Budget vs Appropriation
Fiscal Year (FY) = a period over which funds are expended. In the world of governments, a fiscal year is also a time-bounded period over which funds may be expended. Typically, in the wider world, when a fiscal year is split over two calendar years, the fiscal year is labeled "FY" followed by the last two digits of the terminal year. However, the practice in this region appears to most frequently label it with the entire 2-year period.
General Fund (GF) = The vast majority of your tax dollars are for the general operation of the government and are not dedicated to particular departments or activities. The common label for the account where these are deposited is the General Fund. (Terms like this can differ from locality to locality. However, Washington State, Snohomish County, and its larger cities use this term. Most common politics around budgeting in general purpose governments – cities, counties, states, etc. – involves allocation or funding the General Fund.
Allocate = Probably has a variety of meanings, but the important one for this workshop is assigning specific expenditure authority to specific domains of governance. In other words, the common understanding of “budgeting” is actually allocating.
Expense Budget/Operating Budget =
Capital (Budget, Improvement Plan, Facilities Plan, etc.) = A capital improvement plan (CIP) is a multi-year (typically 5 years, but can be longer or shorter) plan for capital projects such as buildings, roads, recreational facilities (including major landscaping), expensive equipment, etc. The common practice is to convert the first year of the CIP into the Capital Budget. Typically, there is a threshold below the cost of which an item is considered an expense rather than a capital project. Even for expensive items, it is generally required that the item must have a long life (typically at least 5 years). Capital projects are usually funded through borrowing. Example Snohomish County Capital Improvement Plan; Example Washington State Capital Plan
Transportation Budget (Washington State) = A separate operating budget for transportation relate expenditures (uncommon).
Biennial Budget
Allocate – Probably has a variety of meanings, but the important one for this workshop is assigning specific expenditure authority to specific domains of governance. In other words, the common understanding of “budgeting” is actually allocating. While sometimes the domain to which the funds are allocated is "line items," this is not a hard and fast rule. Funds can be allocated to:
GASB = Government Accounting Standards Board
ACFR = Annual Comprehensive Financial Report
Audited/Unaudited Financial Report
IRS 990 = Brief financial report that nonprofits submit to the IRS
Levy = Property tax
Mill = 1/1000 =$0.01/$100. A common measure associated with property tax.
Decision Packages
Transparency
Net Present Value
Life Cycle Costing (using Net Present Value)
Nominal Dollars
Real Dollars
Bond Rating
- Appropriation = Ordinance, Act, Resolution, etc. = Law or equivalent passed by a governing body to authorize the expenditure of funds (typically) during a specified period and expiring when that period ends. Although this is an appropriation, many governments call it the budget or the approved budget.
- Budget = A proposal for an appropriation that may reflect extensive analysis and deliberation. Often accompanied by a draft appropriation.
Fiscal Year (FY) = a period over which funds are expended. In the world of governments, a fiscal year is also a time-bounded period over which funds may be expended. Typically, in the wider world, when a fiscal year is split over two calendar years, the fiscal year is labeled "FY" followed by the last two digits of the terminal year. However, the practice in this region appears to most frequently label it with the entire 2-year period.
- The Federal FY begins on October 1 and ends on September 30 of the next calendar year.
- Washington State's FY begins on July 1 and ends on June 30 of the next calendar year.
- Snohomish County's FY is the calendar year. So, too, it seems for the cities in Snohomish County.
- School district budgets reflect the school year. /// Still looking for whether the summer session is included as the end of the FY or the beginning of the next FY///
- Most Fire Districts reveal very little about their budgets.
- /// special purpose districts?///
General Fund (GF) = The vast majority of your tax dollars are for the general operation of the government and are not dedicated to particular departments or activities. The common label for the account where these are deposited is the General Fund. (Terms like this can differ from locality to locality. However, Washington State, Snohomish County, and its larger cities use this term. Most common politics around budgeting in general purpose governments – cities, counties, states, etc. – involves allocation or funding the General Fund.
Allocate = Probably has a variety of meanings, but the important one for this workshop is assigning specific expenditure authority to specific domains of governance. In other words, the common understanding of “budgeting” is actually allocating.
Expense Budget/Operating Budget =
Capital (Budget, Improvement Plan, Facilities Plan, etc.) = A capital improvement plan (CIP) is a multi-year (typically 5 years, but can be longer or shorter) plan for capital projects such as buildings, roads, recreational facilities (including major landscaping), expensive equipment, etc. The common practice is to convert the first year of the CIP into the Capital Budget. Typically, there is a threshold below the cost of which an item is considered an expense rather than a capital project. Even for expensive items, it is generally required that the item must have a long life (typically at least 5 years). Capital projects are usually funded through borrowing. Example Snohomish County Capital Improvement Plan; Example Washington State Capital Plan
Transportation Budget (Washington State) = A separate operating budget for transportation relate expenditures (uncommon).
Biennial Budget
Allocate – Probably has a variety of meanings, but the important one for this workshop is assigning specific expenditure authority to specific domains of governance. In other words, the common understanding of “budgeting” is actually allocating. While sometimes the domain to which the funds are allocated is "line items," this is not a hard and fast rule. Funds can be allocated to:
- Line Items (the accounting code level of potential and actual expenditures);
- Programs (specifically defined activities of government);
- Departments;
- Functional Categories; and
- Many other ways to designate where the funds are to be spent and for what purpose.
GASB = Government Accounting Standards Board
ACFR = Annual Comprehensive Financial Report
Audited/Unaudited Financial Report
IRS 990 = Brief financial report that nonprofits submit to the IRS
Levy = Property tax
Mill = 1/1000 =$0.01/$100. A common measure associated with property tax.
Decision Packages
Transparency
Net Present Value
Life Cycle Costing (using Net Present Value)
Nominal Dollars
Real Dollars
Bond Rating