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Priority Based Budgeting

Many local governments continue to follow the traditional budget process of looking at line items (e.g., postage, travel, training, supplies) from the prior budget and adjusting based upon trends. Priority-based budgeting focuses on community needs to determine budget allocation to ensure expenses are contributing to desired outcomes.

Budgeting based on community priorities encourages a shift in the way resource allocation decisions are made, recentering government operations on the programs and services that achieve the outcomes that matter most to residents. By categorizing budgets according to programs and initiatives, governments gain a big-picture perspective of resource allocation and can then better align funding with core priorities.