This article will explain the importance and benefits of budgeting in your city's financial affairs. It provides an overview of city funds and focuses on policies and programs that aid individuals and families in crisis. 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 critical components of a city’s financial picture. Please read each one.
Budget ordinance levying taxes or raising necessary revenue
The budget ordinance defines the amount of tax collections a local government must raise. Tax collections are distributed among the various funds by the finance officer. The budget ordinance dictates that the finance officer distributes property tax collection on a monthly schedule. The finance officer must ensure that tax collections are distributed in accordance with 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 board must approve the budget ordinance. The governing board can amend the ordinance as it sees fit. 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 offer assistance to families and individuals who are facing hardship
Open-ended entitlements programs may be helpful during recessions. These programs are more accessible to people whose incomes decrease. These programs can provide less fiscal assistance and are more accessible to fewer people as the economy continues to grow. However, in an up-and-down economy, these programs can help stabilize an economy. Here are some examples of programs and the criteria that they meet:
Another federal program is Temporary Assistance for the Needy Families (TANF), which is a state-run benefit program. The state defines work as a requirement to be eligible. 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 interest expense in fiscal year 2011 was $453 Billion, which is slightly more than the total for the previous year. This is a substantial increase from the $126 Billion in the prior fiscal year. Federal government debt is becoming more expensive because the total spending of the federal government exceeds its revenues. At September 30, 2011, the gross public debt and intragovernmental debt were $10127 billion and $4654 billion respectively.
The vast majority of federal government's internal debt is held in government trust accounts. The Social Security OASI trust funds hold $2.8 trillion. Most of the remaining federal and civil retirement trust funds debt are held. They are projected to continue to accumulate assets. Although the consolidated financial statements do not show any intragovernmental debt, this is a significant 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.