Balancing Federal Budget Analysis

Summary The primary concern in state policy and politics is a balanced budget. Each state has a strict balanced budget requirement. The National Conference of State Legislature reports that forty-nine states must have balanced budgets. The one state that is exempt is Vermont. In most states, there is a general fund budget and a non-general fund, which state policymakers must balance. The most significant fund is the general fund where the State tax collections reside. Federal grants, reimbursements, public hospital collections, and motor fuel taxes are in the non-general fund (Ncsl.org, 2010). In most states, the governor’s proposed budget or the enacted budget must be balanced as a requirement for a balanced state budget. Public attention focuses on the general fund budget because the annual or …show more content…
In most states, the balanced budget requirements are unclear because of the lack of specific state compliance, enforcement provisions, and explicit language. Although 22 states have enforcement provisions that emphasize their importance, the expectation that the state budget is balanced is the most important factor in maintaining a balanced budget (Ncsl.org, 2010). State political culture reinforces the budget requirements. My understanding of this journal is that state budgets are very important. Balancing the budget is a rigorous task for many states. The requirements for balancing the state budget varies from state to state. Before reading this journal, I had no knowledge of state budget requirements. After reading this journal, I am unsure of how the process works. I now have a profound respect for the job of a policymaker and governor. In Alabama, if the treasurer lacks the money to pay the claims against the appropriations, then the treasurer is subject to a five thousand dollar fine and a two-year prison term.