The Role of Budgeting in the Management of Public Money

Public agency budgets are not just annual spending plans; they are legally required documents and public policy statements. They allow taxpayers to determine, and then track, how their money is being spent.

The Budget Process

According to the National Association of Counties and National Association of State Legislatures, many states mandate public hearings for public comment on budgeting. Beyond the formal public hearing process many cities, counties and even states use surveys, comment cards, and "community coffees" to get taxpayer input on spending priorities.

The public hearings begin in November but, really, if you want your priority funded, start bugging your council member or county commissioner in July. (If it's the state budget, start before the legislative session convenes in January.)

Legal Restrictions of a Budget

Annual budgets impose legal restrictions on public agencies. If the budget states the agency needs three new trucks or three new employees and circumstances mandate more, then that must be approved. Usually it just involves approving a budget amendment or a supplemental budget. However, it gives elected officials and the public a chance to review and comment on the request. Sometimes the answer is "No."

Policy Constraints

Public agency budgets also allow elected representatives to impose policy constraints on how money is spent. For example, state law might mandate keeping a six-month reserve fund but the council could decide to maintain a 12-month reserve.

References

• NACO.org: "Citizens In Action: Tools For Gaining Input"
• National Conference of State Legislatures: Fiscal Year 2011 Budget Status

Resources

• Office Of Financial Management: Washington State Budget Process
• City of Port Angeles: Finance & Budget