Which statement about fiscal dependence is true?

Fiscal dependence refers to a situation where an entity relies on external sources for its financial resources, often impacting how it makes financial decisions. The notion that governing boards can override financial decisions aligns with the concept of fiscal dependence because it implies that the entity must operate within certain constraints established by those providing funding or oversight. This oversight can lead to a situation where the entity, while having some autonomy, is ultimately subject to the higher authority of the governing boards, who have the power to intervene or make changes to financial decisions.

This dynamic is essential in understanding the balance of power and control between an entity and its funding sources. When governing boards have the ability to override decisions, it reflects a dependence on those boards for financial viability and illustrates the intricacies of fiscal management.

In contrast, complete control over financial decisions suggests autonomy that is not characteristic of fiscal dependence, while the guarantee of government funding implies certainty that doesn't typically exist in such relationships. The idea that fiscal dependence prevents the issuance of bonded debt is also misleading; while dependence may influence borrowing capacity, it does not outright prevent it. Thus, the assertion that governing boards can override financial decisions encapsulates the essence of fiscal dependence effectively.