Finance and Budgeting

Introduction

The purpose of this page is to supply local officials and interested persons with information useful in budgeting, financing and evaluating the services their local governments provide. We hope that this information will spur discussion and lead to innovation and more informed decision-making. The resources provided, however, are for educational purposes and do not prescribe what a local government should do.

Basic Financial Administration Handbook: A Comprehensive Resource

The Basic Financial Administration for Wisconsin Local Governments provides an excellent resource for local governments, especially for of smaller local governments, by addressing their financial operational and planning needs to create and monitor their annual budgets and financial administration. This Handbook will assist with these important tasks. Please contact Daniel Foth at daniel.foth@wisc.edu with any questions.

Purchase Handbook

Overview of Budgeting

Types of Budgeting

  • Performance Measurement and Performance Based Budgeting (PBB) (PowerPoint) This presentation is intended to familiarize viewers with the basic concepts of performance measurement, benchmarking, and performance/outcome-based budgeting.
  • These links are to the Performance Measurement Manual and its Appendix which are the companion pieces to the PBB and PBB Instructional Version presentations. The manual and its appendix provide a step by step discussion of using performance measurement for program improvement and budgeting and includes examples of using performance measurement in a problem solving scenario and a strategic planning scenario.
  • Performance Measurement Manual (Microsoft word)
  • Performance Measurement Manual Appendix  (Microsoft word)
  • Performance Measurement and Performance Based Budgeting (PBB) (PowerPoint) Instructional Version.
  • Efficiency Approaches (PowerPoint) This presentation discusses five common efficiency approaches being considered in local government financial management.
  • Lean Government (PowerPoint) This is a DRAFT presentation that discusses the basic principles of Lean Government, the components used to implement a Lean Government program, and a short success story.
  • Finding Efficiencies in Local Government (PowerPoint)
  • Case Studies in Performance Management – Jay Moynihan and Mary Kluz

Revenues

Debt

  • Debt Management (PowerPoint) This presentation discusses borrowing and the management of public debt.
  • Debt Indicators (PowerPoint) This presentation discusses debt and financial condition related to debt.
  • Bonds and Bond Ratings (PowerPoint) This presentation discusses the specifics of and reason for issuing bonds at the local government level and further explains bond ratings and why a good bond rating is important.

Audits

  • Audits (PowerPoint) This presentation discusses the various types of audits applicable to local governments, what they mean, and how they are used in borrowing.

Technical Tools

Other Resources

  • Kim, Yunji. 2018. Local Governments and Fiscal Stress. In The Municipality, League of Wisconsin Municipalities, Vol. 113, No. 7, 3 pages)
  • UW-Extension Local Government Center. Brief #1 – Tips for Levy Limit Referendums, February 2019.
  • Fact Sheet #17 – Financial Management in Local Government: Frequently Used Terms (under construction)

Debt

To learn more about basic budget and finance practices for local government, these are some suggested readings and materials that are available through state agencies, libraries and the International City/County Managers Association.

The International City/County Managers Association (ICMA):

  • ICMA, in Washington, D.C. provides the following resources, which may be ordered by phone at 1-800-745-8780, or by fax: 1-770-442-9742:
  • Bennett, James, and James Bubier. “Budgeting and Capital Financing 101,” ICMA (video cassette 99-111), 1999.
  • International City/County Management Association.  Budgeting a Guide for Local Governments, ICMA (available
    in paperback (42193) or self-study program (42290), each $36.00), 1997.
  • International City/County Management Association.  Management Policies in Local Government Finance, 4th edition, ICMA (paperback 42066), $42.95, 1996.

From other sources:

  • Kim, Yunji. 2018. Local Governments and Fiscal Stress. In The Municipality, League of Wisconsin Municipalities, Vol. 113, No. 7, 3 pages)
  • Lindenberg, Marc, and Fremont Lyden.  Public Budgeting (In Theory and Practice), Longman Inc., New York, 1983.
  • Peterson, John E., and Dennis Strachota.  Local Government Finance (Concepts & Practices), Government Finance Officers Association, Chicago, 1991.
  • Wildavsky, Aaron.  The Politics of Budgetary Process, Little, Brown and Company, Boston, 1964.
  • Wisconsin Department of Revenue.  Financial Administration: Handbook for Small Wisconsin Towns and Villages, Madison, WI, 1992.

Financial Links

  • Wisconsin Department of Revenue: This page links you to government services and information you may need as a clerk, assessor, county official or property owner of the State of Wisconsin. Forms and publications listed on the right-hand side of the page are the most current available.
  • Wisconsin Department of Administration: The Department of Administration is the source for information on administrative rules for governments within the state. The site directory of their web page provides links to all other State department for financial issues as well as most issues related to State government.
  • Wisconsin Legislative Audit Bureau: The Legislative Audit Bureau is a non-partisan legislative service agency created to assist the Legislature in maintaining effective oversight of state operations. The Bureau conducts objective audits and evaluations of state agency operations to ensure financial transactions have been made in a legal and proper manner and to determine whether programs are administered effectively, efficiently, and in accordance with the policies of the Legislature and the Governor.
  • Wisconsin Legislative Fiscal Bureau: The Wisconsin Legislative Fiscal Bureau is a nonpartisan service agency that provides fiscal and program information and analyses to the Wisconsin Legislature, its committees and individual legislators.
  • Wisconsin Department of Employee Trust Funds: This is the site for the Wisconsin Department of Employee Trust Funds that provides information regarding the Wisconsin Retirement System in which many local governments participate.
  • Government Finance Officers Association: This organization represents many of the Finance Directors and other finance professionals in the public sector. It as additional links to reference materials, training, and other good-to-know information.
  • Government Accounting Standards Board: The mission of the Governmental Accounting Standards Board is to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports.
  • Grant Sources: This is a listing of grant sources and information produced by UW-Extension. Local governments can click on the links to find information on grants and funding which may be available from a number of sources.
  • Internal Revenue Service (Federal): This is the web site for local government issues with the Federal Internal Revenue Service (IRS).
  • Government Accountability Office: The Government Accountability Office was formerly the General Accounting Office. This site allows for a search of Federal programs that may affect local government funding and procedures.

If you have any questions or comments about the Finance and Budgeting web page, email lgc@extension.wisc.edu

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