BUDGET PREPARATION
What is a Budget
An itemized summary of expendituresTotal sum of money allocated to your
departmentA statement of the financial position of a
department/organizationA plan for spending money for the designated
periodUseful for projecting future expenditures
Characteristics of a BudgetA well thought out planDetailedContains estimated expendituresIncludes appropriate subtotals and totalsConcerning a defined length of timeExplanation of activities
Working DefinitionA budget is the plan for your department. It
contains detailed itemized estimates of all expenditures and contributions from all
sources AND
Also a budget includes the amount and distribution of funds needed to perform the
project activities over the fiscal year.
Types of Budget Concepts
Line ItemContinuationPerformancePlanningManagement By Objective (MBO)ZBB (Zero Based Budgeting)
EXAMPLE OF BUDGETKEY COMPONENTS
Salary and Fringe Benefits
Operational
Capital
2011 General Fund Operating Expenditures
Total = $432,956,364
Salaries and Fringes77%
Operations23%
Capital0%
2011General Fund Revenue Budget
Taxes63%
Charges for Services15%
Miscellanous2%
Reimbursement for Services
7%
Intergovernmental Revenue5%
License, Permits & Registrations
2%
Use of Money and Property2%
Fines and Forefeitures4%
Total - $440,926,537
BUDGET PREPARATIONS W O T ANALYSIS
StrengthsWeaknessesOpportunitiesThreats
BUDGET PREPARATIONWHAT ARE YOUR STRENGTHS?
WHAT ARE YOUR WEAKNESSES?
BUDGET PREPARATIONWHAT ARE OPPORTUNITIES THAT ARE VIABLE AND
POSSIBLE TO IMPLEMENT? Are those opportunities realistic? Are they cost effective Are they attainable?
Short term Long term
IF THERE IS A CHANGE WILL IT BECOME A THREAT TO PERFORMING MANDATED FUNCTIONS IN YOUR OFFICE? Be Proactive – in minimizing potential threats to changes
that may occur Change potential threats into an opportunity to explore
new opportunities for providing a service delivery
HOW DO YOU PREPARE YOUR BUDGETSLargest line item is Personnel
Review every position and job functions Understand why your office is doing what it is
doing
OperationsDetermine if you can cut costs by doing
something more efficient
HOW DO YOU PREPARE YOUR BUDGETS
Project your expenditures for the year based on the year to date total Was there an activity performed that will not be
done in the upcoming year? Example:
cut down on publishing and printing a management book mainly used for internal purposes. Place it online for accessibility
Capital Is this expense necessary to adequately perform job
functions Understand why your office is doing what it is doing
FY 2011 CHALLENGESProperty taxes collected down
Assessments for commercial taxes are down Fines and Fees collected downPotential Health Benefits increasePotential decrease in State funding for grants Quality of Services jeopardized (asking staff to
do more with less)No Merit Increase for Staff for the 4th yearHiring Freeze in Place for the last 2 yearsUnfunded Mandates verses Funded Mandates
EFFICIENCIESQuestion cutting a budget line item
Does making the change make your service delivery more efficient?
Does an increase in the use of technology equate to less personnel and decrease in operational expenses?
E-filing Paperless Systems Digital Courts (long term)
2012 Budget Resolution
Revenue Expenses
APPROACH FOR FUTURETO ACCOMPLISH THE MISSION OF YOUR
DEPARTMENT/ORGANIZATION
ChangedModified, and/orRedirected
BECOME A SOUND FISCAL AND PROACTIVE AGENT
OF CHANGE FOR THE CITIZENS YOU REPRESENT
AND SERVE
Comments/Questions