Text Preview

Municipal Budget Software Used In Government May Help WIth Your Budget

State and local governments use municipal budget software to help keep track of the day to day spending of money. Some of the things that are covered are salaries for the elected individuals and other operating costs like the electric bill and office supplies. Some things that are not covered with state and local government funds are building projects like building new roads.

Just like big business, state and local governments use municipal budget software to keep them in the black by monitoring their out-going expenses and their incoming revenue. Budgeting is very important so that these governments do not create deficits. If deficits happen then cuts have to be made or worse, certain services have to be done away with altogether.

It is crucial that state and local governments prove and continue to prove that they can operate within a certain budget because they are issued what is called municipal bonds. If their bond rating goes down, just like with an individuals credit rating, they may not receive additional bonds to use. This is all overseen by the bond rating agency and if communities cannot operate in the black and repay the previous years bonds then they will not receive more.

Revenues included in the operating costs of state and local governments are divided into three categories:  income, property taxes, and sales taxes. In most instances, most of the revenue generated comes from individual income taxes, followed by sales taxes. Property taxes usually only benefit local governments, but some state governments also impose property taxes. Each of these is further broken down into subcategories. For example, sales and gross receipts taxes differ from general sales and gross receipts taxes. The different taxes imposed on consumers can also include those from the sale of alcohol, insurance premiums, fuel, utilities, and tobacco.

Operating budgets focus on covering the day-to-day needs of state and local governments. That includes salaries for all the government workers and teachers, as well. Education is a huge expense included in the operating budget. This budget also covers maintenance of any and all government properties, like electricity and utility costs. It covers the funding of several departments, including the judicial system. 

Correctional facilities (prisons and jails) must also be funded, along with public safety services like police and fire personnel. Infrastructure improvement projects like those for fixing the roads and maintaining the water and sewer systems must be funded through the operating budget. Tax incentives help fund any economic development projects included in the budget.

It is no secret that state and local governments need funds to work. So, each year each department in the state or local government will submit their projected amount that they will need to operate in the black for the next fiscal or calendar year. The fiscal year runs from July 1 to June 30 and the calendar year runs from January 1 to December 31. Once all the numbers get punched into the municipal budget software the budget needs approval by committee and then the mayor gets final approval.