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.

EXPENDITURE HISTORY

Each division head needs to answer the following questions in a memo to the Mayor and the Special Assistant to the Mayor.

What is the function(s) of your division? The mock simulation materials (on-line) about your division provides some of this information. You will have to get creative and research similar divisions and departments on-line to develop additional background information.

What expenditure categories in your division consumed the most resources: salaries, contractual services, equipment, or supplies? Speculate why resources are concentrated in particular categories. The simulation materials about your division provide some information on which to draw conclusions. In addition, you should review the demographic and economic information for some ideas.

BUDGET PRIORITIES

The mayor indicated to me that he wants budget increases to enhance the quality of life of Meridian's citizens. Quality of life is defined to include public safety, community appearance, and recreational opportunities. Budget justifications for additional money should indicate how the increase will enhance one or more aspects of the quality of life. Be mindful that money is VERY tight this year (because of the prior recessions) and recovery of the economy is slow. The mayor is looking not only to cut back expenditures for some departments, but to also find ways to fund a few of his own priorities. This means that you have to not only justify new requests, but also justify and or defend your base budget which is currently as risk.