Public Budgeting

Opening Budget Crisis

You’re the City Manager. The Mayor walks into your office:

“We have a problem. The city council wants to hire 20 new police officers after last month’s crime spike. The community wants more social services and mental health programs. The fire department needs new equipment. The courts are backed up and need more staff. And our revenue is down 15% from last year.”

Questions:

How do you decide what gets funded and what doesn’t?
Who should make these choices?
How do you balance competing demands with limited resources?

Today’s reality: Budgeting is where policy meets politics meets practicality

What Is Public Budgeting Really About?

More Than Just Numbers

A budget is:

A plan: How we’ll use resources to achieve goals
A policy statement: What government will and won’t do
A political document: Who gets what, when, and how
A control mechanism: How we manage and monitor spending
A reflection of values: What society prioritizes

Bottom line: Budgets are the most important policy documents government produces - they determine what actually happens

Why Budgeting Matters to You

Your Future Career Impact

As a future public administrator, budgets will:

Determine your job: Whether positions exist and get funded
Shape your work: What programs and services you can provide
Limit your options: Resource constraints affect everything you do
Measure your success: Performance often judged by budget efficiency
Reflect your values: How you allocate resources shows priorities

Criminal Justice Reality: Public safety is expensive - police, courts, and corrections consume 10-15% of most government budgets

The Fundamental Budget Questions

What Every Budget Decision Answers

1. What should government do?

Example: More police officers or more social workers?

2. How much should government spend?

Example: What’s the right level of public safety investment?

3. Who should pay?

Example: Property taxes, sales taxes, or user fees?

4. Who decides?

Example: Police chief, mayor, city council, or voters?

5. How are decisions made?

Example: Data-driven analysis or political negotiation?

Criminal Justice Budget Realities

Where the Money Goes

Personnel Costs (60-80% of most CJ budgets):

Salaries and wages
Benefits and pensions
Overtime and premium pay
Training and development

Equipment and Technology:

Vehicles and maintenance
Weapons and protective gear
Communications and computers
Forensic and investigation tools

Operations:

Facility costs and utilities
Supplies and materials
Contracted services
Travel and transportation

Budgets and the Economy

How Government Budgets Affect Everyone

Fiscal Policy Tools:

Spending: Government purchases create economic activity
Taxation: Taking money out of private economy
Borrowing: Using future resources for current needs

Criminal Justice Economic Impact:

Employment: Government agencies are major employers
Local economy: Police, courts, corrections spending supports businesses
Crime costs: Effective criminal justice saves private security costs
Economic development: Public safety affects business investment

Understanding Budget Terminology

Key Concepts You Need to Know

Fiscal Year: 12-month budget period (often July 1 - June 30) Revenue: Money coming in (taxes, fees, grants, fines) Expenditures: Money going out (salaries, equipment, services) Surplus: Revenue exceeds expenditures Deficit: Expenditures exceed revenue Debt: Accumulated borrowing over time

Criminal Justice Examples:

Court fines and fees as revenue source
Federal grants for local law enforcement
Bond issues for jail construction
Special assessments for emergency services

The Political Nature of Budgeting

Why Budgets Are Always Political

Competing Values:

Efficiency: Getting the most for the money
Equity: Fair distribution of resources and services
Effectiveness: Achieving desired outcomes
Economy: Spending as little as possible

Political Pressures:

Interest groups: Police unions, victim advocates, taxpayer groups
Electoral politics: Campaign promises and voter preferences
Media attention: High-profile incidents affecting priorities
Crisis events: Emergencies reshaping budget priorities

Criminal Justice Budget Politics

Real-World Examples of Political Pressures

Police Budgets:

“Defund the police” movements: Shifting resources to social services
“Tough on crime” campaigns: Increasing law enforcement funding
Officer safety incidents: Pressure for equipment and training funding
Community relations: Funding for community policing programs

Court System Funding:

Case backlogs: Pressure for more judges and staff
Technology needs: Electronic filing and case management systems
Public defenders: Constitutional requirements vs. budget constraints
Specialty courts: Drug courts, mental health courts, veterans courts

Corrections Budgets:

Prison overcrowding: Building vs. alternatives to incarceration
Recidivism rates: Treatment programs vs. security operations
Healthcare costs: Aging inmate populations requiring medical care
Private vs. public: Contracting decisions affecting operations

The Budget Process: How It Really Works

From Planning to Spending

1. Budget Preparation (6-12 months before fiscal year):

Agencies submit budget requests
Executives review and modify requests
Public hearings and stakeholder input

2. Budget Adoption (before fiscal year starts):

Legislative review and modification
Committee hearings and floor debates
Final passage and executive signature

3. Budget Execution (during fiscal year):

Agencies spend according to approved budgets
Monthly and quarterly monitoring
Adjustments for changing circumstances

4. Budget Evaluation (after fiscal year ends):

Financial audits and performance reviews
Lessons learned for next budget cycle

Criminal Justice Budget Calendar

When Things Happen

January-March: Crime analysis, performance review, needs assessment April-June: Department budget requests, equipment planning July-September: Executive budget preparation, community input October-December: Legislative review, public hearings, final approval

Ongoing Throughout Year:

Grant applications and awards
Emergency budget adjustments
Quarterly performance reviews
Overtime monitoring and management

Challenge: Crime doesn’t follow budget calendars - emergencies require flexible response

Types of Budgets

Different Tools for Different Purposes

Operating Budget: Day-to-day expenses

Example: Police officer salaries, patrol car fuel, office supplies

Capital Budget: Long-term investments

Example: New police station, court building, jail construction

Cash Budget: When money comes in and goes out

Example: Managing seasonal revenue fluctuations

Performance Budget: Linking spending to outcomes

Example: Cost per case processed, cost per crime solved

Budgeting Approaches: Evolution Over Time

Different Ways to Build Budgets

Line-Item Budgeting (Traditional):

Lists specific items to be purchased
Easy to understand and monitor
Focuses on inputs, not outcomes

Performance Budgeting:

Links spending to measurable outcomes
Emphasizes results and accountability
Requires good performance measurement

Program Budgeting:

Organizes by programs or functions
Shows total cost of achieving objectives
Facilitates comparison across programs

Zero-Based Budgeting:

Starts from zero each year
Justifies every expenditure
Time-consuming but thorough

Line-Item Budget Example: Police Department

Traditional Approach

Personnel:

Police Chief: $120,000
Lieutenants (3): $270,000
Sergeants (8): $520,000
Patrol Officers (45): $2,475,000
Administrative Staff (6): $240,000

Equipment:

Patrol Vehicles (12): $360,000
Communications Equipment: $85,000
Weapons and Protective Gear: $45,000

Operations:

Fuel and Vehicle Maintenance: $180,000
Training and Professional Development: $65,000
Office Supplies and Equipment: $25,000

Total Budget: $4,385,000

Performance Budget Example: Same Department

Outcome-Focused Approach

Public Safety Program: $4,385,000

Performance Measures:

Response time to emergency calls: Average 6 minutes
Crime clearance rates: 45% for violent crimes, 25% for property crimes
Community satisfaction: 75% approval rating
Officer training hours: 40 hours per officer annually

Cost per Unit:

Cost per emergency call response: $125
Cost per crime cleared: $2,850
Cost per patrol hour: $85
Cost per citizen served: $87

Advantages: Shows what taxpayers get for their money

Grant Funding in Criminal Justice

External Funding Sources and Challenges

Federal Grants:

COPS Grants: Community policing, officer hiring
Byrne JAG: Equipment, training, multi-jurisdictional programs
VAWA Grants: Domestic violence, sexual assault programs
SCAAP: Compensation for incarcerating undocumented immigrants

Grant Challenges:

Matching requirements: Local funds required
Reporting obligations: Detailed documentation and evaluation
Sustainability: What happens when grant ends?
Mission drift: Chasing funding rather than priorities

Budget Constraints and Trade-offs

The Reality of Scarcity

Common Trade-offs in Criminal Justice:

Personnel vs. Equipment:

Hire more officers or buy better technology?
Training vs. overtime coverage?

Prevention vs. Enforcement:

Community programs or more arrests?
Mental health services or jail beds?

Quality vs. Quantity:

Better training or more personnel?
Newer equipment or more positions?

Short-term vs. Long-term:

Immediate response or prevention programs?
Emergency repairs or planned replacement?

Performance-Based Budgeting in Practice

Linking Money to Results

Police Department Example:

Traditional: Fund 50 patrol officers
Performance-based: Fund patrol operations to achieve 6-minute response time

Court System Example:

Traditional: Fund 5 judges and support staff
Performance-based: Fund case processing to clear 95% of cases within 6 months

Benefits:

Focuses on outcomes, not just inputs
Provides accountability for results
Enables comparison across jurisdictions

Challenges:

Measuring criminal justice outcomes is difficult
External factors affect performance
Gaming the system to meet metrics

Technology and Budget Innovation

Modern Tools for Better Budgeting

Budget Software and Analytics:

Real-time spending monitoring
Predictive modeling for future needs
Performance dashboard integration
Automated reporting and compliance

Data-Driven Decision Making:

Crime mapping and resource allocation
Predictive maintenance for equipment
Workload analysis for staffing decisions
Cost-benefit analysis for programs

Transparency Tools:

Online budget documents and dashboards
Public participation platforms
Open data initiatives
Social media engagement

Budget Challenges in Criminal Justice

Current Issues and Pressures

Rising Costs:

Personnel: Salary increases, pension obligations, healthcare costs
Technology: Expensive equipment requiring regular updates
Legal compliance: Court mandates and consent decrees
Training: Enhanced standards and liability concerns

Revenue Pressures:

Economic downturns: Reduced tax revenues
Competition: Other priorities demanding resources
Legal limits: Tax caps and spending restrictions
Political pressure: Anti-tax sentiment

Demographic Changes:

Aging population: Different service needs and tax capacity
Urbanization: Concentrated service demands
Economic inequality: Greater need with reduced ability to pay

Federal, State, and Local Budget Relationships

How Different Levels Interact

Federal Role:

National programs and standards
Grant funding for local priorities
Unfunded mandates and requirements
Emergency assistance and support

State Role:

Criminal law and procedure
Training standards and certification
Funding formulas and assistance
Coordination and oversight

Local Role:

Day-to-day service delivery
Community-specific priorities
Property tax funding base
Direct accountability to residents

Challenge: Coordinating across levels with different priorities and timelines

Budget Ethics and Accountability

Responsibilities of Budget Professionals

Ethical Principles:

Honesty: Accurate information and realistic projections
Transparency: Open processes and clear communication
Stewardship: Responsible use of public resources
Fairness: Equitable treatment and access

Accountability Mechanisms:

External audits: Independent review of spending
Performance measurement: Tracking results and outcomes
Public reporting: Regular communication with stakeholders
Legal compliance: Following laws and regulations

Crisis Budgeting

When Normal Processes Don’t Work

Emergency Situations:

Natural disasters requiring immediate response
Public safety crises demanding resource reallocation
Economic emergencies affecting revenue
Health emergencies changing service needs

Budget Adaptations:

Emergency funds: Pre-authorized spending authority
Flexible procedures: Streamlined approval processes
Mutual aid: Resource sharing across jurisdictions
Federal assistance: Emergency declarations and funding

Example: COVID-19 impact on criminal justice budgets

Court closures and technology needs
Jail population management
PPE and safety equipment
Remote work accommodations

Future Trends in Public Budgeting

What’s Coming Next

Technology Integration:

AI-assisted budget analysis and forecasting
Blockchain for transparent financial transactions
Mobile apps for citizen engagement
Real-time performance monitoring

Outcome-Based Budgeting:

Pay-for-success contracts
Social impact bonds
Evidence-based program funding
Continuous improvement processes

Citizen Engagement:

Participatory budgeting processes
Online platforms for input and feedback
Transparency and accountability tools
Democratic decision-making innovations

Your Role as Budget Professionals

Skills You’ll Need

Technical Skills:

Financial analysis and forecasting
Performance measurement and evaluation
Technology systems and data analysis
Legal compliance and audit preparation

Political Skills:

Stakeholder engagement and communication
Negotiation and conflict resolution
Coalition building and consensus development
Media relations and public communication

Management Skills:

Strategic planning and priority setting
Resource allocation and optimization
Risk management and contingency planning
Change management and adaptation

Case Study: Police Budget Reform

Balancing Competing Demands

Situation: City facing pressure to reallocate police funding

Stakeholder Positions:

Community groups: Reduce police budget, fund social services
Police union: Maintain current funding, add positions
Business community: Ensure adequate public safety
City council: Balance competing demands within revenue constraints

Budget Options:

Status quo: Maintain current police budget
Reduction: Cut police budget by 10%, fund mental health programs
Reallocation: Shift some police functions to civilian specialists
Innovation: Invest in technology to improve efficiency

Your task: How would you analyze these options and make recommendations?

Discussion Questions

Thinking About Public Budgeting:

Should criminal justice agencies compete with other services for funding, or should public safety have priority?
How do you balance efficiency with equity in budget decisions?
What’s the appropriate role of citizen input in technical budget decisions?
How should performance measurement influence budget allocations?
What budget reforms would improve government effectiveness?

Module 7-2 Summary

Key Takeaways:

Budgets are political documents that reflect values and priorities
Criminal justice consumes significant government resources
Multiple budget approaches serve different purposes
Grant funding creates opportunities and constraints
Performance measurement is increasingly important
Technology is transforming budget processes
Future success requires technical, political, and management skills
Budget ethics and accountability are essential
Crisis situations require flexible budget responses

Next: Examining regulation, implementation, and performance measurement in public administration