Final answer:
At the local level, discretionary spending categories include public schools, street cleaning and repairs, water and sewer, and police and fire.
Step-by-step explanation:
At the local level, discretionary spending categories include:
- Public schools: Public education at the elementary and secondary levels.
- Street cleaning and repairs: Maintenance and upkeep of roads.
- Water and sewer: Provision and maintenance of water and sewage services.
- Police and fire: Law enforcement and fire protection services.
Therefore, the correct answer is E) all of the above.