1. Budget Preparation Requirements, Practices and Tips Elections Directors Conference December 5, 2005 Jack Vogt School of Government

2. Overview of Session n Statutory requirements n Roles in county budget process. n Types of budgets. n Continuation versus expansion spending, justifying an expansion request, setting requests into priority. n Planning for capital equipment. n Operating successfully in budget process.

3. Local Budget & Fiscal Control Act Key Provisions n Inclusiveness requirement –All money spent for county activities must be budgeted before being spent. (G. S. 159-8(a). –Budget options: annual budget ordinance (G. S. 159-13), and grant or capital project ordinances (G. S. 159-13.2 n County manager is budget officer (G. S. 159-9) –Delegates work of budget preparation to county finance director or to separate budget director or staff –Responsible for developing and presenting proposed budget to commissioners.

4. Local Budget & Fiscal Control Act Key Provisions n Budget preparation process (G. S. 159-10, -11, -12, & - 13) –Statutory deadlines: Requests—by April 330; proposed budget by June 1; budget hearing; budget ordinance by July 1 –Preparation process begins earlier & takes more time in most counties –Commissioners front end process. Set goals/policies n Budget ordinance. Levies property tax, lists revenue estimates by major sources, makes appropriation by department or function.

5. Local Budget & Fiscal Control Act Key Provisions n Amendments (G. S. 159-15). Commissioners must approve. May delegate to manager authority to approve transfers between departmental or functional appropriations. n Pre-audit (G. S. 159-28). Finance officer must approve contracts and purchase orders to assure they’re covered by budget.

6. Roles in County Budget Process n Elections Director : Centers on the identification of needs. Advocate on behalf of needs. n Finance role in budget process: Involves revenue estimation & review of requests. Conservative role n Manager. Gatekeeper to budget. Must balance budget, service needs, & political pressures n Commissioners. Can emphasize one or more of following: oversight, funding, planning/policy-making.

7. Types of County Budgets n Line item budget n Performance, program, or outcome oriented budget.

8. Line Item Budget n Emphasis. Focuses on dollars budgeted in relation to inputs or resources (staff, supplies, equipment, etc.) required to provide services.. n Main tool of a line-item budget : expenditure accounts. n Traditional budgeting approach in local government.

9. Performance Budget n Emphasis: Focuses on dollars budgeted in relation to services to provide, output, objectives, or outcomes n Tools used in performance budgeting : expenditure accounts, goals & objectives, performance measures, cost accounting. n Use. Many counties, even some small ones, are using performance or mixed performance line-item budgeting approaches.. n Illustrations: Cabarrus County Boards of Elections

10. Continuation Versus Expansion Spending n Continuation spending: Keeps activities going in coming year at same level that they are being provided in the current year. n Expansion spending: Improves or expands activities in coming year, or to start altogether new activities or programs. n Justifying an expansion budget request. See attached form. n Setting budget requests into priority: Criteria like legal mandates, threats to public health & sfety, consistency with county goals, public support, etc. are important. See Chatham County weighted rating system.

11. Planning for Capital Spending n Examples –Voting machines & other equipment –Renovation of office space n Many counties plan for future capital project & equipment needs using a Capital improvement program (CIP) –What is a CIP: 5-6 year forecast of capital needs, their costs, financing for them, & any impact on operating budget –Guilford County illustration

12. Operating Successfully in the Budget Process n Identify and ask for your needs n Be an advocate on behalf of elections needs Be accurate. n Be honest. n Justify your budget request well. n Know budget process: –Rules, instructions, etc. –Who is influential in budget making process