Role of Local and State
Governments in the US Economy
Course
Political Science I
Unit IV
Government and
the Economy
Essential
Question
What is the
relationship
between the
government and
the economy?
TEKS
§130.183(c)
(5)(A)
Prior Student
Learning
None
Estimated Time
7 to 10 hours
Rationale
Knowledge of the ways that local and state governments can affect an
economy is important for good citizenship and imperative for governmental
careers in the US.
Objectives
The students will be able to:
1. Identify the role that the government has on local, state, and national
economies
2. Create a personal budget
3. Create a mock city budget
4. Play the role of a city council member
5. Present a mock city budget
6. Critique other students’ mock city budgets
Engage
Have the students prepare personal budgets, acting as if they are high
school graduates. After they prepare their budget, lead a discussion about
paying taxes, budgeting expenses, and how taxes support our national,
state, and local programs. The statistics on the U.S Department of Labor and
Statistics website may be used to aid the discussion. Use the Discussion
Rubric for assessment.
Key Points
I. What is the role of government in the local, state, and national
economies?
A. Local Economies
1. Local governments must operate within a balanced budget (the
federal government does not)
a) A balanced budget means that revenue from taxes and fees
must equal the amount of money spent
b) The ideal scenario for a local economy is to have a perfect
match, neither a surplus nor a deficit
(1) The mayor or city council would receive heavy criticism for
a surplus because it suggests to taxpayers that their taxes
are too high
c) Local government establishes budgets by projecting expenses
and revenues for the year
d) Local economies depend heavily on tax revenue to support the
cost of running a local municipality
(1) Local governments spend heavily on utilities such as
water, electricity, gas, sewers, and garbage collection
2. Sources of revenue
1
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a) The primary source of revenue for the local government is
property tax, which is
(1) A tax on property owners based on the value of their land
and the building(s) on the land
(2) High because it is based on the value of property, not the
individual’s income
b) Other revenue sources include
(1) Grant money from the state government
(2) Sales tax – a percentage of the retail price of a commodity
at the point of sale
3. Use of funds
a) Public education (elementary and secondary levels)
(1) Education policy is the largest proportion of a local budget
b) Public health and safety
(1) Dispose of garbage and sewage properly to prevent the
spread of disease
(2) Provide clean drinking water
(3) Provide a law enforcement team and a fire department
B. State Economies
1. A state economy is influenced by the mix of state-adopted public
policies
a) Depend on various taxes to pay for the costs of legislation
passed during state congressional sessions
b) Collect a personal income tax
c) Impose an excise tax on items such as gasoline, tobacco,
alcohol, and firearms (in many states)
d) In the 1990s, most states in the US expanded spending on
health care, education, and criminal justice, all of which are
funded by a state sales tax
e) In recent years, state economies have suffered significantly
from the post 9-11 recession
2. A state’s budget
a) Is often criticized by two highly vocal groups
(1) Those who oppose cuts to public services
(2) Those who oppose higher taxes
b) Has a large portion allocated for education and other public
services, but during times of recession, these services are
often the first to receive budget cuts
(1) Some citizens oppose cuts because these services
provide for future generations and the overall well-being of
citizens
(2) Some citizens support cuts because these services are
not guaranteed state rights
c) Have welfare as the leading expense because of Medicaid, a
government health care program for citizens with low incomes
3. Balancing a state’s budget is a challenge
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a) States are struggling to pay their daily expenses and are
borrowing money from the federal government at an
accelerated rate
b) States are experiencing poor productivity due to deficits and
lack of funding
c) Health care costs have risen dramatically and threaten state
economies
(1) Health insurance premiums for state government
employees
(2) Increased number of participants in Medicaid
d) States have pioneered public policies that were later adopted
by the federal government
(1) For example, Massachusetts adopted a state-run health
insurance plan, and in 2010 the federal government
passed the Affordable Care Act, which provides a
government-run health insurance plan for citizens
Activities
1. Create a City Budget – Divide the class into groups of three. Have the
individuals in each group work together to create a budget for a city.
(Note: Determine the budget amount in advance.) Have the students
present their budgets. The students’ budgets must:
 Identify how their local government will spend its revenue and
support the community
 Include a chart and/or graph to support their decisions
 Provide a brief justification on how and why they decided to spend
the city revenue
Use the Group Evaluation Rubric for assessment.
2. City Council Meeting – After the students submit their budgets (one per
group), have each group work together and act as if it is a city council
member who represents part of the city. Have each city council member
(student group) present its budget to the other members (class). After the
budget presentations are complete, have the class vote to decide which
budget to approve. Give the groups whose budgets are not approved by
a majority, the opportunity to make adjustments to their budget. Use the
Presentation Rubric for assessment.
Assessments
Role of Local and State Governments in the US Economy Quiz and Key
Discussion Rubric
Group Evaluation Rubric
Individual Work Rubric
Presentation Rubric
Research Rubric
3
Copyright © Texas Education Agency, 2013. All rights reserved.
Materials
Role of Local and State Governments in the US Economy computer-based
presentation
Resources
Edwards, George, Martin Wattenberg, and Robert Lineberry. Government in
America: People, Politics and Policy. 15. New York City: Longman,
2011. Chapter 17 & 21. Print.
Harrison, Brigid, and Jean Harris. American Democracy Now. 2. New York
City: McGrawHill Comapny, 2011. Chapter 15 & 18. Print.
O'Conner, Karen, Larry Sabato, and Alixandra Yanus. American
Government: Roots and Reform. 2011. New York City: Longman, 2011.
Chapter 4 & 18. Print.
Patterson, Thomas. The American Democracy. 9th. New York City: McGraw
Hill Higher Education, 2009. Ch. 15 & 18. Print.
Schmidt, Steffan, Mack Shelley, Barbara Bardes, and Lynne Ford. American
Government and Politics Today. 2011-2012. Boston: Wadsworth
Cenage Learning, 2012. Chapter 17 &19. Print.
Accommodations for Learning Differences
For reinforcement, students will make a “T-Chart” in which they identify the
economic responsibilities of local governments and state governments. Use
the Individual Work Rubric for assessment.
For enrichment, students will write a 3-5 page research paper that
summarizes the similarities between the Massachusetts state-run health
insurance plan (adopted in 2006) and the national health insurance plan, the
Affordable Care Act (adopted in 2010). Use the Research Rubric for
assessment.
State Education Standards
Texas Essential Knowledge and Skills for Career and Technical Education
§130.183. Political Science I (One to Two Credits).
(5)
The student identifies the roles played by local, state, and
national governments in public and private sectors of the
United States free enterprise system. The student is expected
to:
(A)
recognize that government policies influence the
economy at the local, state, and national levels;
College and Career Readiness Standards
Mathematics Standards
VIII. Problem Solving and Reasoning
A. Mathematical problem solving
1. Analyze given information.
2. Formulate a plan or strategy.
4
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3. Determine a solution.
4. Justify the solution.
5. Evaluate the problem-solving process.
5
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Name ___________________________________Date _________________________
Role of Local and State Governments in the US Economy Quiz
1. _____Which of the following is a true statement about local governments?
A. They must operate within a balanced budget
B. They establish budgets by projecting expenses and revenues for the year
C. They depend heavily on tax revenue to support the cost of running local municipalities
D. All of the above
2. _____Which of the following is the primary source of revenue for local government?
A. Property tax
B. Income tax
C. Sales tax
D. None of the above
3. _____Which of the following is a secondary source of revenue for local government?
A. Property tax
B. Income tax
C. Sales tax
D. None of the above
4. _____Local governments receive grant money from the state government.
A. True
B. False
5. _____Which of the following is the largest proportion of a local budget?
A. Education policy
B. Public health and safety policy
C. Both A and B
D. Neither A nor B
6. _____Local governments use funds to care for their citizens’ health and safety by
providing which of the following?
A. Proper disposal of garbage and sewage
B. Clean drinking water
C. Law enforcement
D. All of the above
7. _____Which of the following are true statements about state government?
A. They depend on various taxes to pay for the costs of legislation
B. They collect a personal income tax
C. They impose an excise tax
D. All of the above
6
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8. _____A state’s budget is often criticized by which of the following highly vocal groups?
A. Those who support cuts to public services
B. Those who oppose higher taxes
C. Both A and B
D. Neither A and B
9. _____Medicaid is a government health care program for citizens with high incomes.
A. True
B. False
10. _____States have pioneered public policies that were later adopted by the federal
government.
A. True
B. False
7
Copyright © Texas Education Agency, 2013. All rights reserved.
Role of Local and State Governments in the US Economy Quiz Key
1. D
2. A
3. C
4. A
5. A
6. D
7. D
8. B
9. B
10. A
8
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Name_______________________________
Date________________
Group Evaluation
Group 1
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
8
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
Was the group portrayal creative?
No
1
2
3
4
5
6
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
8
9
Yes
10
9
Yes
10
9
Yes
10
9
Yes
10
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
Group 2
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
8
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
Was the group portrayal creative?
No
1
2
3
4
5
6
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
8
9
Yes
10
9
Yes
10
9
Yes
10
9
Yes
10
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
9
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Group 3
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
8
9
Yes
10
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
9
Yes
10
Was the group portrayal creative?
No
1
2
3
4
5
6
9
Yes
10
9
Yes
10
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
8
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
Group 4
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
8
9
Yes
10
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
9
Yes
10
9
Yes
10
9
Yes
10
Was the group portrayal creative?
No
1
2
3
4
5
6
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
8
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
10
Copyright © Texas Education Agency, 2013. All rights reserved.
Group 5
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
8
9
Yes
10
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
9
Yes
10
Was the group portrayal creative?
No
1
2
3
4
5
6
9
Yes
10
9
Yes
10
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
8
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
Group 6
Did the group take the assignment seriously?
No
1
2
3
4
5
6
7
8
9
Yes
10
Could you tell what the group was trying to portray?
No
1
2
3
4
5
6
7
8
9
Yes
10
9
Yes
10
9
Yes
10
Was the group portrayal creative?
No
1
2
3
4
5
6
7
Did the group include the correct elements?
No
1
2
3
4
5
6
7
8
8
Would you like to see this group demonstrate its talent for you in the future?
No
Yes
1
2
3
4
5
6
7
8
9
10
Total Score_______
11
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Name_______________________________________
Date_______________________________
Discussion Rubric
Objectives
4 pts.
Excellent
3 pts.
Good
2 pts. Needs Some
Improvement
1 pt. Needs Much
Improvement
N/A
Pts.
Participates in group discussion
Encourages others to join the
conversation
Keeps the discussion progressing
to achieve goals
Shares thoughts actively while
offering helpful recommendations to
others
Gives credit to others for their ideas
Respects the opinions of others
Involves others by asking questions
or requesting input
Expresses thoughts and ideas
clearly and effectively
Total Points (32 pts.)
Comments:
12
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Name______________________________________
Date_______________________________________
Individual Work Rubric
4 pts.
Excellent
Objectives
3 pts.
Good
2 pts. Needs Some
Improvement
1 pt. Needs Much
Improvement
N/A
Pts.
Follows directions
Student completed the work as directed,
following the directions given, in order and to the
level of quality indicated
Time management
Student used time wisely and remained on task
100% of the time
Organization
Student kept notes and materials in a neat,
legible, and organized manner. Information was
readily retrieved
Evidence of learning
Student documented information in his or her
own words and can accurately answer questions
related to the information retrieved
*Research/Gathering information (if relevant)
Student used a variety of methods and sources
to gather information. Student took notes while
gathering information
Total Points (20 pts.)
Comments:
13
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Name:____________________________________
Date:_____________________________
Presentation Rubric
4 pts.
Excellent
Objectives
3 pts.
Good
2 pts. Needs Some
Improvement
1 pt. Needs Much
Improvement
N/A
Pts.
Topic/Content
 Topic discussed completely and in-depth
 Includes properly cited sources (if used)
Creativity/Neatness
 Integrates a variety of multimedia effects to
create a professional presentation (transition
and graphics) or appropriate visual aid used
 Title slide, table of contents, bibliography are
included, using acceptable format
Mechanics
 Grammar, spelling, punctuation, and
capitalization are correct
 Image and font size are legible to the entire
audience
Oral Presentation
 Communicates with enthusiasm and eye
contact
 Voice delivery and projection are dynamic
and audible
Audience Interaction
 Presentation holds audience’s attention and
relates a clear message
 Clearly and effectively communicates the
content throughout the presentation
Total Points (20 pts.)
Comments:
14
Copyright © Texas Education Agency, 2013. All rights reserved.
Name______________________________________
Date_______________________________________
Research Rubric
4 pts.
Excellent
Objectives
3 pts.
Good
2 pts. Needs Some
Improvement
1 pt. Needs Much
Improvement
N/A
Pts.
Question/goal
Student identified and communicated a question
or goal of the research
Research/Gathering information (if relevant)
Student used a variety of methods and sources
to gather information. Student took notes while
gathering information
Conclusion/Summary
Student drew insightful conclusions and
observations from the information gathered.
Information is organized in a logical manner
Communication
Student communicated the information gathered
and summary or conclusions persuasively.
Student demonstrated skill in the use of media
used to communicate the results of research
Reflection
Student reflected on the importance of the
research and its potential application
Total Points (20 pts.)
Comments:
15
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