For factions that are either republican like early Rome or Karthago or that do not represent a real "state" like the Sweboz or KH I use the following system:
The 1/2 income of a town's farming is used to raise their "peasant" units. These are units that are the faction's cheapest (normally under or about 200-300 mne in upkeep). For example slingers, archers, cheap spearmen
The 1/2 income of a town's tax is used to raise their "citizen" units. These are the most common units the faction (or town's original faction) fights with. Normally between 300 and 500 mne in upkeep. For example hoplites, lesser phalanx, peltastai, or most of the spearmen of the Barbarians.
The 1/2 income of a town's trade is used to raise their "noble" units. These are horsemen, better phalanx, any barbarian "special" units like the "Wolfes of Wodan" etc.
The 1/2 income of the overall mining is used to raise the factions "royal" units - if any; for example Sacred Band, Spartan Hoplites etc. There will be not more than one "royal" unit of every type per each city that can raise them. So, actually there will be not more than one or two of these units.
Ships are maintained only when needed by the sea cities useing their 1/2 income from sea trade (what reduces their ability to raise "noble" units)
This makes the "standing army" of the faction; no mercenaries allowed. A faction with 4 or 5 cities should be able to field a full or at least 3/4 stack of decent units by drafting from the above still haveing sufficent garrisons in every town. Be sure to note what units you have taken from which city to prevent from raising new ones for soldiers that are allready there.
In "times of need" the above can be doubled; for example when the enemy attacks with multiple stacks from different directions or if you are at war with several other factions.
To make things even more complicate, you should keep in mind that those forces of the individual towns represent their army. The same army that they would use to fall on their neighbours if they had not happend to be bound to the same faction.
It is quite easy to realize it with KH and the cities of Athens and Sparta: Let's say in the early game each of these has a tax income of between 600 and 700 mne, making roundabout 300 to 400 mne (you shouldn't be to strict) for citizen units. The Athenians fight as Iphocratians in EB and will raise a phalanx. Now, it would be fine to field a unit of Peltastai from Sparta for this phalanx. Don't do it! The Spartan citizens would regard the idea to run around with javellins screening an Attike phalanx simply as offensive. They will raise a unit of classical hoplites instead. Both towns raise a unit of Akontistai as skirmishers each.
Later both cities grow and are now able to maintain two units in this class. The Spartans still refuse to fight as scirmishers and will raise a second unit of hoplites. Athens on the other hand will now have her Peltastai, disbanding the Akontistai and raise, for example, two units of Toxotai in return. Drafting from these cities for war you would now have a phalanx screened by a unit of Peltastai with a unit of Hoplites on each wing and a unit of Toxotai (the other peasant remain in their towns as garrison) for support; plus anything that can be raised in the noble class plus additional generals.
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For the "Military Kingdoms" (the successors, Epeiros or later Rome) living is much easyer up to a certain degree:
Basicly, you have two armies:
1. The "Royal Army". That is maintained by 1/2 of the overall tax income plus all mining income. It's composition is at your choice and might as well contain mercenaries. It can not be raised above the given limit because the rest of the tax income is used to keep the central goverment running.
2. The local militia. Those are maintained by the 1/2 farming and the 1/2 trade income of each city (the latter used for "citizen" units this time not "noble"). They are the garrisons and may only be used inside their home province or any adjecting. They might be mixed with the army then. The militia can be doubled in times of need.
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