ABSTRACT
States supervise local government budgets by requiring specific actions and procedures, by establishing and limiting revenue sources, and by monitoring and reviewing budget actions of local governments. States fulfill their responsibility to supervise in five ways: states enable, authorize, and empower local governments; states set budget controls and fiscal limits; states impose requirements and mandates; states employ administrative supervision; and states intervene in fiscal crises. The state supervisory role depends on state laws and practices, as well as on the type of local government involved.
