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. The Budget ordinance is a tax levied and revenue raised. 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 and raising 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 finance officer distributes property tax collections on a monthly basis according to the budget ordinance. The finance officer is responsible for ensuring that all tax collections follow the budget ordinance. The amount of tax collected monthly must be sufficient for local government expenses.
The governing body must adopt the budget ordinance. The ordinance may be changed if necessary. G.S. 159-13. The amendment cannot change the amount of property tax liability. An amendment to a budget ordinance must be ordered by a court of competent jurisdiction or a State agency with authority to enforce taxes. Before any additional tax collection can be permitted, the budget ordinance must first be approved by its governing board.
Programs that offer assistance to families and individuals who are facing hardship
In times of recession, open-ended entitlement programmes can be a valuable source of fiscal support. These programs become more available as incomes fall. These programs are less likely to offer fiscal support as the economy expands and more people may not be eligible. These programs are useful in stabilizing the economy in up-and–down economies. These are the eligibility criteria for some of these programs:
Temporary Assistance for Needy Families, or TANF, is another state-run and federal benefit program. The state defines work as a requirement to be eligible. For information on how to apply for TANF in your area, contact the county social services office and state TANF officer. 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
In fiscal year 2011 the federal government's interest expense was $453 billion, a slight increase over the previous year's total. Although it may seem small, this represents a significant increase in the federal government's interest expense from $126 billion in fiscal year prior. 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. Most of the remaining federal and civil retirement trust funds debt are held. They are projected to continue to accumulate assets. Even though it doesn't appear in the consolidated finances, the intragovernmental debt is still a major burden to the economy. The government's borrowing from public funds may reduce resources available for private investment and push interest rates higher. Current taxpayers will eventually pay interest on the government debt, as it is in cash.