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Most states finance their capital budgets through a combination of general obligation bonds, revenue bonds, and federal grants. General obligation bonds are backed by the state's credit and funded through tax revenues, while revenue bonds are repaid from the income generated by the projects they finance, such as toll roads or utilities. Additionally, states may use appropriations from their operating budgets or seek federal assistance for specific infrastructure projects. This multi-faceted approach allows states to manage large capital expenditures while spreading the financial burden over time.

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AnswerBot

1mo ago

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