ABCs of Budgeting

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BUDGET PREPARATION

What is a Budget

An itemized summary of expenditures

Total sum of money allocated to your department

A statement of the financial position of a department/organization

A plan for spending money for the designated period

Useful for projecting future expenditures

Characteristics of a Budget

A well thought out plan

Detailed

Contains estimated expenditures

Includes appropriate subtotals and totals

Concerning a defined length of time

Explanation of activities

Working Definition

A budget is the plan for your department. It contains detailed itemized estimates of all expenditures and contributions from all sources

AND

Also a budget includes the amount and distribution of funds needed to perform the project activities over the fiscal year.

Types of Budget Concepts

Line Item

Continuation

Performance

Planning

Management By Objective (MBO)

ZBB (Zero Based Budgeting)

EXAMPLE OF BUDGET

KEY COMPONENTS

Salary and Fringe Benefits

Operational

Capital

2011

General Fund Operating

Expenditures

Operations

23%

Capital

0%

Salaries and Fringes

77%

Total = $432,956,364

2011

General Fund Revenue Budget

Intergovernmental Revenue

5%

Reimbursement for

Services

7%

Miscellanous

2%

Charges for Services

15%

Use of Money and Property

2%

Fines and Forefeitures

4%

License, Permits &

Registrations

2%

Taxes

63%

Total - $440,926,537

BUDGET PREPARATION

S W O T ANALYSIS

Strengths

Weaknesses

Opportunities

Threats

BUDGET PREPARATION

WHAT ARE YOUR STRENGTHS?

WHAT ARE YOUR WEAKNESSES?

BUDGET PREPARATION

WHAT ARE OPPORTUNITIES THAT ARE VIABLE AND POSSIBLE

TO IMPLEMENT?

Are those opportunities realistic?

Are they cost effective

Are they attainable?

Short term

Long term

IF THERE IS A CHANGE WILL IT BECOME A THREAT TO

PERFORMING MANDATED FUNCTIONS IN YOUR OFFICE?

Be Proactive – in minimizing potential threats to changes that may occur

Change potential threats into an opportunity to explore new opportunities for providing a service delivery

HOW DO YOU PREPARE YOUR

BUDGETS

Largest line item is Personnel

Review every position and job functions

Understand why your office is doing what it is doing

Operations

Determine if you can cut costs by doing something more efficient

HOW DO YOU PREPARE YOUR

BUDGETS

Project your expenditures for the year based on the year to date total

Was there an activity performed that will not be done in the upcoming year?

Example:

 cut down on publishing and printing a management book mainly used for internal purposes. Place it online for accessibility

Capital

Is this expense necessary to adequately perform job functions

Understand why your office is doing what it is doing

FY 2011 CHALLENGES

Property taxes collected down

Assessments for commercial taxes are down

Fines and Fees collected down

Potential Health Benefits increase

Potential decrease in State funding for grants

Quality of Services jeopardized (asking staff to do more with less)

No Merit Increase for Staff for the 4 th year

Hiring Freeze in Place for the last 2 years

Unfunded Mandates verses Funded Mandates

EFFICIENCIES

Question cutting a budget line item

Does making the change make your service delivery more efficient?

Does an increase in the use of technology equate to less personnel and decrease in operational expenses?

E-filing

Paperless Systems

Digital Courts (long term)

2012

Budget Resolution

Revenue Expenses

APPROACH FOR FUTURE

TO ACCOMPLISH THE MISSION OF YOUR

DEPARTMENT/ORGANIZATION

Changed

Modified, and/or

Redirected

BECOME A SOUND FISCAL AND PROACTIVE AGENT

OF CHANGE FOR THE CITIZENS YOU REPRESENT

AND SERVE

Comments/Questions

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