Funding the Budget: Where does the money come from?

In short, your state and federal tax dollars. These taxes go into a number of different funds, the most important of which are the General Fund, the Highway Trust Fund, and the Highway Fund. The General Fund accounts for about half of the state’s total budgetary financing and is supplied by revenue from a wide variety of taxes and fees, as well as money from court fees, disproportionate share receipts, investment earnings and bonds, the tobacco settlement, the Highway Fund, and the Highway Trust Fund. Federal tax dollars used to subsidize expenditures in education, healthcare, transportation, and other areas also comprise part of the budget (see Q& A: 8), as does revenue from university tuition fees, prison enterprises, the state fair, and a variety of other activities.

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