This is the time of year when counties usually begin the budget planning process, which includes informing the public. Most counties are on a fiscal year budget, which is from Oct. 1 to Sept. 30 of the following year; there are a few that are on a calendar year budget from Jan. 1 to Dec. 31. My article will focus more on the fiscal year.
Texas counties must adhere to various legal requirements when preparing their budgets, outlined primarily in the Local Government Code. The law requires counties to have public participation by posting public agendas and conducting public hearings. The law also requires that counties pass a balanced budget.
The budget process actually begins when a budget calendar is prepared. A typical budget calendar will be in effect for several months, starting well before the beginning of the fiscal year. The calendar and an explanation letter are sent to the various county departments soliciting written budget requests. The county department heads or elected officials then send their budget requests back to the county auditor and/or the budget officer, where they are reviewed and compiled. Sometimes additional information is needed, so there may be back-and-forth communication.
After the auditor and budget officer put the figures in a workable format, the meetings begin. During these meetings, the Commissioners Court may request adjustments or revisions that reflect different priorities and anticipated expenses and revenue.
Revenue sources include property taxes, which is the No. 1 revenue source, along with sales tax, fees and fines, state and federal grants, and other sources that come available over time.
Each department will budget anticipated expenses to operate their department. These expenses may be personnel costs, operating costs, capital improvements, etc. The amount of these expenses is based on public need and available revenue.
When the budget is complete, the public meetings and hearings are held to present the proposed budget to the public. The county will hold a public hearing on the budget and file the budget online and at the county clerk’s office. A public hearing on the tax rate is also held. If the tax rate exceeds the voter-approval rate, an automatic election is triggered giving the voters the option of whether or not to approve the tax rate.
After the budget and taxes are approved, the budget is still an ongoing process. The Commissioners Court is constantly amending it throughout the fiscal year. Amendments are made in open meetings at a public meeting of the Commissioners Court.
As you can see, the budget process is very complex and takes careful planning, transparency, and public participation to ensure the funds are allocated and spent wisely for the needs of the county.
I have given you a very wide-angle look, but this information might spark interest enough that you will be better prepared for the budget process.