This article will discuss the importance of budgeting to manage your city's finances. This article provides an overview on how city funds are allocated and also highlights the policies and programs that support individuals and families in dire need. In addition, we'll discuss the Budget ordinance that levies taxes and raises necessary revenue. 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 ordinances that levy taxes or raise revenue
The budget ordinance specifies how much tax a local government has to collect. Tax collections are distributed among the various funds by the finance officer. The budget ordinance stipulates that the finance office distributes property tax collections monthly. The finance officer must ensure that all tax collections are distributed according to the budget ordinance. The amount of tax collected monthly must be sufficient for local government expenses.
The governing boards must approve the budget ordinance. The ordinance can be modified if necessary by the governing body. G.S. 159-13. The amendment cannot change the amount of property tax liability. A court of competent jurisdiction or State agency with the authority to enforce taxes must order an amendment to a buget ordinance. Before any additional tax collection may be allowed, the governing Board must approve the budget ordinance.
Programs that provide assistance to individuals and families facing hardship
Open-ended entitlements programs may be helpful during recessions. More people are eligible for these programs as their incomes drop. As the economy grows, however, these programs tend to provide less fiscal support and fewer people qualify for them. These programs can still be helpful in stabilizing an economy during an up-and-down economic environment. Here are some programs and their specific eligibility criteria:
Another federal program is Temporary Assistance for the Needy Families (TANF), which is a state-run benefit program. Recipients must participate in work activities according to their state. To apply for TANF, contact your county social services office or state TANF office. Do not forget that you can still get other government benefits, like food stamps and financial assistance, if your application is approved for TANF.
Interest expense from 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. Federal government debt has become increasingly more expensive as the nation's government's total spending exceeds its total revenues. 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 trillion is held in the Social Security OASI fund. The majority of the debt remains in federal military and civilian retirement trust fund, which are expected to continue building assets. While the consolidated financial statements don't show intragovernmental debt, it's a major burden on 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.