STRETCHING THE BUDGET CYCLE: Barbara Whitehorn and Stefan Jaskulak look at the budget process of two governments to explore the benefits of a longer budget cycle.

• Author: Whitehorn, Barbara

Asheville's Expanded Process Provides More Communication and a Better Budget

BY BARBARA WHITEHORN

When the City of Asheville, North Carolina expanded its annual budget process from six to ten months, it was the most significant change--and the biggest improvement--made to the program in recent years. The reason behind it was communication.

The State of North Carolina requires one public hearing to be held after the presentation of the manager's recommended budget and before the budget is adopted. The manager's recommended budget was presented to the city council in May, and the budget was formally adopted in June, so there wasn't time to make significant changes based on input during the hearing. The community was frustrated that the budget was essentially done and dusted before they had an opportunity to voice their opinions. Community members have opportunities to attend and speak at council meetings and at more specialized board and commission meetings, but this doesn't replace the opportunity to provide direct input on the budget.

The citizens of Asheville take an active role in their local government, and community advocates, activists, and individuals all want their voices heard in the budget process. Most city council meetings are full to capacity, and overflow rooms are regularly needed. (Since March 2020, all Asheville City Council meetings have been virtual because of the COVID-19 pandemic.) Protesters often gather outside of City Hall during council meetings, and public comment frequently lasts for hours. Working in a community where the residents care so deeply about their city is a privilege, but it does create a challenge when it comes to developing a budget process that ensures the voices of the community will be heard.

And while the city expanded the budget timeline to allow additional time for public input, the change has also provided other opportunities: better engagement with the city council, improved priority setting and alignment of the budget with strategic goals, and the ability to minimize surprises that pop up at the end of the budget cycle.

COMMUNITY ENGAGEMENT AND EDUCATION

Good public engagement is extremely challenging. It is easy to put together a survey that isn't statistically significant or to host open meetings at City Hall, but it is much more difficult to ensure that the public input received truly represents the community. By expanding the budget process timeline, Asheville is able to plan intentional and equitable community engagement that includes meetings at varying times during the day and at strategically chosen locations on transit routes to ensure that transportation and work schedules won't be barriers to attendance. The city also uses Twitter, Facebook, and local media outlets to share information about the budget process and other financial information. The city has a dedicated communications staff member in the finance department to coordinate the communications and engagement, which are ideally completed early in the budget process (September to November) so community priorities can be communicated to the council and included in strategic goals.

COUNCIL ENGAGEMENT

With a community as active as Asheville, the city council must be well-informed throughout the budget process. During the early months of the process, which are primarily internally focused, the council is kept informed through regular check-ins with the city manager, who provides updates about economic conditions, revenue trends, vacancy rates, and current budget performance as well as assumptions for the next year's budget. These check-ins ensure that the council is not surprised by a declining revenue trend or a variance from the budget.

The council's first comprehensive look at the budget is at its annual council retreat, usually held in January. Council members and representatives of local media both attend, along with a significant number of local activists and other interested community members. The retreat marks the first time the council and public see the total budget: revenue growth assumptions, expenditures increases and decreases, changes in programming, the next phase of capital projects, etc. The information is not presented in detail; instead, it is summarized, with major cost drivers and significant changes in revenue highlighted. The chief financial officer usually sets the economic scene and then introduces the assistant director of finance, budget, and forecasting, who takes attendees through the forecast and assumptions. At this point, the council is presented with a preliminary forecasted surplus or deficit, with the caveat that some revenues lag significantly for reporting, and there will be changes in assumptions. The...