This article will discuss the importance of budgeting to manage your city's finances. This article will provide an overview of the city's funding and focus on the programs and policies that are most beneficial to individuals and families. We'll also talk about the Budget ordinance. This is where taxes are levied and revenues raised. We'll also discuss intragovernmental debt interest costs. 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 specifies how much tax a local government has to collect. The finance officer distributes tax collections among the different funds. According to the budget ordinance, the finance officer distributes property taxes on a monthly basis. The finance office must ensure that all tax collection are distributed according the budget ordinance. The amount of tax collected on a monthly basis must be sufficient to cover the expenses of the local government.
The governing body must adopt the budget ordinance. If necessary, the governing board may amend the ordinance. However, the amendment must meet the requirements of G.S. 159-13. The amendment can't change the amount or liability for property tax. A court of competent jurisdiction must order the amendment to a budget ordinance. The governing board must approve the budget ordinance before additional tax collection is allowed.
Programs that offer assistance to families and individuals who are facing hardship
During a recession, open-ended entitlement programs can provide much-needed fiscal support. More people can be eligible for these programs if their incomes decline. 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 the specific eligibility criteria for these programs:
Another federal program is Temporary Assistance for the Needy Families (TANF), which is a state-run benefit program. To qualify, recipients must engage in work activities, as defined by their state. For more information about TANF, please contact your county's social services office or the state TANF offices. You are still eligible to receive other government benefits such as food stamps or financial assistance if you have TANF eligibility.
Intragovernmental debt incurs interest expense
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. As the country's total expenditure exceeds its revenues, federal government debt has become more costly. Total gross public debt (intragovernmental) and total debt at the end of September 2011 was $10127billion, and $4654billion, respectively.
Government trust funds hold the majority of the federal government’s intragovernmental debt. The Social Security OASI trust funds hold $2.8 trillion. 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. Although it is not shown in the consolidated balance sheets, intragovernmental debt is a serious burden on the economy. Borrowing from the government can reduce private investment resources and increase interest rates. Because government debt is paid in cash, current taxpayers are ultimately paying interest on it.