View Zhirong Zhao's profile on LinkedIn

Blogroll

My pages

Visitors

Powered by

Header image of Hong Kong financial center courtesy of hleung on flickr.

Which budget to be balanced?

State and local governments are normally required to balance their annual budget. This is generally referred to as the "balanced budget requirement (BBR)." The Federal government, however, does not follow the rule, despite of the frequent come-and-go discussions for things like "balanced budget amendments."

WHICH budget to be balanced for state and local governments? This can be confusing thought. Some people talk about a "balanced operating budget" while others say a "balanced general fund budget." Which one is more widely used? Are they both correct? Or, are the two identical to each other?

I get 29,100 links when I googled "balanced operating budget," and 872 links for "balanced general fund budget." The results make sense as the correct phrase is indeed the former one -- according to the BBR state and local governments need to balance their "operating budget" instead of "capital budget."

In many times a balanced operating budget does lead to a balanced general fund budget (or roughly so). The operating budget includes several funds, in which the general fund is usually by far the largest one and covers most revenues/expenditures for all the operating budget except for special revenues, debt services, and capital funds.

  • The special revenues are earmarked for some specific purposes and are "self-balanced" for that purpose anyway;
  • The debt service fund has the amount that is transferred from the general fund for debt payments including principal and interests. So the expenditure of debt service fund throughout the fiscal year is actually part of the expenditure for the general fund;
  • The capital funds tend to be small as many governments rely on debt finance rather than "pay-go" for capital projects; so it may not significantly deviate the general fund expenditure to the operating expenditure.
****************************
Soon after I wrote this blog I realized a mistake. The operating budget should include governmental funds and proprietary funds. It is only in governmental funds that we will further distinguish general funds, special revenue funds, capital funds, and debt service funds. Considering that proprietary funds are largely self-balanced as we normally hope business-type activities to archive break-even, a balanced operating budget is close to a balanced governmental fund budget, in which the general fund pays a dominant role.

I decided to leave the original blog unchanged and to simply add this footnote of correction. Hey, this is the beauty of writing -- which gives you a clear opportunity to be wrong.

Comments

Finished my Infographic Resume, check it out please!

Muro is actually a seriously cool application but unfortunately deviantART offers next to no explanation on the inner workings of it, at least that I used to be able to obtain, which is why I chose to leave it off this list.

This is genuinely an awesome list you may have compiled here. Good to know for pros as well as newbies to WordPress

I have tried almost everything, including the beta model and re-installing the templates with an "-f" factor. I have watched YouTube videos and followed the instructions, but since I did it wrong, I give up.
It's a FAIL...I screw it up.
I'm just a beginner of Xcode and Terminal.

I love this! Especially the email info. I was just recently contemplating about that and noticed that personally if I get things on Tuesday or Wednesday there can be a better chance of me opening it because We have caught up with all with the weekend stuff and it is early enough in the week I am not feeling the crunch!

As a Newbie, I am continuously browsing online for articles that can benefit me. Thank you

thank you for all your efforts that you have put in this. Very interesting information.

fcuk this web page.....................a$$ h0le......

Quite wonderful list, i will try to use some of them just to see how it works

Some terrific information on learning how to make money online, many thanks!

Great post, I believe blog owners should larn a lot from this blog its really user genial. So much superb information on here :D.

Wow what a awesome place,I have learned a lot from your blog here, And that i will inform my close friends about this web page, Keep on heading,my friend, Thanks for sharing

Just to follow up on the up-date of this issue on your web-site and would like to let you know simply how much I valued the time you took to write this helpful post. Within the post, you really spoke on how to actually handle this issue with all convenience. It would be my own pleasure to gather some more concepts from your web site and come as much as offer people what I have benefited from you. Thank you for your usual excellent effort.

powa stated on September 20, 2012

My heart broke when they zoomed in on Nando's face at the beginning of your match. He looked so sad. I honestly assumed he'd come in after the 70th minute or so. I'd love for him to see some action in Munich.

I used to be a smoker for 7 many years then decided to quit immediately after I realised how crap it had been for me and my pocket...

I found your post while looking through google. Quite impressive, since google tends to show fairly old results but this one is very latest! Anyway, pretty informative, particularly since this isn't some thing many blogger often write something good about. Take care.

Very soon they will order it for you. Couldn't miss a MacroMonday now could I? This week's mini-theme is "things you'd find in a number of photos. Even if you want to assure you that day.

I like this blog very much so much excellent info.

My preferred movie would of been a toss up concerning the shining and darkness falls. but received to go aided by the shining!

I'm not sure why but this site is loading very slow for me. Is anyone else having this issue or is it a issue on my end? I'll check back later on and see if the problem still exists.

I believe this site contains very great composed content articles.

Great info it is really. My girlfriend has been waiting for this tips.

Top notch job on the article, I found it very helpful and shall use it as a reliable source in the future.

I like the efforts you have put in this, regards for all the great content.

you can always count on search engine marketing if you want to promote products online.

Refurbished Laptops with Windows 7 from Portable Universe

Refurbished Laptops with Windows 7 from Portable Universe

Thank you for this wonderful article! It is extremely useful. I hope that you will proceed sharing your knowledge with us.

Great article. I will be experiencing some of these issues as well..

You will find also lots of conditions with symptoms similar to appendicitis. But since appendicitis can grow to be critical inside a short quantity of time, call your

Nice Website. You should think more about RSS Feeds as a traffic source. They bring me a nice bit of traffic

Getting better and better! But I actually came here to give Chris a shout-out for the love his office design has been getting in the blogosphere this week no wonder he is such a Horizons freak!

Just found a adult cam I never knew I had who wants to skype

disco lights with built-in laser x-y scanner are the coolest stuff that you can add to your disco room;

Hubert H. Humphrey Institute of Public Affairs