Chapter 5 Budget Requests

V372: Trexler
Government Finance
&
Budgets
Fiscal Administration, 9 th Edition
John Mikesell
Chapter 5: Budget Methods and Practices

The Budget Cycle

Guidance from the Executive
► Includes:

 Chief executive’s main goals
 Forecasts (inflation, populations, etc.)
 Formatting instructions
 Budget schedules
 Resource availability
► Not

likely to find this document in the public domain Agency Budget Requests
►

Includes:
 Narrative
 Cumulative schedules (summary tables)
 Detailed schedules (line items)
 Workload, productivity, and performance measures

►

Typically no revenue information unless that agency has a significant source of income

►

Not likely to find this one in the public domain either, but it will be very similar to the agency requests found in the final documents

Agency Budget Requests
► Goal

is to justify the programs & services of the department and their related costs

► Do





this by answering three questions:

How much money does the agency want?
What does it intend to do with the money?
What impact will that activity have?

Budget Justification
► Focus

on the important stuf

 What will it do? How much does it cost?
► Avoid

jargon and unexplained acronyms
► Be succinct
► Know your audience
► Highlight the beneficial results
► Be consistent with your data
► Follow the directions
► Check your math

Agency Budget Requests
►

Should also include some form of decision package
 Goal is to inform executive budget decisions
 Gives agencies greater influence over the decision process and leads to better decision making

►

General components
 Baseline
► The

cost of continuing programs & services at their current operating level

 Supplements
► Proposals

 Reductions
► Cost

for new or expanded programs & services

saving proposals and cuts to programs & services

Budget Presentation
► Written

budgets are generally accompanied by an oral presentation

► Objective

is to gain support

 Remember to tailor your message