.001.221.120.9013,643,40540.430.612.061.821.832.02
      Other governmental administration114,36091.841.211,678,433128.112.110.720.5737,267,357110.431.650.830.731.161.28
      Interest on general debt270,635217.342.872,414,711184.303.041.180.9466,807,524197.962.961.100.970.931.03

General expenditures, n.e.c.:
      Misc commercial activities1630.130.0011,2120.860.010.150.122,707,8798.020.120.020.010.110.12
      Other and unallocable468,251376.034.973,270,154249.594.121.511.21137,158,796406.436.080.930.820.610.68

Utility expenditures:
    Utility expenditure920,848739.509.785,181,583395.486.531.871.50228,078,201675.8410.121.090.970.590.65
        Capital outlay257,234206.572.731,276,99397.471.612.121.7050,897,505150.822.261.371.210.650.71
      Water supply382,243306.964.062,009,177153.352.532.001.6082,479,587244.403.661.261.110.630.69
      Electric power4,1673.350.04152,52211.640.190.290.2373,696,368218.383.270.020.010.050.06
      Gas supply00.000.00422,59332.250.530.000.007,182,24421.280.320.000.001.521.67
      Transit534,438429.195.672,597,291198.243.272.171.7364,720,002191.782.872.241.981.031.14

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 outstanding9,074,3037,287.21100.0067,344,5625,140.04100.001.421.002,042,775,1706,053.14100.001.201.000.851.00

  Short-term debt outstanding4,7423.810.05161,60212.330.240.310.2228,356,92884.031.390.050.040.150.17
  Long-term debt outstanding9,069,5617,283.4099.9567,182,9605,127.7099.761.421.002,014,418,2425,969.1198.611.221.010.861.01

Long-term debt issued1,829,640NANA9,595,754NANANANA264,717,314NANANANANANA
Long-term debt retired934,676NANA8,424,188NANANANA218,916,559NANANANANANA


Sources: STI: PopStats and STI: Colossus