Final answer:
The statement regarding GASB standards for special revenue funds is true. These funds must have a substantial portion of their resources from restricted, committed, or assigned revenue sources. This ensures responsible and lawful use of tax revenue and other governmental income for designated purposes.
Step-by-step explanation:
The statement is true: GASB (Governmental Accounting Standards Board) standards require that special revenue funds be used only if a substantial portion of the resources are provided by one or more restricted, committed, or assigned revenue sources. These special funds are meant to account for specific revenue sources that are legally restricted to expenditures for particular purposes. This mechanism helps ensure that states and localities use the taxes and other revenues they collect in alignment with the stipulations set forth by the law or granting agencies.
States and local governments operate through budgets that supply money for many services and programs. The property tax, for instance, is a primary source of tax revenue for local governments, highlighting the importance of strong accounting practices to manage these funds appropriately. Special revenue funds are one of several fund types that GASB provides guidance on to help governmental entities organize and report their finances transparently and effectively.