1. Chapter 23 State and Local Government
Section 3 Local Governments and State and Local Revenue

2. Local Government
The U.S. Constitution does not address local governments.
States can determine the structure and powers of local governments.
Types of local governments include:
Municipalities, or towns and cities
Counties
Other local units

3. Municipal Governments
Municipalities are structured in different ways. The two most common are mayoral and council-manager.
Mayoral government
The mayor is the chief executive in municipal governments.
Larger or older cities typically have this form.
Council members are elected by district.
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4. Municipal Governments
Council-manager government
The chief executive is an appointed manager.
This is a nonpartisan form of city government.
Council members are elected at large.
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5. Counties and Other Local Units of Government
In county government, the most common structure is the commission government, in which an elected group of individuals shares the executive and legislative functions.
Additional local units of government include:
School districts
Townships
Special districts with limited, specific authority for services such as water, sewage, and public housing
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6. Your Turn
Choose one of the following forms of government and brainstorm a list of issues it might address. Then research the corresponding agency in your community and see how closely your list matches the functions the agency actually addresses.
County commission
City council
School board
Water and sewer department
Public housing commission
Note to teachers: Invite volunteers to share their research in brief oral presentations.
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7. City Problems and Reforms
After World War II, urban neighborhoods became increasingly poorer as suburban neighborhoods flourished.
Reformers established metropolitan-wide governments (governments including cities and their suburbs).
Cities also began receiving federal aid to assist with urban renewal efforts and mass transit.
Some wonder if large elections are fair to minorities.

8. State and Local Revenue
States fund services primarily through taxes:
Sales taxes
Income taxes (based on what is earned)
Property taxes
Taxes are limited by the US Constitution.
Excise taxes- are placed only on certain items, such as cigarettes.
Severance tax- taxes on non-renewable resources.
Ex: A company extracting natural gas within the boundaries of a state.
Sometimes states compete for business. Two states offering tax incentives in order to attract a particular business is called competition.

9. State and Local Revenue
The taxing power of states is limited.
States cannot tax imports or exports between states.
States cannot tax the federal government.
States cannot levy taxes that violate the equal protection and due process clauses of the 14th Amendment.
State and local governments are most responsible for public education.
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10. Which one of the following actions can a state use to raise revenue?
Your Turn
Which one of the following actions can a state use to raise revenue?
a. Tax imported goods from a neighboring state
b. Tax the federal military spending in the state
c. Tax automobile purchases
d. Tax men at a higher rate than women
Note to teachers: The correct answer is c. This is a sales tax.
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