Traditional line item budgeting is incremental, which can make it slow for local governments to adapt to changing conditions. The Rethinking Budgeting initiative considers new ways of thinking, new technologies, and practices to meet the changing needs of communities.
As part of GFOA's Rethinking Budgeting Initiative, we're beginning to explore how local governments can do better at engaging citizens in the budget process.
GFOA's best practice "Fund Balance Guidelines for the General Fund” is one of GFOA’s most often cited standards. However, there are many opportunities for reserve optimization beyond the guidance provided in the best practice.
Local government revenues have not remained aligned with modern economic realities. GFOA and a group of partners contend that the time is now for rethinking revenue systems.
Rethinking Financial Reporting
In a time of decreasing trust in government, we should ask if lengthy, technical financial reports that are published many months in arrears are the most effective way to build trust with government’s most important constituency: citizens. In a time of declining resources, we should ask if the finance officer’s time is well spent producing these reports.