PART 1

As a team, prepare a 700- to 1,050-word summary of concepts used to respond to the questions and include the following:

Ch. 12 Q10. In what sense does the use of debt financing by a national government impose a burden on the future generation? How does debt financing increase the “wealth” of the current generation compared with tax financing? Under what circumstances will the burden of the debt on future generations be offset?

Ch. 18 Q10. Why are matching grants likely to be more effective in increasing local government spending than are equal-dollar nonmatching grants? Explain how matching grants can help achieve efficiency by internalizing interjurisdictional externalities.

Ch. 18 P5. Explain why using the local property tax to finance a given quantity and quality of public schooling can result in low tax rates in rich jurisdictions but high tax rates in poor jurisdictions. How do state govern-ments supplement local finance of education to insure equality of opportunity in education? Go to your state government’s Web site and find out how elementary and secondary education is financed in your state.

• How were they useful?
• How are these concepts used in government today?

PART 2

Search the City of San Diego’s websites for their specific budget process. Write a 700- to 1,050-word paper on the budget process for the government.

• What is the timeline?
• What are the legislative and legal authorities for the budget?
• What are the sources of revenue? Expenditures?
• Are there capital appropriations?
• Does the government have debt?
• What else do you notice?
• Is the budget balanced?

Format your paper consistent with APA guidelines.