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Appropriating Vs. Budgeting: A Comparison of Municipal Fiscal Processes
Author(s) -
Ervin Osbin L.
Publication year - 1988
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/1540-5850.00799
Subject(s) - appropriation , budget process , fiscal year , flexibility (engineering) , process (computing) , business , conceptual framework , accounting , economics , operations management , finance , process management , political science , computer science , politics , management , sociology , law , philosophy , linguistics , operating system , social science
Conceptual and operational differences between the municipal fiscal processes of appropriating and budgeting are examined. Examination is within the framework of Illinois practice, in which some cities prepare an operating budget while others prepare only an appropriation ordinance. The author finds that there are indeed conceptual and operational differences; budgeting is conceptually a more formal and multi‐dimensional process than appropriating, and such differences are reflected in the practices of Illinois cities. However, the operational differences are generally of small magnitude. The author recommends that initiation of a budget system be accompanied by programs for infusing fiscal decision making with new concepts and skills.