This article will explain the importance and benefits of budgeting in your city's financial affairs. This article will provide an overview of the city's funding and focus on the programs and policies that are most beneficial to individuals and families. We'll also talk about the Budget ordinance. This is where taxes are levied and revenues raised. And finally, we'll discuss the interest expense on intragovernmental debt. These are key elements of a city's financial picture. Make sure you read about each.
Budget ordinance levying taxes or raising necessary revenue
The budget ordinance defines the amount of tax collections a local government must raise. Finance officers divide tax collections among various funds. The finance officer distributes monthly property tax collections according to the budget ordinance. The finance officer must ensure that all tax collections are distributed according to 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. If necessary, the governing board may amend the ordinance. G.S. 159-13. The amount of property taxes that are due is not affected by the amendment. A court of competent jurisdiction must order the amendment to a budget ordinance. The budget ordinance must be approved by the governing board before any additional tax collection is permitted.
Programs that assist families and individuals in times of hardship
In times of recession, open-ended entitlement programmes can be a valuable source of fiscal support. These programs are more accessible to people whose incomes decrease. As the economy grows, however, these programs tend to provide less fiscal support and fewer people qualify for them. 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, also known simply as TANF or State-run assistance program, is another federal 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. Remember that, if you qualify for TANF, you are not disqualified from receiving other government benefits, such as food stamps and other financial assistance.
Interest expense accrued by intragovernmental debt
The federal government's interest expenses in fiscal 2011 were $453 billion. This is a slight increase from the previous year. This is a substantial increase from the $126 Billion in the prior fiscal year. As the nation's total government spending exceeds its revenues, federal debt has become more expensive. At September 30, 2011, the gross public debt and intragovernmental debt were $10127 billion and $4654 billion respectively.
Government trust funds hold the majority of the federal government’s intragovernmental debt. The Social Security OASI Trust Fund holds $2.8 trillion. The largest portion of the remaining debt is held in the federal military trust funds and civilian retirement trust accounts, which are expected continue to accumulate assets. Although it is not shown in the consolidated balance sheets, intragovernmental debt is a serious burden on the economy. The government's borrowing from public funds may reduce resources available for private investment and push interest rates higher. Because government debt is paid in cash, current taxpayers are ultimately paying interest on it.