Budget Terms

Adopted Budget
A one-year spending and financing plan covering the period July 1 through June 30, adopted by resolution of the Board of Supervisors no later than October 2nd.  The budget is adopted, and all appropriations established, after a hearing in which changes may be made to the Approved Recommended Budget.

Allocated Cost Process
Process that determines charges to County departments for countywide services such as payroll, internet, facilities, etc. Charges are divided amongst all departments based on full-time equivalent (FTE) position counts and/or other measures of service usage and generally cannot be negotiated.

Appropriation or Budget Appropriation
Authorization granted by the Board of Supervisors, or other responsible governing entity, to make expenditures and to incur obligations for specific purposes by object and budget unit for the fiscal year.

Approved or Approved Recommended Budget
Prior to June 30th, the Board of Supervisors considers the County Executive’s Recommended Budget, makes any revisions, reductions or additions and approves the Recommended Budget as revised.  This becomes the Approved or Approved Recommended Budget and provides interim spending authority until a budget is adopted, no later than October 2nd.

Base Budget
The budget year cost for each budget unit’s current approved staffing level and programs; that is, the amount needed to fund existing on-going staffing, contracts for services and supply purchases at current levels, adjusted for certain increases or decreases in the cost of doing business.

Budget Unit
A classification for the expenditure requirements of the budget into appropriately identified accounting or cost centers deemed necessary or desirable for control of the financial operation. Except as otherwise provided by law, such units may be devised at the discretion of the Board of Supervisors. Budget units are often departments, and the terms are sometimes used interchangeably, but not all budget units are departments and the budgets for some departments are contained in multiple budget units.

Departmental Revenue
Revenue received by County departments or programs that are legally required to be spent on certain programs.  This is distinguished from discretionary revenue that is accounted for in the General Fund’s Non-Departmental Revenue budget unit and can be spent on any programs or services based on Board priorities.  Most departmental revenue comes from the state and federal governments and fees and charges for services. 

Discretionary Revenue
Monies received that are not legally earmarked for a specified program or use. Included in this category are property taxes, sales and use taxes, and other taxes and payments not restricted in use.

Fiscal Year
Twelve-month period for which a budget is prepared. In Sacramento County, the fiscal year is July 1 to June 30.

Fund
A fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities and equities or balances, and changes therein, are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions or limitations. Examples are the General Fund, special revenue funds, capital projects, enterprise, and internal service funds.

Fund Balance
In a governmental fund, the accumulation of revenues minus expenditures from prior years. Fund balance has five components: non-spendable, restricted, committed, assigned, and unassigned.

General Fund
The primary County operating fund. The general fund accounts for and reports all financial resources not accounted for and reported in another fund.

Growth
Increases in programs, service levels, and/or staffing.  This is distinguished from the base budget that includes current staffing levels and programs, adjusted to reflect increases and decreases in the cost of doing business.

Net Cost
The difference, for General Fund budgets, between budgeted appropriations and departmental revenue. The dollar difference is funded by discretionary sources.

Object
Major appropriation classification within each budget unit, including Salaries and Employee Benefits, Services and Supplies, Other Charges, Capital Assets, Transfers-Out, Intrafund Transfers, Other Financing Uses, and Appropriations for Contingencies.

Recommended Budget
Budget prepared from compiled budget requests from Departments, which is recommended to the Board of Supervisors or other body by the County Executive on or before June 30 of each year.

Reimbursement
Reimbursements are used to reimburse expenditures initially made by one agency/budget unit that are properly applicable to another agency/budget unit within or between certain government funds.

Requested Budget
Expenditure, revenue and net cost levels for each budget unit as requested by the County’s departments.  Departments submit their budget requests to the Office of the County Executive for review.

Reserve
An amount set aside in a fund used to meet cash requirements, emergency expenditures, or future defined requirements.  A reserve is not an appropriation and provides a mechanism for legally setting aside funds for future use.

Semi-Discretionary Revenue
A component of County revenue that includes Proposition 172 and Realignment revenue.  There are restrictions on what this money can be spent on, but, within fairly broad parameters, the Board has the authority to allocate this revenue among different programs.  Proposition 172 revenue comes from a statewide half cent sales tax and must be used to fund public safety programs.  Realignment revenue comes from statewide sales tax and vehicle license fee revenue and must be used to fund certain mental health, public health, social services and public safety programs.