Achieving a Structurally Balanced Budget

Most state and local governments are required to adopt a balanced budget, but a budget that fits the legal definition of a "balanced budget" may not, in fact, be financially sustainable. GFOA advocates that governments go further than meeting the legal definition and develop budgets that are structurally balanced, where recurring expenditures are funded by recurring revenues. This session will provide an overview of GFOA’s Best Practice “Achieving a Structurally Balanced Budget,” highlight examples of local governments that have implemented the Best Practice, and provide a checklist you can use to assess if your government is meeting the Best Practice.

Learning Objectives

• Identify a structurally balanced budget
• Define recurring revenues, recurring expenditures, and reserves
• Outline the elements of a structurally balanced budget policy

Katie Ludwig, Laura Larsen, Deanna Lundahl, and 1 other

2 CPE credits

Basic