Read This Week

 

The Basics of Public Budgeting and Financial Management

• Chapter 2: Preparing a Budget Proposal, pgs. 37-50

M2D1: Budget Defense

The first module gave you an introduction to public budgeting from a practical standpoint as well as introduced you to some of the theoretical concepts that are associated with the practice. Although this information is very valuable, it is important to be aware of the human element that heavily influences the budgeting process. In this module, we will discuss the main actors that are associated with the budget process and how different groups can influence budget decisions and policy making. In addition, we will discuss the budget cycles and timeframes associated with budget development and how this relates to the larger budget “game.”

This week we pursue these course and module outcomes.

 

ASSIGNMENTS:

 

M2D1: Budget Defense

 

Let’s Talk

Let’s engage in some dialogue. It’s one thing to read about a topic. But, in order to learn, we need to think, write, and talk about the topic. We’ve combined the module notes with a discussion so that you may jot down your thoughts, insights, questions, etc. as you read.

Within the notes, you’ll find guiding questions, articles, and videos to help spark the conversations. To start the course off, let’s talk about the differences between public and private budgets. Let’s also explore the implications of federal budget differences on the general public. To earn maximum points, be sure to review the discussion guide and the discussion criteria links below.

https://excelsior.instructure.com/courses/18539/files/10493990/download?wrap=1

Support Materials

Articles

• Damning New Report Details Budget Stalemate’s Impact on Illinois Kids, Seniors(Links to an external site.)
• United Way and Local Nonprofits Brace for Multi-Million Dollar Shortfall in 2018 Campaign(Links to an external site.)
• Budget Narrative Justification(Links to an external site.)
• Municipal Financial Summary(Links to an external site.)
• Ionia County Budget(Links to an external site.)

Forms

• Sample Stakeholder Analysis
• Stakeholder Analysis Form

 

M2A1: Draft Budget

You have learned the basic components and structure of a budget. A key learning principle for this activity is to understand that the justification serves as the introduction to the budget. Prior to building the budget story, you will use the readings, personal/professional experiences, and the samples from the module to develop the draft budget proposal.

Using one of the templates provided below or one of your own, please prepare a draft template. It is important to note when information is not readily available it is best not to include it in the budget. Instead, address it in a statement within the context of your budget template which is your justification.

In this assignment, we will begin to build upon your final project and presentation.

 

Submit

Choose from one of the sample budget templates:

Department Budget Template

• Your department may be required to develop a budget to justify a new hire or undertake an additional program or activity. The budget needs for your department and subsequent expenses impacted by the changes should be developed to share with senior leadership. Or, maybe you have accepted a position that requires you to develop a budget to assess need.
• There may be data not required for your budget. It is okay to make assumptions as many good leaders are encouraged to do that to address the needs of the agency, program, or government.

Zero-Based Budget Template

• The zero-based budget is a method of tracking every dollar spent. If selected the objective is to ensure every dollar is accounted for. Should your income less expenses equate to zero, it simply means that you have zero dollars left over in your budget.
• This is a good method to determine how much money you have in your budget for additional expenditures.

Project Budget

• The project budget provides you an opportunity to present the cost-effectiveness of a new or current project you have been asked to administer. As stated earlier, there may be a few unknowns. But, for the most part, assumptions are allowable.

M2 Student Wrap Up

 

Submit

A budget should not be so overwhelming that you cannot begin the task of developing an outline of “spend”. Taking all that we have discussed in this chapter and the preceding one, and even in your personal life; I am asking you to develop a budget with your mind’s eye on your goal for the budget.

The goal may be simply to balance your books to establish a vacation account, buy a house, buy a new car, etc. If you are presenting a project budget, perhaps you intend to provide a service to the community, expand your department, etc.

For those of you who have entertained the prospect of a project budget, think of how the cost of personnel impacts the budget. Do you need 1 staff or more? Do you need office/supplies?

Start to think about how personnel and operating expenses impact your budget plans and development, or the needs of your department or home.

 

Ask the following:

1. What is the impact to your department or household?
2. Who do you need to consult to validate expenses?
3. Identify any income resources?

And you may have questions of your own as you look to create budgets.

Post a link or document here.

Reflection criteria