MEMORANDUM

PUBLIC BUDGETING AND FINANCIAL MANAGEMENT Class Assignment for Expenditure Histories

And Division Budget Requests

October 21, 2020

To: Division Heads in the City of Meridian

From: Dr. Brian Chapman, Mayor and Dr. L. MaShelle Stewart, Special Assistant to the Mayor

DIVISION EXPENDITURE HISTORIES AND DIVISION BUDGET REQUESTS FOR FISCAL Year 2021

One point is clear from the readings that focus on how budget decisions are made. The expenditure history of a department or division influences the spending request for the coming year. It is necessary for you, as a new division head, to familiarize yourself with the expenditure history of your division.

It is necessary also for you, as a division head, to make a budget request for FY 2021. Keep in mind that all changes in division budgets will be based on the merits of the budget proposals. No division is guaranteed any particular level of increase, although you may request inflation increases as explained in some of the items below. The Meridian City Council has made it clear; division budgets will decrease if current spending levels are not justified.

BUDGET REQUESTS

Create a spreadsheet similar to the example distributed in class.

1. Insert the headings appearing on the sample spreadsheet distributed in class
2. Enter the items for fiscal year 2019 to 2020 from the budget simulation for your department or
3. division.
4. Create the 2021 continuation budget by adding inflation to the 2020 amount for each of the
5. following categories: Regular Salaries, Overtime Salaries, Contractual Services, and Supplies. Justify which percentage that you decide to use for inflation. Inflation is typically 1-2%, but the percentage increase is to your discretion. Be prepared to justify the percentage increase adopted.
6. Compute the fringe benefit line for FY 2021 Request for Continuation by determining 25 percent of the total amount spent on current personnel. This is computed by adding the amounts for regular salaries, overtime salaries, and temporary salaries.
7. Compute the total 2021 request for each line item by adding together the continuation budget, the expansion budget, and the new services budget.
8. Determine the dollar request increase by subtracting the FY 2020 budget from the FY 2021 request.
9. Compute the percentage increase by dividing the dollar increase requested for FY 2021 by FY 2020.

And Please show how you got the number, the Forecast number