Grantee Budgeting for Federal and State Aid, Part 1: General Findings and Policy Options

摘要

This report presents the findings and policy options of a study of local government's grantee budgeting for Federal and State aid and maintains that emphasis on improved budget classification would result in better budget policy. Two study approaches were used examinations of budgeting, financial management organization, and financial reporting in New York and Pennsylvania and in two counties and cities of each of these States; and extensive interviews in each of the jurisdictions. The study found that very great changes have occurred in the U.S. intergovernmental system over the last 25 years with budgetary fragmentation being the result. Both State and local jurisdiction grants are frequently off - budget (not included in the closed accounts or revenue estimates for the budget year), and jurisdictions' budget and financial accounts are becoming increasingly nonuniform. These factors impair the credibility of the budget as a document and interfere with legislative review. Several policy options could help correct the situation. These include local government use of additional Federal assistance through the extension of HUD's Financial Management Capacity Sharing Program (FMCSP), the expansion of the Intergovernmental Personnel Act of 1970, and mandated improvements in budget classification for grants - in - aid. Other options are the development of uniform State accounting standards and the use of resource organizations such as the National Governor's Conference and the National Association of State Budget Officers. Footnotes and nine tables are given.