that provide general training, advice, and support for
activities such as economic development, budget preparation,
or database management. Some state agencies
provide advice in response to local government
requests. Oversight, in these cases, may be informal
and non-directive.
Other state agencies may have direct regulatory
authority, including setting standards and requiring
actions of local governments. For example, state
departments of education set standards and requirements
for school districts. States may have regulatory
agencies that can approve or deny local government
fiscal activities; for example, some states have agencies
that authorize local governments to issue securities
such as bonds.
States also require local governments to file copies
of the budgets and annual financial reports with an
agency, often the state auditor or state treasurer. The
requirement to file these budgets and reports serves
three purposes: they impose managerial practices; they
provide the general public access to information; and
they enable state agencies to review for fiscal responsibility.
The offices of state auditor and treasurer often
serve as regulatory agencies in regards to the filing,
form, and substance of local governments’ budgets
and financial statements.