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