Budgeting Class

Budget Hearing Memo

September 17, 2017

To: Louisiana Senate Finance Committee

From: Teresa Rocha

Through: City Manager

Date: September 17, 2017

RE: Public Safety Agency Budget

Public Agencies are expected to create an annual budget for each financial year. The budget is used to set goals for the agency that will guide the agency decisions and priorities in the budgeting year.

The budget is heavily funded by the government. 95% of the budget is funded through discretionary funding while the rest of it, 5% is funded through non-discretionary funding. The discretionary funds include funds collected from Liquified Petroleum Commission, Louisiana Gaming Control Board, Office of the State Fire and others. The non-discretionary funds are sourced from rent collected from government owned buildings, maintenance of buildings and group benefits for retirees. The agency major expenditures include personal services, operating services, professional services, other charges, acquisitions and major repairs. Public safety operations include the office of the state police, office of motor vehicles, highway safety commission, the gaming control board and the state fire marshal’s office. The total funds that the agency expect to collect is $435 million which should all be used in the various expenditures. The agency is not expected to spend more or less than the funds it will receive.

The greatest challenged faced is the estimation of the level of funds that the agency will receive as well as the agency’s expenditure. Uncertainty, dynamism and complexity of the system hampers the creation process of the budget. Some unanticipated demands in services could increase the expenditures beyond the budgeted amounts. The budgeting process requires a wealth of information to prepare a budget that will have minimum variances. The historical data and future conditions must be considered when determining creating the budget. The future information may not be available and thus the creation of the budget can be problematic.

References

Louisiana Senate Finance Committee, (2015). Schedule 08. Department of Public Safety and Corrections.