BUDGET PREPARATION

What is a Budget An itemized summary of expenditures Total sum of money allocated to your department A statement of the financial position of a department/organization A plan for spending money for the designated period Useful for projecting future expenditures

Characteristics of a Budget A well thought out plan Detailed Contains estimated expenditures Includes appropriate subtotals and totals Concerning a defined length of time Explanation of activities

Working Definition A budget is the plan for your department. It contains detailed itemized estimates of all expenditures and contributions from all sources AND Also a budget includes the amount and distribution of funds needed to perform the project activities over the fiscal year.

Types of Budget Concepts Line Item Continuation Performance Planning Management By Objective (MBO) ZBB (Zero Based Budgeting)

EXAMPLE OF BUDGET KEY COMPONENTS Salary and Fringe Benefits Operational Capital

2011 General Fund Operating Expenditures Total = $432,956,364

2011 General Fund Revenue Budget Total - $440,926,537

BUDGET PREPARATION S W O T ANALYSIS Strengths Weaknesses Opportunities Threats

BUDGET PREPARATION WHAT ARE YOUR STRENGTHS? WHAT ARE YOUR WEAKNESSES?

BUDGET PREPARATION WHAT ARE OPPORTUNITIES THAT ARE VIABLE AND POSSIBLE TO IMPLEMENT? Are those opportunities realistic? Are they cost effective Are they attainable? Short term Long term IF THERE IS A CHANGE WILL IT BECOME A THREAT TO PERFORMING MANDATED FUNCTIONS IN YOUR OFFICE? Be Proactive – in minimizing potential threats to changes that may occur Change potential threats into an opportunity to explore new opportunities for providing a service delivery

HOW DO YOU PREPARE YOUR BUDGETS Largest line item is Personnel Review every position and job functions Understand why your office is doing what it is doing Operations Determine if you can cut costs by doing something more efficient

HOW DO YOU PREPARE YOUR BUDGETS Project your expenditures for the year based on the year to date total Was there an activity performed that will not be done in the upcoming year? Example: cut down on publishing and printing a management book mainly used for internal purposes. Place it online for accessibility Capital Is this expense necessary to adequately perform job functions Understand why your office is doing what it is doing

FY 2011 CHALLENGES Property taxes collected down Assessments for commercial taxes are down Fines and Fees collected down Potential Health Benefits increase Potential decrease in State funding for grants Quality of Services jeopardized (asking staff to do more with less) No Merit Increase for Staff for the 4 th year Hiring Freeze in Place for the last 2 years Unfunded Mandates verses Funded Mandates

EFFICIENCIES Question cutting a budget line item Does making the change make your service delivery more efficient? Does an increase in the use of technology equate to less personnel and decrease in operational expenses? E-filing Paperless Systems Digital Courts (long term)

2012 Budget Resolution RevenueExpenses

APPROACH FOR FUTURE TO ACCOMPLISH THE MISSION OF YOUR DEPARTMENT/ORGANIZATION Changed Modified, and/or Redirected BECOME A SOUND FISCAL AND PROACTIVE AGENT OF CHANGE FOR THE CITIZENS YOU REPRESENT AND SERVE

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