A Handdimensions for Academics and Practitioners


Charles E. Menifield

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General Dimensions and Systematize Guidelines, Suggestions, and Pointers

Chapter 1 The Conextract of Notorious Sector Budgets

Chapter 2 Preparing a Budget Proposal

Chapter 3 Personnel Services and Unhindered Budgets

Chapter 4 Preparing a Essential Budget and a Essential Advancement Plan

Chapter 5 Funding Declare and National Budgets

Chapter 6 Budgeting Techniques and Analytical Models

Chapter 7 Financial Management

Chapter 8 Effectively Communicating Data


End Notes

Preface The intention of this extractbook/workdimensions is to merge arousetary doctrine delay experiment and furnish notorious arouset and finance tyros delay basic arouseting and financial superintendence dupes. From the perspective of a bureaucrat, tyros plod through diverse concepts and then trial through in-systematize and out-of-systematize exertions and completions to relit those concepts.

Chapter one lays delay a dispute of the basic concepts, kinds of arousets, and the diverse kinds of recitaling techniques. Article two prospers delay a dispute of the arouset cycle, arouset records and actors compromised in the conceive. Chapters three and filthy weigh peculiar favors, unhindered and essential arousets. Article five catchs a arprotection illusion at the unanalogous ways to deep notorious arousets. Article six illusions at arouseting techniques and analytical copys and illusions tyros how these modes are favoreffectual in obedient essential device topics. Article ssmooth investigatees financial superintendence issues that are essential in the 21st senility. This comprises a dispute of currency superintendence, risk superintendence, procurement, debit superintendence and cuhusband superintendence strategies. Article eight weighs: idiosyncratication commencements, idiosyncratication virtue and divertness; and the unanalogous ways to disoverruler arouset idiosyncratication operatively ucackle charts, graphs, and strength apex slides.

Each article furnishs the tyro delay a vapidten of essential conditions, peculiartys, and exertions that insist-upon the tyros to unswervingadvanced what they accept polite-behaved-informed in the article. These exertions arrogate that the tyros are expert in a expression conceiveing program and Excel.

The third edition of the dimensions furnishs in-systematize exertions for each article. These interactive exertions acattainments the tyros to not solely colslow their repartees to their peers in weak prescribes, but so furnish those repartees to the integral pur-poseatize delay the end of improving their furnishation skills.

Charles E. Menifield Rutgers University Newark NJ June 2017

Acknowledgements I am very indebted to the arouset and finance tyros that I taught at The University of Memphis, Mississippi Declare University, Murray Declare University, Howard University and the University of Missouri from 1996- 2017. I am properly endowfiil to Brenda Frantz, Vashun Coles, Yohance Duff, Yiesha Thompson, Tomeika Blackwell, Fadjust Robertson, Shay la Guy, Eric Raymond, Gerard Wellman, Kwame Antwi-Bosiako and Xianting Li for their fortifyion in the transfering edition of the dimensions. In peculiarization, I would flatter to endow Rebecca Davis, a MPA tyro at the University of Memphis for all of her technical fortifyion and fancys on the coopetrounce edition of the dimensions. A very proper endows to Kendal Lowrey for all of her expert editing trial on the third edition of the dimensions.

In peculiarization, I would flatter to endow all of my colleagues, twain departed and furnish, at Murray Declare University, Mississippi Declare University, Howard University, University of Memphis, the University of Missouri and Rutgers University. I would so flatter to endow the staff at Hamilton Books for sustaining the third edition of the dimensions.

Last, but positively not insignificantest is my parentage. Tnear is nounnaturalness slow essential than a cheerful-natured-natured parentage and I am felicitous that I accept one. Thanks to my consort Angela, daughter Amber and my grandchildren, DeAndre, Jamison and Aiden.

General Dimensions and Systematize Guidelines, Suggestions, and Pointers

1. Tnear are diverse completions at the end of each article that insist-upon you to use a expression conceiveing program in peculiarization to Excel. Copies of insufficiently refinedd Excel consultations are settled in the epilogue of each article and electronic surrenderings are favoreffectual from the doer and the compact. In peculiarization, your cortegemaster should accept a observation of promotive symbolicals.

2. Constantly use Excel conceiveulas to refined sober accustomments in the spreadsheets. Do NOT use a calculator and arprotection the collation into the spreadshuffle inferior any professionrence.

3. Rotund dollar resemblingitys to the unswerving cent cosmical you are told incorrectly. For pattern, $34.5690 should be rotunded up to $34.57 and $43,212 should be rotunded down to $43.21. When ucackle Excel, conceiveat dollar resemblingitys ucackle the Excel accustomments. Dollar resemblingitys should illusion flatter a dollar ekind rather than serene a enumerate. As a unconcealed synod, constantly prosper the conceiveats used in the extract.

4. Constantly propel two solid copies of your trial acrave delay a glimmer stimuslow to pur-poseatize. Be gentle to divide you trial on a computer delay your pur-poseatize cosmical you are instructed to do incorrectly.

5. Issue confident that you visually behold-into the math in your spreadsheets to enconfident that Excel is rewary any modifys that you issue.

6. Excel signalinate rotund collation unanalogously when unanalogous conceiveulas are used. That is, two unanalogous tyros can insinuate two reconceive conceiveulas and get subordinately unanalogous emanations. Normally, these contrarietys are very unimportant.

7. Each of the residencetrial completions should be departeded into MS Word. It is not

indispenscogent to rekind a crave topic on your residencetrial provision. However, it would be favoreffectual if you can behind a markdelay the being of a crave topic delay a scanty peculiarty when completing an provision in Excel. Then, departede the Excel trialsheets (outconcern the grid cords), graphs, charts, etc instantly into MS Word. Your cortegemaster may petition a observation of the Excel emend as polite-behaved.

Chapter 1

The Conextract of Notorious Sector Budgets

Chapter One Overview

The gaugeness to tax and project-away is at the cornerspitch of congress. Conceptually, this illusions to be an gentle to inferiorstand curiosity-behalf. However, it is not that simplistic. Budgeting is a two-fold conceive at the very insignificantest. First, someone has to designate how ample deep the congress insufficiencys to accustomment at an optimal cunninge. Second, someone has to designate how ample deeps to tabuslow to each program/department. Gone arouseting confounds the allocation of few media, it can be a opposed conceive. Although elected officials conceiveally designate how to tabuslow deeps, convokeing produce is an authoritative accustomment. Twain procedures can be very intricate, uncertain, and probing to the very creature of congresss.

The transfering article furnishs the interpreter delay a unconcealed estimateview of arousets and the conceivees that go acrave delay them. This comprises, but is not poor to: the intention of a arouset, the unanalogous kinds of arousets, commencements of produce and reckoning, congress recitaling techniques, and audits.

What is a Budget and Notorious Budgeting?

A arouset is a fiscal device instrument that outlines the produces and reckoning an conceive insufficiencys to propel out some deal-outicular accustomments during the luckion of a set era of agent. Delay i-elation to the congress, this era of agent is denominated a fiscal year (FY), a twelve-month era wnear deeps are self-possessed and gone-by. For pattern, FY 2018 for most declares lays on July 1, 2017 and ends on June 30, 2018. At the end of this era, the arouset must be (legally) estimated and favoreffectual for notorious sifting. The confesseffectual insist-uponment for a estimated arouset is the earliest definitional contrariety unmoulded a notorious and peculiar arouset. States and national congresss should not propel failures estimate to the instant fiscal year. However, in frequent precedences, properly at the deep cunninge, failures are carried estimate on the arouset idiosyncratication. Notorious arouseting is the merit and use of media by notorious conceives for the intention of providing a notorious favor or cheerful-natured-natured (see Swain and Reed 2010).

Three roles insucceed from arousets: allocation, arrangement and economic

development. First, congresss accept to designate what favors signalinate emanation from the allocation of deeps. Second, they designate who signalinate favor from the arrangement of these deeps and who signalinate pay for the favors. Lastly, they designate what cunninges of pay and job augmentation are insist-upond to detain stsoundness in the congress (Musgrave 1959).

Functions of a Budget

The unlargely most essential accustomment of a arouset is recitalability. It is one of frequent dupes that can be used to designate if an conceive has genteel its endives as laid out by legislative and magisttrounce actions. Legislators and city cabinetmen aflatter use these instruments when re-examinationing the activities of notorious agencies. A arouset can so be used to repress an bias. Legislators and cabinetmen divert deeps to an bias domiciled on their strategic precedentities. However, if they are grudging delay the bias, they accept the confesseffectual unswerving to delaydelay or prohibition deeps. A third accustomment of a arouset is to cunning. By organizing absorbs arotund some accustomment or earnestness, agencies accept some admire of what their drudgerys signalinate absorb and how to go encircling propeling out those drudgerys. It so gaugenesss the bias to conface deadlines and beaccept in an fruitful and operative conceive. In similitude delay cunningning are cheerful-natured-natured superintendence skills. Agencies can construct and best topicalize idiosyncraticnel by indicating consequenceion trutinations and endives. At the end of the fiscal year, an bias can re-examination the year’s activities in adharmonious to designate if ends and endives were met. If media were not gone-by in the best conceive, modifys can be made to scientific the completions (Schick 1966; Bplant and Rubin 1997; Howard 2002; Mikehawk 2014; Solano 2004; Rubin 2006; Muhawk 2009; Swain and Reed 2010). In the U.S. pur-pose of congress, no heave can be made cosmical the manipulateling doerity- parliament, city cabinet, Congress-authorizes it. Rare crusty comprun Magisttrounce adjusts, but smooth these do not refinedly negate the role of the legislative substantiality.

Budget Formats

Generally symbolical, arousets behind in three conceiveats: cord-item, program, and consequenceion. However, tnear are so arouseting techniques that can be

applied. One obdurately-ever used pattern is zero-domiciled arouseting (Andrews 20 ll).1 In this technique, each deal-out agreeting a arouset has to sereneify all of their arouset petitions from origin to end delayout assuming a insured allocation by defacto (see so article 7). An bias can so use an incremental path to arouseting wnear they scarcely add or repropel from the conceiveer year’s project-awaying. Although a declare or national congress may insist-upon an bias to agree a positive kind of arouset, they do accept some election as to the kind of arouset that they plucked (Axelrod 1995; Gianakis and McCue 1999; Thurmaier and Willoughby 2001; Smith, Sun, and Lynch 2017).

First, tnear is a cord-ace or a oral arouset, which tabulates deeps to deal-outicular commodities or ends of absorb. Pith is settled on idiosyncraticnel, produce, equipment, utilities, contrexpress favors and essential reckoning. Each of these weighty categories can be subjugated down into peculiar aces. For pattern, delayin idiosyncraticnel absorb, tnear are: salaries, fringe favors (pensions, convokeive protection, sanity foresight, etc), seclusion, and so on. Essential outgoingss are for loftier absorbs aces that accept trounce for a enumetrounce of years. This would comprun aces such as: fabrics, busses, exaltedways, bridges, and equipment (see so article 4). Essential outgoings equipment so drops into the exalted absorb ace arfile and hence is not equipollent to equipment used as a weighty arrange. Equipment as a weighty arfile is for low absorb aces such as a unlargely computer, a kindwriter or a desk (see so article 3).

Line-ace arousets are probably the easiest of the three kinds to pur-pose. They are hasty and unadorned. The weighty scantyhence of a cord ace arouset is its insoundness to nartrounce the activities that signalinate be performed by the bias. This kind of arouset is used for repress and recitalability. Legislators designate salaries and favors and can evidently refurnish the contrarietys unmoulded the diverse categories. Salaries and favors compose the exaltedest frrenewal of a cord-ace arouset. Cord ace arousets are favoreffectual in that that they furnish the unswerving absorb of deal-outicular aces. This is favoreffectual if a arouset insufficiencys to be cut. Exhibit 1.1 furnishs a unserene pattern of a cord-ace arouset for the Sanitation Continuity in Jefferson City.

Column one has each of the weighty categories of reckoning. Smooth though tnear is no arfile for equipment, it is practiceffectual to accept this arfile as polite-behaved. Whether or not a arfile is used bes on how the arouset staff insufficiencys to categorize those aces. Again, equipment that does not arrive-at exalted cunninges of absorb that rehappen estimate diverse fiscal years is not comprised in the

essential arrange. The coopetrounce post in Exhibit 1.1 dramatizes express project-awaying (act.) for fiscal year 2018, mark the third post has admired project-awaying (est.) for the up-hence fiscal year (2019). In estimating absorb, reckoning are rotunded to the unswerving dollar. However, rotunding to the unswerving dollar cannot be used when wary express absorbs. Whole promiseinal penny must be recitaled for when balancing a notorious arouset. Absorbed this peculiarty, cord-ace arousets should constantly be settled in a spreadshuffle program to enconfident fewer sober hallucinations. This insist-uponment does not necessarily delay for consequenceion and program arousets due to the far-reaching ekind of tete-a-tete that goes into the arouset. In these professionrences, protracted foresight should be charmed to enconfident that tnear are no sober hallucinations.

Mikehawk (2004) manifests that the policies of congresss command ucackle oral arousets that do not enbig crave promise profiles. This in issue issues it easier to repress the bias, but it does not acattainments for cheerful-natured-natured cunningning of activities that may be happenring estimate diverse years.

The coopetrounce kind of arouset is a program arouset. This arouset tabulates deeps to programs or activities delayin an conceive. It would vapidten aces in categories by dissolution, continuity or bias such as notorious trials and notorious protection acrave delay the absorb of unhindered the bias. Program arousets are propitious in that they acattainments programs of a homogeneous regularity to be liberally rather than distally into disjoined arousets. Program arousets can acattainments administrators and legislators to cunning for not solely the running fiscal year, but so for advenient years. A cheerful-natured-natured program arouset vapidtens the ends and endives of an bias acrave delay the deeps that are tabulated to achieving those endives. These ends and endives should be frank, compendious and self- explanatory. This so avails the dual accustomment of preventing glomeration natant agencies as polite-behaved-behaved as fixs that the annual re-examination conceive signalinate glide smoothly. Lastly, program arousets acattainments for the use of analytical dupes to meaconfident absorbs and favors.2

Program arousets can be written ucackle a multiplicity of unanalogous conceiveats. Exhibit 1.2 and 1.3 furnish two basic patterns for the sanitation continuity delayin Jefferson City. Let’s catch a illusion at Exhibit 1.2 and voicelessness that the end of the continuity is declared prospered delay endives to shapeing that end.3

Exhibit 1.2 Program Budget One Jefferson City, FY 2018 Expenditures

Sanitation Continuity The end of this bias is to furnish inclusive sanitation favors delayin the Jefferson City in the most operative and fruitful conceive as practicable.

Objectives: a. Enconfident that nonimport and seaweed is removed from the streets operatively. b. Furnish for the operative disunion of recycled symbolical. c. Furnish for street cleaning. d. Furnish for snow disunion in an fruitful and operative conceive.

TOTAL: $325,331.73 (actual)

In Exhibit 1.3, revere how the arouset unswervingafore watchfulness towards the thesis of the heave rather than the end of heave. In this pattern, tnear are three dissolutions delayin the continuity: nonimport collation, street cleaning, and snow disunion and each dissolution has a arouset.

Exhibit 1.3 Program Budget Two Jefferson City, FY 2018 Expenditures

Sanitation Continuity The end of this bias is to furnish inclusive sanitation favors delayin the Jefferson City in the most operative and fruitful conceive as practicable.

Objectives: a. Enconfident that nonimport and seaweed is removed from the streets operatively. b. Furnish for the operative disunion of recycled symbolical. c. Furnish for street cleaning. d. Furnish for snow disunion in an fruitful and operative conceive.


Although each dissolution has a disjoined arouset, their liberally arousets issue up the whole arouset for the Sanitation Department. If the arouset master petitions admires for advenient years, you can compose a disjoined arouset and dissimislow your endives and reckoning. If your endives are the identical, you can scarcely add another post instant to the corpogentleman heave post delay the divert fiscal year.

The promiseinal kind of arouset is a consequenceion arouset. A consequenceion arouset pur-poseatizeifies deeps domiciled on some earnestness and the unswervingadvanced output composed by that earnestness rather than the forfeiture of media. This kind of arouset relies heavily on strategic cunningning, consequenceional cunningning, and consequenceion

accountability. Strategic cunningning is a advenient oriented conceive of separation and diplomacy fabric. It arrestly monitors an bias’s band-arms, gaugeness, and the environment in which it bes (Bryson 2010; Poister 2010; Rubin and Willoughby 2011). Opemoderate cunningning monitors the allocation of media on a drudgery-by-drudgery idiosyncratication in adharmonious to enconfident that ends and endives are met. Lastly, consequenceion recitalsoundness metes advance by emanations. For pattern, measuring stage trounces, instrumenting the enumetrounce of tyros in a pur-poseatizeroom, or measuring the ekind of snow removed from streets. The Governmental Accounting Standards Consultation (GASB) has a concept declarement and furnishs patterns and a shapetrial that congresss are submitd to use when conceiveulating recitalsoundness metes (see Smith, Sun, and Lynch 2017, p. 156; Joyce 2011).

An action to ucackle a consequenceion domiciled arouset is the unswervingadvanced interrelation unmoulded project-awaying and favors furnishd (i.e. emanations). Product arousets can be very favoreffectual for superintendence consequently it furnishs recitalsoundness metes for twain bias administrationrs and legislators. This, uniformtually, is a inoverruler edged sword. On the one striveer, bias administrationrs must be very deal-outicular in peculiartying their consequenceions. Legislators on the other striveer must divert deeps domiciled on consequenceion rather than the typical cord-ace conceiveat (Gianakis and McCue 1999). In abridgment, this instrument protracteder trial on the deal-out of legislators. Cosmical they accept some cunninge of expertise delay that deal-outicular bias, they may experiment themselves illitetrounce of the peculiartys of project-awaying and the crave-promise repercussions of their acts. The deep favor of a consequenceion arouset is that it acknowledges for the fruits of project-awaying to be monitored whole fiscal year. Hence, they are tied instantly to consequenceion re-examinations. Product arousets to-leap end to the hence 1900s in New York City wnear essays were made to propel protracteder recitalsoundness to bias administrationrs and politicians (Mendosa 1983; U.S. Unconcealed Accounting Appointment 1993; Smith, Sun, and Lynch 2017).4

Exhibit 1.4 furnishs an pattern of a consequenceion arouset for Jefferson City. Voicelessness the unswerving accustomments that are to be carried out as a emanation of the reckoning. In peculiarization, a consequenceion arouset can vapidten the emanation of conceiveer activities. For pattern, Exhibit 1.4 illusions that the enumetrounce of neighborhoods availd by the recycling program has extensiond. Also, voicelessness that the consequenceion endives are tied to the consequenceion re-examination.

Unfortunately, one of the completions delay consequenceion arousets is the insoundness to nartrounce idiosyncratication to issue. For pattern: Why are slow race

participating in the recycle program? Was it consequently slow pith was settled on providing receptacles for the recycled symbolical or consequently the perceiveledgelore exaltedlighted the actions to recycling? These completions are not necessarily poor to consequenceion arousets. Homogeneous completions be delay cord- ace and program arousets.

One unnaturalness that the interpreter should understand-anew is furnishation of the arouset is very essential. It is essential that the user weighs the arouset and navigates through it delay not-absolute repose. If aces are obscure and solid to experiment, it is a fadjust prognostic that the arouset should be revised. If it is delayin their strength, legislators and cabinet constituents do not plucked to project-away their days and nights trialing delay arousets. As a emanation, your end is to issue the arouset inferiorstandeffectual to all users. In so doing, you can exaltedlight essential aces by ucackle the dauntseal accustomment, italics, inferiorlining, and shading excludeions in your spreadshuffle programs. In consequenceion and program arousets, foresightlargely settled expressions and denominations are so very favoreffectual (Seckler-Hudson 2002; Smith, Sun, and Lynch 2017; see so article 8).

Exhibit 1.4 Product Budget Jefferson City Sanitation Department, FY 2018-2020 Expenditures

Program/Division: Nonimport Disunion Description: Collation and disunion of nonimport and recycleffectual symbolical.

Program Product Objectives: 1. Spdiscestimate the recycle program to the southwest area of town. 2. Furnish multiintention recycle delayers to all of the corpogentleman customers. 3. Furnish feedend to the customers on the fruits associated delay

recycling. 4. Decrrepose the ekind of recycleffectual symbolical in the drawingtfill.

Performance Review:

Reading a Budget

A cheerful-natured-natured arouset should be user amicable. The lay interpreter at the very insignificantest should be issueual to designate how ample produce the congress intends to convoke, how ample the congress cunnings to project-away and on what (expenditures). As conceiveerly hinted, tnear are three basic arouset conceiveats and they furnish unanalogous kinds of advice. However, tnear are diverse unnaturalnesss that each of these arousets accept in vulgar.5

1. Budget Message/Budget Highlights/Executive Summary: A cheerful-natured-natured arouset constantly has a communication, ordinaryly in the conceive of a epistle from the zealot or mayor of the city unswervingforwarded to the declare parliament, city cabinet and/or the residents of the city or declare. This communication should manifest the law or law that insist-upons the sursurrender of the arouset and the agent era that it guards. The communication should so manifest the ekind of produce that is forebodeed during the fiscal year and whether or not this is an incrrepose or decrrepose from the conceiveer fiscal year. If the legislative substantiality manipulateling the declare or nationality has recommended modifys in arouset allocations, those aces should be manifestd. If cuts were made, the interpreter should see what continuitys were cut in the communication. If new programs were settleed or remote, these should be exaltedlighted. The epistle should be prospered delay a teffectual of interruption outlining the residue of the arouset (see Epilogue 1A for an pattern of a Budget Letter).

2. Budget Summary: The arouset abridgment is typically a spreadshuffle instrument indicating all of the produce commencements by kind (movables taxes, sales taxes, user fees, etc.) and the reckoning by kind (each bias or continuity should be vapidtened). Weak cities delay poor produce commencements signalinate regularly use this conceiveat. It is essential that each deep is evidently designateed

(see Epilogue IB for an pattern).

3. Commencement of Revenue: This excludeion should peculiarty to the interpreter unswervingly wnear all the produce came from and the modifys that happenred from conceiveer fiscal years. Each commencement of produce should be vapidtened delay, at a insufficiency, the express arouset for the conceiveer fiscal year, arouset admires for the running year, and arouset schemeions for the superveneing years. This page acknowledges the interpreter to see the estimateall augmentation of the arouset estimate the departed years, as polite-behaved-behaved as which produce commencement is developing and which is decreacackle (see Epilogue 1C for an pattern).

4. Commencement of Expenditures: This excludeion vapidtens the weighty protectionitution categories: idiosyncraticnel, unhindered, essential reckoning, and proper disinterruption for the integral congress. You can so vapidten the diverse continuitys by fiscal year acrave delay the reckoning. A program or consequenceion arouset can prosper the identical conceiveat by vapidtening the program or earnestness that is in use. Again, each of these categories illusion the comparisons unmoulded the running fiscal year and the conceiveer two fiscal years delay a post for the express dollar ekind modify and the percent modify from the conceiveer fiscal year (see Epilogue ID for an pattern).

5. Department/Agency Budget Information: The bigness of the arouset delays the peculiar arouset petitions for each continuity. Tnear are diverse cheerful-natured-natured ways to pur-pose this advice in an fruitful conceive. The transfering way is to vapidten the diverse cord-ace reckoning of the continuity in the unswerving striveer post and then manifest the modifys in the arouset by fiscal years. On a coopetrounce page, you should vapidten the deep commencements for that continuity and the modifys that accept happenred estimate the conceiveer fiscal years. Again, the furnishation of this advice signalinate variegate delay i-elation to the kind of arouset. To say the insignificantest, the interpreter should be issueual to designate unswervingly how ample produce is hence into the continuity and what it is used for. Gone most agencies are balancing the arouset from conceiveer fiscal years, the spreadshuffle should furnish the interpreter delay the ekind of allocations from the conceiveer two fiscal years acrave delay the percent modify in twain dollar ekind and percentage modify (see Epilogue IE for an pattern).

6. Supplemental Budgeting Information: The arouset instrument should furnish the interpreter delay any new laws, laws, synods, or regulations that flatter

the arouset instrument. This is properly penny for essential advancement schemes. Again, if indispensable, a spreadshuffle should be composed for these schemes in a conceiveat homogeneous to the conceiveer instruments.

Public Versus Peculiar Budgets

Although tnear are frequent vulgar thesiss that be in all arousets, notorious arouseting does conhusband from the peculiar sector in frequent i-elations (see Teffectual 1.1). First, notorious arouseting repeatedly confounds the interrenewal of frequent actors compromised delay a multiplicity of unanalogous agendas. Peculiar arouseting may conendow one or a few idiosyncraticnel heedseal to the greatness of the conceive. Second, deeps that are gone-by and self-possessed in the notorious sector are self-possessed from tax payers who may or may not insufficiency the monies to be self-possessed and gone-by and may not entertain any unswervingadvanced favors as a emanation of paying the tax. On the other striveer, monies self-possessed in the peculiar sector are not obligatory and favors are unswervingforwarded consistently. Third, notorious arousets are notorious instruments and hence are unconcealed to be scrutinized by townsmans, mark peculiar arousets are not. Fourth, notorious arousets are polite-behaved-behaved add instruments that are written to promiseinal an integral fiscal year (or two). Hence, they are not very agreeing. When casualty or other unplanned smoothts happen, it can be catastrophic to arouset analysts as polite-behaved-behaved as elected officials. Peculiar arousets are very agreeing and can be modifyd at a forces’ revere in adharmonious to propel delay modifys in the arrangement, arouset scantyfalls, etc. Fifth, the enumetrounce of synods and actors compromised in notorious arouseting far surpasses that in the peculiar sector. For pattern, tnear may be synods solemn reckoning, tax collation, balancing the arousets, assessments, mandates, etc. Mark tnear may be synods applied in the peculiar sector, the conceive does not husband to be estimately bureaucratized (Rubin 2006). Last, discontent acts and regulations are confesseffectual instruments that settle marks on project-awaying. Frequent congresss accept sarcastic penalties for estimatespending discontents, including jail agent.

Teffectual 1.1 Comparing Notorious and Peculiar Budgets

Public Budgets • Frequent firmness issuers • Produce is self-possessed from tax payers who may not favor from the tax

• The arouset is unconcealed to the notorious • Covers an integral year and are not very agreeing • Frequent synods solemn the collation of taxes (i.e. confessablely set tax trounces)

Private Budgets • Few firmness issuers • Monies are self-possessed and a favor or emanation is furnishd • The arouset is not notoriously favoreffectual • Budget is very agreeing and can be mitigated to fit the professionrence • Fewer synods and regulations

Overview of Revenues and Expenditures

State and national produces behind from a multiplicity of commencements.6 Revenues are the monies self-possessed by all cunninges of congress to pay for the consequenceion of congress. Expenditures are financial compulsions that glide from the consequenceion of congress. The weighty commencement of produce for declare and national congresss is taxes. For some declares, pay taxes issue up the protracteder profrrenewal of taxes self-possessed (in peculiarization to sales taxes). Unflatter declare congresss, some national congresss accept the election of convokeing payflatten taxes (pay taxes).

Payflatten taxes can be used for proper intentions or avail as peculiarizational pay for the national congress. Pay taxes are deducted instantly from peculiar rights and are obligatory. Declare pay tax trounces husband to be inferior than federal pay taxes. They are advanceive taxes. That is, loftier pay peculiars pay slow taxes than inferior pay peculiars. Although corporations pay pay taxes, they husband to be a ample inferior percentage of all taxes self-possessed. Peculiar pay taxes issue up encircling one-third of all taxes self-possessed in a declare. All declares do not accept declare pay taxes (Mikehawk 2004; Bplant 2005).

The coopetrounce weighty commencement of produce in a declare (and in some nationalities) behinds from sales and use taxes. These are taxes settled on cheerful-natureds and favors. Sales taxes are judgeed regressive taxes consequently townsmans pay the identical trounce heedseal of their pay cunninge. Each declare sets its own sales tax trounce. States and nationalities so accept some election as to what aces signalinate be assessed sales taxes. For pattern, sales taxes are not applied to the sale of un-gentle foods in Kentucky. Other commencements of produce for the declare

include: tobacco, alcohol, petroleum emanation taxes, patrimony taxes, automobile taxes, and notorious avail taxes. States can so acattainments national congresss to settle a national election sales tax which can be used to pay for a deal-outicular ace of absorb.

States so get a big ekind of produce from the federal congress in the conceive of mete-outs. Grants behind in two weighty conceives: absolute and obstruct. Absolute mete-outs issue up the bigst kind of mete-outs that a declare entertains. A absolute mete-out is used for a deal-outicular program and has very nice guidelines for the activities to be carried out delayin a deal-outicular agent era. Absolute mete-outs spurious during Johnson’s Protracted Society programs in the 1960s. Formula and scheme mete-outs drop delayin the umbrella of absolute mete-outs. Formula mete-outs use a arrangement conceiveula to designate the ekind to be tabulated to the declare or nationality. Population, geography, pay and ordain are variables that are used in conceiveula mete-outs. A obstruct mete-out is used for indelicate device areas. It can be used for a multiplicity of programs and activities by declare and national congresss.

A weighty commencement of produce for national congresss is amiables taxes. These are taxes levied oppocackle gentleman amiables, peradventure peculiar amiables and peculiar utilities. Frequent national congresss accept the gaugeness to fix sales taxes. The taxes are piggy-backed onto declare sales taxes for collation pliancy. Frequent national congresss accept the gaugeness to fix assign fees on motor vehicles. Another commencement of produce for national congresss is assigns and permits, right fees and user reckoning. A assign fee is a dull trounce tax for occupation entities. The absorb of the assign fee contends by earnestness. For pattern, the absorb of a hunting assign is unanalogous from that of a assign to opetrounce a protectionaurant. Outconcern a assign, an peculiar or occupation is forbidden to involve in the earnestness confessablely. The possessor of a assign does not entertain any deal-outicular congress favor by having the assign. Inferior typical professionrence, wholeone who applies for a assign entertains it (Bplant 2005; Raphaelson 2004).

A right fee illusions to be arrestly narrated to a assign fee, but tnear are some sly contrarietys. Franchises are furnishd on a very poor idiosyncratication. A right presupposes that the occupation signalinate avail the integral spiritlesswealth, opetrounce delay a positive virtue and trounce, and outlines the calling of the possessor and the congress.

A user heave is a fee heaved to peculiars who spontaneously use a notoriously furnishd favor. For pattern, big municipalities may utensil

a trounce heave to pay for the fabric of a new path. If you do not use the new path, then you do not pay the heave. The intention of a user heave is to acceleration the financial lot settled on the unconcealed produce pur-pose. In most professionrences, user reckoning are geared toward the population that is favoring from the notorious favor. User reckoning are ungauge if they are not enforceeffectual (Bierhanzl and Downing 2004).

Another commencement of produce for national congresss is the assignance from notorious utilities. Notorious utilities are congress owned occupation. These comprun but are not poor to steep utilities, gas utilities, electric utilities, sewers, and intercity transit. These congress occupationes accept weak or no rivalry (monopoly). One of the newest conceives of produces for declares and national congresss are the produces self-possessed from casinos, lotteries, and other conceives of gambling. This produce exit has developn tremendously estimate agent and are regularly used for ordainal intentions.

Although ties are not judgeed a commencement of produce in most cities and declares, they do avail as a weighty commencement of deeps for the fabric of notorious fabrics, corteges and other big ticket aces. A tie is basically deep that is ascititious from an peculiar delay the self-trust that the tie can be currencyed in during a absorbed era of agent for a sum of deep (deep and curiosity-behalf). Declare and national congresss use ties to finance schemes that cannot be financed from the running produce commencements. The curiosity-bestead earned on ties is not taxeffectual by the United States congress. Tnear are two kinds of ties: unmeasured belief and reputation ties (unconcealed compulsion ties) and non- insured ties. Unconcealed compulsion ties are intent for out of the unconcealed produce deep and are insured by the declare or national congress that issued them. Non-guaranteed ties accept a poor ending, ordinaryly from a produce commencement such as steep and sewer produce. The solely ending is the produce exit that is pledged to recompense the debit. (Vogt 2004; Bplant 2005; Lee, Johnson and Joyce 2013).

Taxes and other commencements of produce are used to pay for congress reckoning. An heave is “the protectionitution of deep to cestimate the absorbs of a congressal bias’s consequenceion” (Riley and Colby 1991). The weightyity of produces self-possessed by national congresss are used toward the acquittal of salaries and fringe favors to accustomees. In peculiarization to idiosyncraticnel absorb, produce, equipment, contrexpress favors and essential outgoingss issue up the far-reaching ekind of the arouset. Essential outgoingss are monies tabulated for big ticket aces that cannot be refinedd in a unlargely fiscal year. Normally,

personnel absorb signalinate arfile from 65%-75% of a national arouset. States typically accept big reckoning for transslow acquittals to national congresss or peculiars, such as earliest and cooperateary ordain allocations to cortege purlieuss, acquittals to actions of loftier ordain, and Medicaid acquittals for low pay peculiar. The unhindered reckoning for declares typically issue up solely 35%-45% of whole project-awaying. The percentage modify would be on the accustomment of an bias. For pattern, police and flatterion continuitys regularly accept loftier equipment absorb than an attestation’s accustomment.

Tables 1.2 and 1.3 furnish patterns of a produce and heave abridgment for Jefferson City and the declare of Alexander i-elationively. Teffectual 1.2 illusions that amiables taxes husband to issue up the protracteder frrenewal of all taxes self-possessed by national congresss, prospered by sales taxes. In the heave post, the Magisttrounce and Highway and Streets continuitys accept the bigst arousets. A cord-ace arouset for each of these dissolutions would unearth that the weightyity of the arouset is used for idiosyncraticnel favors.

Teffectual 1.3 illusions that half of the produce self-possessed by the Declare of Alexander behinds from taxes. It is so voicelessnesstractcogent to hint that reckoning are typically vapidtened by continuity in a “line-item” conceiveat. However, in a abridgment heave shuffle, such as this one, tnear is no insufficiency

to tame down reckoning into sub-categories that peculiarty idiosyncraticnel, equipment and essential outgoingss (Bahl 2004). That advice would be furnishd in the peculiar bias cord-ace arouset shuffles (see Appendixl A).

Governmental Accounting

One of the most essential accustomments of declare and national congresss is to detain a meticulous recitaling chronicles. Unflatter peculiars who are intent a positive ekind of dollars at some set era, congresss entertain diverse resemblingitys of deep throughout the luckion of a fiscal year. Hence, they must tabuslow and husband deeps in adharmonious to cestimate all reckoning. Declare and national congresss typically use a deep recitaling pur-pose. The Governmental Accounting Standards Consultation (GASB) settlees recitaling and reputeing trutinations for declare and national congresss. This consultation composed what is denominated Generally Not spurious Accounting Principles (GAAP). Audits of declare and national congresss are performed domiciled on GAAP and an conviction is surrendered by an attestation. The federal congress insist-upons all congressal deal-outs receiving federal deeps to concur to the motives outlined in GAAP.7 The GASB furnishs trutinations for reputeing, but not arouseting. Tnear are no trutinations for arouseting cosmical they are settleed by declare law (Lande and Rocher 2011; Ball 2012).

Governmental recitaling typically catchs three conceives: currency idiosyncratication, mitigated accrual and unmeasured accrual. A currency idiosyncratication pur-pose is very parallelffectual to your peculiar checking recital pur-pose. Budget officials basically add the produce to an recital when they literally entertain the deeps in their striveers. On the heave concern of the equation, deeps are removeed from an recital as precedently-hanker as they are gone-by. This technique signalinate trial for all sorts of recitals, but

is not necessarily the best pur-pose for all recitals (Teffectual 1.4). Homogeneous to a currency idiosyncratication pur-pose, a mitigated accrual pur-pose chronicseal produce

when the deeps are revereffectual and favorable. The conditions revereffectual and favoreffectual are mutually scientific and are the emanation of donor oblations. They bigly unswervingadvanced bigly to the nonprofit sector. For recitaling intentions, oblations must be chroniclesed smooth though the deeps may not be favoreffectual instantly. The ekind is understandn and favoreffectual instrument that it is entertaind during the fiscal year or precedently-hanker abundance behind the end of the year so that compulsions for that fiscal year can be intent. This era is typically 60-120 days. However, reckoning are chroniclesed when a deep lisoundness is incurred. That is, an being has tallyd in motive to project-away deeps. A unmeasured accrual pur-pose chronicseal produce as it is earned heedseal to whether the produce has been entertaind. For pattern, amiables taxes are chroniclesed when the reckoning is mailed (earned) rather than when the reckoning is intent (received). A unmeasured accrual pur-pose chronicseal protectionitutions when a financial compulsion is incurred. The accrual idiosyncratication of recitaling is used foremostly for tallying produces to the absorb of emanationion. The idiosyncratication of recitaling for declare and national congresss is prescribed by the GASB domiciled on the deep kind that is compromised.

Generally symbolical, arouseting catchs settle on a prospective idiosyncratication. That is, deeps are deducted as precedently-hanker as a commitment is made. For pattern, the Deportment Continuity gave a impair to Whitley’s Fabric Prescribe to relit the city’s streets. As a emanation, the dollar ekind of the impair is instantly deducted from the continuity’s arouset smooth though the unmeasured acquittal has not been made. The recitaling pur-pose signalinate not chronicles an compulsion until favors accept been surrendered.

Teffectual 1.4 Accounting Methods

Cash Personation System: a. Produce is chroniclesed when the deeps are entertaind. b. Expenditures are chroniclesed when the deeps are gone-by.

Modified Accrual: a. Produce is chroniclesed when the deeps are revereffectual and favorable. b. Expenditures are chroniclesed when a deep compulsion is made.

Full Accrual:

a. Produce is chroniclesed when expressly earned or when the congress settleed a call-for.

b. Expenses are chroniclesed when a financial compulsion is made.

Governments husband to be financially unrepealed when it behinds to estimating or prospect produce. For pattern, national congresss do not calcuslow on convokeing 100% of the amiables tax, so they typically admire anywnear from 90-95% domiciled on the collation or unadorned deviate.

As a emanation, most congresss use the currency idiosyncratication mode for arouseting taxes in unconcealed, although some use the mitigated accrual mode. Some use a mixed pur-pose—mitigated accrual for some commencements and currency for others. The federal congress uses the currency idiosyncratication pur-pose exclude for curiosity-bestead and reputation programs (Analytical Perspectives: Budget of the U.S. Government, 2004, 470). Peculiar entities husband to use the accrual mode gone the endive is to tally protectionitutions to produce (Laughlin 2012).

Government Funds

As produce behinds into the congress, it is settled into disjoined deeps. GAAP sets up three pur-poseatizees of deeps—governmental, proprietary and fiduciary. Governmental deeps are those that are used to propel out basic congress favors and are foremostly cheered through taxes and disconnectedd produces. Proprietary deeps are occupation-kind in regularity and are homogeneous to those used in the peculiar sector. Fiduciary deeps are used to recital for possessions that are held by the congress as an idiosyncratication or beliefee. Fiduciary deeps are not used to propel out congress activities. Amid each pur-poseatize of deeps, tnear are diverse kinds of deeps. As a unconcealed synod, deeps act as fiscal repress idiosyncratications. That is, they gaugeness congresss to project-away the deep for the intention that it was composed.

The bigst pur-poseatizees of deeps are congressal deeps. Tnear are five kinds of deeps delayin this pur-poseatize: Unconcealed Fund, Proper Produce Funds, Debit Favor Funds, Essential Scheme Funds, and enduring. Delay revere to the enumetrounce of deeps a congress can accept, the solely mark confounds the Unconcealed Fund—tnear can solely be one. GASB recommends that solely the insufficiency enumetrounce of deeps insufficiencyed for confesseffectual and unhindered insist-uponments should be settleed. It is vulgar for congresss to accept slow deeps for arouseting intentions than for exterior reputeing intentions. For exterior reputeing,

governments husband to merge flatter deeps, such as federal mete-out deeps (GASB Codification Exception 1100).

• The Unconcealed Deep comprises all produce not denominated in another deep. It is the bigst deep in conditions of the dollars that transslow through it. An pattern of produce that goes into this deep is amiables taxes, assign fees, and pay taxes.

• Proper Favor Funds are add for earmarked produce or produces that are denominated for proper intentions. For pattern, taxes on petroleum emanations would go into this deep. Governments regularly use mete-out deeps in proper produce deeps to enconfident that monies are tabulated for the add intention. A congress is not poor to the whole enumetrounce of proper produce deeps that it may accept.

• Debit Favor Funds are deeps add to convoke produce for the recompensement of crave promise debit. Produce in this deep regularly behinds from translates from the unconcealed deep. The intention of the deep is to enconfident that produces are set aconcern for the recompensement of debit. For pattern, unconcealed compulsion ties are comprised in this deep. Tnear are no marks on the enumetrounce of debit favor deeps.

• Essential Scheme Funds are add to convoke produce for the forfeiture and fabric of essential schemes. For pattern, the assignance from the issuance of ties would go into this deep.

• Enduring Funds are used to repute media that are confessablely scientific to the greatness that solely rights, and not deep, may be used for intentions that prop the congress’s programs. For pattern, deep may be donated to the congress to detain a buryinggsmooth and furnishs that solely the rights from sieges can be used for that intention.

Proprietary Funds

Proprietary deeps are for notorious favor activities that pointize those of the peculiar sector, proprietary or occupation flatter activities. This would comprun for pattern the use of a notorious gas prescribe or a notorious golf luckion. Tnear are two kinds of proprietary deeps: sketch deeps and interior favor deeps.

• Sketch Funds delay produces self-possessed from peculiars exterior to the congress. These are self-possessed on a fee idiosyncratication.

• Interior Favor Funds delay produce from agencies delayin the congress for favors surrendered.

Enterprun deeps opetrounce ample flatter that of a peculiar sector occupation. They convoke most of their produce from user reckoning. For pattern, stimulaters pay a fee to perverse the Bay Bridge from Oakplant to San Francisco. Other patterns would comprun notorious avail companies, notorious deportment, and congress owned notorious radio and television standings. The intention of this deep is to designate if the being is convokeing abundance produce to detain its creature.

Unflatter sketch deeps, interior favor deeps are used delayin the congress and furnish a favor to other congress agencies rather than the notorious at big. For pattern, Jefferson City has a mediate motor pool that furnishs deportment favors for all of the cities agencies. When a car insufficiencys to be relited, the city garage relits it. Thus, produces are shifted to this continuity from other continuitys when favors are surrendered. Gone most agencies accept deeps absorbed for this favor, they are flatterly to use it. Tnear is no heave cosmical the favor is used.8

The separation unmoulded an sketch deep and interior favor deep is the earliest customer. If the earliest customer is outconcern the congress, an sketch deep is used. If it is delayin the congress, an interior favor deep is used.

Fiduciary Funds

Tnear are so other kinds of deeps that may be used by declare and national govemments. The transfering kind is fiduciary deeps. Fiduciary deeps are essentially produce held for other peculiars or congress conceives. Tnear are filthy kinds of fiduciary deeps: pension belief deeps (and other accustomee favor belief deeps), siege belief deeps, peculiar-intention belief deeps and bias deeps (Mikehawk 2014).

• Pension (and other Employee Benefit) Belief Funds delay monies for congress accustomee’s pension cunnings, other post-tenure favors, or other accustomee favor cunnings. This is ordinaryly the bigst

kind of fiduciary deep. • Siege Belief Funds are used to repute the exterior frrenewal of

siege pools reputeed by the sponsoring congress. • Private-intention Trusts are used to repute belief arrangements inferior

which the deep and curiosity-bestead favor peculiars, peculiar corporations, or other congresss.

• Bias Funds delay monies in a purely custodial gaugeness for peculiars or other congresss.


As the article illusions, elected officials can use the arouset as a dupe to repress the bureaucracy, as a cunning of renewal, and to compose recitalability. The kind of arouset used re-enacts a prognosticificant role in the advice that is beared. Elected officials regularly do not accept in profoundness winments of all the agencies that they nevertheseal manipuadvanced and as a emanation, the kind of arouset used can avail diverse intentions. Similarly, the kind of recitaling modes used can flatter how the monies can be gone-by and held. The instant article signalinate illusion the interpreter how elected officials arprotection this advice gap.

Important Conditions and Phrases

Accrual Accounting Bias Deep Allocation Audits Appropriations Balanced Budget Obstruct Mete-out Mitigated Accrual Accounting Bonds Budget Currency Personation Accounting Essential Scheme Deep Essential Outgoings Absolute Grant

Debt Favor Deep Failure Earmarked Deep Arrangement and Pliancy Audit Sketch Deep Expendeffectual Belief Deep Expenditures Fiduciary Deep Financial Audit Fiscal Year Right Fee Formula Mete-out Deep Siege Accounting Pur-pose Gaming Fees Unconcealed Deep Unconcealed Compulsion Bonds Mete-out Pay Tax Interior Favor Deep Assign Fee Cord Ace Budget National Election Sales Tax Preoccupancy Non-Expendeffectual Belief Deep Outgoings Product Accountsoundness Product Budget Program Audit Program Budget Progressive Tax Scheme Mete-out Movables Tax Proprietary Deep Notorious Utilities Regressive Tax Revenue

Sales Tax Set Asides Unlargely Audit Proper Produce Deep Tax User Heave Zero Domiciled Budgeting

Chapter 1 Hometrial Exercises

Directions: Plrepose interpret each topic in its integralty precedent to completing the provision. Tnear are Excel trialsheets for topics 2-4. Questions 1 and 5 should be kindd in MS Word. All (extract emends and Excel shuffles) of the repartees to the topics should be settled in a MS Expression instrument. Plrepose deccontinuity in your Excel trialsheets and the MS Expression emend. Your cortegemaster signalinate furnish unswervingforwardions on topic 6.

1. Describe/defme the diverse kinds of arousets vapidtened adown. Your repartee should comprun unnaturalnesss flatter: who proposes the arouset, the era of agent guarded by the arouset, and the estimateall favors to ucackle one kind of arouset estimate another kind of arouset. You signalinate accept to lore these conditions as they are not all defined in this extractbook.

A. Estimated Budget B. Designed Budget C. Designed Budget D. Recommended Budget E. Adopted Budget F. Appropriated Budget G. Express Budget H. Balanced Budget I. Basecord Budget

2. From the perspective of a bureaucrat, which congress recitaling mode is slow permissible for each produce commencement? Currency Basis, Mitigated Accrual or Unmeasured Accrual. Teach your repartee. The key to your repartee should be stsoundness or tenuity of the produce commencement estimate agent. Further, you

should judge whether the produce commencement can be subjugated down into constituents deal-outs. For pattern, user fees self-possessed from a street meter may conhusband in stsoundness from user fees self-possessed at a trounce standing. In peculiarization, you should gentlemanize that the ekind and percentage of produces self-possessed from each commencement can variegate from year to year being on any enumetrounce of convokeive, gregarious and economic ingredients. In any smootht, be deal-outicular and sereneify your repartee. It may be favoreffectual to re-examination the produce advice in Article 5, precedent to attracting to this topic.

A. Declare Pay Taxes B. Notorious Avail Fees C. Donations D. Motor Fuel Taxes E. Licenses and Fees F. Sales Taxes G. Gaming Fees (casinos) H. Obstruct Grants I. Movables Taxes

3. Mayor McClain has accustomed you to administrationr the newly composed Recycle Continuity for the Jefferson City. Your transfering drudgery is to pur-pose a rotation of arousets for your continuity. Slow deal-outicularally, the mayor has absorbed you $450,000 in FY 2018 and $500,000 in FY 2019 to run the continuity. Ucackle the Excel trialshuffle templates for article 1, pur-pose a arouset admire for FY 2018 and a arouset schemeion for FY 2019 ucackle a unadorned cord-item, program, and consequenceion arouset conceiveat allocating the deep that are vapidtened aggravate.

A. Cord Ace Budget: In your cord-ace arouset, use the categories (personnel, unhindered, and essential outgoings) that are vapidtened in the extract. You are fadjust to project-away the deeps any way that you see fit. However, retain that idiosyncraticnel absorbs ordinaryly absorb the weightyity of a arouset.

B. Program Budget: Judge the unanalogous kinds of activities (divisions) that a recycling continuity would be confused in (recycling glass, pamphlet, agreeing, aluminum, etc). Your ends and/or endives should be subordinately mitigated in the coopetrounce year

to illusion augmentation in one area and a decrrepose in another area.

C. Product Budget: Set some deal-outicular ends that you can win for either one of the dissolutions that you composed in your consequenceion arouset (i.e., convoke 6 tons of pamphlet during the transfering year of consequenceion).

Suggestion: In peculiarization to staff, a Recycling Continuity may insufficiency the prospering: recycling bins, aluminum compactors, trucks, bargaining brochures, and trailers to delay the recycleffectual symbolicals.

4. Domiciled on the advice in the extract and the ends and endives that you accept settleed for the Jefferson City Recycle Continuity in Topic 3 attract to these topics.

A. Which one of these three arousets best narrates what the Recycle Continuity does? Teach your rejoinder.

B. Which one of these three arousets furnishs: the master of the continuity/agency; the mayor; and the legislative substantiality, the most election/latitude in making arousetary firmnesss encircling the bias? Believe encircling the roles of these endowation-souls precedent to obedient the topic. The repartee for each being should be teached disjoinedly.

5. Ucackle the internet, rescue a observation of a national or declare congress arouset. A vapidten of declares and cities is settled in the epilogue (F & G). Domiciled on the interruption of the arouset, designate whether or not it is “good” ucackle the advice in the excludeion designationd, “Reading the Budget” in the extract. In peculiarization, the Congress Finance Officers Association ( has a Distinguished Budgeting Awards program. These awards are furnished to congresss that accept arousets that conface “best experiments.” Impress fadjust to topicalize their criteria as polite-behaved. Excuse your repartees and merge a observation of appolocality excludeions of the arouset to your residencetrial provision. Do not observation and deccontinuity in the integral arouset. Appolocality excludeions should not surby 7 pages. Note: This topic should be rejoindered ucackle the administrationrings furnishd adown acrave delay any other aces that you judge tractcogent from the GFOA web topicality.

Budget Evaluation

A. Declare or City Budget Weblocality Address: B. Budget Message/Budget Highlights/Executive Abridgment C. Budget Abridgment D. Commencement of Produce E. Commencement of Expenditures F. Department/Agency Budget Advice G. Supplemental Budgeting Information

6. Optional In-Class Assignment: Reconciling Accounting Methods and Produce Sources (lhour Exercise)

Step 1. Divide the pur-poseatize into prescribes (4-6 endowation-souls).

Step 2. Each prescribe should investigate the repartees to topic 2. At the end of the dispute, the prescribe should designate which recitaling mode is best and why that is the professionrence. Do not project-away slow than five exacts investigateing each ace.

Step 3. Pur-pose a seal prescribe sereneification for each ace.

Step 4. Accept one idiosyncratic from each prescribe furnish and colslow their repartees delay the other prescribes.


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Vogt, A. John. 2004. Essential Budgeting and Finance: A Guide for Governments. Washington, D.C.: ICMA.

Appendix 1A Budget Letter


For too frequent years, politicians in Harrisburg accept dressed to do unnaturalnesss the identical way. We’ve charmed a unanalogous path by precedentitizing essential responsibilities flatter compensating our weightys, making confident manifestation entertain the

virtue ordain they insufficiency, trialing to impair amiables taxes, confederacy delay law enforcement and medical powerals to spdiscestimate substance to contention the opioid and heroin pestilential, and refabric Pennsylvania’s intermediate pur-poseatize by putting slow race to trial.

In this year’s arouset, I am anew propocackle prognosticificant modifys to the way Harrisburg has produced occupation. The designed arouset comprises estimate $2 reckoningion in cuts and savings and escapes any new taxes on Pennsylvania families, mark detaining the sieges we accept made in our corteges, compensating weightys, conflicting the opioid pestilential and sustaining Pennsylvania’s intermediate pur-poseatize.

This arouset catchs a solid illusion at declare congress and issues unmanagecogent firmnesss. Serene flatter when I was in occupation, this arouset identifies savings and efficiencies, not serene to impair absorbs but so to meliotrounce agree favors to the race of Pennsylvania. By merging sanity-cognate agencies, we signalinate impair bureaucracy and glomeration. Our running fragmented path to providing favors repeatedly transfers to laziness for program applicants and their families. Consolidation of these favors into bureaus delayin one, liberally continuity signalinate stimuslow meliotrounce fruits, emend customer favor and impair absorbs. As we path this arouset, we should not believe encircling how we accept produced unnaturalnesss precedently, but how we can meliotrounce agree favors for the race of Pennsylvania.

Through these savings and efficiencies, this arouset fortifys our sieges in our corteges and our trials to contention the opioid pestilential. Estimate the departed two years, we accept extensiond deeping for Pennsylvania corteges by nhence $640 darling mark utensiling a serene deeping conceiveula. This is a cheerful-natured-natured set-out toward revercackle the devastating $1 reckoningion in cuts made to corteges during the conceiveer synod, but tnear is stagnant trial to do. Thant’s why I’m propocackle peculiarizational sieges in ordain at all cunninges.

Continuing to contention the opioid casualty signalinate redeep a top precedentity. The 2016-17 arouset furnishd deeping to utensil 45 impenetrableihoods of distinction throughout the vulgarwealth that signalinate speak nhence 11,000 race delay essential use experimentation. This arouset endows on that trial by investing $10 darling to spdiscestimate fitbeing to naloxone for transfering attracters, and spreads offal flatters and substance deeping to issue confident those flattered by opioids can get the acceleration they insufficiency.

My arouset furnishs a cunning for refabric our intermediate pur-poseatize and making congress slow fruitful so that we can fortify ordain, job fcogent programs, and favors for our weightys and most weak. It’s fadjust that we insufficiency to do unnaturalnesss unanalogously if we insufficiency to propel Pennsylvania advanced.

I illusion advanced to steady to trial delay all constituents of the Unconcealed Assembly to propel our declare advanced.


Tom Wolf

Appendix 1F Declare Budget Offices

AL: AK: AZ: AR: http://www.dfa.arkansas.gov

CA: CO: CT: http://www.opm.state, DE: FL: GA: HI: ID: http://www2.state, IL: IN: IA: KS: KY: LA: ME: MD: MA: MI: MN: MS: MO: MT: NE: NV: NH: NJ: NM: NY: NC: ND: OH: OK: OR: PA: RI: SC.: SD: TN: TX: UT: VT: VA: WA: WV : WI: WY:,,

Appendix 1G City Finance/Budget Websites

Akron, OH. Albany, NY. Alexandria, VA. Anchorage, AK. Annapolis, MD. Atlanta, GA. Auburn, AL. Augusta, ME.{FFE0E59F-5794- 4A67-89C8-D5D5E108464A} Austin, TX. Baltimore, MD. Baton Rouge, LA. Biloxi, MS. Binghamton, NY. Birmingham, AL. Bismarck, ND. Boise, ID. Boston, MA. Bristol, VA. Brunswick, NJ. Carbondale, IL. Carson City, NV. Charleston, SC. Charleston, WV. Cheyenne, WY. Chicago, IL. Cleveland, OH. Colorado Springs, CO. Columbia, SC, Columbia, MO, Columbus, OH. Concord, NH.,22,02 Dallas, TX. Denver, CO. Des Moines, IA. Detroit, MI. Dover, DE. Fayetteville, NC. Flagstaff, AZ. Fort Lauderdale, FL. Frankfort, KY. Gary, IN. Greensboro, NC.,22,02

Harrisburg, PA. Hartford, CT. Helena, MT. studies.html Honolulu, HA. Houston, TX. Indianapolis, IN. Jackson, MS. Jacksonville, FL. Jefferson City, MO Jonesboro, AR. Juneau, AK. Kansas City, KS. Lansing, MI. Las Vegas, Lawrence, Lexington, Lincoln, NE. Weak Rock, AR. Los Angeles, CA. Louisville, KY. Madison, WI. Manhattan, KS. Memphis, TN. Miami, FL. Milwaukee, WI. Montgomery, AL. Montpelier, VT. Nashville, TN. New Orleans, LA. New York City, NY. Norman, OK. Oklahoma City, OK. Olympia, WA. Omaha, NE. Philadelphia, PA. Phoenix, AZ. Pierre, SD. Portland, ME. Providence, RI. Raleigh, NC. Reno, NV. Richmond, VA. Sacramento, CA. Salem, OR. Salt Lake City, UT. San Antonio, TX.

San Diego, CA. San Francisco, CA. Santa Fe, NM. Seattle, WA. Southaven, MS. Springfield, IL. St. Louis, MO. St. Paul, MN. Syracuse, NY. Tallahassee, FL. Tampa, FL. Topeka, KS. Trenton, NJ. Tucson, AZ. Tuscaloosa, AL. Vicksburg, MS.

If one of these cites does not accustomment, go to the declare’s residence page. The far-reaching weightyity of declare congress internet residence pages are: http://www.state.??.us. For pattern, the residence page for the declare of Tennessee is: If you insufficiency to go to another declare, serene use the two-epistle succinctness for that declare.

Chapter 2

Preparing a Budget Proposal

Chapter Two Overview

Chapter two of the dimensions deviates bisectially from the basic arouseting conditions, peculiartys and experiments that you polite-behaved-informed in article one. In this article you signalinate rendezvous on preparing a arouset and determining if a arouset is fruitful and operative. On the exterior, this may illusion to be an gentle drudgery. However, arouseting is not as unadorned as it illusions. For precedence, at any absorbed agent, a declare or national congress may be trialing on three disjoined arousets: the running year, conceiveer year, and the up-hence fiscal year. This conceive insist-upons the coproduct and trials of a lot of peculiars and agencies, including diverse prescribes and peculiars that may accept refinedly disjoined agendas.

The article lays by transfering examining the arouset cycle and the diverse offerations that it goes through. This excludeion is prospered delay an bisectition of the peculiars compromised in the arouset conceive. The article ends delay a dispute of determining bias insufficiencys and congeniality bias device declarements.

Budget Cycles

Repetition of smoothts essentially stimulates the arouset cycle. A arouset cycle is a era of agent in which the arouset has to be gentle and issueed. This cycle or pur-pose fixs protracteder recitalsoundness for firmnesss. It so acknowledges firmness issuers to dissimislow the arouset for protracteder pliancy and operativeness. The arouset cycle has three offerations: magisttrounce provision, legislative praise, and arouset sketch. However, tnear is so an audit/evaluation offeration that happens behind the sketch offeration.

Phase 1. Magisttrounce Preparation: The foremost magisttrounce of a declare or national congress is the one idiosyncratic who sets the pitch for the device issues that are addressed during the arouset provision offeration. Guidelines are unconcealedly gentle by the foremost arouset/fiscal accustommentr and absorbed to agencies laying out key issues that signalinate be addressed for the uphence arouset year, acrave delay the agentteffectual for sursurrender of the arouset. These comprun aces such as device precedentities and designed new congress solemn the arouset. A cheerful-natured

budget should be very inclusive in describing: anticipated produces and designed reckoning; furnish recitalsoundness for project-awaying; escape earmarking deeps which could estimateruler new precedentities; and manifest the intention for new project-awaying and the desired emanations (Kittredge and Ouart 2005; Muhawk 2009; Mikehawk 2014). Agencies in deccontinuity use this advice when preparing their arouset petitions. In peculiarization to preparing project-awaying petitions, agencies that accept absorbed deeping commencements, such as federal mete-outs, assigns and permits, and reckoning for favors, furnish admires of produce for the forthhence arouset year in their surrender.

These petitions are then advanceded to the foremost magistrate’s arouset accustomment to be re-examinationed and analyzed. Often, heedings signalinate be held delay the bias to release the arouset petition. The foremost arouset/fiscal accustomment is legitimate for the provision of produce admires, properly for the Unconcealed Fund. In analyzing the petitions, the produce that signalinate be favoreffectual is a key ingredient during the interior arouset deliberations. Slow repeatedly than not, the sum whole of the arouset petitions for the Unconcealed Deep surpasss the favoreffectual produce. As a emanation, firmnesss accept to be made revereing the ekind that signalinate illusion in the arouset sursurrender for each bias. It is not unvulgar for continuity administrationrs to be estimateestimate delay the decisive warning. Some signalinate try to get slow deep by lobbying the parliament/council, or signalinate use proper curiosity-bestead prescribes for that intention.

Many declare and national congresss are confessablely to-leap to accept a estimated arouset pursuant to declare law, national charter, or regulation. The completion delay most estimated-budget congress is that it does not pointize what “balanced” instrument. Usually, it is on the arouset idiosyncratication, which is most repeatedly currency. A currency arouset can be manipulated by scarcely not paying reckonings at the end of the year. If the arouset has to be estimated domiciled on a mitigated accrual idiosyncratication, then slow discipcord is adventitious to the conceive gone liabilities cannot scarcely be byed on into the advenient. Some estimated arouset laws declare that produces accept to resembling reckoning (outconcern stating the idiosyncratication that is to be used). This instrument that favoreffectual estimates are not issueual to be used to deep a failure.

Once the petitions accept been entertaind and analyzed, they are assembled into a unlargely instrument. The arouset is then agreeted to the legislative substantiality and so released to the notorious. Some congresss pur-pose a arouset-in-brief, which is scoped for the townsmans. It delays summaries of the petitions acrave delay an denomination as to what signalinate be genteel during the uphence year.

Phase 2. Legislative Approval: Homogeneous to other congress, a legislative substantiality has to support the arouset. The foremost magisttrounce advanceds the arouset to the legislative substantiality and when it supports the instrument, it has the gaugeness of the law. This conceive illusions very unadorned, but in gentlemanity it is not. Negotiations unmoulded the magisttrounce and constituents of the parliament or city cabinet are very vulgar. In some professionrences, these hagglings can be very stressful absorbed deal-outisan contrarietys. Breguadvanced politics re-enacts a weaker role at the national cunninge when collated to the federal and declare congresss (Smith, Sun, and Lynch 2017; Muhawk 2009).

For whole declare exclude Nebraska (which solely has one offspring), the arouset is agreeted to the inferior offspring, homogeneous to the conceive used by the federal congress. The Finance Committee is in heave estimateall. However, other committees signalinate be compromised. For pattern, the Deportment Committee signalinate heed the petition for the Continuity of Transportation. Behind they finish the heeding, the warning signalinate be advanceded to the Finance Committee. During the luckion of the heedings, frequent deal-outies signalinate teach on the petition. The continuity administrationr signalinate furnish an estimateview of the petition. Notorious curiosity-bestead prescribes signalinate adduce their teachs as polite-behaved. Most declares accept legislative arouset accustomments that furnish schemeions refractory of the magistrate, which are used by the parliament in conceiveulating the discontents. Once the inferior offspring refineds its heeding, they manipuadvanced on the mete. It is then sent to the eminent offspring (Senate), and the conceive set-outs all estimate anew. Once the eminent offspring refineds its conceive, slow repeatedly than not modifys are made from the surrendering byed by the inferior offspring. As a emanation, a parley committee is conceiveed delay dramatizeatives from twain offsprings. The calling of the parley committee is to behind up delay a unlargely discontent act that is accepteffectual to twain offsprings. Although it is desireffectual to accept the arouset byed precedently the set-out of the instant fiscal year, it repeatedly does not by hastyly consequently of gregarious contrarietys. In that professionrence, a steady analysis is byed, so that congress can opetrounce mark the completions are trialed out. Eventually, an discontent act is byed and sent to the zealot for prognosticature. Frequent zealots accept the gaugeness to use a cord-ace veto, by which deal-outicular disinterruption can be vetoed. The legislative substantiality has the gaugeness to estimateride the veto if it can gather the indispenscogent manipulates.

The conceive is ample unadornedr in national congresss. The legislative substantiality is the cabinet, consultation, or station. The magisttrounce offspring stagnant furnishs advice revereing the petition. The notorious and proper curiosity-bestead prescribes stagnant

accept the gaugeness to aver and adduce fancys. Eventually, an discontent regulation is byed and prognosticed by the foremost magisttrounce accustommentr. Frequent national congresss accept charter or regulation conditions that insist-upon the arouset to be settled precedently the set-out of the fiscal year.

Phase 3. Budget Execution: At the origin of the fiscal year, agencies propel out or re-re-enact their supportd arousets. Spending is monitored by the agencies and the magisttrounce arouset accustomment in adharmonious to enconfident that disinterruption are not estimatespent. This is ordinaryly produced through the use of recitaling software that is add to enconfident that project-awaying is delayin the doerized resemblingitys or fractions. This conceive accelerations to enconfident that agencies do not project-away all of their deeps in the transfering month or nationality of the fiscal year (Muhawk 2009). Monthly, nationalityly, and midyear arouset reputes are issued so that comparisons can be made unmoulded discontents, express produce entertaind, produce schemeions, and express reckoning (see Epilogue 2A for an pattern). If produce schemeions are off the target, modifications should be made to enconfident that the arouset is estimated. Budget scanty drops can idiosyncratication attentionful unhindered and idiosyncraticnel completions for bias administrationrs (Nice 2002; Smith, Sun, and Lynch 2017). Frequent declare and national congresss accept congress that insist-upons the foremost magisttrounce accustommentr to catch renewal to impair project-awaying if produce schemeions are not met.

Most declares and big national congresss use an fraction conceive to acceleration repress the arouset. At the set-out of the year, each bias is insist-upond to mete-out the annual discontent by nationality. This, in issue, instrument that agencies are managing nationalityly arousets. Another arouset repress dupe is the encumbrance. When an bias enters into a impair or forfeiture adjust, an encumbrance is settleed elucidation aconcern that ekind so that when the cheerful-natureds and favors are entertaind, deeps are favoreffectual to pay the protectionitutions.

Audit/Evaluation Phase: The intention of this offeration is to designate if the arouset was issueed and utensiled by the bureaucracy in the conceive that was set forth in the congress (Nice 2002; Muhawk 2009; Mikehawk 2014). That is, does the supportd arouset and express arouset tally up? An audit happens behind the fiscal year has ended and can be produced interiorly or exteriorly. Beings trialing delayin the bias pass interior audits, and exterior audits are produced by intent powerals outconcern of the conceive. Audits variegate according to the kind of arouset that is used by agencies. Generally symbolical,

tnear are two kinds: financial and consequenceion. A financial audit checks to enconfident that an bias’s financial declarements drop delayin the motives of GAAP and probe whether an bias has prospered the laws and laws masterful its project-awaying.

A consequenceion audit musters its trials on pliancy and operativeness, by examining procurement, duplication, utilization of staff, confesseffectual acquiescence and measuring and reputeing consequenceion (Solano 2004; Smith, Sun, and Lynch 2017; Lee, Johnson and Joyce 2013). Basically, what was genteel delay the deeps that were gone-by? Tnear are two kinds of consequenceion audits: arrangement and pliancy, and program audits. Arrangement and pliancy audits designate whether the congressal deal-out is acquiring, compensating, and ucackle its media economically and fruitlargely and whether it has complied delay laws and regulations on substances of arrangement and pliancy. Program audits designate the greatness to which desired emanations are being signalinated and whether tnear are narrated acquiescence issues. Tnear are so unlargely audits that concenttrounce slow arrestly on the heave of mete-out media than do other kinds of audits. A unlargely audit is insist-upond by the federal congress for all declare and national congresss that accept $500,000 or slow in federal mete-out awards and insist-upons attestations to criterion to see if mete-out conditions are being prospered.

Pariser and Brooks (1997) exaltedlight some unconcealedly not spurious congress auditing trutinations that administrators should accept in settle as a prosper up to designate the operativeness of the audit. That is, were the warnings prospered and did they signalinate desireffectual emanations? They hint that the prospering bulleted aces should be comprised in an audit warning prosper up pur-pose (p. 337).

• Firm device idiosyncratication for prospering up on audit warnings • Organizational commitment to utensilation • Evaluation of warnings including arousetary and

organizational collision • Fadjust provision of prosper up responsibilities • Provision of reformive cunnings • Proper watchfulness to key warnings • Interrupted re-examination to evaluate the vapidten of renewals charmed on


• Provision and arrangement of eraic standing reputes • Use of standing reputes for estimatesight and superintendence evaluations

Further, superintendence should be unmeasuredy committed to utensiling the hintions from the audit and this should be showanced by conceiveal policies or a procedures manual that narrates the peculiartys of the audit warning prosper up pur-pose as polite-behaved-behaved as securing peculiars to be legitimate for utensiling the warnings.9

The Budget Calendar

Since declare and national congresss trial arotund a fiscal year, arouset pcortege has to happen precedent to the origin of the fiscal year. The origin of the arouset cycle contends for most declares and cities. For 46 declares, the fiscal year lays on July 1st and ends on June 30th. Exhibit 2.1 furnishs a abridgment of the diverse arouset eras.

Source: Lee, Robert, Johnson, Ronald, and Joyce, Phillip, 2013. Notorious Budgeting Systems. 9th Edition. Jones and Bartlett Publishers Inc, Burlington, MA. Mikesell, John L. 2014. Fiscal Administration: Partition and Applications for the Notorious Sector. 9th Edition. Wadsworth Cinvolve Learning: Boston, MA.

A lot of national congresss lay the fiscal year in January, July, September and October. The federal fiscal year is October 1st through September 30th.

Exhibit 2.2 illusions the arouset agent shape for Jefferson City. Although fiscal year (FY) 2019 lays on July 1, 2018 for the city, the conceive began officially on March 12, 2018. At this apex, the city issues the decisive adjustments to arprotection out the FY 18 arouset mark they are in the FY 19 arouset

season. So, they are in flatter managing three arousets concertedly. By settleing unswerving to-leaps and agents for conceives and confrontings, it propels a lot of adharmonious to the conceive. Cosmical someunnaturalness out of the wonted happens, bias idiosyncraticnel and elected officials husband to hold to the set agents shapes.

Exhibit 2.2 Jefferson City Budget Timetable, FY 2019

1. March 12, 2018, Audit & Finance Committee confronts to decisiveize agent teffectual delay agencies and continuitys on arouset petition.

2. March 13, 2018, Send out reveres to bias administrationrs that deadcord to agree discontent petition signalinate be Friday, March 31st.

3. March 30, 2018, Deadcord for Agencies, Boards and Commissions to agree arouset estimatetures to CAO for observationing for elected officials.

4. April 9, 2018, A&F Committee Meeting. Preliminary produce Convexity and abridgment spreadsheets of petitioned protectionitutions agreeted to Mayor and Audit and Finance Committee from CAO and Financial Director.

5. April 16-20, 2018, Bias and Continuity Discontent Hearings precedently Audit and Finance Committee.

April 16th (Monday): Agencies-7:00 to 10:00 a.m. April 18th (Wednesday): Agencies-7:00 to 10:00 a.m. April 20th (Friday): Departments-6:00 to 10:00 p.m.

Public Works-6:00 to 7:00 p.m. Police Dept.-7:00 to 8:00 p.m. Affection Dept.-8:00 to 9:00 p.m. Synod Dept.-9:00 to 10:00 p.m.

6. April 23, 2018, A & F Committee Meeting. Decisive produce Projections agreeted to Mayor and Audit & Finance Committee. Mayor and Committee investigate arousetary pith and precedentities, and tally on diplomacy to striveerle produce scantyfalls, petition estimateruns, etc.

7. May 7, 2018, MRA/LGEAF Budget Hearings held as insist-upond by declare


8. May 21, 2018, Mayor’s Budget and Budget Communication furnished to Council. Mayor ordinaryly agrees his designed arouset at a proper denominated confronting slow in the month.

9. June 4, 2018, Leading Reading of the FY 19 Budget Ordinance.

10. June 18, 2018, Coopetrounce Reading of FY 19 Budget Ordinance.

11. June 20-30, 2018, Proclamation of FY 19 Budget Ordinance.

The Budget Game

Making arouseting firmnesss can be a very intricate conceive absorbed the enumetrounce of peculiars compromised and their fancys and ends. In an magisttrounce arouseting pur-pose, the foremost magisttrounce re-enacts the weighty role in the arouseting conceive. That is, he/she initiates the conceive. However, tnear are a enumetrounce of others compromised in the conceive as polite-behaved, including the arouset accustomment, parliament, and bias masters. In peculiarization, tnear are some non- congressal actors that can re-re-enact a role in the conceive such as curiosity-behalfs prescribes and peculiars (Rubin 2006). All congresss uniformtually do not use an magisttrounce arouseting pur-pose.

County congresss husband to accept administrators, attestations, or someone in the legislative offspring pur-pose the arouset. Some declares accept legislative arouset accustomments that consume vast resemblingitys of motive and pamphlettrial on the arouset (Lee, Johnson and Joyce 2013). Inferior typical professionrence, the expression distatement and congress would not go concomitantly. These two conditions husband to go striveer in striveer at the declare cunninge and in very big cities when it behinds to devicackle the arouset.

Budgeting is a bit slow bureaucratic in weaker congresss. However, when one judges the integral firmness making conceive, it does disre-enact some of the identical idiosyncraticalitys of a diversion. Players/firmness issuers use diplomacy and someagent they win and someagent they do not. Device issuers sursurrender firmnesss that are cheerful-natured-natured and bad for positive peculiars and agencies. Figure 2.1 illustrates the filthy deep actors compromised in the conceive as polite-behaved-behaved nongovernmental actors (Bplant and Rubin 1997; Smith, Sun, and Lynch 2017; Rubin 2006; Mikehawk 2014).

Budget Actors 1. Foremost Executive

The foremost magisttrounce is the solely idiosyncratic legitimate for the integral action of a deal-outicular congressal being. As a emanation, magistrates try to enconfident that project-awaying is produced as harmoniously as practiceffectual in adharmonious to gratify the exaltedest enumetrounce of peculiars and agencies. The magistrate, via the arouset master, initiates the arouseting conceive and is legitimate for sending epistles to the diverse agencies informing them of essential to-leaps and deadlines for advice.10 Although the foremost magisttrounce may apapex bias administrationrs, this interconnection may not be as amiceffectual as it illusions. The magisttrounce has the election of aphorism no, and does so regularly. You must so judge the role of curiosity-behalfs prescribes, townsmans, and townsman prescribes. Mayors, zealots as polite-behaved-behaved as legislators and cabinetmen are regularly bombarded delay petitions that may collision arouset firmnesss. Absorbed the regularity of their lie, they cannot repudiate the creatures of these exterior prescribes and the germinative collision that they could accept on their electoral fortunes.

In sum, the foremost magisttrounce trials striveer in striveer delay the arouset master to put the primal arouset concomitantly. Then, it is calling of the legislative substantiality to designate the decisive project-awaying patterns and re-re-enact the discontents. Last, the foremost magisttrounce carries out the mandates of the legislative offspring.

2. Budget Master The arouset master runs the arouset accustomment for the foremost magistrate. This of

fice is the impenetrableihood for the city or declare’s arouset conceiveing. Budget petitions are unconcealedly sent to the arouset accustomment rather than instantly to the magistrate. Once this accustomment entertains all of the petitions, it goes encircling balancing reckoning oppocackle forebodeed produces. This trial can be reposed when the magisttrounce informs the agencies of forebodeed extensions or inferiors in produce precedent to their agreeting arouset petitions. However, arouset schemeions are not decisiveized until the promiseinal practiceffectual force. Absorbed the transactions of poor produces, the arouset accustomment must enconfident that aces of exalted precedentity, as judgeed by the foremost magisttrounce and legislative substantiality, be furnishd for. However, this conceive can idiosyncratication a lot of abrasion unmoulded the arouset accustomment and the bias masters. Although tnear are frequent unanalogous concludes why an bias may be deprived deeping for some program, vulgar concludes would comprun the prospering: 1.) Items were not comprehensively sereneified; 2.) The deep is not favorable; 3.) Items do not fit the ends and endives of the bias; and 4.) Items are not in similitude delay the magistrate’s precedentities (Bplant and Rubin 1997; Smith, Sun, and Lynch 2017; Kittredge and Ouart 2005; Mikehawk 2014).

3. Legislator/Council Constituent This prescribe of endowation-souls is legitimate for vapidtering the arouset. They are

constantly illusioning for an unconcealeding to propel in programs and schemes that signalinate favor their constituents. Most legislators/councilmen do not accept a cheerful-natured-natured clasp of the arouset conceive from a micro perspective. This is not necessarily a bad unnaturalness absorbed their role in the arouset conceive. They are repeatedly absorbed stolid advice delay weak agent to fruit to it. As a emanation, they husband to impenetrableihood their trials on their peculiar pet schemes. Legislators on strengthful committees and deal-outy transferers can use their bias to guard pet schemes a lot easier than seal weighty legislators. Unflatter the foremost magistrate, the firmnesss made by legislators and cabinetmen are slow flatterly to be collisioned by curiosity-bestead prescribes, townsmans, and townsman prescribes.

4. Bias Directors Bias masters administrationr the diverse continuitys delayin the bureaucracy.

These continuitys furnish the favors that flatter the polite-behaved-being of the townsmans. Gone their trials deccontinuity towards the peculiars that they avail

and the bias’s ends and endives, bias masters are constantly droping their arouset petitions from twain a technical and gregarious perspective. However, it is not fadjust as to whether all bias masters involve in a arouset maximizing diplomacy (Sigelman 1986; Smith, Sun, and Lynch 2017; Wildavsky and Caiden 2004). That is, do they ask for the exaltedest incrrepose in their arouset as practicable? However, it is fadjust that bias masters essay to detain the creature of their bias. They do this by detaining a cheerful-natured-natured interconnection delay legislators and the foremost magistrate. Particularly, they insufficiency proponents in the parliament or the city cabinet that signalinate drop them in agents of sarcastic arouset cuts. Rubin (2006) apexs out, bias masters repeatedly involve in strategies to emend arouset byage. First, they may instagnant a import of crisis. That is, if the petition is not deeped then x, y, and z capacity happen. Second, they may manifest how the petition may be absorb fruitful and operative and thus preforward deep estimate agent. Third, the bias administrationr may enconfident that the foremost magisttrounce or key legislators/councilmen are getting their peculiar call-fors met in the petition.

As an bias administrationr making a petition, it is very essential that you articuslow the insufficiencys of the bias in a conceive that is fadjust and inferiorstandeffectual to those who can repress your arouset. Therefore, you must merge the end and endives of your estimateture to the insufficiencys of townsmans and desires of politicians. These ends and endives must so concur delay gentle to inferiorstand consequenceion metes that you must comprun in your estimateture.

Agency Roles Expanded

While petitioning arouset declarements from an bias, the arouset accustomment scheme produce collations for the up-hence year domiciled on favoreffectual idiosyncratication (former tax collations, inflation, curiosity-bestead trounces, population propelment, etc.). This incrrepose (or inferior) is collated delay the ignoblecord for agencies to endure at their running trounce and the new call-fors brought on by new congress and precedentities that accept been set by the foremost magistrate. If tnear are gaps unmoulded forebodeed produces and reckoning, the foremost magisttrounce (leading cord) and the legislative substantiality (coopetrounce cord) accept to designate wnear cuts should be made to disburse for the divergentlyness.

In most professionrences, arouset petitions are deprived rather than cortege taxes. As a emanation, each bias has to essentially drop its arouset in a conceiveal heeding. In

preparing for a heeding, each bias should agree to the arouset accustomment a truth teaching the intention, ends and endives of the bias, a arouset petition, and a peculiartyed denomination sereneifying new petitions. This would comprun aces such as a petition for a new accustomee. It is ample easier for an bias to drop project-awaying new monies when they can illusion that it fits the ends of the bias, the band-arms of the foremost magistrate, and the precedentities set by new congress. If an bias cannot elabotrounce in peculiarty why it insufficiencys to spdiscestimate a program or engage a new accustomee, it signalinate be extremely opposed for that bias to entertain new deeping during a era of arouset transaction. A petition for project-awaying is not poor to one agent. An bias may petition peculiarizational deeping during the luckion of the fiscal year (Smith, Sun, and Lynch 2017; Solano 2004; Mikehawk 2014).

Justifying and Defending the Budget

Ideally, the best perceiveledge for an bias is to experiment out that their integral arouset was supportd. Unfortunately, agencies regularly experiment that the foremost magisttrounce and the legislative substantiality call-for slow favors delay seal deep. Rarely is a arouset refinedly deeped delayout some modifys. As a emanation, it is inexortalented that bias administrationrs are refinedly gentle to sereneify their arousets. If they are not gentle, they may hastyly experiment the bias on the scanty end of the produce exit. Hence, bias administrationrs must understand how to hawk their arouset.

The peculiartys gregarious arouset and technical arouset are two modes that specify the conceive. Generally symbolical, all arousets are gregarious in regularity absorbed that congress is gregarious. However, some arouset conceivees are slow gregarious than others. Likewise, all arousets should be technical in regularity. That is, delay arousetary postulates. However, the pattern used to hawk the arouset can variegate. A denomination of gregarious and technical arousets is teached adown.

Political Budgets

An bias master who uses a gregarious arouset diplomacy re-enacts the gregarious diversion. Rather than concenttrounce on the collation, they use other slight-of-laborer tricks in an trial to out-maneuver the politicians. Wildavsky (1979), Meyers (1999), Rogers and Brown (1999) and Wildavsky and Caiden (2004) adduce

diverse arouset maximizing strategies that an bias master may accustom. Ucackle these modes are not confident flatterion modes to hawking your arouset. Device issuers are not illitetrounce of these “tricks”.

• Cultivate a clientele in the legislative and magisttrounce offspring. • Avail a deal-outicular clientele and submit them to contiguity their elected

officials and cackle your praises. • Endow trust in your bias by not guarding up bad deeds. • Cut or teach programs that are approved delay refined winments

that they signalinate be reinstated. • Shift the reprehend of severe the program onto the device issuer. • Merge new programs delay old programs so that they do not illusion

as new programs. • Debate that new programs are mitigated old programs. • Inferior the arouset cunninges for new programs delay the conviction that

you signalinate get slow deeps slowr. • Detain your ignoblecord and use the deeps for other intentions. • Debate that some of your reckoning are scanty promise. • Con-estimate the gregarious exhibition and use casualty to spdiscestimate or compose new

services. • Illusion how reckoning signalinate preforward deep slowr. • Illusion how a program signalinate pay for itself in user reckoning. • Use trialload idiosyncratication to endow up the arouset ignoble.

Again, tnear are no insures that these or any other strategies signalinate trial. Bias masters should assess the gregarious environment and insucceed from there. If produces extension, it may be easier to use the technical strategies. In some professionrences, legislators and magistrates may catch it upon themselves to cut or mark bias programs opposing the trials of the bias master. In some professionrences, they may scarcely cut a program. This is properly penny when media are poor. In authenticity, legislators and cabinet constituents may hastyly experiment that their pet schemes signalinate end. It is a lot easier to cut a program that is topicalized by one dinice rather than the integral synod (Meyers 1999; Swain and Reed 2010; Mikehawk 2014).

Technical Budgets

A technical arouset musters on the collation or arousetary postulates. Expenditures can be distally into two categories: mandatory and electionary project-awaying. A ignoblecord (Base) is a technique that can be used in twain categories.

Mandatory reckoning are reflected in declare and national law. That is, the bias is confessablely insist-upond to pass the favor. These reckoning comprise: salaries, FICA, pensions/retirement, untenure protectionitution, and any other confesseffectual compulsions. Mark tnear are constantly topics enclosing how frequent accustomees are expressly insufficiencyed to furnish favors, eliminating an accustomee or severe the idiosyncraticnel arouset is the promiseinal unnaturalness that a politician insufficiencys to do. Inferior typical professionrence, elected officials dignity mandatory project-awaying.

Discretionary project-awaying composes the weakest deal-out of the estimateall arouset. These deeps repeatedly solely refurnish extensions in the arouset and are sought by wholeone. Mark not indispenscogent for the unconcealed consequenceion of the bias, these deeps signalinate acattainments the bias to spdiscestimate favors and opetrounce slow fruitlargely and operatively. Due to poor deeping, bias administrationrs should put a lot of trial into sereneifying project-awaying. Personation indicating population shifts, economic up swings, confesseffectual insist-uponments are all favoreffectual in sereneifying new lies and an dilution in favors (see so Le Loup 1977; Lee, Johnson, and Joyce 2013).

Base reckoning are reckoning that an bias insufficiencys to detain the identical cunninge of favors from the running fiscal year. This comprises unhindered protectionitution aces such as accustomment produce, printing, equipment, utilities, vehicles, dupes, and other narrated aces. Bias masters can sereneify these aces ucackle the conceiveer year’s arouset, the running year’s arouset, ongoing schemes, or schemes for the uphence year. In any professionrence, the master should be issueual to sereneify the petition absorbed any modify in the ekind of the petition. This would comprun an incrrepose or decrrepose in any deal-out of the arouset. By exaltedlighting emanationivity, a arouset is ample seal flatterly to be cut.

Key Components of the Budget Proposal

The arouset estimateture has diverse key constituents and the bias staff must be gentle to drop whole frrenewal of the arouset. Adown is a scanty

denomination of the key deal-outs of the arouset estimateture.

A. Scheme Title: Believe it or not, a mark does substance. One should project-away a few exacts believeing encircling the designate that behind a markholds the being of their scheme. The designation of the scheme should behind a markdelay the curiosity-bestead of the interpreter as polite-behaved-behaved as adduce a very seal denomination of the scheme in five or fewer expressions. For pattern: Started Concomitantly to End Homelessness

B. Denomination and Rationale: This excludeion of the arouset is the origin and the end to the luck of your arouset. It should nartrounce what you are impenetrconducive to shape and why it is insufficiencyed in as few expressions as practicable. For pattern, a moderatee could be as unadorned as aphorism: We insufficiency a residenceseal refuge consequently the enumetrounce of residenceseal race has extensiond by 50% gone the electrical cunningt arrestd and the city insufficiencys to incrrepose and spdiscestimate accustomment opportunities.

C. Extrinsic Justifying the Need. Objectives insucceed from the denomination and the moderatee. Objectives narrated to the residenceseal thesis could comprise:

• The city insufficiencys to emend tourism in the downtown area. Therefore, we must teach race advancednt on benches, in alley ways and in face of occupationes.

• The city can furnish ordainal and job inoculation and/or reinoculation at the residenceseal refuge.

• Statistics illusion that a serene enumetrounce of residenceseal race are confused in ilalloweffectual earnestness in the downtown area. Hence, we can impair the misdemeanor trounce as polite-behaved-behaved as pan striveerling.

D. Budget and Budget Description. The arouset as a set of collation is serenely unswerving advanced, but the denomination, should be unswervingforward. That is, seally nartrounce who or what you insufficiency in adharmonious to shape your ends. For pattern, it is concludeeffectual in the pattern aggravate to forebode that someone has to husband the residenceseal refuge, furnish inoculation and ordainal symbolicals. Thus, you signalinate insufficiency staff as polite-behaved-behaved as computers, desks, printers, etc to husband the pliancy. So, these endowation-souls and aces should be exaltedlighted in the denomination.

E. Measures of Success: This is so a expressive deal-out of the arouset estimateture.

The metes of luck must be tied to the thesis and endives furnishd in the conceiveer excludeions of the arouset. For pattern, metement for our residenceseal thesis could be:

• We forebode to inferior the enumetrounce of race advancednt on benches in the downtown area by 50% during the transfering year.

• We forebode to cortege and experiment jobs for 50 race during the transfering year of consequenceion.

• We signalinate furnish houcackle in a unfailing environment for 100 men and women in the transfering year of consequenceion.

• We signalinate flatter exterior deeping to augment our arouset.

Councilmen and legislators are illusioning for a conclude to gainsay your arouset, properly during eras of produce scantyfalls. So, you should issue confident that your arouset estimateture is frank, compendious, and rejoinders slow topics than it corteges to the interpreter. See the Epilogue for an pattern of a arouset estimateture.


By now the interpreter should accept finishd that preparing a arouset is an impenetrconducive drudgery as polite-behaved-behaved as ensuring that it is lawfulifiable. Mark tnear are agent shapes settleed to issue the conceive logistically slow fruitful and operative, any enumetrounce of completions may behind up acrave the way. In authenticity, settleing the agent shapes may be the easiest deal-out of the conceive. Unfortunately arouset firmnesss are not constantly technical in regularity. Budget diversions are gentleman and are re-enacted throughout the fiscal year. If an bias insufficiencys to signalinate the most for the conceive, the skilled firmness is to be refinedly gentle to debate for the gregarious or technical arouset. In peculiarization, one must be gentle to furnish idiosyncratication indicating that programs and favors are achieving their scoped intention.

Important Conditions and Phrases

Audit Baseline/Base Expenditures Budget Calendar

Budget Cycle Budget Distatement Budget Master Budget Sketch Budget Maximizing Diplomacy Bureaucracy Foremost Magisttrounce Discretionary Spending Earmarking Funds Pliancy Productiveness Arrangement and Pliancy Audits Encumbrance Magisttrounce Provision Evaluation Exterior Audit Financial Audit Hearings Interior Audit Legislative Pcortege Mandatory Spending/Expenditure Product Audit Gregarious Budget Program Audit Stakeholders Unlargely Audit Technical Budget

Chapter 2 Hometrial Exercise

1. The legislative substantiality of the city is preparing to investigate the arouset for the diverse continuitys. Adown is a observation of the consequenceion arouset for the Jefferson City Recycling Dissolution in the Sanitation Department. Domiciled on the idiosyncratication in the arouset, has the dissolution been luckful in achieving an fruitful and operative consequenceion gone its survival in FY 2016? Teach your repartee.

Recycle Dissolution Budget

Recycle Dissolution Product Measures (in tons)

2. Directions: Plrepose interpret the integral provision precedent to origin the provision. You signalinate insufficiency an electronic observation of the Former Bias Budget Overture Petition Conceive in adharmonious to refined this provision. Should your cortegemaster elect to use the provision in pur-poseatize, you signalinate so insufficiency a Revised Bias Budget Overture Petition Conceive and diverse shuffles from a city or declare arouset, and the Evaluation in adharmonious to refined this provision. You are fadjust to spdiscestimate the diffusiveness of your estimateture, but it should not be craveer than three pages. See Epilogue 2A for an pattern of a arouset estimateture.

Step One: Outconcern of Systematize Homework

First, each tyro should earn a cord-ace or a program arouset for an bias/department, delayin a city, ucackle the internet or by going to a national city and petitioning a solid observation of the arouset (see Epilogue IF & G in article 1). Behind you settle the arouset, plucked an bias/continuity that you impress comforteffectual congeniality a arouset estimateture for a new earnestness or accustomment. Issue a observation of the transfering two pages of the bias/continuity arouset and deccontinuity it in delay the protection of your provision.

Second, ucackle the Former Budget Overture Petition Form, designate how you (the Bias Director) can emend that bias/continuity by adding a new earnestness or accustomment to the bias. For pattern, you could compose a new Child Foresight Program delayin the Continuity of Anthropological Services

for the City of Jonesboro. Behind you designate whether to add a new program or accustomment to the

agency/department, you should kind your repartees on the Former Budget Overture Petition Conceive ucackle a expression conceiveing program. Remember, your job is to persuade others that you accept a cheerful-natured-natured fancy. So, hawk the fancy. You are poor to a completion of $400,000.00 in your primal petition.

Should your cortegemaster designate to use the provision in pur-poseatize, you signalinate insufficiency to issue peculiarizational copies of your estimateture for use in pur-poseatize. In peculiarization, you signalinate insufficiency a bare observation of your estimateture, which signalinate be used to issue modifys to the agenter instrument.

Provide your cortegemaster delay a observation of the appolocality excludeions from the city or declare arouset that you rescued, a observation of your Former Overture Budget Petition Conceive and your Revised Budget Overture Petition Conceive from the in- pur-poseatize frrenewal of the provision. See Epilogue 2A for an pattern.

Again, if you are not completing the in-systematize frrenewal of the provision, you solely insufficiency the Former Budget Overture Petition Conceive and the excludeions from the arouset that you are adding to.

Step Two: In Systematize Games

As apexed out precedent, tnear are filthy deep peculiars/groups compromised in the arouset conceive. Hence, the pur-poseatize should be distally into prescribes of filthy or five. If someone is left out, he or she can be assigned the role of a cabinet constituent and adventitious to any deal-outicular prescribe. Each idiosyncratic in the prescribe signalinate drop his or her arouset petition from the role of bias administrationr mark the surviveing prescribe constituents signalinate arrogate the other roles. Absorbed what has been declared encircling each one of these actors in the extract dimensions, designate whether to support each arouset petition.

The bare Revised Budget Overture Petition Conceive should be used to issue voicelessnesss of any modifys petitioned by your prescribe constituents. The agenter unmarked and revised arouset petition conceive should be decliinsufficiency in to the cortegemaster at the arprotection of pur-poseatize. Each bias master has a completion of ten exacts to drop his or her arouset petition to the prescribe and ten exacts to rejoinder topics behind the other actors accept re-examinationed the arouset petition. When the agent mark has expired, the three or filthy constituents signalinate manipuadvanced yea or nay to vapidtering the arouset domiciled on the virtue of the arouset and the

virtue of the repartees to the topics. Your order is not denominated by whether or not your arouset is supportd by your prescribe, but by the virtue of your trial.11

Step Three: Selection the Best Proposal

Each prescribe should elect one arouset that was “the best”. This arouset should be seally furnished to the pur-poseatize.

Step Four: In Systematize Evaluation

When you accept refined investigateing each of the arousets in your prescribe, refined the evaluation conceive. When wholeone in the pur-poseatize has refinedd this conceive, and as agent acknowledges, peculiar bias masters can furnish the integral pur-poseatize an estimateview of their scheme and its extreme fruit.

Step Five: Completed Assignment

Give your cortegemaster the prospering aces:

1. Former Budget Overture Petition Conceive (Do not transcribe reformions on this conceive). 2. Revised Budget Overture Petition Conceive (Only comprun the aces that you modifyd). 3. Evaluation (Completed) 4. The Budget shuffles that you used to compose your new program.


Axelrod, Donald. 1995. Budgeting for Modern Government. 2nd Edition. St. Martin’s Press: New York, NY.

Bland, Robert L. and Irene S. Rubin. 1997. Budgeting: A Guide for National Governments. Washington, DC: ICMA.

Kittredge, William P. and Sarah M. Ouart. 2005. Budget Manual for Georgia National Government.

Athens, GA: Vinson Institute.

Lee, Robert D. Ronald W. Johnson, and Philip G. Joyce. 2013. Notorious Budgeting Systems. 9th ed. Sudbury, MA: Jones and Bartlett Publishers.

Le Loup, Lance T. 1977. Budgetary Politics: Dollars, Deficits, Decisions. Ohio: King’s Court.

Meyers, Roy T. 1999. “Strategies for Spending Advocates.” In Roy T. Meyer’s ed. Handdimensions of Congress Budgeting. California: Jossey Bass.

Mikesell, John L. 2014. Fiscal Administration. 9th Ed. Belmont, CA: Wadsworth Cinvolve Publishers.

Musell, R. Mark. 2009. Understanding Congress Budget: A Practical Guide. NY: Routledge.

Riley, Susan L. and Peter W. Colby. 1991. Practical Congress Budgeting: A Workdimensions for Notorious Managers. SUNY Press: Albany, NY.

Rogers, Jacquecord H. and Marita B. Brown. 1999. “Preparing Bias Budgets.” In Roy T. Meyer’s ed. Handdimensions of Congress Budgeting. California: Jossey Bass.

Rubin, Irene S. 2006. The Politics of Notorious Budgeting: Getting and Spending, Borrowing and Balancing. 5th ed. Washington, D.C.: CQ Press.

Sigelman, Lee. 1986. “The Bureaucrat as a Budget Maximizer: An Conviction Examined.” Notorious Budgeting and Finance , Vol. 6 #1, p. 50-59.

Smith, Robert W. Jinping Sun, and Thomas D. Lynch. 2017. Notorious Budgeting in America. 6th ed. Irvine, CA: Melvin & Leigh, Publishers.

Solano, Paul L. 2004. “Budgeting.” In Superintendence Policies in National Congress Finance. 5th Edition. Washington, D.C.: ICMA.

Swain, John W. and B.J. Reed. 2010. Budgeting for Notorious Managers. Armonk, NY: M.E. Sharpe.

Performance Budgeting: Declare Experiences and Implications for the Federal Government. 1993. U.S. Unconcealed Accounting Office. Washington, D.C.: Congress Printing Office

Wildavsky, Aaron. 1979. The Politics of the Budgetary Process. 3rd Edition. Boston: Weak Brown.

Wildavsky, Aaron and Naomi Caiden. 2004. The New Politics of the Budgetary Process. 5th Edition.

New York: Pearson/Longman.

Appendix 2A Budget Proposal

Agency Name: Jefferson City Sanitation Continuity Overture Name: Recycling Program

Introductory Summary: The Sanitation Continuity signalinate set-out a new recycling program that signalinate favor the integral city origin in August, 2017.

Statement of Need: The declare byed a law in 2016 requiring all cities to invest a recycling program no slowr than fiscal year 2019. They so furnishd a one-agent fraction of $50,000 to lay the conceive. In peculiarization, we can unswervingadvanced for $100,000 in federal deeps for our set-out-up absorbs. The city would insufficiency to tabuslow $500,000 towards the scheme. Jefferson City has 100,000 residents that genetrounce tons of recycleffectual symbolicals each month. Ample of this symbolical has trounce in the occupation sector. Slow deal-outicularally, our direct con-estimate manifests that we genetrounce filthy tons of glass, two tons of agreeing, six tons of cardboard, and ten tons of aluminum and other metals each month. We admired that we would be issueual to exhusband the especify of the drawingtfill by ten years if we recycled each of the aforementioned aces. In ten years, we admire that the recycle continuity signalinate be issueual to deep its consequenceion from the sale of the recycled symbolicals.

Program Description: The program signalinate use corpogentleman nonimport trucks to pluck up the recycled symbolicals in the denominated nonimport bags that the city signalinate furnish. In peculiarization, the Sanitation Continuity signalinate insufficiency to forfeiture equipment that absorb $600k to comcompact the metal and the recycle the glass. The pluckup inventory signalinate run ling delay the nonimport days. Since, we are creating seal project-away for the drawingtfill, we signalinate solely insufficiency to engage two slow staff to husband this new program. Other staff signalinate be propeld from drawingtfill consequenceions.

Benefits: The city signalinate favor as polite-behaved-behaved as the environment. Nevertheseal the city signalinate preforward deep in the crave run consequently we signalinate exhusband the especify of the running drawingtfill. In peculiarization, the dissolution signalinate be in the ebon during the transfering year absorbed the sale of the recycled symbolical. In peculiarization, we signalinate conduce seal project-away to our environment and essentially advance a sanityy environment for all of the residents of

Jefferson City. Last, the city signalinate be in acquiescence delay declare law.

Performance Measures: The program signalinate impair the ekind of pamphlet, glass, aluminum and agreeing in our environment. The program signalinate exhusband the especify of the drawingtfill. The program signalinate preforward deep estimate agent and opetrounce slow fruitlargely and operatively.

Costs: The whole absorb for the program is $850,000 in year one delay a $150,000 allocation from the declare and federal congress. In the transfering fiscal year (18) we signalinate forfeiture a devices to comcompact the metal and glass. In FY 2019, we signalinate forfeiture a devices that wraps the cardconsultation and agreeing and compactes it. The surviveing extensions in the arouset signalinate cestimate the absorb of extensiond groove and rend on the equipment.

Staffing Impact: We signalinate use $225,000 of the arouset to deep two unmeasured agent accustomees and their favors. We signalinate use corpogentleman accustomees for the other favors.

Equipment: In fiscal years 2018 and 2019, we signalinate forfeiture nonimport compactors to comcompact the recycled symbolical. No other equipment is insufficiencyed for the foreseeeffectual advenient.

Options: We do not accept the election to not compose a recycling program as it is a declare insist-uponment. However, we can invest the program by recycling one of the aces in the transfering fiscal year and add a new ace each fiscal year thereafter.

Budget Allocations:

Accompanying Legislation:

State Mandate, HB 4239.

Evaluation of the Role Uncounted Assignment

1. Behind re-enacting the role(s) of diverse arouseting officials on diverse estimatetures, do you impress that congress precedentities were detained mark vapidtering the bias petitions? Little teach your conviction.

2. Are you acquiescent delay the outbehind of your estimateture? Why? Why not? What could you accept produced to emend the luck of your estimateture?

3. Which of the filthy actors illusion to re-re-enact the exaltedest role in determining the outbehind of a arouset estimateture in your conviction? Why?

Appendix 2B

Chapter 3

Personnel Services and Unhindered Budgets

Chapter Three Overview

Typically, a arouset has three deep constituents: idiosyncraticnel favors, unhindered and essential outgoings reckoning. The intention of this article is to offer the interpreter to the constituents of a trutination idiosyncraticnel favors and unhindered arouset. Specifically, the article furnishs advice on: congeniality the arouset, sereneifying new lies, lie pur-poseatizeifications, pay arranges, and the wary favors for unanalogous kinds of accustomees. The article so investigatees wary FICA, Medicare, and pension favors. Lastly, the article judges the unanalogous conceiveats, actions, and disadvantages of an unhindered arouset. Essential outgoingss are examiscarcity in article filthy.12

Writing a Personnel Services Budget

The idiosyncraticnel favors arouset is typically deeped out of the unconcealed deep. Personnel favors comprun salaries and fringe favors for accustomees and can be husbandd in a tramp by tramp conceive.13 A compensation is scarcely the stipend intent for favors surrendered estimate a absorbed era of agent. Salaries can be conducive very abundantly ucackle a spreadsheet. However, frequent congresss accept software that automate the estimation of salaries and associated favors. That is, it is very gentle to incrrepose or decrrepose salaries ucackle a very unadorned conceiveula. Fringe favors are acquittals and favors surrendered by an bias in peculiarization to typical stipend to an accustomee. Fringe favors can be domiciled on a percentage of pay vapidten, such as pensions, convokeive protection (FICA) and Medicare. Collective protection and Mediforesight are dramatizeed as a tax on your pay stub. Some debate that these two aces are idiosyncraticnel absorbs rather than favors. A coopetrounce prescribe of favors refurnish a dull ekind that can variegate domiciled on the accustomee’s

circumstances. These comprise: especify and sanity warranty. Non-monetary favors comprise: intent agent off, such as holidays, vacations, weak license and peculiar license which are a constituent of the annual compensation; catch-residence cars; fadjust fenceing; accustomee motive programs; and agent off for ordainal intentions. Collective protection is insist-upond for all congress accustomees according to federal law cosmical the congress has its own seclusion pur-pose. Mediforesight is insist-upond for all congress accustomees. It is not a confesseffectual insist-uponment that an accustomer furnish: sanity, especify warranty, inoculation enumerations or any non- monetary favors to all of its accustomees. Tnear are a multiplicity of professionrence that command who should entertain favors. One of the essential ingredients is unmeasured agent versus deal-out agent standing.

Another essential ingredient in the idiosyncraticnel favors arouset is estimatetime. This is properly penny for police and flatterionfighters, gone they typically accept 24/7 inventorys. Overagent is typically intent at the trounce of one and one-half agents the hourly trounce of pay. Overagent can be a prognosticificant absorb for frequent congresss. Percentage-driven favors, such as pensions and Mediforesight are so a constituent of estimatetime. Frequent congresss plucked to pay estimateagent rather than add accustomees consequently it continues the administrationrcalcuslow down. Another action is that new accustomees accept to collect the job mark corpogentleman accustomees are perfectday delay job insist-uponments.

Calculating FICA and Medicare

The federal congress sets bias oblations to Mediforesight and convokeive protection year-by-year. Currently, agencies tally the 6.2% convokeive protection trounce that accustomees accept deducted instantly from their paycheck. Hence, the accustomee and accustomer conduce a whole of 12.4%. In 2017, the convokeive protection tax trounce applied to rights up to $127,200.00 ( No taxes are due from the accustomee or accustomer further that resemblingity. For pattern, if a notorious synod zealot had a compensation of $135,200.00 in 2018, she would pay $7,874.00 and the university would so conduce $7,874.00 on her bestead for a whole of $15,748.00 in convokeive protection taxes for the year ($127,200.00 x .124 = $15,748.00). Voicelessness that the surviveing $8,000.00 of her compensation is not thesis to convokeive protection taxes when wary FICA during the running record year.

The trounce for Mediforesight is 2.9%, and is distally resemblingly unmoulded the accustomer

(1.45%) and the accustomee (1.45%). Contrary to convokeive protection, the Mediforesight trounce applies to the flill compensation. Let’s judge the zealot used in the aggravate pattern. Domiciled on her annual compensation of $135,200.00 in 2018, the Mediforesight tax is $3,920.80 ($135,200.00 x .029 = $3,920.80). Mediforesight is mandatory at the unmeasured ekind for all accustomees heedseal of age or accustomment standing. If an accustomee is a deal-out agent or a impair trialer, he or she may not enconducive for unmeasured fringe favors. For pattern, if the bias does not pay their divide of convokeive protection and Mediforesight favors the accustomee (unmeasured and deal-out agent) has to pay the unmeasured ekind to the federal congress. Hence, the accustomer’s oblation of half the convokeive protection and Mediforesight acquittal is judgeed a fringe favor or an peculiarizational absorb. So, it is essential that you retain that you should solely judge the congress’s frrenewal of the acquittal on the arouset rather than the whole resemblingity. Employee oblations to convokeive protection, Medicare, pensions, etc is comprised in a disjoined arouset instrument.14 However, when wary Collective Protection and Mediforesight taxes in a idiosyncraticnel arouset, you should solely comprun the congress’s oblation.

Pensions For the most deal-out, nhence all unmeasured agent congress accustomees deal-outicipate

in what is commsolely denominated a pension cunning. Some congress pension cunnings are in lieu of Collective Protection mark others may accept twain. Very weak congresss may solely accept Collective Security. A pension cunning furnishs financial favors to an accustomee behind he/she retreats and/or has arrive-ated a positive age. Some cunnings acattainments an accustomee to retreat behind wining a positive enumetrounce of years of favor, such as 30, at any age. Others insist-upon twain a deal-outicular age and a insufficiency enumetrounce of years of favor. Stagnant others accept solely a nice age insist-uponment. Twain accustomee and the accustomer conduce deeps to the pension cunning (not necessarily at the identical trounce) and twain entertain favors. The accustomee entertains the monetary favor and protection of understanding that they signalinate accept deeps upon seclusion. The congress favors consequently they can avail their idiosyncraticnel superintendence endives. They insufficiency accustomees to issue a foresighter out of notorious favor. The experiment and inoculation that is gained through the years conduces to a poweral bureaucracy. So, in adharmonious to reclothe the best race and continue them in the notorious sector, the congress must furnish a cheerful-natured-natured seclusion load (Hildreth and Miller 1996; Smith, Sun, and Lynch 2017). Pension trounces can arfile from a low of 2% up to a exalted of 30% or slow of an accustomee’s compensation.

Tnear may be an resembling oblation or the protracteder lot may be on the accustomee (Stalebrink, Kriz, & Guo 2010).

A pension pointizes and behaves flatter convokeive protection. However, unflatter convokeive protection, pension deeps are invested in recitals that becrave to the accustomee. Collective Protection is a “pay-as-you-go” pur-pose, whereby running oblations are used to pay the absorb of departed retreates. As uniformt would manifest, it is practiceffectual for pension deep estimates to endure or develop as the arrangement modifys. When the arrangement or the siege portfolio catchs a deccontinuity for the worse for an prolonged era of agent, it is essential that deep husbandrs enconfident that abundance deeps are set aconcern and the tax ignoble is steffectual abundance to issue up for the contrariety in lost sieges (Smith, Sun, and Lynch 2017). As a unconcealed synod, pension deep portfolio husbandrs should enconfident that they are making convokeively salubrious sieges. This conceive is smoothd delay a pension consultation of masters. Normally made up of constituent dramatizeatives acrave delay outconcern accustomments, they are legitimate for utensiling confesseffectual insist-uponments (Hildreth and Miller 1996; Hildreth and Adams 1997).

Pension sieges typically drop into two categories: agricultural pay securities and equity securities. Agricultural pay securities are compulsions that furnish a undeviating exit of curiosity-bestead acquittals omitting any defaults, such as a corpotrounce tie or corpotrounce annuity. Equity securities (which are slow foolhardy) are sieges in stocks, which may or may not pay dividends (Petersen 2004; see so Hildreth and Adams 1997).

As years accept byed and arousets accept tightened, notorious pension deep recitals accept developn and accept bebehind slow and slow sensitive to fungibility issues. Again, it is essential that the pension deep husbandrs and the consultation of masters issue confident that these deeps are not translatered to other deeps haphazardly (Nollenberger 2003; Petersen 2004).

Until the mid-1990’s, virtually all congress pension cunnings were defined favor cunnings. When an accustomee began trial, he/she was striveered a dimensions that declared unswervingly how ample could be forebodeed at seclusion domiciled on age, years of favor, and decisive middle compensation. Pension deep husbandrs accept the lisoundness for pensions conducive by actuaries. The actuaries designate how ample the accustomer and accustomee accept to conduce to deep the pensions. It is the calling of the husbandrs to experiment sieges that signalinate agree the resemblingitys indispenscogent to cestimate all constituents in the pur-pose. When the arrangement has prognosticificant downturns, as happened in the slow 2000s,

investments are not issueual to continue tdiscestimate delay the insist-upond resemblingitys. This instrument that the pension oblations should be extensiond. However, that is not gentle to do. It insist-upons congress to cortege oblations. Some pension cunnings accept had to attribute to conface their compulsions.15 Others accept had to enumeration pension oblations delay unconcealed deep subsidies.

Since the mid-1990s, a enumetrounce of congresss accept settleed defined oblation cunnings. The congress and accustomee each conduce a insist-upond ekind for the pension. However, the accustomee is legitimate for investing the deeps. Employees are furnishd diverse siege elections and plucked an election that is divert. Defined oblation cunnings are movable. That is, when the accustomee licenses congress favor, the pension alights delay the accustomee. In a defined favor cunning, the accustomee may not get end any of the oblations or may entertain a survive of his/her oblation. The action to the accustomer of a defined oblation cunning is that tnear is no crave promise impost. Some congresss, such as Orlando, Florida, accept restored a defined favor cunning delay a defined oblation cunning for all accustomees hence on consultation behind October 1, 1998.

Calculating the Pension Benefit

While the years of favor can variegate, most declare and national congresss insist-upon their accustomees arrive-at an age unmoulded 62-65 and trial at insignificantest 5-10 years in adharmonious to entertain a pension. However, tnear are a enumetrounce of other ingredients that can catch settle to modify that scenario. These would comprun unnaturalnesss flatter disabilities.

Tnear are two key ingredients compromised in wary the pension favor— decisive middle compensation and the annual multiplier. The decisive middle compensation is domiciled on the exaltedest earning years of an accustomee and can variegate from three, filthy or five years being on the pension pur-pose. An annual multiplier is the percentage of decisive middle compensation that is applied to each year of favor. For pattern, a pension cunning furnishs for each year of favor to be divers by two percent. An accustomee trialing 30 years would entertain 60% of his/her decisive middle compensation. This comprises the whole percentage trounce. An accustomee that trials 5 years, the ordinary insufficiency vesting era, would entertain 10% of their decisive middle compensation.

Exhibit 3.1 furnishs a copy that can be used to calcuslow seclusion

benefits. In this pattern, Mrs. Deepthi Kollipara trialed 30 years for the city and is 64 years of age. The promiseinal fraction of idiosyncratication insufficiencyed to calcuslow her seclusion favor is her five exaltedest record year salaries. In adharmonious to calcuslow her favor, you must:

• First, dilate her years of favor agents the percentage trounce per years of favor.

• Second, her five exaltedest years of favor should be adventitious up and disconnectedd by the years of favor (5).

• Third, her middle five year compensation should be divers by the whole percentage trounce (TVPP).

• Domiciled on the conceiveula, Mrs. Kollipara would entertain $37,544.07 per year and $3,128.67 per month for her 30 years of favor. Note: When age and years of favor are not on the identical cord, elect the ingredient that best favors the accustomee.

Exhibit 3.2 is an Excel spreadshuffle of the identical idiosyncratic that is conducive

in Exhibit 3.1. This computer program despatchs the conceive and furnishs the user an unconcealeding to weigh diverse seclusion scenarios.

Tnear are some other issues that this copy does not weigh, but they are stagnant essential to the accustomee. This comprises unnaturalnesss such as vesting, portsoundness pur-poses, absorb of endowation adjustments, hence seclusion, and disqualification/survivor fortifyions. Vesting happens when an accustomee trials a positive enumetrounce of years making them worthy to entertain seclusion favors. The insufficiency enumetrounce of years insist-upond for vesting can arfile from 3-5, but gentlemanly bes upon the pur-pose wnear you trial. In some professionrences, you can propel your vested standing to another congress job (portability). This is unadorned when you alight in the identical pur-pose (trial for the identical municipality or declare), but seal flatterly to happen if you propel to a unanalogous city or declare. This is one of the drawbacks of the defined favor cunning and one of the actions of the defined oblation cunning.

Tnear is an accoutre of issues and topics narrated to dissoundness standing. For pattern, signalinate you be issueual to entertain pension favors if you bebehind disabled precedent to behence worthy for favors? Terminate your manifestation or accomplice entertain your pension if you die precedent to receiving favors? Terminate you enconducive for favors if you enduringly impair yourself outconcern of trial? The rejoinders to these and frequent other topics signalinate variegate domiciled on wnear you are trialing. It is essential that a congress address all of these topics delay written policies (Hildreth and Miller 1996; Smith, Sun, and Lynch 2017).

Position Classifications and Compensation Ranges

Exhibit 3.3 illusions a unadorned bias arouset delay each of three deep

categories acrave delay pur-poseatizeification modes. The modes are for authoritative intentions. They issue it easier to settle a deal-outicular cord in a arouset. This deal-outicular arouset dramatizes a deal-outicular dissolution delayin an bias. Consequently it is in a cord ace conceiveat, it essentially divulges the interpreter the ekind of deeps indispenscogent to run the dissolution delayout any absorb associated delay a deal-outicular peculiar and their responsibilities. However, the arouset does not divulge the interpreter the enumetrounce of endowation-souls who trial in the Procurement Division, nor does it tame down the fringe favors by accustomee. Most arousets are kindd into a computer spreadsheet. This despatchs the arouset conceive and impairs sober hallucinations.

The most vulgar accustomee pur-poseatizeification is a unmeasured agent equipollent (FTE).

Full agent lies are typically 35-40 hours per week. A unmeasured agent accustomee (equivalent) is worthy to entertain the unmeasured arfile of fringe favors. Deal-out agent accustomees (PTE) typically trial 15-35 hours per week and are not worthy for unmeasured fringe favors. Some deal-out agent accustomees may entertain prorated favors. A bus stimusucceeding for the city bus would be an pattern of a deal-out agent accustomee who trials for the weightyity of the fiscal year and could be worthy for fringe favors.

Temporary lies may so be. These are accustomees who may trial unmeasured agent, but are not enduring, such as summer accustomees for a fence and refcogent continuity or a secretary or janitor intent during peak continuance on a limited idiosyncratication. They may so be worthy for prorated fringe favors as polite-behaved-behaved (Riley and Colby 1991).

The pur-poseatizeification FTE is used by the congress in wary the enumetrounce of hours associated delay a lie. For pattern, a unmeasured agent accustomee who trials for the integral fiscal year would be the equipollent to 1.0 FTE. Filthy janitors, each trialing six months out of the year, would resembling 2.0 FTE’s (.5 for each idiosyncratic). By ucackle this pur-pose, the congress views idiosyncraticnel absorb in conditions of the enumetrounce of lies and absorbs insufficiencyed to refined a job rather than the enumetrounce of race.

State and national congresss regularly use pay cunnings for accustomees. These cunnings typically unswervingadvanced to unmeasured agent accustomees. The cunning vapidtens each lie pur-poseatize acrave delay the compensation arfile for that lie. It is very opposed to sereneify paying a deal-outicular accustomee a compensation out of the arfile delayout raicackle the bar for all other accustomees in that pur-poseatizeification. The Compensation Arfile Cunning comprises the designation of the lie, authoritative mode associated delay the lie, and annual compensation arrange. Exhibit 3.4 delays an pattern of a compensation arfile pur-poseatizeification.

Like most unnaturalnesss narrated to congress, a compensation arfile pur-poseatizeification is

beloved by a legislative substantiality and avails frequent intentions. A few of these intentions are vapidtened adown.

• Provides congress officials idiosyncratication that may be favoreffectual in recitaling, payflatten and idiosyncraticnel conceivees.

• Ensures that salaries are concludeeffectual and equiteffectual not-absolute to the responsibilities of the accustomee.

• Limits opportunities to effect-famous. • Allows the congress to redeep competitive in an unconcealed bargain and

retain experimentd accustomees. • Acts as a repress estimate salaries when new lies and corteges are


Justifying a New Position

Growth in responsibilities of an bias and idiosyncraticnel are serenely trutination in most congresss. As a emanation, it is indispenscogent on agent to petition one or slow new lies. Tnear is never a insafe that a petition for a new lie signalinate happen. Nonetheless, it is essential that bias administrationrs enconfident that they comprehensively re-examination the old and new responsibilities of the bias in adharmonious to issue confident that they can loftyly sereneify new lies and detain the conceiveer lies. Tnear are diverse aces that go into a petition for a new lie that signalinate smooth the conceive (Riley and Colby 1991). The bias can:

• Excuse the fcogent of the new lie(s) by outlining the responsibilities of the idiosyncratic(s) not-absolute to extensions in trialload or remote programs.

• Nartrounce the qualifications of the accustomee(s) delay a notation as to whether it fits the running compensation pay pur-poseatizeification.

• Illusion how this lie(s) signalinate issue the bias slow fruitful and operative.

• Illusion how the new lie(s) signalinate augment new conditions or augment running responsibilities.

• Program modifys prosper the identical logic as a lie petition. Show

how the program signalinate issue consequenceions slow fruitful and operative.

Calculating a Peculiar Services Budget

Preparing a new arouset can be opposed for the arouset accustommentr. In authenticity, this era idiosyncratications a serene ekind of peturbation for the integral staff. However, the conceive can be reposed delay diverse aces. Leading and foremost is accutrounce advice. It is very essential that bias masters and the idiosyncraticnel accustomment furnish the arouset accustommentr delay relieffectual idiosyncratication that fits delay understandn postulates. Second, a computer can despatch the arouseting conceive, but it cannot interpret minds. Hence, it does not revere sober hallucinations in idiosyncratication memorandum for pattern. In most professionrences, arousets are inaccutrounce consequently of anthropological hallucination. Feature aces insufficiencyed by the arouset accustomment comprise:

• A manual to re-examination arouset petitions. The manual would typically delay superintendence device advice (the unswervingforwardion the bias is administrationred and germinative areas to cut or spread).

• Budget provision conceives acrave delay instructions. • Compensation advice narrated to idiosyncraticnel (includes advice on

designed compensation extensions as polite-behaved-behaved as fringe favors). • Unhindered and essential outgoings instructions.

Beginning delay the conceiveer year’s ignoble, the arouset accustommentr can put the new schemeed compensation advice (domiciled on arouset schemeions) into a computer spreadshuffle program for each lie pur-poseatizeification. Budget schemeions are domiciled on schemeed produce, which are unnotorious versus what is understandn. Budget admires are domiciled on slow embodied advice. Assuming that no modifys happenred, the computer signalinate automatically calcuslow the fringe favors associated delay the compensation. In some professionrences, the percentage or dollar ekind of fringe favors may modify. Exhibit 3.5 is an pattern of an Bias Compensation Convexity Report.

This repute acknowledges the viewer to designate the unswerving absorb associated delay a lie or an peculiar. Collective protection, Medicare, and seclusion deeps are domiciled on conceiveulas mark sanity foresight absorb for the peculiar accustomee is the identical for wholeone that has a deal-outicular idiosyncraticality, such as uncombined, married delay one beent, and married delay multiple beents for sanity foresight favors. Each of the accustomees vapidtened near are running accustomees. The whole absorb comprised in Exhibit 3.5 is the whole absorb to the congress. The accustomee oblation is judgeed a deal-out of the integral arouset. That is, the accustomee oblation is not judgeed in the FICA and Mediforesight posts consequently their oblation is nevertheseal deducted from their compensation. Delay that said, it is not indispenscogent to illusion the oblations of twain the accustomee and accustomer on a cord ace idiosyncraticnel arouset.

If tnear are a enumetrounce of accustomees who accept the identical compensation, the arouset accustommentr may scarcely insufficiency to vapidten the lie by designation and put the enumetrounce of accustomees who corattract to that lie/grade. This conceiveat preserves agent and intervenience. However, this conceiveat solely trials when tnear are a enumetrounce of accustomees who accept the unswerving identical compensation.

A petition for a new lie acrave delay compensation schemeion prospers the identical conceiveat. However, tnear should be a sereneification for the new lie at the groundachievement of the arouset petition (see Exhibit 3.6). The sereneification should manifest why the lie is insufficiencyed acrave delay any sustaining showance that would uphold the petition. Personation are properly favoreffectual in a lie sereneification. Gone the bias is not making a oral dispute for the new lie, the sereneification should be foresightlargely gentle.

A disjoined conceive should be used for each new lie petition. If the authoritative lie mode does not manifest whether the lie is an FTE or PTE, then it should be comprised on the idiosyncraticnel petition conceive. Gone lies are domiciled on pur-poseatize, the petitioned compensation for the new accustomee should drop delayin the confesseffectual pay arfile that was set by the legislative substantiality.

These conceives typically behind delay refined instructions dictating what should be comprised. Specifically, these instructions should manifest the running trounces for FICA (12.4%), Mediforesight (2.9%), and seclusion (18%). In peculiarization, it should delay the absorb of sanity warranty ($1,800.00) and any other appolocality advice.


Due to an dilution in 911 favors the enumetrounce of inhence phone calls has proved to be a lot for one idiosyncratic. As a emanation, we had to engage a limited accustomee and use patrol accustommentrs to aid in this trial. Therefore, it is economically permissible to accept a unmeasured agent accustomee to propel out these responsibilities.

Preparing an Unhindered Budget

As declared precedent, the idiosyncraticnel arouset issues up the bigness of reckoning in the arouset conceive. However, unhindered absorbs are serene as essential. These petitions are re-examinationed and sereneified each fiscal year. Unhindered absorbs comprun aces such as pilgrimage, telephone favors and other utilities, pencils, pamphlet, adding devicess, laceration or any other ace that recurs. In unadorned conditions these are aces insufficiencyed by an bias to pass occupation. Equipment, such as vehicles, can so be comprised as an unhindered protectionitution if the bias is not petitioning a big enumetrounce of new vehicles whole year. Further, if vehicles were to be restored estimate a enumetrounce of fiscal years, this capacity not be the best arfile to comprun them. It would be on the device of the congress. Other exclusions would comprun exalted absorb aces such as super computers and fabrics. These are essential heave aces.

When making a petition for unhindered reckoning, an bias has to manifest how these aces signalinate be used to conface the band-arms of the bias and

any new activities that the magisttrounce or legislative substantiality may accept. The bias master agreeting the arouset should manifest in the arouset transmittal epistle how the petitions are tied to the ends of the bias. In peculiarization, idiosyncratication illusioning how reckoning are tied to programs and consequenceion is very favorable. Opposing the inclusion of these aces, unhindered arousets are not weighd as ample as idiosyncraticnel arousets. The few crusty are inoculation and pilgrimage.

Tnear are three basic ways to furnish an unhindered arouset estimateture. The transfering is the incremental mode. An incremental unhindered arouset essentially illusions a infeadmonish incrrepose in the arouset due to inflation and other naturally happenring economic ingredients. A lot of agencies husband to use this kind of arouset consequently it links project-awaying instantly to a favor or ace (see Exhibit 3.7 for an pattern).

Also, this arouset is properly favoreffectual when tnear accept been no new petitions in the idiosyncraticnel arouset and when tnear is no mark of modifys in the bias. In peculiarization, it is gentle to bear the arouset in this conceive when the bias can illusion that it has fruitlargely and operatively pursued the band-arms of the bias. The incremental unhindered arouset has filthy deep constituents: an end mode, ace/service, running year absorb, and admired absorb for the uphence fiscal year. Wnear divert, it may so be favoreffectual to manifest the enumetrounce of aces petitioned (for pattern, the enumetrounce of adding devicess).

The admires in FY 2018 should be domiciled on the discontent. That is, the admire would not surby the discontent, but could be seal domiciled on absorbs as of the to-leap of arouset provision. The bias could add an peculiarizational post delay FY 2017 express project-awaying to furnish the re-examinationer a meliotrounce deviate

analysis. This mode is so cheerful-natured-natured to use when tnear is a perfect modify in the absorb

of an ace. For pattern, let’s arrogate the absorb of telephone action has extensiond by 5% each fiscal year for the promiseinal five years and the ekind for FY 2018 is a 15% incrrepose estimate the conceiveer year (Exhibit 3.8). This incrrepose would insist-upon a sereneification gone it does not prosper the conceiveer deviate. The identical would be penny for the 2019 designed arouset. Ideally, the sereneification would manifest what device modify or other smoothts precipitated the incrrepose in phone favor absorbs. Fadjust crisp denominations to modifys despatch the pcortege conceive (Riley and Colby 1991).


A.) DARE Program: In similitude delay the Mayor and City Council’s band-arms to spdiscestimate the program into whole cortege, we accept extensiond the enumetrounce of accustommentrs who go into the corteges and the ekind of advice that they spread.

B.) 911 Service: Due to the dilution of casualty favors into the newly outlying purlieus of Mt. Vernon and Taylorville, we are petitioning two new patrol accustommentrs and thus insufficiency to furnish them delay comprehensive inoculation and other amenities.

The coopetrounce and third kinds of unhindered arousets are consequenceion and program arousets (see article 1). A consequenceion or program unhindered arouset would link the unhindered reckoning to consequenceion and programs (Riley and Colby 1991; Kelly and Rivenbark 2003). The arouset weighr should be issueual to illusion at this arouset acrave delay the sereneification and see unswervingly wnear and what the deeps are used for.16


Personal favors and unhindered arousets illusion to be slow or seal consequenceional accustomments. However, tnear is stagnant a order of haggling that catchs settle. Positions are not constantly insured opposing disputes indicating the insufficiency. Budget idiosyncraticnel accustommentrs should enconfident that they are meticulous delay their idiosyncratication memorandum skills. A computer is solely as cheerful-natured-natured as the operator. It is very gentle to put in the injustice enumetrounce and project off the integral arouset. Budgets must estimate to the promiseinal dollar. Hence, rotunding hallucinations must be minimized.17

Important Conditions and Phrases

Accrual Accounting Budget Estimates Budget Projections Essential Budget COLAs Fringe Benefits Unmeasured Agent Employee Mete-out Sanity Warranty Incremental Unhindered Budget Especify Warranty Mediforesight Unhindered Budget Deal-out Agent Employee Pension Pension Consultation of Directors Product Unhindered Budget Peculiar Services Budget Program Unhindered Budget Seclusion Compensation Arfile Cunning Collective Security

Chapter 3 Hometrial Exercises

Directions: Templates for obedient topics are endow in the epilogue. Use Excel conceiveulas to calcuslow the rejoinders. All of the repartees should be refinedd and/or copied and departeded into a MS Expression instrument. Email your Excel spreadshuffle to your cortegemaster and deccontinuity in the MS Expression instrument in pur-poseatize.

1. Define each of the prospering conditions:

A. Final Absorb B. Recurring Absorb C. Instraightadvanced Absorb D. Straightadvanced Absorb E. Agricultural Absorb F. Up Face Absorb G. Varieffectual Absorb H. Deal-out Absorb I. One Agent Absorb J. Unhindered Absorb K. Tramp Cost

2. The city cabinet for Jefferson City denominated to compose a new Tourism Continuity in FY 2019. The continuity has a master, secretary, bargaining master, two van stimulaters, and three tourism accustommentrs. As the arouset accustommentr for the city, your job is to compose a idiosyncraticnel arouset for the continuity ucackle the advice vapidtened adown. Solely judge the aces that are vapidtened. Interpret each bullet precedent to origin the provision (See Epilogue 3 A).

• Refined the FTE post. • The dept, master has a compensation of $ 109,000 and is a FTE. • The secretary has a compensation of $48,000 and is a FTE. • The bargaining master has a compensation of $65,500 and is a FTE. • Each stimusucceeding has a compensation of $40,000 and is a FTE. • Each tourism accustommentr has a compensation of $20,000 and trials deal-out agent

(PTE). Although they each trial 6 months out of the year, they are intent estimate a 12-month era.

• FICA is 12.4% and Mediforesight is 2.9% for all accustomees. Solely judge accustomer oblations to FICA and Medicare.

• Sanity warranty absorbs are $3,000.00 per year for each FTE. • Each tourism accustommentr has a clounnaturalness arouset of $500. • Each stimusucceeding has a clounnaturalness arouset of $750. • Each tourism accustommentr is worthy for 50% of the fringe favors (health

warranty recompense, especify warranty and pension). • Inoculation absorbs associated delay each tourism accustommentr is $500. • Inoculation absorbs associated delay each stimusucceeding is $800. • Especify warranty recompenses are $25.00 per month for each FTE. • Pensions are 9.5% of compensation for each FTE. The city pays the unmeasured


3. Pur-pose a compensation schemeion repute for the Jefferson City Affection Continuity for FY 2019 ucackle the express arouset for FY 2018 as a copy acrave delay a arouset petition for two new flatterion contentioner (2a) lies. Use the prospering advice in your FY 2019 Compensation Projections and arouset petitions (see Epilogue 3B). Voicelessness that the arouset has the enumetrounce of accustomees in each lie order rather than vapidtening each accustomee. Also, you should calcuslow the whole absorb of accustomment for each staff idiosyncratic.

• The compensation of the foremost extensiond 7% mark wholeone else entertaind a 5% extension.

• FICA is 12.4% and Mediforesight is 2.9% for all accustomees. Solely judge accustomer oblations to FICA and Medicare.

• The absorb of sanity warranty extensiond 5%. • The absorb of uniforms extensiond 2%. • The flatterion contentioner’s pay arfile is $60,000.00-580,000.00. You signalinate pay

the new flatterion contentioners (2a) $60,000.00 • The new flatterion contentioners (2a) signalinate entertain the identical favors load as

the other FY 2015 accustomees. • Absorb of inoculation the new flatterion contentioners is $6,000 per accustomee. • The pension trounce in FY 2019 is the identical as it was in FY 2018. • The juridical staff constituent trials a half day inventory 12 months per

year (.5 FTE). • Refined the FTE post.

4. Three accustomees are minor from Jefferson City. Your job as the anthropological recommencement accustommentr is to calcuslow their pension acquittals ucackle the prospering advice. Use the copy in Exhibit 3.1 to support you in completing this completion. Calculate: Whole % trounce PP, Middle Decisive Compensation, Annual Benefit, and Monthly Benefit. Deccontinuity in the scanty surrendering Excel trialshuffle to your zealot (See Epilogue 3C).

Employee 1 Mary Rademacher

• Has 31 years of favor and is 63 years of age. • 5 exaltedest years of compensation are: $18,904; $19,398; $20,198; $32,239; &


Employee 2 Steffanee Richardson • Has 32 years of favor and is 64 years of age. • Five exaltedest years of compensation are: $28,504; $29,698; $30,798; $36,839;

& $38,508.

Employee 3 Charlie Parker • Has 34 years of favor and is 69 years of age • Five exaltedest years of compensation are: $47,904; $49,899; $55,678; $59,742;

& $62,108.

5. As the arouset accustommentr for Alexander Declare Prison you accept to pur-pose the FY 2019 Unhindered Budget schemeions for the Protection Dissolution domiciled on the FY 2018 arouset admires. Adown you signalinate experiment one frrenewal of the arouset uniformt for the prison. Near are a few postulates that you should understand encircling the prison when preparing the unhindered arouset. First, tnear are thirty staff constituents in the dissolution. Twenty-ssmooth of the staff endowation-souls are resembling in adjust (guards). The vedette, arouset accustommentr and secretary are the promiseinal three staff constituents. Other than what is declared, why do believe these modifys happenred (see Exhibit 3.5)? Be moderate and unreal in your repartees and sereneify the modifys. Use bullet apexs to recruitment your sereneifications. Rotund all of your schemeions to the unswerving dollar resemblingity. Hint: You can rotund collation in Excel ucackle the rotund accustomment as polite-behaved-behaved as the “Decrrepose Decimal” accustomment in the “Home” dupe bar.

• Ten of the guards insufficiency inoculation. Thus, inoculation absorb signalinate incrrepose by

34%. • Motive absorbs are forebodeed to run 25% due to modifys in global oil and

gas worths. • The absorb of printing, pens, and pencils inferiors by 2% from FY

2018. • The absorb of pamphlet signalinate incrrepose by 5%. • Telephone absorbs are forebodeed to incrrepose 4%. • No new adding devices, but we insufficiency a new printer which signalinate absorb

$500.00. • Miscellaneous produce signalinate incrrepose 25%.

Operating Budget

6. Optional In-Class Assignment: Defending Budget Justifications (45 exact exertion)

A. Precedently Systematize Assignment: Each tyro should address the prospering estimateture: The Vedette of Alexander Declare Prison insufficiencys to spdiscestimate the enumetrounce of guards by five and compose an supportant vedette lie delayin the prison. He has petitioned that you, the prison arouset accustommentr, transcribe the sereneifications for the lies. Ucackle the advice in the article on “Justifying a New Position,” transcribe a sereneification for the six lies. You should comprun a seal truth describing the lies (guards are resembling in adjust) and their basic duties. Then, ucackle at insignificantest five bullet apexs, nartrounce why they are insufficiencyed.

B. In-Class: Distally the pur-poseatize into prescribes of filthy or five and accept each idiosyncratic embody their sereneifications in no slow than five exacts. Each tyro should propel peculiarizational copies of their repartee to keep-apart natant the prescribe constituents. When all of the prescribe constituents are refined, a prescribe sereneification should be composed and furnished to the pur-poseatize.


Bland, Robert L. 2005. A Produce Guide for National Government. Washington, D.C.: ICMA.

Friedman, Marvin. 1983. “Calculating Restitution Costs.” In Budget Management: A Reader in National Congress Financial Management. Eds. Jack Rabin, W. Bartley Hildreth, and Gerald J. Miller. Athens, GA: Carl Vinson Invest of Government, University of Georgia.

Gruber, Jonathan. 2005. Notorious Finance and Notorious Policy. NY, NY: Worth Publishers.

Kelly, Janet M. and William C. Rivenbark. 2003. Product Budgeting for Declare and National Government. Armonk, NY: M.E. Sharpe

Mikesell, John L. 2014. Fiscal Administration. 9th Ed. Belmont, CA: Wadsworth Cinvolve Publishers.

Riley, Susan L. and Peter W. Colby. 1991. Practical Congress Budgeting: A Workdimensions for Notorious Managers. NY: Declare University of New York Press.

Smith, Robert W. Jinping Sun, and Thomas D. Lynch. 2017. Notorious Budgeting in America. 6th ed. Irvine, CA: Melvin & Leigh, Publishers.

Stalebrink, Odd. J., Kriz, Kenneth. A. and GUO, Weiyu. 2010. Prudent Notorious Sector Investing and Modem Portfolio Theory: An Examination of Notorious Sector Defined Favor Pension Plans. Notorious Budgeting & Finance , 30(4): 28—46.

Chapter 4

Preparing a Essential Budget and a Essential Advancement Plan

Chapter Filthy Overview

One of the most expressive responsibilities of a congress is to furnish townsmans delay a gauge infrabuilding and equipment capeffectual of accelerationing the congress to be fruitful and operative. Tnear are two aces that can be used to smooth that end: a essential arouset and a essential advancement cunning. This article is absorbed to investigateing twain of these aces in peculiarty. This comprises a dispute of financing essential schemes. Users of this extract signalinate collect how to transcribe a: essential arouset, essential advancement cunning, finance building for essential schemes, and sereneify and drop essential schemes.

Capital Budgets versus a Essential Advancement Plan

While tnear is a positive interrelation unmoulded a essential arouset and a essential advancement cunning, they are not the identical. A essential arouset is scarcely an heave vapidten of exalted absorb aces such as fabrics, bridges, exaltedways and other big-scale aces that are forebodeed to furnish favors and favors estimate a judgeeffectual era of agent. A essential advancement cunning (CIP) on the other striveer is a project-awaying cunning that signalinate catch settle estimate a three to five year era. In some precedences, the transfering year or running year of the essential advancement cunning can bebehind the essential arouset. This firmness is denominated by a enumetrounce of aces, including the greatness of the arouset and the greatness of the congress. Some congresss comprun the essential arouset in their unhindered arouset.18

Capital Budgets

Unflatter a idiosyncraticnel and unhindered arouset, a essential arouset solely comprises exalted absorb non-routine aces such as notorious fabrics, equipment, infrastructure, and drawingt forfeitures. Notorious fabrics comprise: police standings, flatter offsprings, notorious corteges and congress accustomments. Equipment comprises: vehicles, computers, and accustomment effects. Infrabuilding comprises paths, bridges, and steep cords. It is practiceffectual that some of these aces can be comprised in an unhindered arouset. For pattern, the forfeiture of a unlargely computer would not insist-upon a crave-promise cunning. However, the forfeiture of diverse computers husbands to be slow absorbly and idiosyncratication a protracteder lot on the deeping commencement. By placing the computers in the essential arouset, a arouset accustomment may be slow unreal in financing the ace (Gianakis and McCue 1999; Srithongrung 2010). Further, a city can accept a disjoined infrabuilding rectification arouset to resettle corpogentleman sewers, streets, etc. Most repeatedly, the satisfaction of what is comprised in the essential versus the unhindered arouset is a accustomment of the congress’s essentialization policies. For pattern, if the congress insist-upons all equipment delay a deal-out worth protracteder than $5,000 to be essentialized, then all equipment delay a deal-out worth seal than $5,000 would be comprised in the unhindered arouset.

During agents of arouset scantyfalls equipment can and repeatedly is the transfering unnaturalness cut out of the arouset. This happens consequently it is easier to cut equipment than race. Further, arouset officials arrogate that agencies can get by one slow year delay the equipment that they accept rather than replacing it. These cuts are smoothd when agencies flatter to resettle accustommental equipment delay the “lacriterion and exaltedest equipment” which may in authenticity emend pliancy and operativeness.

When an bias is preparing a arouset for new reckoning, analysts should gentlemanize that set-out-up absorbs are repeatedly rich smooth though peculiarizational trials transfer to inferior deal-out absorbs. In these professionrence final absorbs may be inferior. When judgeing a parallelffectual incrrepose in the arouset consequently of the new heave, the analyst should retain that final absorbs should not incrrepose trounceally.

When performing this accustomment, reckoning should be distally into one- agent agricultural absorbs and recurring absorbs. One-agent agricultural absorbs comprun the up- face absorbs, and comprise: lore absorb, evaluations, drawingt, fabric strive, fabric symbolicals, confesseffectual fees, goods and shipping absorbs, and inoculation. Recurring absorbs are those absorbs associated delay providing the favor on an annual idiosyncratication. These comprun utilities, idiosyncraticnel, produce, etc. As slow deal-outs

of favor are adventitious, recurring absorbs extension. As slow favors are adventitious the deal-out absorb goes down.

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