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Passing responsibilities down to lower levels of government should be undertaken primarily to place services closer to the people being served and to maximize administrative

One indicator of smart fiscal practices is maintaining balance between spending and revenues. Occasionally deficits may be necessary.

When economic conditions permit, states should accumulate budget reserves adequate to maintain services during recessions.

DeficitThe amount by which annual expenditures exceed annual revenues.

The federal government must strive for long-term fiscal balance.

At the federal level, there are two categories of budgetary expenditures: entitlement

Efforts to reform entitlementPrograms that provide benefits to anyone w

AARP supports exempting Social Security’s administrative costs from limitations on discretionary appropriations in the federal budget.

Two government budget practices that can have significant implications for lower levels of government are block grants and unfunded mandates.

Higher levels of government should provide adequate resources when mandating functions to lower levels of government.