Discussion Assignment: The Budget Cycle
Overview
The budget cycle is common to government agencies that are required to use transparent budgeting processes. A budget cycle is the life of a budget from creation or preparation, to evaluation. It includes preparation, approval, implementation, and review.
In an evaluation, assess the value of the budget cycle and budgetary planning techniques.
Thread Outline – Use bolded statements as headings in your thread.
I. Assessment of the Value of the Budget Cycle, as indicated below
**Revenue Estimation performed in the executive branch by the finance director, clerk’s office, budget director, manager, or a team.
**Budget Formulation reflecting on the past, set goals for the future and reconcile the difference.
**Budget Hearings can include departments, sections, the executive, and the public to discuss changes in the budget.
**Budget Adoption final approval by the legislative body.
**Budget Execution amending the budget as the fiscal year progresses.
II. Assessment of the Value of Budgetary Planning Techniques
**Trend Analysis -examining short- and long-term revenues and expenditures over time
**Driver-Based Planning -examining short- and long-term revenues and expenditures driven by and important determinants, such as revenues generated, overall objectives, and number of residents.
**Financial Modeling – takes driver-based planning one step further and uses equations to support the planning process.
**Forecasting -Regression based simple, multiple, linear and nonlinear extrapolation