This article explores the importance of budgeting for your city's finances. It not only provides an overview about how city funds work, but also discusses the types of policies and programs that can help people and families in need. The Budget ordinance is a tax levied and revenue raised. The interest expense on intragovernmental bonds will be discussed. These are all crucial components of a city’s finances, so make sure you're familiar with them all.
Budget ordinance levying taxes or raising necessary revenue
The budget ordinance determines the tax collection that a local government must collect. Finance officers distribute tax collections to the appropriate funds. The finance officer distributes monthly property tax collections according to the budget ordinance. The finance manager must ensure that all tax collections comply with the budget ordinance. The monthly tax collection must be sufficient to pay for the expenses of the local government.
The governing body must adopt the budget ordinance. The ordinance may be amended if the governing board sees fit. G.S. 159-13. The amendment can't change the amount or liability for property tax. An order to amend a budget ordinance must come from a court with jurisdiction or a State agency that has 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
Open-ended entitlements programs may be helpful during recessions. These programs are more accessible to people whose incomes decrease. These programs offer less financial support to people who earn more, so they are less popular as the economy improves. However, in an up-and-down economy, these programs can help stabilize an economy. Here are some programs with specific eligibility criteria.
Temporary Assistance For Needy Families, also known simply as TANF or State-run assistance program, is another federal benefit program. In order to qualify, recipients must perform work activities that are defined by their state. To apply for TANF, contact your county social services office or state TANF office. You are still eligible to receive other government benefits such as food stamps or financial assistance if you have TANF eligibility.
Interest expense accrued by intragovernmental debt
The federal government's 2011 interest expense was $453Billion. This is a slight decrease from the previous fiscal year. While this may seem small, this is actually a significant increase from the prior fiscal year's $126 billion. The cost of federal government debt is increasing as the government's total spending exceeds its revenue. As of September 30, 2011, gross public and intragovernmental debts totaled $10127 billion. In 2011, they were $4654 billion.
Most of the federal government’s intergovernmental debt is held within government trust funds. About $2.8 trillion is held in the Social Security OASI fund. The largest portion of the remaining debt is held in the federal military trust funds and civilian retirement trust accounts, which are expected continue to accumulate assets. Even though it doesn't appear in the consolidated finances, the intragovernmental debt is still a major burden to the economy. The government's borrowing from the public absorbs resources for private investment and may push interest rates higher. Current taxpayers will eventually pay interest on the government debt, as it is in cash.