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Budgeting for Local Governments in the United states: Deciding Who Gets What, How Much, and Who Pays?

Ron Carlee

Budgeting in U.S. local governments is about more than than finance.  The annual operating budgets of cities and counties in the U.Due south. also serve as their virtually significant policy documents and their annual operating plans.  Local budgets determine who gets what services, how much they go, and who pays.

            This article summarizes the role of local governments in the U.S., cardinal principles in local regime accounting, the development of different budget systems, decision making models, and budgeting strategies.

Local Governments in the U.Due south.

Local governments in the U.Southward. provide basic services on which the public depends on a daily basis.  From the fourth dimension people get up in the morning and turn on the water, flush the toilet, walk down the sidewalk, drive on the streets or take transit, send children to school, play in parks or recreation centers -- people are using the services of local government.  Local governments determine how land can be used and what kind of buildings tin exist built.  Local governments often provide health care for the indigent, [1]affordable housing programs and shelters for the homeless.  When a person faces an immediate life and expiry state of affairs in the U.S., they dial 3 universal numbers on their telephone:  911.  The call is routed to a local authorities public safety centre and local police officers or firefighters are dispatched to help the person in need.

Local governments in major urban areas provide a vast array of services that touch the lives of every person in the jurisdiction every twenty-four hours.  Which services should be provided?  How much of a service should be provided?  Who should pay for the services and in what amounts?  These are the questions that are answered in the budget process.

            Another important feature of local government in the U.S. is that each one is unique.  One local government may provide an elaborate system of trash collection and recycling, while another may leave it to the residents to contract for their own trash disposal.  An urban community may have a highly sophisticated organisation of burn down suppression, emergency rescue, and emergency medical services.  A rural local government may be limited but to a volunteer effort.  In the U.S., local services are non uniform.

            There are also many different types of local governments in the U.Southward., some existing only to provide a very specific service such as fire protection or water or sewer service.  The most prominent and virtually important local government is a "general purpose" government.  At that place are basically three types of general purpose governments in the U.S.: counties, cities, and towns.  General purpose governments have broad taxing power and provide a wide range of services.  General purpose governments differ from special districts, regime, commissions, and boards, which typically provide a unmarried service or set of services, funded primarily through fees and charges.

            Fifty-fifty amid full general purpose local governments, uniqueness prevails.  Normally, governments will accept overlapping jurisdictions.  About states are geographically divided into counties, which provide a way to ensure that the basic services mandated by the state are performed.  These will vary from state to state and even from canton to canton.  Some rural counties may provide but very basic law enforcement and tax functions, while some urban counties may provide a total assortment of almost every local government service known in the U.S.  Nearly counties, nevertheless, will have divide general purpose governments within them, typically cities and/or towns.  The differences between cities and towns will vary, simply by and large cities have more than expansive powers than towns.  Cities are created as municipal corporations through the voluntary efforts of the people within a urban center'southward geographical boundary.  Populations in urban areas are denser and more than interdependent, thus requiring more public services.

            The diversity of services, say-so, and structures amidst U.S. local governments is bewildering both to people outside and inside the U.Due south.  Local governments are based on the thought of self-regime – letting people decide in the communities where they live how much and what kind of regime they will have.  This concept of self-authorities, all the same, has i major constraint:  each country has absolute control over what local governments information technology will permit and what those local governments can and cannot do.  Some states permit wide latitude, while others narrowly constrain local governments.  Constraints non only determine how local governments may be created or expanded, but what services they can provide and, most importantly, what taxes and other resources they can access.  Thus, at the beginning of its budget procedure, a U.Due south. local regime must outset understand the state laws nether which information technology operates.

            U.South. local governments operate under two predominant leadership structures.  One structure has an elected chief executive, which is consistent with the political model in the U.S. under which the federal government and us operate.  The model is based on a system of checks and balances, with power shared between the executive and legislative branches.  The chief executive is this model is unremarkably a "mayor" in cities and towns and a "county executive" in counties.

            The alternative leadership structure is based on the U.Due south. business model and was developed in the early part of the 20th Century in an attempt to bring a higher level of competence and consistency to local governments.  In a private company, the Board of Directors, hires the chief executive officeholder (CEO) based on competence in running the company.  In local governments, an appointed CEO is called a "city managing director."  In counties, the position may be called canton manager, county administrator, or county executive.  Under this model, there is not a separation of power, but rather a separation of responsibility.  Members of the legislative torso appoint the chief executive and may dismiss the executive at their discretion.  The principal executive runs the organization, as would the CEO in a private corporation.  Members of the legislative body provide oversight and are responsible for establishing the policies and direction for the local government.

            In both models, the legislative body is democratically elected.  In cities, the legislative body is a "metropolis quango" and in counties information technology is a "county quango" or "canton lath."  The size of the legislative torso varies widely and is non necessarily related to the size of the locality.  Members of the body may be elected at-large (past all voters in the locality) or the locality may exist divided into voting districts, with a representative elected from each district.  There may likewise exist a combination system, with some representative elected at large and others by commune.

Development of Budgeting

Local government budgeting in the U.Due south. has evolved through four approaches, each dependent on the preceding for implementation.  Each approach has different objectives, each intended to bring a higher level of sophistication to conclusion making.  A continuing goal has been to advance from seat-of-the-pants decision making to a more rational approach.  A fantasy for local leaders has been an analytical approach that would lead to a consensus result without political controversy.  Obviously, this does not happen.  At the end of the upkeep process, there volition always be tough decisions to exist made.  Decisions require judgment.  Modernistic budgeting seeks to provide the best possible information on which local leaders can exercise judgment.

"Fund" Accounting

            Most local governments really have multiple budgets, which are referred to as "funds."  A fund provides a distinct bookkeeping mechanism to keep public money designated for different purposes from being commingled.  The general fund of a local regime is the fund that receives general tax revenues and fees that may be used for any legitimate function of the local government.  Other "funds" include the following:

  • Enterprise funds for services that are supported by fees and charges.  They are usually used to provide segregation of money generated for services that are similar to services provided by the private sector.  Enterprise funds for water and sewer systems are amidst the most mutual.  These services are typically fully supported by charges to the users without general revenue enhancement subsidy.
  • Special revenue funds are taxes that are earmarked for a specific service or gear up of services.  The special tax levy may support a wide assortment of services: parks, transit, and fire services are all typical.  Major grants from country or federal governments may also be segregated into a special revenue fund to ensure that the funds are only spent for purposes for which they are intended.
  • Internal service funds are an bookkeeping mechanism whereby a local government provides a service to its ain agencies for which it charges equally if the service was purchased from the private sector.  The reason for doing this is to reflect the true total cost of the service purchasing from the internal service fund.  Examples include a central vehicle fleet that provides service and replacement of public vehicles from fire trucks to dump trucks to constabulary cruisers.

            The full general fund budget has two major components: a revenue budget and an expenditure budget.  The stardom represents the reality that general taxation revenues are non connected directly to the services that they support.  A "balanced" budget is one where the revenue budget is the same corporeality as the expenditure budget.  Local governments in the U.Due south. are required to have balanced budgets.  They may incur debt, simply the almanac debt repayments must exist funded with current almanac revenues.

            Budgets cover a "fiscal twelvemonth" -- a twelve month catamenia that may brainstorm in January, but also commonly may brainstorm in July or in October (which is the get-go of the fiscal twelvemonth for the national budget of the government of U.S.).  The norm is an annual upkeep, but some local governments prefer a biennial budget.

Line-Detail Upkeep – A Bones Accounting Document

            Mod local authorities budgets in the U.Due south. began initially every bit financial documents.  Their most bones purpose is to account for the source and amounts of revenues and the purpose and amounts of expenditures.  The need for this accounting control office resulted in the development of a line-detail budget.  Line-items, besides referred to as "objects of expenditure," are merely ways to classify different types of expenditures.  At the most basic level, the major categories are the following line-items:  personnel, operating, and equipment.  Thanks to modern computer systems, the nomenclature systems accept become quite complex.  Line-items for personnel expenses may include permanent full-time employees, permanent part-time employees, temporary employees, seasonal employees, health care benefits, retirement benefits, overtime pay, vacation pay, sick go out, etc.

            The line-item upkeep tracks every dollar spent to a specific type of expenditure.  This is accomplished through a very sophisticated recording system for every financial transaction of regime and is fully integrated into the financial systems for payroll, purchasing, accounts payable, and accounts receivable.  Annually, local governments produce a Comprehensive Almanac Financial Report (CAFR – pronounced kaf-er) reporting on its financial status.  An contained auditor reviews the CAFR and other financial records annually and makes a public report on the accurateness of the local government's financial records and report.

            A local authorities must have the power to produce and manage a line-item budget in social club to implement the other forms of local budgets.  The line-item budget is the essential foundation to ensure the fiscal integrity of a local regime.

            Responsibility-Center Budgeting.  This form of budgeting is frequently referred to as "program budgeting" by local governments.  Virtually all local governments use some form of responsibility-eye budgeting.  The purpose of this approach is to associate funding with the different individual programs and services provided by the local government.  At a minimum level, line-item budgets volition exist developed for each major organizational unit of the local authorities, typically referred to as "departments" in the U.S.:  Police Section, Fire Section, Planning Department, Parks and Recreation Department, etc.

            Responsibility-centre budgets get further down in the system.  A Parks and Recreation Department could have a divide budget for each recreation center or each park.  The budget could alternatively be divided into services for children and services for seniors.  Each local authorities develops its responsibility-center upkeep based on its own unique structure and budgeting objectives.  There are no more often than not accepted ways of organizing such budgets, provided they are based on line-detail structures that provide for full accountability.  Responsibleness-center budgets begin to transform the budget from solely an accounting document into a management certificate.

Performance Budgets – What Nosotros Get for What Nosotros Spend

            To provide more management data, responsibility center budgets are supplemented with performance data.  In the individual sector, responsibility or price centers are judged by the revenues that they produce.  Since revenues are non directly generated past most local government services, another approach is needed to assess the cost-effectiveness of services.  This is what performance budgets seek to do.  In the case of a recreation center, performance data could include the number of people attention dissimilar programs and their satisfaction levels.  By seeing performance data, decision-makers can brainstorm to appraise the cost-effectiveness of a program and compare culling uses of funds.

            A number of different schemes exist for reporting performance measures.  They include the post-obit:

  • Workload or output measures – how much piece of work is accomplished or what book of service is provided:  miles of streets paved, number of books checked out, number of participants in a plan, number of fires fought.
  • Efficiency measures – response time to emergency requests, operating toll per lane mile of streets, savings per dollar of investment in free energy reduction measures.
  • Result measures – reduction in crime, increase in citizen satisfaction, schoolhouse completion rates.

The greatest challenge in performance measurement is quantifying outcomes – the actual customs weather that effect from the service.  The problem with issue measures is the absenteeism of a theoretical underpinning to support a causal relationship between a specific governmental service and the societal results.  Minimizing unintended teen pregnancy is an upshot to which nigh communities strive; however, there is no single variable that has a causal relationship between teen pregnancy and lack thereof.  This is an inherent challenge within the social sciences.  Thus, near operation budgets will focus on simpler measures: for example, the number of teens receiving sexual practice teaching counseling – with an underlying supposition that the counseling is effective.  Virtually all prevention services provided by government confront this claiming:  crime prevention, disease prevention, etc.  The budget process cannot itself solve these methodological issues. Performance budgeting tin can ultimately exist only as effective as the underlying social science supporting the service that is provided.

Strategic Budgets – Where We are Going

The most challenging form of budgeting is at the strategic level. In the preceding, we accept seen how the budget evolved from an accounting command document to a management certificate.  Strategic budgeting seeks to brand the budget a policy certificate.  Strategic budgets are outcome driven.  They seek to define what a local government wants to achieve in the community and to organize budget decisions effectually those objectives.

Most communities want to have salubrious and safe children.  How does i do this?  A strategic budget is intended to force the exploration of this question.  What is the mix of healthcare, didactics, recreation, welfare, and law enforcement programs that would lead to "healthy and prophylactic children"?

Strategic budgets seek to aqueduct the upkeep debate into a causal analysis of how allocation of funds will translate into community goals.  In reality, rarely do fully strategic budgets emerge due to the difficulty of determining causality, as noted above.  More unremarkably, local regime leaders, especially chief elected officials, identify a gear up of priorities and develop upkeep initiatives to back up these priorities.  Strategic budgets focus the budget contend on what is considered critical in the community in any given year, but does not try to apply strategic principles to everything.

The Decision-Making Framework

As can be seen from the higher up discussion, the local government budget has emerged as a disquisitional policy document, requiring careful and rational decision-making.  Despite much word on the importance of strategic budgeting, the reality is that most annual budget decisions are incremental – well-nigh of the hundreds of decisions fabricated during the budget procedure begin with what has ever been – "the base."  Attention focuses on the increase or decrease at the margins.

A mutual format in which budgets are presented include the following information:  a short clarification of the program (responsibility center) and financial data by major line-item category (personnel, operating, equipment) for actual expenditures in the previous fiscal yr, budgeted amounts for the current fiscal year, proposed budget for the fiscal year nether consideration, and the percent modify.

Plan Prior Year Expenses Current Yr Upkeep Proposed Budget Percent Change
Personnel
Operating
Equipment

Local governments may spend considerable fourth dimension debating allotment of funds to a new initiative or upkeep reductions necessary to balance a budget.  This will not be washed, nevertheless, for everything that the authorities does.  Many areas are probable to receive a superficial review that focuses on the incremental or marginal change from the previous year. If there are no public issues in how the service is performed and the amount of alter appears reasonable, the service is probable to receive little review.

People may decry incrementalism, but it prevails because it enables conclusion-makers to complete their chore within a reasonable menses of time.  Information technology is applied.  Local budgets, thus, evolve over time.  They correspond the collective decisions of dissimilar leaders over many years.  Rather than starting with a clean canvas of paper, local governments begin with what was decided the previous yr and and so focus on the deviations – the incremental changes.  More than intense review is focused on those areas where there is some perceived need to do so.

When a need for change is acknowledged, all of the tools of rational determination-making should come up into play:  conspicuously defining the objectives, quantifying the results desired, exploring alternatives, creating an evaluation methodology, measuring the results, and making adjustments every bit necessary. Sometimes this happens, only sometimes decisions are made only based on political demands, with piffling assay behind the determination other than how much the change volition price.

For example, information technology is possible to perform highly sophisticated modeling on the location of fire stations, computing how long it volition take a burn engine to get to any building in a community.  Past employing a variety of scenarios, the models tin pose highly optimized options for the location of Fire Stations.  Political constraints may hinder optimal decisions.  Residents in one community may strenuously object to losing a fire station while some other customs may strenuously object to receiving afire station.

Local Government Revenues

In the U.South., local governments typically have access to iii categories of revenues to support their services:  taxes, fees and charges, and grants.  Equally with other areas discussed, the mix of revenues will vary from state to state and from ane local authorities to others within a state.  Each category is briefly discussed beneath.  The challenges in the budget process are the power to project revenues accurately, to adjust tax rates based on economic conditions, to ensure economic stability, and to promote economic equity.

Taxes

Local governments in the U.S. may be able to tap into an array of taxes with considerable flexibility in how to structure the taxes, or they may exist severely limited by country constraints.  The about important (though not universal) source of tax revenue for local governments in the U.S. is the property tax.  This tax is much maligned by the public because information technology is a tax on wealth (i.e., the value of one'due south home) and is non directly continued to one'south power to pay (i.e., actual income).  To apply a belongings tax, the value of all holding must be adamant and kept upwardly to date, which is known as the "tax assessment" or the "assessed value" of a belongings.  The assessment should reflect "off-white marketplace value" of a dwelling, which is the amount of coin that someone would exist willing to pay on the open market. As assessment techniques have become more sophisticated over the years, concerns almost inaccurate assessments become less of an issue, but will never become abroad because marketplace values are never stock-still. Debates will certainly arise in rapidly increasing or decreasing real estate markets that occur cyclically in different parts of the U.S.

Much of the public debate centers on the property "tax rate" that the local government levies.  Assessed value multiplied past tax rate equals taxes owed.  Tax rates are expressed in different ways, but they all arrive at the same point: some percentage of the value of the dwelling is owed in taxes.  A one percent tax may be stated as a tax of $1.00 per $100 of value or every bit 10 mills ($10 per $ane,000 of value). A number of exceptions may exist to help mitigate inequities between the value of i'southward dwelling and one's accessible income to pay the taxation.  Called "circuit breakers," these tax rules may be at the choice of a local authorities, may be required by the state, or may be prohibited by the state.

The sales tax is the other prominent tax source for local governments.  Typically, the sales tax is applied to tangible goods purchased, but may also utilise to services.  There may also exist exceptions, such as for food or medicine.  The land may also utilize sales tax acquirement and may exist responsible for the collection of all sales revenue enhancement, sending  back to the local government its share.

The income tax is more often than not considered the fairest tax since it is based on bodily income that a person has; however, states may preempt local governments from applying this tax.  A local government may revenue enhancement any number of other items, depending on state authority.  These may include meals, entertainment, transactions related to sale of property, cars and boats.

Fees and Charges

Due to low public acceptance of general taxes and due to land constraints, local governments turn to fees and charges to fund many of their services.  This makes local governments look more like individual companies that charge users for the appurtenances and services that people receive.  This arroyo enables the public to make a directly connection between what they pay and what they get.  In gild to apply a fee or charge, the local authorities must be able to limit those who receive the service and must create a mechanism for collecting payment. The charge does not accept to exist full cost.  A service could also be subsidized for anybody or discounts could exist provided based on a person's income.  Fees are used extensively for water, trash collection, and building inspections.  They are besides commonly used for a variety of recreation and leisure services.

When local governments seek to achieve total cost recovery for a service, they may create a separate "fund" to account for the service.  This enables the local regime to segregate the revenues and expenses for the service, much like a visitor would do for a particular product line.  These are known as "enterprise funds."

Grants

Federal and state governments provide an array of grants to local governments.  The grants may offset disparities amongst local governments in a state based on the revenue producing power of a local government.  This is unremarkably done for the funding of local public schools.  The grants may also be designed to implement country or federal policy priorities at the local level. During the Clinton administration, significant funds were provided for local police officers.  During the Bush-league administration, the most significant federal grants have been for homeland security. The problem with grants is that they are non dependable.  Grants typically are approved for merely one twelvemonth and may or may non continue into the futurity.

Majuscule Budgets

All of the preceding word has been virtually annual operating budgets for local governments.  Local governments have responsibleness for extensive capital investments:  roads, traffic control systems, bridges, schools, burn stations, libraries, h2o purification and distribution systems, sanitary sewage collection and treatment facilities, storm water direction systems, technological infrastructure for the operation of the government, parks, recreation centers, cultural centers, and more.  Maintenance of these facilities should be role of the operating upkeep; however, new facilities, replacement, or major rehabilitation of facilities are typically across the chapters of an almanac operating budget.  Some lower price infrastructure may be funded this way, known equally pay-every bit-you lot-go or "paygo" funding.  More expensive infrastructure investment requires financing over multiple years.  Financing the cost of expensive infrastructure that volition last over many years will also share the cost across the different generations that will benefit from the investment.  This is called inter-generational equity.

The development of a separate capital budget is used to decide what infrastructure investments demand to be made, in what years, and in what amounts.  Uppercase budgets cover five or six years and may be updated on an annual basis.  The challenge is balancing which investments need to be made with how much debt a local government tin can afford to pay.  The annual debt payments (also called "debt service") are included in the annual operating budget.  A local government that acquires more than debt volition accept less revenue to pay for services.  The amount of debt owed combined with the ability to repay the debt will determine the interest charge per unit a local regime will have to pay  on coin that it borrows for infrastructure.

Local governments infringe money for infrastructure through the bail marketplace.  A local government will first decide how much debt it can support.  There may be limits imposed by the state; regardless, a local government will prepare its own affordability limits.  These limits typically include the following:

  • Maximum pct of the annual operating budget devoted to debt payments, and/or
  • Maximum percentage of property tax capacity, and/or
  • Maximum increase in debt payments yr-to-year.

Explicit limits enable the local government to set targets for its investment plan.  For large governments, this will require sophisticated, multi-year analysis that includes the annual reduction of existing debt from repayment, the annual increase in revenues bachelor, and annual increase in operating costs.

These and other measures of a local regime's ability to repay debt will be independently evaluated by ane of three bond rating agencies (Standard & Poors, Moody, or Fitch).  A local regime may use one or all three agencies to charge per unit its bonds, a service for which the local authorities will pay a fee to the rating agency.  The local regime so releases its bonds for competitive bids on the interest rate information technology will pay.  Private investment institutions that buy the bonds utilise the independent bail ratings to determine the involvement rate they will bid based on market weather on the mean solar day of the bond sale.

Upkeep Development & Adoption

Local governments apply a highly complex procedure for the development, approval, and implementation of their local budgets.  They involve every manager in the local government and solicit extensive input from the public.  The following outlines the major steps.

Budget Evolution.  The primary executive – whether elected or appointed – develops a recommended budget that is coordinated through the executive'southward budget role.  The process begins with a ready of guidelines that identify budget objectives and establish how much money a program may request.  Budget requests are developed by the managers for each of the programs inside the local government.  These requests are and then compiled past each department director.  The upkeep part reviews the budget requests and submits recommendations to the main executive.  Principal executives hold meetings with the department directors and the budget staff in order to understand fully the implications of the requests.  Ultimately, the chief executive compiles all the requests into a recommended executive budget that is submitted to the legislative body.  The budget evolution process tin have upwards to half-dozen months.

Budget Adoption.  Approving the budget is i of the most of import responsibilities of local legislative bodies.  Information technology is critical to the legislative body'due south ability to provide effective oversight of the chief executive and to ensure that the will of the people is honored.  In large local governments, especially those with big legislative bodies, the legislative trunk may be organized into committees, each with oversight for different parts of the government (such as public safety, public works, or education).  Smaller legislative bodies will conduct work sessions as a "commission of the whole" to review the recommended budget in detail.

The most important action of the legislative body's budget review, however, is the almanac public budget hearing.  The upkeep hearing provides an opportunity for anyone to address the legislative torso on budget concerns.  Budget hearings will draw a wide range of interests.  People who want more than government support for programs may inquire for more money.  People who believe in a minimal role of government will show that taxes should be reduced.  In a politically calm, stable community, the upkeep hearing may final only be a few hours or less.  When there are complex upkeep bug and contest for resources, the budget hearing could last many hours, bridge several days, and involve dozens of speakers.

After piece of work sessions and the public hearing, the local legislative torso volition adopt a upkeep, usually 30 to 60 days earlier the starting time of the new fiscal year.  The legislative body volition spend sixty-120 days in its review process.

Upkeep Implementation.  Once a budget has been adopted, the main executive implements the budget.  How much discretion a primary executive will have in shifting funds volition vary based on both local and state laws.  Discretion inside appropriations at the departmental level is mutual.  If a primary executive wants to reallocate funds across departments, approving of a budget amendment approved by the legislative body may be required.

Over the course of the fiscal year, the budget function will monitor expenditures and ensure that funds are spent as intended and within the authorized amounts.  Elaborate systems exist for review, blessing, and auditing of personnel levels and for all purchases.  It is expected that all funds spent by a local government can exist tracked to a specific transaction and documentation on the person who approved each transaction.

At the finish of the financial yr, the legislative body will review and approve a final upkeep reconciliation to "shut-out" the fiscal year.  They will as well approve the continuation of purchases and incomplete activities that bridge fiscal years.  These actions modify the budget for the electric current fiscal year.  A private sector, competitively procured, independent auditor will then review a sample of the transactions of the closed fiscal year and decide whether or not the local government is in compliances with expected standards.

For local governments in the U.Southward. it is unacceptable to have a deficit upkeep or to fail to comply with accounting standards.

Conclusion

Nosotros conclude where we started:  budgeting is near deciding who gets what services, in what corporeality, and who pays. Budgets are built from the footing upwardly.  Hundreds if not thousands of decisions are fabricated forth the way, with fewer decision points at each subsequent footstep.  Modern budgeting systems can provide quality information that help local leaders practice judgment. Over fourth dimension all of the various upkeep decisions add together upwards to the customs in which one lives.

Perhaps the greatest challenge for local government leaders is deciding what kind of community people want for tomorrow.  Where is the local regime headed and how do electric current upkeep decisions affect the future?  A audio, rational budget system volition ensure that the public's money is well spent, and it should also ensure that it creates a sustainable community where people will desire to alive, piece of work, and visit.

Arlington , Virginia – A U.S. Local Government

Using a unmarried local government as a "typical instance" is non possible due to the diversity and uniqueness of local governments in the U.Due south. governance arrangement. It is only with the review of multiple localities that one tin begin to grasp the similarities and many points of difference for local governments in the U.Due south.  Arlington, Virginia is presented as an example of a local government in the U.South., but in many ways is representative only in its uniqueness.

Arlington is a county government in the state of Virginia, but has no cities or towns inside its 26 square miles.  Geographically, information technology is rather small; however, information technology is resident for a population of approximately 200,000 and has approximately 200,000 jobs.  This makes Arlington one of the most densely populated counties in the U.Southward.  Arlington is sometimes referred to equally part of suburban, northern Virginia; however, its highly urbanized characteristics are more than reflective of Washington, D.C., to which it is immediately adjacent.  Arlington is abode to Reagan National Airport, the Pentagon, and Arlington National Cemetery.

Structure

Arlington's elected legislative trunk is a five-member Canton Lath, whose members are elected for four-yr, overlapping terms.  The County Board chooses among its members a Chairman, who serves equally the County's principal elected official.  Executive authority is vested in the Canton Manager, who is appointed past the Canton Board.  The Canton Manager is responsible for managing the government operations.  Administratively, the current Canton Director has two deputies and has organized the regime into twelve departments, ane of which is the Department of Management and Finance (DMF).  DMF coordinates the budget process for the County Managing director and manages purchasing, accounting, and acquirement functions.

The County Manager develops a recommended almanac operating budget and biennial five-year capital improvement program.  The County Manager recommends the upkeep in February of each yr.

The County Board conducts multiple piece of work sessions with the County Manager and his senior staff equally part of its budget review.  The County Board conducts two public hearings.  One public hearing receives comments on proposed government expenditures and a separate hearing receives comments on taxes and other revenues.  This separation of expense and revenue hearings is mandated by Virginia land police.

The County Lath adopts the budget in April of each year, over 60 days in advance of the commencement of the new fiscal year on July ane.  The County Board officially appropriates the budget at the department level.  This provides the County Manager with the discretion to make budget adjustments at the departmental level.  Upkeep reallocation across departmental boundaries requires authority by the Canton Board and is subject to a public hearing. Budget reconciliation occurs in Nov, approximately iv months after the end of the prior fiscal twelvemonth.  At the aforementioned time that the County Board acts on the County Manager'south budget reconciliation documents, it too provides guidance to the Canton Manager on the County Board's policy guidance for the evolution of the budget for the next fiscal year.

Arlington Expenditures

Arlington provides a full range of public services that are representative of what both counties and cities provide in the U.Southward.  The General Fund upkeep is $942 1000000; all funds are $1.2 billion.  The largest surface area expenditure is public education at $350 million.

Revenues

Arlington relies on real manor property taxes as it largest source of revenues; however, Arlington's belongings tax is nearly equally derived from private homeowners and commercial income-producing property.  Arlington imposes a wide range of other taxes that include sales tax, business income taxes, and taxes on cars.  Some services are too funded as enterprises that rely on straight charges including water, sewage treatment, and building inspections.  Arlington receives a large amount of grants funds from the state and federal governments.

Capital letter Upkeep

Arlington's 5-year capital letter improvement programme is $i.three billion, with debt growing an average of four.3% over the five-year period.  To incur debt against the County'south general revenues, voters must outset grant approval in a referendum.  Arlington holds a referendum on uppercase borrowing every other twelvemonth.    Arlington borrows (i.eastward., issues full general obligation bonds) on an annual basis, securing the amount of financing that volition be needed based on the timing of construction projects.  The three bond rating agencies have all consistently given Arlington'southward general obligation bonds their highest ratings.  Arlington'southward budget and consolidated annual financial report also both consistently receive recognition by the Regime Finance Officers Association.

For more than information on Arlington County, go to its spider web site at http://www.arlingtonva.u.s.a.

References

For more information on the structure of local governments in the U.S., encounter United States U.S. Demography Bureau, 2002 Census of Governments, Volume ane, Number one, Government Organization, GC02(1)-1, U.Due south. Regime Press Office, Washington, DC.

For textbooks that provide a good overview of public budgeting, meet the following:

Bland, Robert L., A Budgeting Guide for Local Authorities (ICMA, 2007).

Mikesell, John, Financial Assistants: Assay and Applications for the Public Sector (Wadsworth Publishing, 2002).


Ron Carlee is Canton Managing director in Arlington, Virginia.  He was worked in local government since 1975.  He is an offshoot instructor at the George Washington University, where he has taught courses in budgeting and management in land and local regime.  Mr. Carlee has a doctorate in Public Administration and is a Boyfriend in the National Academy for Public Administration.

changhimparienge.blogspot.com

Source: https://www.bpastudies.org/bpastudies/article/view/73/151

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