Government budgets
From Sunshine Review
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A government budget is a summary of financial documents that outline the key financial facts about what a particular unit of government expects to spend and raise over a period of time, usually a year.
Informative budgets include information that breaks down revenues and expenses into useful categories that enable citizens to evaluate where their money is being spent.
Budgets can be more or less useful, depending on how they are prepared and presented to the public. For example, a budget for a school district that includes a category for administrative salaries and a category for teaching salaries is considerably more informative than a budget that only has one category for all payroll expenses.
[edit] State budget process
The budget process varies from state to state. However most state constitutions require that state budgets be balanced, in other words the state cannot have a remaining deficit in the new state budget. Most budgets cover a fiscal year which begins July 1 and ends June 30 of the following year. Some states approve a biennium budget and revise the budget as needed during the off-year.
[edit] State budget issues
[edit] FY 2009-FY 2010
- Main article: State budget issues, 2009-2010
In total, states faced a budget shortfall of $113.2 billion in Fiscal Years 2009. However, according to reports the projected shortfall for FY 2010 is expected to be higher. According to one projection, states could, in total, face a shortfall of $142.6 billion in FY 2010.[1]
FY 2009 Largest shortfalls:
- California state budget - $19.64 billion shortfall
- Illinois state budget - $4.32 billion
- Arizona state budget - $2.43 billion
[edit] American Recovery and Reinvestment Act
- See also: American Recovery and Reinvestment Act
The American Recovery and Reinvestment Act of 2009 is the Obama Administration's policy for "economic stimulus"[2]. It passed in the 111th Congress in February 2009.
[edit] Budget reform
Crafting a budget is the primary task of legislators, and their funding choices largely reflect the political landscape of a state. One approach to budget reform is the Priorities of Government (PoG) budget model.[3] Whereas conventional budgeting typically involves simply adjusting expenditures upward for inflation, changes in population and the expansion of agency functions, the PoG strategy builds a budget based upon program efficacy as well as shared principles of governing.[3]
Defining core governing principles is the first step in PoG. Absent clarity about what services government agencies are supposed to deliver, there’s no meaningful measurement of program efficiency and effectiveness. These core principles are grounded in the philosophies of the political parties and their respective views about the proper role of government.[4]
Once core functions are prioritized, spending decisions can be made accordingly.
Applying the PoG model requires legislators to answer four basic questions during the budget process:
- 1. What are the essential services that state government must deliver?
- Legislators are advised to limit the list to no more than 10 core functions of government. These core functions reflect the governing principles to be applied in budgeting.
- 2. What is the most effective and efficient means of service delivery?
- A variety of options should be examined, including the most appropriate level of government for service delivery and the benefits of public-private partnerships.
- 3. How will success/failure in the delivery of government services be measured?
- The evaluation of services requires identifying measurable indicators of success.
- 4. How much money does the state have to spend?
- Legislators should know the revenue forecasts for both the current budget cycle and the one to follow before funding deliberations commence.
Answers to these four questions provide a logical place to begin a meaningful debate.
[edit] Local budgets
- Main article: Local government budgets
Local government budgets include the budgets of cities, counties, school districts, and other local taxing authorities, such as park or community college districts.
[edit] Desirable items in useful budgets
- See also: States with spending online
What most people want to find on the main website of any unit of government is:
- A copy of the budget for the current fiscal year.
- A copy of the budgets for past years.
- Graphs showing spending and revenue over time.
- Searchability; a user should be able to search the database of spending.
- The checkbook register, which should include:
- The amount of the payment
- Date
- Check number
- To whom the payment was made
- What it was for
- Scan of Purchase Order or Check Request or Invoice (this provides invaluable detail including who approved the payment)
The level of searchable detail posted online should be sufficient to facilitate specific requests for further information, such as
- Addresses or other contact data for vendors
- Budgetary authority for the expenditure
- Functional expenditure category
- Sources of funds
- Links to the relevant contracts under which the payment was made
- Credit card receipts
[edit] See also
[edit] References
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