Funny thing about money: one has to have it to spend it.
This is as true of state and local government as it is of any organization. For a business, the money comes in as income from sales of products and services and goes out as expenditures for materials, wages, overhead and profit. For governments, money comes in as taxes and fees and goes out as expenditures for programs, along with wages and overhead.
Typically, when elected officials and candidates speak of cutting taxes, they do so with the notion that government does not need all that revenue. They advocate the elimination of some programs, or even whole departments, or they assert that government is wasteful and better services could be offered at a lower cost with better management or privatization.