Chapter 14: Budgeting

Question 1

Budget

Answer 1

An itemized summary of estimated or intended revenues and expenditures for a given period, along with proposals for financing them.

Question 2

Revenues

Answer 2

The income of an organization from all sources.

Question 3

Expenditures

Answer 3

The money spent for goods or services.

Question 4

The six steps of the budget cycle process

Answer 4

1. Identification of needs and required resources.
   2 Preparation of a budget request
2. Local governmental and public review of requested budget
3. Adoptions of an approved budget
4. Administration of approved budget, with periodic review and revision
5. Close-out of budget year.

Question 5

Elected officials ____

Answer 5

determine tax rates to generate the needed revenue. They then allocate the available funds among the different organizations and programs. Federal, state, and local regulations also influence the budget process.

Question 6

Annual budgets usually apply to a ____

Answer 6

fiscal year, such as the year starting July 1, and ending on June 30 of the following year. In this scenario FY18 would start on July 1, 2017. The budget process for that year would start in 2016, a full year before the beginning of the fiscal year.

Question 7

Base budget

Answer 7

The level of funding that would be required to maintain all services at the currently authorized levels, including adjustments for inflation and salary increases. A built in process assumes that the current level of service has already been justified and that the starting point for any changes in the budget should be the cost of providing the same services next year.

Question 8

Supplemental budget

Answer 8

Proposed increases in spending to provide additional services.

Question 9

When budgets have to be reduced

Answer 9

the change is calculated as a percentage of the base budget. A 15 percent budget cut for example means that only 85 percent of the base budget expenditures for the current year will be approved for the next fiscal year.

Question 10

Increases in the fire department budget require ___

Answer 10

early notification and support of elected officials.

Question 11

Elected officials act as ____

Answer 11

both advocates, and gatekeepers in developing the local budget. They want to keep taxes down and, at the same time, deliver the services that the voters expect.

Question 12

A fire tax district

Answer 12

A special service district created to finance the fire protection of a designated district.

Question 13

Bond

Answer 13

A certificate of debt issued by a government or corporation; a bond guarantees payment or the original investment plus interest by a specified future date.

Question 14

Fire Ground Location (FGL) program

Answer 14

A two person unit that responds to working incidents to track fire fighters operating in immediately dangerous to life and health (IDLH) environments and to monitor the medical status of members who rotate through the rehabilitation sector during an event.

Question 15

Fiscal year

Answer 15

A 12 month period during which an organization plans to use its funds.