Research Paper Help on Major Funds

Major Funds

The major funds of California State government include general fund general special revenue, restricted, and unrestricted funds.  The first major fund in California State is the general fund that defines the overall fund used for financing state operations. The resources of the general fund are mostly state taxes. The taxes help in collecting adequate revenues for the state government operations (Bernstein, Lerner & Schoar, 2013). Another major fund is the bonds. The bunds are funds obtained from selling bonds for funding capital programs in the state. The restricted funds include the nature of funds that are regulated by the legal frameworks restricting the creditors, grantors and contributors of the state government. The restricted funds are usually confined with the constitutional frameworks and regulations (Bernstein, Lerner & Schoar, 2013). On the other hand, the unrestricted funds describe the funds that are defined by comprising of formal action of government’s senior decision-making persons. The different major funds are determined by their ability to provide adequate funds and resources for funding the governmental functions and operations.

The special revenue fund is another major fund. The State is required to disclose all relevant fund and revenues. Most specifically, the funds were reported when there were particular cases of spending.  The revenue funds forms the large portion of the inflows reported in the California State Budget. Other resources reported in the special revenue funds include the investment earnings and transfers resources (Pagliari, 2012). Most of the substantial revenue sources are restricted and unrestricted. The California special fund revenue contains recipes from tax sources such as fees, charges and rental royalties (MacIntosh & Scheibelhut, 2012). Most importantly, California State relies on the motor vehicle fees as the main sources of special fund revenue.  In 2013-2014, the amount of motor vehicle fees was expected to be $8.8 billion accounting for 40 per cent of the total fees and taxes collected. Therefore, the special revenue fund is one of the major funds of California State government that helps in collecting money from the taxpayers.

Unlike the state governments, the nonprofit governments have different major funds for funding their operations. First, the non-profit organizations rely on grants for supporting its services and provisions of important resources. The grants are programs operated by governments and foundations.  Secondly, the non-profit sector depends on donations from firms or individuals.  Major donors also have been helpful in providing adequate resources and funds to the non-profit organizations (Gleason et al., 2013). The resources of the non-profit organizations are different from that of state governments as they seek to provide certain human service programs. On the other hand, the state governments are mandated to provide essential services in the economy including security and education. The state government is likely to obtain financial support from the government, a situation that does not occur to the non-profit organizations.

 Based on the California state funding, I think the government is financially healthy.  Since, the overall trend of the state revenue is favorable. For instance, the per capita revenue increased by 10 per cent in 2014 to $2, 561.66. In addition, the general fund revenue account can be able to cover the total state expenditures. Most importantly, the California state government has received aid from the federal government in the funding of the various programs (Oliff & Leachman, 2011). This reduces the burden of the funding certain programs in the state and thus, improving the financial health of the government. Therefore, California is financially healthy due to the increased revenue collection against a considerable lower amount of state expenditure.

References

Bernstein, S., Lerner, J., & Schoar, A. (2013). The investment strategies of sovereign wealth funds. The Journal of Economic Perspectives, 219-237.

Gleason, M., Fox, E., Ashcraft, S., Vasques, J., Whiteman, E., Serpa, P., … & Wiseman, K. (2013). Designing a network of marine protected areas in California: achievements, costs, lessons learned, and challenges ahead. Ocean & Coastal Management, 74, 90-101.

MacIntosh, J., & Scheibelhut, T. (2012). How Large Pension Funds Organize Themselves: Findings from a Unique 19-Fund Survey. Rotman international Journal of Pension Management, 5(1), 34-40.

Oliff, P., & Leachman, M. (2011). New school year brings steep cuts in state funding for schools. Center on Budget and Policy Priorities, 7.

Pagliari, S. (2012). Who governs finance? The shifting public–private divide in the regulation of derivatives, rating agencies and hedge funds. European Law Journal, 18(1), 44-61.