Determine which five terms below, concepts or theories are the most important for public budgeting and briefly explain why those five terms, concepts or theories are so important for public budgeting.

A:

Actual Spending:The amount of money that is actually spent on goods and services. (Bailey Aversano)

Appropriate Funds: When money is set aside for a specific purpose. (Bailey Aversano)

B:

Block Grant:a sum of money provided by a higher level of government (like the federal government) to a lower level of government (like a state or local government), with the recipient having flexibility on how to allocate and spend the funds within broad guidelines. (Keiana Gonzales)

Bonds: are money that is borrowed with the assurance the bond can be cashed in after a certain given period of time with interest (tax-free). (Laura Thornhill)

Budget: is a fiscal policy document that outlines revenues and expenditures an organization needs to carry out some specific functions during the course of a given time frame. (John Young IV)

C:

Capital Projects Fund: collects revenue for specific-funded projects dealing with capital (new bridge or wastewater plant, for example). (Keiana Gonzales)

Categorical Grants: Make up the largest type of grants that a state receives. Used for a specific program and has very strict guidelines for the activities to be carried out within a specific time period. (Bailey Aversano)

D:

Debt Service Fund: designed to collect revenue for long-term debt; general obligation bonds would come through the general fund but be earmarked to pay off debt (obligated). (Keiana Gonzales)

Deficit: the amount by which a sum of money is too small (Christina Caldwell)

E:

Estimated Spending:The amount of the expenses which the authority consider are properly to be incurred in the execution of eligible works together with the amount of the costs which the authority considers have been properly incurred, or are properly to be incurred, with respect to preliminary or ancillary services and goods. (Bailey Aversano)

Excise Taxes: Taxes paid when purchases are made on a specific good or when one engages in a particular activity. (Kylie McCarthy)

Expenditures: are financial obligations that flow from the operation of government (costs) (John Young IV)

F:

Fees: A cost for certain activities. (Alexander Gleason)

Fiduciary Funds:Revenue held for other individuals or government organizations (Essence James)

Financial Audit: is a thorough examination of an organization's financial records, statements, and transactions by an independent auditor to ensure accuracy, legality, and adherence to accounting standards. (Keiana Gonzales)

Fiscal Year: A 12-month period where funds are collected and spent. At the end of this period, the budget must be balanced and available for public scrutiny. The legal requirement for a balanced budget is the primary definitional difference between a public and private budget. (Bailey Aversano)

Fund: refers to a pool of money set aside for a specific purpose, often managed by an institution or organization. It can be used for investments, charitable activities, or any designated use. (Keiana Gonzales)

G:

Grants: An amount of money that a government or other institution gives to an individual or to an organization for a particular purpose such as education or home improvements. (Bailey Aversano)

General Fund: the largest governmental fund; includes all revenues not specifically designated for another fund. (Keiana Gonzales)

Goals: The end toward which the effort is directed. (Alexander Gleason)

Government Funds: are used to carry our basic governmental services and are primarily supported through taxes and shared revenues (Chelsea Schoetzow)

I:

Income Taxes:Tax levied by a government directly on income, especially an annual tax on personal income. This also makes up the greater proportion of taxes collected in addition to sales taxes. Income taxes are deducted directly from individual's earnings and are compulsory. (Bailey Aversano)

Incremental:Where one simply adds or subtracts from the previous year's spending. (Bailey Aversano)

L:

Line Item (Traditional Budget):Allocates funds to specific commodities or objects of cost. An emphasis is placed on personnel, supplies, equipment, utilities, contractual services, and capital expenditures. (Bailey Aversano)

Local Option Sales Tax: Special purpose tax implemented and levied at the city or county level- used as a means of raising funds for specific local or area projects. (Bailey Aversano)

Local Revenue: are local taxes budgeted for school purposes in excess of the local five mill share, combined with any applicable equalization grant and budgeted revenues from any of the following: investment earnings, unrestricted donations, and the sale of surplus property; but exclusive of revenue from bonds issued for capital projects, revenue to pay debt service on such bonds and local option sales tax for capital projects. (Fredelia Williams)

O:

Operational Planning: Monitors the allocation of resources on a task-by-task basis in order to ensure that goals and objectives are met. (Bailey Aversano)

P:

Payroll taxes: are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their employees (Fredelia Williams)

Performance Accounting: Measures progress by results. (Bailey Aversano)

Performance Budget:Classifies funds based on some activity and the direct output created by that activity rather than the purchase of resources. (Bailey Aversano)

Permanent Fund: monies dedicated to a specific program or entity (from a foundation for example through donation) and can only be used to support that purpose. (Keiana Gonzales)

Political: budgets are reflection of political strength among competing groups. (The is true but many programs are funded that are not politically popular with those in power) (John Young IV)

Priorities: Things seen as more important than another. (Alexander Gleason).

Proceduralism: budgets are a result of processes that regulate and constrain choices and options. (This is true but regardless of the process, economics and politics still impact) (John Young IV)

Program Budget:Allocates funds to programs or activities within an organization. (Bailey Aversano)

Progressive Taxes: State income tax rates tend to be lower than federal income taxes, that is, the higher income individuals pay more taxes than lower income individuals. (Bailey Aversano)

Property Taxes: Levied against real property, perhaps personal property and private utilities as a major source of revenue for local governments. (Bailey Aversano)

Public budgeting:Making and implementing decisions regarding the acquisition, allocation, and use of resources, primarily money, by government. (Bailey Aversano)

R:

Rationalism: budgets reflect what works and what is needed to achieve the goal (Kylie McCarthy)

Resource Dependency Theory: relating to the relationship between the funder and the funded in ways that show the impact of dependency. (Alexander Gleason).

Regressive Tax: a type of tax where the rate decreases as the amount of income or wealth increases. In simpler terms, as people earn more money, they pay a smaller percentage of their income in taxes. (Keiana Gonzales)

Revenues:are the monies collected by all levels of government to pay for the operation of government (John Young IV)

S:

Sales tax: taxes placed on goods and services (Essence James)

Special Service Fund: a fund in which revenues are specifically earmarked for a purpose and can only spent on that purpose. (Keiana Gonzales)

Strategic Planning: Future orientated process of diagnosis and strategy building- closely monitors an agency's mission, capacity, and the environment in which it exists. (Bailey Aversano)

T:

Taxes: are compulsory charges made against the public by a government to obtain the money it needs to finance its activities. (Laura Thornhill)

Tax Expenditures: Money forgone by government which could have been collected in the form of taxes but wasn't. (Alexander Gleason).

Z:

Zero Based Budgeting: a process in government and corporate finance of justifying an overall budget or individual budgeted items each fiscal year or each review period rather than dealing only with proposed changes from a previous budget. (Christina Caldwell)