he answers FOR the following questions.

1) Scan for Differences: Where Does Maine Deviate from the US? Maines overall per capita spending is similar to the US average, but some components are high relative to the US and some are low.

sample statement: In 2015, Maine spent $8,342 per capita for general purposes, $503 less than the US average of $8,845. Maines spending was 6% below the national average.

• Which 3-4 spending areas stand out as being high relative to the US average? For each, briefly describe the relationship between Maines spending and the US average; use my sample statement above to guide you in writing about comparisons.

• Which 3 spending areas stand out as being low relative to the US average? For each, briefly describe the relationship between Maines spending and the US average; use my sample statement above to guide you in writing about comparisons.

2) Thinking About Differences & Hypothesizing Explanations for Differences:Are the differences expected or unexpected? Why might Maine differ? Use your knowledge of expenditure and revenue determinants and service production conditions to hypothesize and discuss possible causes of differences.

Please keep in mind:

o When need is high and/or costs of service provision are high, states and local governments often spend less than expected because revenue capacity places limits on how much they can raise to finance services. Do not simply say: This expenditure component is high relative to the US because health care costs are high. If you believe service costs are an explanation, give details, for example, small scale schools cost more per pupil.

U Think about specific factors that influence the need for public spending and how the same factors can constrain ability-to-pay and willingness-to-pay leading to lower than expected spending. Use the mapped data in the lecture and your knowledge of Maine (e.g., very low crime rates) to formulate your response.

o Dont forget the role of values in deciding the public budget. Might Maine differ on some items because people here value the expenditure item more/less than some other states?

PER CAPITA EXPENDITURES BY MAINE STATE AND LOCAL GOVERNMENTS COMPARED WITH THE US TOTAL, FY 2015 Total CapitaHigher Elementary Outlay Education Higher Ed & secondary K-12 Salaries and Direct general(GenerTotal (inc.CapitTotal (inc.Capital outlay expenditure Purposes) Wages $2,806 $2,422 -$385 86% $8,845 $8,342 -$503 94% $872 $600 -$272 69% capital) $854 $594 $260 70% outlaycapital) $1,899 $1,785 $114 94% $96 $57 -$39 60% $165 uS Total Maine PC Difference, Maine US Maine as % US Total $50 -$115 30% Police protection $328 $198 $130 60% Fire Judicial and uS Total Maine PC Difference. Maine-US Maine as % US Total Public welfare $1,914 $2,225 $311 116% $290 $356 $66 123% Health Highwaysprot $523 $708 $185 135% protection Correctionlegal $137 $77 -$60 56% $143 $116 -$27 81% $240 $159 -$81 66%