Budget Preparation Requirements, Practices and Tips

1
Budget Preparation Requirements, Practices and
Tips

• Elections Directors Conference
• December 5, 2005
• Jack Vogt
• School of Government

2
Overview of Session

• Statutory requirements
• Roles in county budget process.
• Types of budgets.
• Continuation versus expansion spending,
  justifying an expansion request, setting requests
  into priority.
• Planning for capital equipment.
• Operating successfully in budget process.

3
Local Budget Fiscal Control ActKey Provisions

• Inclusiveness requirement
• All money spent for county activities must be
  budgeted before being spent. (G. S. 159-8(a).
• Budget options annual budget ordinance (G. S.
  159-13), and grant or capital project ordinances
  (G. S. 159-13.2
• County manager is budget officer (G. S. 159-9)
• Delegates work of budget preparation to county
  finance director or to separate budget director
  or staff
• Responsible for developing and presenting
  proposed budget to commissioners.

4
Local Budget Fiscal Control ActKey Provisions

• Budget preparation process (G. S. 159-10, -11,
  -12, -13)
• Statutory deadlines Requestsby April 330
  proposed budget by June 1 budget hearing budget
  ordinance by July 1
• Preparation process begins earlier takes more
  time in most counties
• Commissioners front end process. Set
  goals/policies
• Budget ordinance. Levies property tax, lists
  revenue estimates by major sources, makes
  appropriation by department or function.

5
Local Budget Fiscal Control ActKey Provisions

• Amendments (G. S. 159-15). Commissioners must
  approve. May delegate to manager authority to
  approve transfers between departmental or
  functional appropriations.
• Pre-audit (G. S. 159-28). Finance officer must
  approve contracts and purchase orders to assure
  theyre covered by budget.

6
Roles in County Budget Process

• Elections Director Centers on the
  identification of needs. Advocate on behalf of
  needs.
• Finance role in budget process Involves revenue
  estimation review of requests. Conservative
  role
• Manager. Gatekeeper to budget. Must balance
  budget, service needs, political pressures
• Commissioners. Can emphasize one or more of
  following oversight, funding, planning/policy-mak
  ing.

7
Types of County Budgets

• Line item budget
• Performance, program, or outcome oriented budget.

8
Line Item Budget

• Emphasis. Focuses on dollars budgeted in relation
  to inputs or resources (staff, supplies,
  equipment, etc.) required to provide services.
• .
• Main tool of a line-item budget expenditure
  accounts.
• Traditional budgeting approach in local
  government.

9
Performance Budget

• Emphasis Focuses on dollars budgeted in
  relation to services to provide, output,
  objectives, or outcomes
• Tools used in performance budgeting expenditure
  accounts, goals objectives, performance
  measures, cost accounting.
• Use. Many counties, even some small ones, are
  using performance or mixed performance line-item
  budgeting approaches. .
• Illustrations Cabarrus County Boards of
  Elections

10
Continuation Versus Expansion Spending

• Continuation spending Keeps activities going in
  coming year at same level that they are being
  provided in the current year.
• Expansion spending Improves or expands
  activities in coming year, or to start altogether
  new activities or programs.
• Justifying an expansion budget request. See
  attached form.
• Setting budget requests into priority Criteria
  like legal mandates, threats to public health
  sfety, consistency with county goals, public
  support, etc. are important. See Chatham County
  weighted rating system.

11
Planning for Capital Spending

• Examples
• Voting machines other equipment
• Renovation of office space
• Many counties plan for future capital project
  equipment needs using a Capital improvement
  program (CIP)
• What is a CIP 5-6 year forecast of capital
  needs, their costs, financing for them, any
  impact on operating budget
• Guilford County illustration

12
Operating Successfully in the Budget Process

• Identify and ask for your needs
• Be an advocate on behalf of elections needs Be
  accurate.
• Be honest.
• Justify your budget request well.
• Know budget process
• Rules, instructions, etc.
• Who is influential in budget making process