Local government budgeting is more complex than ever. Faced with increasing citizen expectations, limited revenue growth, and pension obligations, local managers need to be adept at creating budgets that balance income and expenses while maintaining public trust. This guide focuses on the critical aspects of local government financial management, offering insights and practical advice for navigating these challenges effectively.
This budgeting guide delves into the intricacies of crafting a local government budget. It addresses the crucial decisions managers face regarding the allocation of resources to public services and projects, as well as the selection of revenue streams to finance them. The process of balancing economic viability, political feasibility, and administrative practicality is thoroughly explored. Recognizing the importance of public perception, this guide also considers how budgets are viewed by citizens and offers recommendations to enhance their confidence in local government leadership.
Key Elements Explored in A Budgeting Guide for Local Government, 3rd Edition:
- Building on Established Principles: This edition expands on previous themes, highlighting the budget analyst’s role as a vital intermediary between service providers and consumers. It reinforces why private-sector budgeting practices are unsuitable for the unique challenges of the public sector.
- Embracing Transparency and Credibility: The guide advocates for “truth-in-budgeting,” emphasizing the need for budget offices to be reliable sources of credible financial information. Effective budgeting requires a strong connection between inputs (capital and labor) and outcomes, a core issue for managers to address.
- Effective Communication with Stakeholders: Providing guidance on how local government can effectively communicate budget information to their stakeholders, therefore elevating the legitimacy of the local government.
- Strategies for Crisis Management: The guide offers practical strategies for responding to and mitigating various crises that can impact local government budgets.
- Revenue Policy and Administration: Addressing the ongoing challenge of securing sufficient revenue to fund essential community services, this section provides valuable insights into revenue policy and administration.
- Property Tax Exemptions and Revenue Compensation: An examination of the impact of property tax exemptions on local budgets and strategies for compensating for lost revenue. The guide also offers an updated assessment of general and excise sales taxes and the limitations of local income taxes.
- User Fees and Pricing Strategies: Exploring the increasing reliance on user fees for services, the guide introduces a typology of pricing strategies, providing managers with a framework for understanding the tradeoffs involved in designing effective price structures.
About the Authors:
Robert L. (Bob) Bland is a professor of public administration at the University of North Texas, where he has been teaching graduate courses in public finance, governmental accounting, and budgeting since 1982. He is the author of A Revenue Guide for Local Government (2nd ed., 2005) and A Budgeting Guide for Local Government (3rd ed., 2013), both published by ICMA.
Michael R. Overton is an assistant professor of public administration at the University of Idaho. His research focuses on the intersection of local government management and fiscal policy.
This 3rd edition of A Budgeting Guide for Local Government serves as a valuable resource for local government managers, offering practical advice and strategic insights for navigating the complexities of public finance and building trust with the communities they serve.
