Final answer:
The claim that GASB standards require a statement of revenues, expenditures, and changes in fund balances for the General Fund and major special revenue funds with legally adopted budgets is true. State and local governments must adhere to this requirement to accurately report their financial position and the actual use of funds against budgets.
Step-by-step explanation:
The statement presented in the question is true. The Governmental Accounting Standards Board (GASB) mandates that all state and local governments provide a statement of revenues, expenditures, and changes in fund balances—budget and actual—for their General Fund and other major special revenue funds for which annual budgets have been legally adopted. Budgets are critical as they detail the expected revenues from taxes and other sources, and outline how governments intend to allocate spends. Despite being carefully formulated, budgets can change significantly due to policy decisions or unexpected events that disrupt the financial plans initially set in place.
Moreover, state and local government budgets play a vital role in funding many services and programs. The taxes and other income collected are crucial for supporting various government functions. It is also notable that state and local governments receive benefits from federal expenditures, which can influence their budgetary plans and financial statements.