The Ten Commandments for Local Government Budgeting

I. Thou Shalt Prioritize Transparency and Accountability

The first commandment of local government budgeting is to prioritize transparency and accountability in all budgeting decisions. This is also a critical principle in GFOA’s program, which emphasizes the need for transparent and clear communication of budget information to the public. To achieve this, budget documents should be easy to read and understand, with clear language and graphics that explain the government’s priorities and how resources are being allocated.

II. Thou Shalt Create a Long-Term Financial Plan

The second commandment of local government budgeting is to create a long-term financial plan to ensure the sustainability of the municipality’s finances. This principle is also aligned with GFOA’s program, which encourages governments to provide a detailed forecast of all revenue sources and spending allocations for the budget period. A long-term financial plan enables governments to manage resources more effectively and respond to unexpected expenses.

III. Thou Shalt Involve All Stakeholders

The third commandment of local government budgeting is to involve all stakeholders, including residents and community groups, in the budgeting process. This is a critical principle in GFOA’s program, which recognizes the importance of engaging with the public and incorporating their feedback into the budget process. This ensures that the budget reflects the community’s priorities and needs.

IV. Thou Shalt Base All Decisions on Reliable Data and Evidence

The fourth commandment of local government budgeting is to base all decisions on reliable data and evidence. This principle is also essential in GFOA’s program, which emphasizes the need for accurate and comprehensive information in budget documents. Governments should use data to inform their decisions and ensure that spending is aligned with community needs.

V. Thou Shalt Consider the Long-Term Impact

The fifth commandment of local government budgeting is to consider the long-term impact of all decisions on the community’s quality of life. This principle is also aligned with GFOA’s program, which encourages governments to develop a policy document that outlines the government’s priorities and the supporting programs required to achieve those priorities. Governments should consider how each program contributes to the overall goals of the government and how it will impact the community in the long term.

VI. Thou Shalt Balance Competing Priorities

The sixth commandment of local government budgeting is to balance competing priorities and allocate resources based on community values and needs. This principle is also emphasized in GFOA’s program, which recognizes the need for spending allocations that align with the government’s priorities. Governments should use a data-driven approach to balance competing priorities and ensure that resources are allocated effectively.

VII. Thou Shalt Set Realistic Financial Goals

The seventh commandment of local government budgeting is to set realistic financial goals and expectations. This principle is also aligned with GFOA’s program, which encourages governments to provide a detailed forecast of all revenue sources and spending allocations for the budget period. Governments should ensure that financial goals are achievable and aligned with community needs.

VIII. Thou Shalt Maintain Reasonable Reserves

The eighth commandment of local government budgeting is to maintain a reasonable level of reserves to address unexpected expenses. This principle is also emphasized in GFOA’s program, which recognizes the importance of having a plan to address unexpected expenses. By maintaining reserves, governments can be better prepared to address unforeseen circumstances without having to resort to drastic measures that could negatively impact the community.

IX. Thou Shalt Regularly Monitor and Evaluate the Budget

The ninth commandment of local government budgeting is to regularly monitor and evaluate the budget to ensure that it remains on track. This principle is also a key aspect of GFOA’s program, which recognizes the importance of ongoing monitoring and evaluation to ensure that budget goals are being achieved. Governments should use data and evidence to track progress and adjust as necessary.

X. Thou Shalt Ensure Budgeting Decisions Are Legal and Ethical

The final commandment of local government budgeting is to ensure that all budgeting decisions are legal, ethical, and in line with the local government’s values and mission. This principle is also emphasized in GFOA’s program, which recognizes the importance of adhering to legal and ethical principles in budgeting. Governments should ensure that their budgeting decisions are aligned with their values and mission and that they are transparent and accountable to the public.

Conclusion

The ten commandments of local government budgeting and the principles aligned with GFOA’s Distinguished Budget Presentation Awards Program work together to support high-quality budget presentations. By prioritizing transparency and accountability, involving all stakeholders, using reliable data and evidence, and considering the long-term impact of budgeting decisions, governments can ensure that their budget documents reflect the community’s needs and priorities. By setting realistic financial goals, maintaining reasonable reserves, regularly monitoring and evaluating the budget, and ensuring that budgeting decisions are legal and ethical, governments can achieve their budget goals while maintaining the trust of the public.