Answered

The chart shows sources of local government funding in Michigan.




\multicolumn{2}{|c|}{Sources of Local Government Funds (2010)}

Michigan citizens		\$14.3 billion

Federal government		\$2.6 billion

State government		\$8.0 billion

Other sources		\$3.2 billion

TOTAL REVENUE		\$28.1 billion






Which conclusion about Michigan's local government does the data support?


AThe federal government provides about a third of the funding to local governments in Michigan.
BA local government's collection of fees as other sources does not contribute to its own funding.
CThe citizens of Michigan provide the largest percentage of funding through sales and property taxes.
DThe state government is prohibited by the Michigan constitution from contributing significant amounts to local funding.

Verified Answer :

  • Analyze the percentage contribution of each funding source relative to the \(\$28.1\) billion total.
  • Calculate: Michigan citizens \(\approx 50.9\%\), Federal government \(\approx 9.3\%\), State government \(\approx 28.5\%\), and Other sources \(\approx 11.4\%\).
  • Identify that the citizen contribution is the largest among all categories.
  • Final Answer: \(\boxed{\text{The citizens of Michigan provide the largest percentage of funding through sales and property taxes.}}\)

Explanation

  1. Analyze the data and calculate the percentage for each source

To determine which conclusion is supported by the data, we must first analyze the composition of the total revenue for Michigan's local governments in 2010. The provided data lists the following contributions:

  • Michigan citizens: \(\$14.3\) billion
  • Federal government: \(\$2.6\) billion
  • State government: \(\$8.0\) billion
  • Other sources: \(\$3.2\) billion
  • Total Revenue: \(\$28.1\) billion

We calculate the percentage share of each source relative to the total revenue of \(\$28.1\) billion using the formula:
\[ \text{Percentage} = \left( \frac{\text{Amount of Source}}{\text{Total Revenue}} \right) \times 100\% \]

  1. Evaluate the proposed conclusions against the calculated data

Now we evaluate each of the four proposed conclusions:

  1. "The federal government provides about a third of the funding": The federal share is \(\frac{2.6}{28.1} \approx 9.25\%\). This is far from one-third (\(\approx 33.3\%\)), so this statement is incorrect.
  2. "A local government's collection of fees as other sources does not contribute to its own funding": The table shows that 'Other sources' contributes \(\$3.2\) billion, which is a positive, non-zero amount. This statement is incorrect.
  3. "The citizens of Michigan provide the largest percentage of funding": Calculating the percentage for citizens, we have \(\frac{14.3}{28.1} \approx 50.89\%\). Comparing this to other sources (\(9.25\%\) for Federal, \(28.47\%\) for State, and \(11.39\%\) for Other), the citizen contribution is indeed the largest. This statement is supported by the data.
  4. "The state government is prohibited by the Michigan constitution from contributing significant amounts": The data shows the state contributes \(\$8.0\) billion, which is significant (nearly \(30\%\) of the total revenue). Furthermore, the provided table does not mention any constitutional prohibitions. Therefore, this statement is not supported.
  1. Conclusion

Based on our analysis, the only statement supported by the provided data is that the citizens of Michigan provide the largest percentage of funding for local governments in Michigan. This represents approximately \(50.9\%\) of the total revenue, which is greater than the contributions from any other individual source listed in the chart. Therefore, the conclusion that "The citizens of Michigan provide the largest percentage of funding through sales and property taxes" is the correct one.

Examples

This type of analysis is crucial in real-world public policy and economics. For instance, if a local council wants to understand how a proposed budget change will affect public services, they must first identify the primary funding streams, such as whether the bulk of their revenue comes from local taxpayers, state grants, or federal programs. By calculating the percentages, such as \(\frac{14.3}{28.1} \approx 50.9\%\), stakeholders can make informed decisions about revenue reliance and fiscal sustainability.

Related Questions