Slide 18 of 84


The budget is a mechanism to distribute and transfer resources. Resources are transferred from one or more groups of citizens to another. Examples include public assistance programs and financial aid to college students. The budget also provides a mechanism to transfer resources from one level of government to another, and this is one of the most important functions of state government. Examples of intergovernmental transfers include state aid to K-12 school districts, and state aid to cities, villages and townships. Of all the revenues that the state raises directly from our citizens and businesses, all the state taxes and fees, approximately 70% of those dollars are sent to some other government to spend and operate programs. State-raised revenues go to school districts, cities, villages, townships, counties, state universities, and community colleges.