The Finance window in the 'Reports' box is a very useful tool. It helps you keep track of where your money goes.
'Federal Grant' -Baseline income, money from the state to keep you afloat. (Different from 'Grants' tab)
'Prisoner Grant' -Income that is dependent on the amount of prisoners you have inside of your walls at the present time.
'Workmen Wages' -The paychecks that your construction workers receive every day. ($100 each)
'Guard Wages' -The paychecks that your security guards receive every day. ($100 each) (You mean the guards in my max security prison complex barely rate over minimum wage? Sucks to be them)
'Administrator Wages' -The paychecks that your office workers receive every day. ($200 each)
'Staff Wages' -The paychecks that your doctors, janitors, and chefs make ($100 each) (Ha 8 years of medical school and they still make as much as a janitor!)
'Food' -The grocery bill, all the food that is bought, cooked, then served to your loving grateful guests.
Being in debt doesn't mean that you can't pay employees, the debt just grows You need an accountant to unlock the finance tab.