Many communities today are concerned with their local government’s ability to appropriately manage the taxes it collects. If a government spends more money on expenditures than it collects in taxes, it may end up with not enough money, called deficit. Which of the following could result in a county government budget in deficit? a.
The government raises sales and property taxes without adjusting expenditures.
b.
The county closes a fire station, reducing expenditures, without adjusting taxes.
c.
The county gives all public school teachers a $2,000 raise without adjusting taxes.
d.
The county collects donations to build a fountain in city hall.