This article explains the importance budgeting for city finances. In addition to providing an overview of how city funds are allocated, it also focuses on the types of programs and policies that help individuals and families in need. We'll also talk about the Budget ordinance. This is where taxes are levied and revenues raised. And finally, we'll discuss the interest expense on intragovernmental debt. These are all important components of a city’s financial picture. Be sure to review each.
Budget ordinances that levy taxes or raise revenue
The budget ordinance defines how much tax collection a local authority must collect. Tax collections are distributed among the various funds by the finance officer. The budget ordinance dictates that the finance officer distributes property tax collection on a monthly schedule. The finance manager must ensure that all tax collections comply with the budget ordinance. The amount of tax collected monthly must be sufficient for local government expenses.
The budget ordinance must be adopted by the governing board. The ordinance may be amended if the governing board sees fit. G.S. 159-13. The amendment cannot alter the amount of property-tax liability. An amendment to a budget ordinance must be ordered by a court of competent jurisdiction or a State agency with authority to enforce taxes. The governing board must approve the budget ordinance before additional tax collection is allowed.
Assistance for individuals and families in need
In times of recession, open-ended entitlement programmes can be a valuable source of fiscal support. More people are eligible for these programs as their incomes drop. These programs offer less financial support to people who earn more, so they are less popular as the economy improves. These programs can, however, help stabilize an economy in an unstable economy. Here are the specific eligibility criteria for these programs:
Temporary assistance for needy families, also known as TANF, can be referred to as a federal and state-run program. In order to qualify, recipients must perform work activities that are defined by their state. Contact your state TANF office or county social services to apply for TANF. Remember that, if you qualify for TANF, you are not disqualified from receiving other government benefits, such as food stamps and other financial assistance.
Intragovernmental debts can result in interest expense
The federal government's interest expense in fiscal year 2011 was $453 Billion, which is slightly more than the total for the previous year. This may seem small but it's a significant increase over the previous fiscal year's $126 million. As the country's total expenditure exceeds its revenues, federal government debt has become more costly. The gross public debt and the intragovernmental debt reached $10127 billion as of September 30, 2011 and $4654 trillion respectively in 2011.
The vast majority of federal government's internal debt is held in government trust accounts. About $2.8 billion of this is held in the Social Security OASItrust fund. The majority of the debt remains in federal military and civilian retirement trust fund, which are expected to continue building assets. Although it is not shown in the consolidated balance sheets, intragovernmental debt is a serious burden on the economy. In addition to consuming resources for private investment, borrowing by the government from the public can also lead to higher interest rates. The current taxpayers ultimately pay interest on their government debt since it is paid off in cash.