Author: Financial Management Resource Bureau
This time of year, municipalities across Massachusetts are busy building the annual budget: creating revenue projections, compiling capital requests, determining what expenses are going to look like in the next fiscal year. Upon the completion of developing the annual budget document, the next step is to introduce it to the appropriate elected and appointed boards and the community. This begins the process of seeking input and support before a vote occurs. As with any public policy document, it is important to have a strategy to clearly communicate the goals of the policy and effectively demonstrate the impact it will have once passed. Here are some best practice recommendations for presenting your budget in your community.
Don’t just deliver, present it
The budget document should be easy to navigate and include narratives that explain existing challenges or proposed changes. Begin with a budget message that builds the foundation for discussing goals, priorities, and upcoming hurdles. Visual aids like pictures, graphs and charts are effective in communicating incoming revenues and proposed expenditures. Pictures can also be helpful when it comes to presenting the capital needs of the community to clearly show the existing condition of the assets that you are looking to replace. It can be easy for your audience to get lost in the numbers, so your role as a storyteller will be important to give the numbers meaning. You can accomplish this by including narratives from each department that explain their goals, objectives, and prior year accomplishments.
Show the big picture
The annual budget is a product of several months of work. Incorporate elements of the process into the presentation to show the building blocks of the proposed budget. This should include the budget calendar detailing the process the finance team and department heads follow to develop the budget and a city/town wide organizational chart that highlights who contributes to each development stage of the budget. Including a multi-year financial forecast can help provide context for the budget decisions and communicate the fiscal health of the community.
Be prepared for questions
While you may not know exactly what questions will be asked, you are the subject matter expert. Be prepared to explain any aspect of the budget, especially for proposals that might be unusual or contentious. Existing economic conditions, material or service costs, or changes to labor contracts are all potential discussion points in a budget process. For areas of the budget that require more technical explanation, have the department head or relevant subject matter expert prepared to speak on the proposal.
Share
Leverage technology to create digital access to the budget and its related documents. This will allow people to review materials at their own pace. Examples of supporting budget documents can include city or town financial policies, the current capital improvement plan, and a long-range financial forecast. You can also link other resources related to municipal budgeting, such as links from the DLS website on budgeting and long-range financial planning. Digital resources can bring awareness to the municipality’s finances, the process that goes into building the budget, and the work it takes to maintain the long-term financial health of the community while meeting service and capital needs.
Communicating budget goals and priorities effectively is an important part of the budget process. By clearly presenting the budget and the decision-making process, officials can build strong communication with residents and taxpayers.
The DLS Financial Management Resource Bureau (FMRB) provides tailored consultative services to municipalities across the state. Articles in this series highlight a particular financial management best practice that we frequently recommend.
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Editor: Dan Bertrand
Editorial Board: Marcia Bohinc, Linda Bradley, Sean Cronin, Emily Izzo and Tony Rassias
| Date published: | February 15, 2024 |
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