1. “They Cut WHAT?” How Local Government Budgets Affect You Paul Bonnici NC Civic Education Consortium

2. Budgeting 101 1.Legal/fiduciary 2.Planning 3.Policy 4.Performance

3. What the law requires Pass a budget ordinance by July 1 st Adopt a balanced budget Budget decisions must be made in open meetings Budget is adopted by simple majority vote.

4. Actors in the budget process 1.Elected board 2.City manager 3.Finance / budget director 4.Human resources director 5.Department heads 6.Advisory boards 7.Citizens 8.News media

5. Elected officials’ roles Uphold legal responsibilities Think strategically and long term Set priorities Involve others Ensure accountability

7. Instructions 1.Make decisions as a board 2.Select a mayor and a clerk 3.Green chips represent budget cuts 4.Red chips are revenues and reserves 5.Reserves not part of total budget, but can be used to balance budget 6.All chips = $1 million

8. Service areasProposed budget Police$12 million Fire$8 million Solid waste$6 million Streets$6 million Recreation$4 million Housing$3 million Planning$3 million Capital$6 million Debt service$2 million

9. Select Community Values

10. List of community values 1.Full employment 2.Safe and secure community 3.Clean and green environment 4.Physically & culturally engaged citizens 5.Affordable and safe housing

11. Community values (cont.) 6. Livable and well maintained neighborhoods 7. Fiscally conservative finances 8. Well maintained streets 9. Nurturing and family friendly city 10. Infrastructure to support growth

12. Instructions 1.Review the 10 community value cards as a governing board 2.Select 5 community values to help guide your decision making 3.Place the 5 community values cards on the board 4.Clerk brings list to front table

13. Community values: debrief 1.What criteria did you use to select your values? 2.What would you say about the way your board made the decisions? 3.What is the importance of the board setting community values? 4.What kind of community are you creating?

14. Budget Scenario The city finance director forecasts a $3 million reduction in revenues.

15. Instructions 1.As a board, make decisions to rebalance your budget 2.Options: cut programs/services; spend reserves; or raise fees/taxes 3.When finished, clerk will bring the decisions to the front table 4.Move chips as appropriate

16. Debrief 1.How did you balance the budget? 2.What criteria did you use? 3.What are the short and long term consequences of your decisions? 4.How are community values maintained? 5.How would you describe your board’s dynamics?

17. Another tough decision Your manager informs you the city needs an additional $2 million to fund retirement and health care increases

18. Debrief 1.How did you balance the budget? 2.What criteria did you use? 3.What are the short and long term consequences of your decisions? 4.How are community values maintained? 5.How would you describe the board’s dynamics?

19. Will it never end? A new federal mandate requires the city to make a $4 million investment to address new storm water regulations

20. Debrief 1.How did you balance the budget? 2.What criteria did you use? 3.What are the short and long term consequences of your decisions? 4.How are community values maintained? 5.How would you describe the board’s dynamics?

21. Good news! Updated revenue estimates show an additional $2 million.

22. Debrief 1.Where did you allocate the new revenue? 2.What criteria did you use to make your decisions? 3.What are the short and long term consequences of your decisions? 4.How are community values maintained? 5.How would you describe the board’s dynamics?

23. Time to vote Can you vote for this budget?

24. Final budget debrief 1.How did you use the community values to make decisions? 2.Are you happy with the board’s decision? Will you be able to support these choices? 3.What would the media report about your budget?

25. Workshop wrap up 1.What was the single most important lesson learned? 2.What was your “ah-hah” moment? 3.What will you take home from today?