County structure, authority and finances
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Counties are governed by locally elected officials, including more than 19,350 county elected executives and board members responsible for counties’ budgets, policies and oversight. In general, states authorize and set the roles and responsibilities of county governments. Though counties across the country differ in structure, authority and finance, our mission to foster healthy, safe and vibrant communities is a constant.
In this section, explore the differences across – and within – states regarding county authority, dive deep on Dillon's Rule vs. Home Rule, explore the various county government structures and learn about county finances, priorities and mandates.
As the second module in Counties 101, this builds on topics covered in the first module, What Are Counties. To revisit these modules or to explore what's next in Counties 101, click here.
County Government Authority
County governments derive the extent of our authority from the states. The two basic doctrines on county authority, Dillon’s Rule and Home Rule, often coexist within the same state.
Dillon’s Rule counties must obtain state approval for any changes in the government’s structure, function or
fiscal organization. The concept of Dillon’s Rule stems from a court decision in 1872. Judge John Dillon of the Iowa Supreme Court ruled that counties (and other local governments) possess only the powers explicitly granted by the state through the state legislature or state constitution. In Atkins v. Kansas, the U.S. Supreme Court upheld the Dillon decision. For example, Arizona state law dictates that counties with at least 175,000 residents must have a board of supervisors with five members, while counties with fewer residents must have a board with three members.
Home Rule counties manage local affairs, generally with more autonomy from the state legislature. Typically, the three areas of autonomy often granted by the state are:
- Structural domain: Counties may alter the form of government, giving counties more flexibility to select the size of their legislative board, elect a county executive and/or appoint or elect row officers.
- Functional domain: Counties may provide optional services – those not mandated by the state – without seeking permission from the state. The state may also grant counties the authority to consolidate services through interlocal agreements and allow oversight of special purpose districts.
- Fiscal domain: Counties may adjust local revenues and expenditures, often by leveraging taxing authority, issuing bonds, establishing service districts and raising debt limitations.
Home Rule applies to counties in various ways. For example, a county charter allows the county to organize and structure itself. In Colorado, for instance, the state constitution gives voters in a county the power to adopt a charter which establishes the organization and structure of the county government. The Colorado Constitution is explicit, however, that counties with a home rule charter must still provide all functions, services, facilities and other mandates required of counties by state statute.
At the most basic level, each county operates under one of these two doctrines of county authority, where, essentially, Home Rule counties are free to determine local affairs within a set list of restrictions, while Dillon’s Rule counties are given explicit directives from which they must not deviate.
Currently, in 14 states, all counties operate under the more restrictive Dillon’s Rule, while 13 states grant all counties Home Rule authority. The remaining 21 states with county governments have a mix of Home Rule and Dillon’s Rule counties.xiv Six of these states (Alabama, Arizona, Illinois, Kentucky, Minnesota and Missouri) only grant Home Rule to larger counties (in some cases, only to one large county, such as Cook County in Illinois or Ramsey County in Minnesota), while the other 15 states permit any county to draft a Home Rule charter– with mixed results across states. In Hawaii and Maine, for example, all counties chose to adopt a charter and operate under Home Rule. In Idaho, New Hampshire and South Dakota, however, no county has chosen to adopt a charter despite having the option in state law, so all remain under Dillon’s Rule.
In practice, the delineation between Home Rule and Dillon’s Rule is not a simple nor obvious determination of county authority. Of the 34 states that permit some or all counties to operate under Home Rule, 15 states (44 percent) place substantial restrictions on county Home Rule authority – most often related to finances (fiscal domain). For example, all counties in Hawaii and Iowa operate under Home Rule, but each of these states prohibits counties from levying any tax not explicitly authorized by the state legislature. In some states, such as California, Maine, Ohio and Wisconsin, the primary benefit of Home Rule authority is flexibility in how the government is structured (structural domain) – service provision and local finances are still delegated by the state. For Nevada and Mississippi, on the other hand, although all counties are under Home Rule, their local government structures and finances are delegated by the state, leaving flexibility only in service provision (functional domain).
As Home Rule does not necessarily entail complete flexibility to determine local affairs, so Dillon’s Rule
does not necessarily entail stringent inflexibility. Of the 35 states that place some or all counties under Dillon’s Rule, 14 states (40 percent) provide additional, important flexibilities. Most often, counties are given additional flexibility in determining local government structure (10 states), but often, too, in service provision (8 states). Three states (New Jersey, North Carolina and Utah) have most or all counties operating under Dillon’s Rule, but with a directive that courts should broadly interpret the grants of authority given to counties in the state constitution and statutes – greatly expanding county government authority. Utah, in particular, is a unique state, because of the case State v. Hutchinson in 1980, which ruled in favor of expanded county flexibility and so placed all Utah counties under “Hutchinson’s Rule” – essentially, a very flexible version of Dillon’s Rule which looks more like Home Rule in practice.xv
Dive Deep on County Authority
In practice, the delineation between Home Rule and Dillon’s Rule is not a simple nor obvious determination of county authority.
County Structure
Like the federal government, county governments have executive, legislative and judicial powers. These powers are exercised only within the framework of state and federal constitutional and statutory law. These powers are distributed across the county board, county agencies and county offices, including independently elected officials.
Under the most common “traditional” form of local government structure, the county boards generally exercise executive and legislative powers. Depending on the state, county boards are often known as: commissions, councils, assemblies, fiscal courts, levy court commissions, county legislatures and commissioners’ courts. The board is typically responsible for adopting the county budget, overseeing county finances, shaping local public policy, approving the hiring of county employees and, in some cases, economic development and planning activities.
The members of county boards have a variety of titles, depending on the state, such as commissioners, supervisors, council members, assembly members, board members, justices of the peace (Arkansas) and police jurors (Louisiana). In most New Jersey counties, the county governing body was known previously as the board of chosen freeholders, until recent state law changed to board of commissioners.
County board members are elected by district, at- large (by the entire county) or a combination. There are nearly 19,000 elected county board members, plus about 700 elected county executives.
A majority of counties operate under the traditional, commission form of county government; however, over 40 percent have shifted to either the county administrator or the elected executive type in recent decades.
The separation of powers principle undergirds the reformed county governance system, similar to the President and Congress at the federal level. The elected county executive is the chief administrative officer of the jurisdiction and exercises executive authority. This position is elected countywide, rather than representing a portion or district within the county. Typically, the elected executive has the authority to veto ordinances enacted by the county board (subject to their possible override) and hire and fire department heads.
Within the reformed, council-executive form, there are also two primary subsets of these governance structures.
- In some places like Kentucky, Arkansas, and Cook Co. (Ill.), the county executive serves as the chief elected official and controls the
executive branch of the county government, yet also serves as a voting member and chair of the county board as the legislative branch. - In other places, the county executive may only manage the executive branch, including departments that are not managed by an independently elected official (e.g., sheriff,
district attorney, treasurer, auditor). Similar to the President and a Governor, the executive often proposes an annual budget for consideration, amendment and adoption by the county board.
Most often, an elected county executive has the title of county executive; however, this executive might also carry the title of county judge, mayor, chief executive officer, chair or board president, depending on the state.
Elected county executives possess varying levels of authority. About 700 counties have an elected county executive, most notably in Arkansas, Hawaii, Kentucky, Maryland, New York, Tennessee and Texas, along with many major urban counties in states like Florida, Illinois and Washington. As the executive branch of a county government, the elected county executive commonly works with the legislative body to enact policy, oversees daily county operations and finances and often holds veto power over the legislative process.
Outside of the legislative and executive branches of county government, there are more than 18,600 other independently elected county officers responsible for specific county functions. Examples of these positions include assessor, auditor, circuit judge, clerk of the board, clerk of the court ( judicial), coroner, county attorney, county engineer, judge of the probate,
If the state constitution makes a provision for an elected office, then the office is known as a constitutional officer. For example, county auditor, clerk, court clerk, sheriff and treasurer positions are often mandated by state constitutions.
If the state constitution makes a provision for an elected office, then the office is known as a constitutional officer. For example, county auditor, clerk, court clerk, sheriff and treasurer positions are often mandated by state constitutions. The role of the county board, as the legislative branch, is also typically outlined under the state constitution and law.
Certain counties, especially some under Home Rule, are granted flexibility in adjusting separately-elected positions to meet local needs, whether by adding or removing positions, or by converting positions from elected to appointed.
Some states have unique row officer positions. In Arizona, the constable is an elected officer which executes the orders of the court but does not perform the more traditional law enforcement duties of the sheriff.xvi And in Michigan, counties may appoint a drain commissioner to administer laws involving flood protection, stormwater and soil erosion, due to the fact that the state has been historically dominated by swamps that harbor potential health risks and negative impacts for agricultural lands.xvii
The title of a county position does not necessarily reflect the responsibilities of that position nor indicate whether the position is elected or appointed. For example, clerks in Florida typically serve as the Treasurer for the county and might also serve as the clerk to the county board and the county administrator, or they may provide other services.
- Assessor: Official who establishes the value of land and property for taxation
- Auditor: Official who oversees and monitors county assets and finances
- Clerk of the board: Clerk who provides support and record management for the county board
- Clerk of the courts: Clerk who serves as the administrative officer of the county court system
- Commissioner: Officials with board oversight of the budget, policy and general operations
- Coroner: Official who investigates the causes and manners of death in a county
- County attorney: Legal advisor for the county
- District attorney: Chief prosecutor for the state within the county
- Executive: Chief executive officer of the county, similar to a city mayor or state governor
- Public defender: Attorney who upholds the constitutional right to legal representation within the community
- Recorder: Official who manages the public records of the county (e.g., elections, land, birth & marriage)
- Sheriff: Chief law enforcement officer (also typically manages the county jail)
- Treasurer: Official responsible for the management and investment of financial assets
Some county positions with the title county executive/ county executive officer are not elected county executives, but appointed (for example, in a number of California, New Mexico and Virginia counties). They fulfill the function of appointed county administrators and/or managers. The majority of county administrators are appointed by the county board, but a minority of county administrators are appointed by the elected county executive or by both the elected executive and the county board.
Eighty-three (83) counties have both an appointed administrator and an elected executive. In 36 of these counties, the executive appoints the administrator. All Maryland counties, for example, have an administrator. The administrator is appointed the elected executive in the nine Maryland counties which have an executive, plus Baltimore City, and by the county council in the remaining 14 counties.
Approximately 1,300 counties have the equivalent of an appointed county administrator. Administrator, manager and chief administrative officers are common titles; however, this position may have one of 115 different titles, depending on the state. For example, an appointed county administrator in some Minnesota counties has the title of county coordinator. Appointed county administrators have different levels of authority, depending on the county governance structure and enabling state statutes.
The county administrator is typically the top appointed career official of the county. Administrators serve the county’s legislative body by carrying out the policies and procedures established by its members. Generally, the administrator oversees the daily operations of the county government, including the formation of the county budget and management of programs and services. Administrators may also partner with the private sector, nonprofits, academia and others for the benefit of the community.
Depending on the state, county attorneys (such as district attorneys or prosecutors) and magistrates may carry out the judicial power of counties in accordance with state law. Variations exist from state to state with respect to whether these positions are considered part of the judicial branch or executive branch of local government. Often, the classification depends on the nature of the position. In Indiana and New Mexico, for example, the district attorney is considered part of the judicial branch. In California, the county attorney is a distinct position from the district attorney which is appointed by the board and part of the executive branch. Typically, a district attorney will serve the same function as a prosecutor in bringing criminal cases to court. A county attorney generally handles civil legal issues, though will sometimes also function as a district attorney in handling criminal cases, especially in more rural, unincorporated areas.
The judicial branch is particularly complex at the county level. Overall, judicial organization can be grouped into single county or multi-county. In a single county system, courts are organized along county lines; in a multi-county system, courts are shared among counties or organized along district lines. Just under half (46 percent) of states have single county local judicial systems, while the remainder (54 percent) have multi-county judicial organization. Even though judicial organization may be organized along county lines, local administration may differ. The judicial system can be run by the county, state or mixture of the two. Most court administration is run by the state, except in a handful of states like Maryland, Minnesota, Ohio and Texas where the counties play a larger role.
County Officials By the Numbers
19,355
Board & Commission Members
Primarily responsible for setting policy and budgets.
18,629
Independently elected constitutional or row officers
Responsible for specific county functions and departments, including: Sheriffs, DAs/Prosecutors, Treasurers, Clerks, Recorders and Coroners.
37,984
Total county elected officials
As well as 3.6 million county public servants, representing one out of every 50 American workers
County Finances
County boards approve the final budget, similar to how Congress adopts the federal budget. In most counties with an elected county executive or appointed county administrator, these officials are often responsible for developing the initial budget preparation. In total, county governments invest more than $600 billion annually, based on U.S. Census of Governments data.
County-Generated Revenue Breakdown by State
County Revenue Structure is Diverse
The large majority of the funding that counties use to provide services is generated by the county government itself, sourcing taxes and fees from residents and businesses. County governments generate 71 percent of all our own county revenue. Less than one third (29 percent) come from other governmental entities, namely federal (4 percent) and state (24 percent) governments, with variations by state and county.
Overall, the top source of revenue for county governments is property taxes, which provides counties with $158 billion of revenue each year, or one third (34 percent) of all county-generated revenue. Tax revenue as a whole provides over half (54 percent) of all county-generated revenue. Sales taxes are the second largest tax category, providing $53 billion (11 percent of county-generated revenue). Tax revenue is especially important to county governments because it mostly goes into county general funds, thus allowing for the most flexibility in investing the funding back into the community.
Charges and fees comprise the overall second largest category of county revenues, providing $110 billion, or one quarter (23 percent) of county-generated revenue. These revenues, however, generally do not provide any flexibility to the local government, but are rather a “dollar in, dollar out” category of revenue which encompasses funding that goes directly to provide a specific service or to reimburse the government for a service already provided. Some common examples include court and recording fees, public library charges, parks and recreation charges (including camping areas, swimming pools, museums and other facilities operated by the county), highway tolls, public hospital charges and revenue associated with public housing projects. These types of charges come directly from a specific government service and support that service directly.
When it comes to large investments, most counties turn to debt financing to make the investment more quickly without having to wait to save up cash. Whether investing in capital infrastructure or helping the community recover from a disaster, there are certain times when general fund revenues cannot cover the necessary expenditures, so debt financing becomes an invaluable financial tool. Typically, a local government will issue bonds to borrow money, though some may qualify for certain state or federal loan programs, or even take out a short-term loan from a bank or other financial institution.
Although property taxes are the top revenue source for counties in aggregate, much variation exists at the state level. Counties in some states rely heavily on local sales taxes (Missouri), charges and fees (Indiana) or even local income taxes (Kentucky and Maryland). This variation exists in part due to shifting local priorities, but also due to varied county fiscal authority. County governments are dependent on states for the authority to raise revenue. Most states permit county governments some amount of flexibility over the ability to raise revenue, though some states impose more restrictions while others grant more authority. For example, Georgia, Hawaii and Tennessee do not impose any restrictions on county property taxes, thus allowing counties to adjust property tax revenue according to the needs of residents. On the other hand, in five states (Maine, Massachusetts, New Hampshire, New Jersey, Vermont), counties are severely restricted in their ability to raise revenue and not permitted to levy their own property taxes; rather, counties in these states must levy property taxes through their municipalities.
Thirty-one (31) states allow counties to implement some kind of local sales tax, though states tend to restrict sales taxes more than property taxes, sometimes only allowing sales tax revenue to be levied for specific purposes. In Colorado, for example, counties may collect a sales tax only for public safety improvements. Depending on the state, counties may also collect a local income tax, a tax on short-term rentals, a fuel tax or one of a variety of other taxes.
County-Expenditure Breakdown by State
County priorities and mandates are also diverse
County revenues are important for the services they enable counties to provide. The top four investment categories for counties are Health and Human Services ($163 billion or 27 percent), Justice and Public Safety ($107 billion or 18 percent), Education ($103 billion or 17 percent) and Transportation ($61 billion or 10 percent).
At the state level, the top county investment categories vary based on county priorities and authority levels, though health and human services, justice and public safety and transportation appear in the top most frequently. For counties in 40 states, Justice and Public Safety services is one of the top two services on which counties focus. Similarly, in 29 states, Health and Human services is one of the top two county investment categories. Only three states (Hawaii and the Dakotas) have Transportation as their top county investment category, but 11 states have Transportation as their second highest expenditure category and Transportation ranks third in another 19 states.
Although Education is the third highest investment category for counties as a whole, it ranks as the top category in only a few states (especially, Alaska, Maryland, North Carolina, Tennessee, Virginia). While K-12 education is generally a state and local partnership, the county role in that partnership varies, as most states designate authority to independently elected or appointed school boards. Almost all states mandate the school boards to raise revenue for schools through property and other taxes, with the state contributing the remainder. Public school districts are only dependent on county governments in Alaska, Maryland, North Carolina, Tennessee and Virginia, meaning counties in those states have a statutory obligation to directly fund K-12 schools. In terms of post-secondary education, counties’ decision-making authority varies, though counties remain critical actors in driving integration and coordination among human services, workforce and economic programs to strengthen career pathways.
All of these county services and expenditures are dependent both on the authority each state gives to county governments in state law, as well as the ability of each county to raise adequate revenue.
Dive Deep on County Finances
Key Resources for this Section
NACo produces original research and civic engagement tools to tell the county story, including a full suite of tools diving deep on county authority, structure and finances.
For all of NACo's civic enagement tools, click here.
America's County Governments: A Short Primer on Our History, Definitions, Structures and Authorities
An in-depth look into the history of counties, our authority and structure, key county services and responsibilities and the intergovernmental partnership
The County Landscape
A detailed look at the role of counties through the lens of national and county-level data
County Governance Project
A comprehensive guide to county government structure, authority, services and finances
Explore Counties 101
Each module is Counties 101 dives deep on a key facet how counties function, provide critical services and work with the other branches of government in our nation's system of federalism.
What are counties?
This question is the first step in learning about county governments and our collective impact on our communities and the lives of residents. Counties are one of America’s oldest forms of government, are key partners in our nation's system of federalism and provide critical services.
County structure, authority and finances
Counties are governed by locally elected officials, including more than 19,350 county elected executives and board members responsible for counties’ budgets, policies and oversight. In general, states authorize and set the roles and responsibilities of county governments. Explore how counties differ across the nation and how that affects the delivery of critical services to our residents.
County Roles & Responsibilities
All counties share the vision of achieving health, safe and vibrant counties across America. We are responsible for maintaining roads and bridges, caring for our physical and mental health, administering elections, ensuring public safety, strengthening environmental stewardship, and so much more.
Counties and the Intergovernmental Partnership
Counties are uniquely positioned to implement and administer vital intergovernmental systems, facilitate cooperation of all levels of government, and deliver results and impact for our residents and businesses at the community level.
Telling the County Story
Find tools to highlight the ways counties touch our everyday lives and act as key intergovernmental partners.
Counties Work Game & Curriculum
NACo, together with iCivics, has created a full curriculum to educate students, grades 6 through 12, about the important role and functions of county government. The curriculum and online game assist teachers with preparing lessons on county government.