Local Government Budgets Overview

Question 1

What is a financial plan involving the estimate of expenditures and the proposed method of financing these expenditures through various revenue sources?

Answer 1

A Budget

Question 2

A municipal budget constitutes what two functions of authority?

Answer 2

1. Establishes the appropriations necessary to meet estimated expenditures
2. It provides the authority to tax to provide revenue needed to bring the budget into balance

Question 3

Is there authority to spend or tax without a budget?

Answer 3

No

Question 4

Where is the basis for municipal budgeting in NJ found?

Answer 4

Local Budget Law (NJSA 40A:4-1)

Question 5

How is the budget coded?

Answer 5

By using the Flexible Chart of Accounts (FCOA)