Chapter 8 – Budgeting Process
A budget is a financial document that outlines the government’s planned revenues and expenditures for a specific period. Put simply, it is the government’s money plan. It shows how much money is expected to come in (i.e. revenues), how much will be spent, and on what items the money will be spent (i.e. expenditures).
In many ways, budgets are value documents that demonstrate what issues elected officials care enough about to fund.
This chapter illustrates how Ohio’s budgets are created and allocated over a two-year period. Understanding this process will help you with your civic engagement activities, as it reveals how public funds are distributed and how citizens can influence fiscal decisions.
This process underscores the importance of the General Assembly’s power of the purse. Nothing can be included in the budget with the General Assembly approving. Legislative control over financial resources shapes state priorities and impacts public services. At the same time, you’ll learn about the governor’s influence over the process as well.
Revenues & Expenditures
Revenues are the money the government collects. Most of this comes from taxes such as income tax, sales tax, and property tax, but it can also include fees, licenses, and funds from the federal government.
Expenditures are the money the government spends. This includes funding for schools, healthcare, transportation, public safety, and other programs and services that benefit the public.
Together, revenues and expenditures show where the money comes from and where it goes.
