Public Budgets

by Just Economics

Government budgets are like household budgets . . .

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Just a little more complex

Money IN Money OUT

Taxes--property tax, income tax, sales tax, etc.

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Fees--permits, fees for service

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Other Gov. Transfers

Parks, Roads, Water, Buses

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Police & Fire

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Assistance to Individuals

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Education

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Revenue = Money IN

• Biggest Income Source of Public Budgets Comes from Taxes

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• A good question to ask about revenue is: Who pays? Are the people with the most, paying the most?

Expenses = Money OUT

A good question to ask about expenses is: Who benefits from the things we are spending money on?

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Let’s talk about…

• Dedicated funds
• Operating vs. Capital

Dedicated Funds Determined by other Legislation

City Budget

Operating vs. Capital

• A Capital Expense is a one time expense like a bus or a police car
• An Operating Expense is an ongoing expense, something we have year after year like staff salaries or electricity for City Hall
• Large Capital Expenses (like buildings) show up in the Capital Improvement Budget sometimes referred to as the CIP

Fund Balance

• Unspent money from the previous year goes into the Fund Balance
• Spending some of the Fund Balance-one time expenses
• Saving some of the Fund Balance-Raining Day Fund (like a savings account)
• Asheville likes to keep 15% Fund Balance

Budgets demonstrate values

City Budget Process

• Development
• Discussions
• Presentation
• Approval

Budget Process

1st Phase = Staff led

Public Engagement mostly through committees usually begins in the fall

Budget Process

2nd Phase = Council Engaged

Includes presentations to Council, Council Retreat, Budget Worksessions usually begins in January

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Budget Process

3rd Phase = Public Presentation

The manager’s budget is presented (usually in May) and the public hearing is set for the following meeting.

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Budget Approval

Our City must approve a budget by June 30th

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2022 Asheville Budget Calendar

February 22nd– Budget Work Session

March 17-18th–Council Retreat

April 12th and 26th– Budget Work Sessions

May 20th-City Manager’s Proposed Budget Published

May 24th- Budget Presentation

June 14th– Public Hearing on the Budget

June 28th– Budget Adoption

Amendment

Budget Changes throughout the year

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As expenses come up or things change

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Council votes on these, often in the consent agenda

How to Engage in Public Budget

• Determine your ask and find your allies

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• Learn as much about that part of the budget as possible. On the local level, work with committees or staff if possible.

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• Make Your Ask to Elected Leaders

Which Voices Get Listened To?

Things to Remember

• City, County, & State Budget Must Balance-- Income=Expenses
• Governments are not working with unlimited amounts of money
• A great percentage of public dollars come from taxes so some increases in funding may lead to higher taxes

Questions?