AAC
each of the individual members, and the individual members pledge to support the group. It is important for all county officials and departments to understand the vision and goals of the budget, and how they fit into the budget process. Engage all departments in creating and implementing the budget.
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Invite citizen input. Budgets are more credible and re- ceive more widespread support when citizens under- stand and know that they have a voice in them. It is the citizenry that we are working for.
• Communicate the budget broadly, simply, and clearly. Once the budget has been developed, the key is to com- municate it to all key stakeholders, including elected officials, departments, staff, and citizens. Successful county government leaders communicate.
An effective budget process builds trust in local government.
For county leaders to successfully implement their plans they must have the support, buy-in, and most importantly, trust of all key constituents. Dr. Michael Stewart, a management consultant, said “A leader can only implement what people can understand.” So successful implementation requires un- derstanding and trust. Because good budgets, by nature, are complex and detailed, achieving understanding and trust requires moving from over- whelming amounts of data to simple, clear information. In other words, you may have to put the budget in summary form — but not hiding information. Keys to successfully communicating priorities and building trust include:
• Be as transparent as possible. Trust is built through transparency. Share as much as you can, as often as you can. If you’re caught hiding something trust is thrown out the window.
• Make it simple. Don’t assume that all officials, county employees, and residents of your county have the same level of expertise as those developing the budget. As I mentioned earlier, you may need to summarize the bud- get, but clearly delineate the contents of the budget.
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Allow feedback and interaction. In addition to making budget information transparent, easily accessible and simple, build trust by fostering dialogue with citizens.
What does your county budget reveal about your county operation? Many county budgets in Arkansas reveal too little planning for the future; failure to establish clear priorities (em- ployees should always be a priority); and the lack of reserves for emergencies and infrastructure needs, including court- house maintenance and preservation. One of the worst budget habits that counties have devel- oped is the reliance on one-time money for on-going expenses, and that includes carryover balances. Using one-time money to fund budget items that result in recurring costs is a slippery
COUNTY LINES, SUMMER 2019
SEEMS TO ME ...
slope that will lead to a structurally unbalanced budget. Te carryover balances, or at least a portion, should be used to es- tablish reserve funds that could then be relied on for emergen- cies, etc. Tat is actually the intent of law. Arkansas Code § 14-21-106 actually ascribes the term “sur-
plus” to any moneys left remaining unexpended and unappro- priated in any county fund from any previous year. In accor- dance with law the county court, which is the county judge, may enter a court order to add the surplus to the respective funds of which the surplus remains unexpended and use it as revenue for the current fiscal year. So it is the county judge, not the quorum court that gets to decide whether to use the surplus/carryover cash from any fund in making the current year budget. More county judges should exercise the authority this law provides to hold back all or part of the carryover fund balances to put the county in a better financial operating position, especially as it relates to cash flow and preparation for emergencies. Tis is espe- cially important for the major funds of the county, including County General and Road & Bridge. Te few Arkansas counties that employ this budget prac- tice, using the “surplus” or “reserve” as the law intended, have much better cash flow. And they have a reserve to make ad- ditional appropriations during the course of the year as unex- pected needs arise for capital, infrastructure, and other emer- gency type expenditures. Wilbur Mills, former Arkansas Congressman from 1939 until his retirement in 1977, was chairman of the House Ways and Means Committee for many years and was many times referred to as “the most powerful man in Washington.” One of this committee’s main functions was appropriations — bud- get. Congressman Mills once said, “What I wanted to do was see if we couldn’t balance the budget.” Tey couldn’t. Counties of Arkansas don’t have a choice. You must have a balanced budget, or should. I’m afraid some county budgets are only balanced on paper but not in reality. As you develop your 2020 county budget, remember the law clearly defines those things that a county must fund and those things a county may fund but are not required to [A.C.A. 14- 14-802]. A county must prioritize. Dave Ramsey, America’s voice on money said, “Doing a budget means learning an an- cient and powerful word: No.” Prioritize, first funding those of- fices and functions that counties are required to properly fund. Keeping our counties running efficiently, effectively and finan- cially sound is a painful process requiring shared sacrifice and pain. Making tough choices is what county and district offi- cials do to keep counties solvent and moving forward. What picture does your county budget paint? It should reflect
the values and priorities of your county and its people. A budget is more than just a bunch of numbers in a document; it is a blueprint and priorities; it embodies our values. Make it your first order of business this fall to develop a good budget telling your money where to go instead of wondering where it went.
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