Final answer:
The true statement regarding the basic financial statements of state or local government is that taxes generate the majority of their revenue, with property taxes being significant at the local level. Grant money also represents a substantial source of revenue. Licensing and certificates do not provide equal revenue compared to these other sources.
Step-by-step explanation:
Regarding the basic financial statements of state or local government, it's important to understand how they generate and spend their revenue. Universal generalizations about these governments include the necessity to approve spending before releasing revenues, that budgets provide for many services and programs, and that taxes paid are used for various government expenditures. Moreover, state and local governments benefit from federal funds.
Among the sources of revenue for these governments, taxes are indeed a major component, generating over half of their total revenue. Of these tax revenues, it's often property taxes that provide a significant portion at the local level, but not necessarily the state level. Grant money is also a key source, accounting for roughly 30 to 40 percent of their revenues. It is not true that local and state governments generate an equal amount of revenue from issuing licenses and certificates; these typically represent a smaller portion of the revenue stream.
It's also relevant to consider budget fluctuations due to policy decisions and unexpected events, highlighting that financial planning at all government levels is subject to change. In summary, taxes are a pivotal source of revenue, property taxes are significant at the local level, and grant money constitutes a notable percentage of revenues for state and local governments.