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State Budget Estimates and User Fees

If a state classifies their budget categories by economic, administrative, and functional activities are they in a better position to estimate their budget over the next two years?

Do both residential or private citizens and businesses and industries pay user fees?

Solution Preview

If a state classifies its budget into categories, which include economic, administrative, and functional activities, the state is in a much better position to estimate budgetary needs over the next two years. There are a few main reasons for this. The first reason is that when we consider the average size of a state and all activities, which encompass the revenue producing cycle of the state, organization is essential. If we have one master budget for the state that isn't broken down, there would be less accuracy in both tracking and updating information contained in the budget. The reason why this is important is because the updates to the budget throughout the budget cycle are then used to formulate the next budget for the next budgetary cycle. By breaking down a budget into main sections, the sections of the budget can each be handled from beginning to end as a budget in itself. This means that we can easily take all of ...

Solution Summary

This solution provides a very detailed, thorough discussion of user fees. This solution also thoroughly discusses if a state classifies their budget categories by economic, administrative, and functional activities, if the state is in a better position to estimate their budget over the next two years.

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