Clearly distinguishing between two primary revenue categories, general revenues and program revenues, is of great importance when closely reviewing the Annual Comprehensive Financial Report (ACFR) of state or local governments. This differentiation aims to improve transparency and provide insights into the sources and allocation of funds within these governmental entities.

General Revenues represent funds received by the government without a direct obligation to provide specific goods or services in return. These revenues are versatile and can be allocated to support various government activities. Common examples often found in ACFRs include taxes collected from citizens, grants that lack specific program restrictions, and interest income earned on investments.

In contrast, Program Revenues are funds explicitly earmarked to support particular government programs or services. These revenues are directly tied to the services provided and are typically ring-fenced for their intended purposes. ACFRs frequently highlight program revenues through revenue streams such as user fees for services like public transportation, tuition fees in public educational institutions, or charges for services like wastewater treatment.

For example, in the ACFR of the City of New York for the fiscal year 2022, you can identify general revenues like property taxes, which are unrelated to any specific service provision but contribute to the city's overall budget. On the other hand, program revenues are evident in sources like fees charged for the use of recreational facilities within city parks, which directly support the operation and maintenance of those facilities.

In the ACFR of the State of California for the fiscal year 2020-21, general revenues may encompass state income taxes collected, which lack specific program designations but contribute to the state's general fund. Program revenues can be exemplified by tuition fees collected by public universities, which are designated to support the educational programs of those institutions.