Ashwaubenon committee adopts structurally balanced budget policy to guide multi‑year planning
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Summary
The Finance and Personnel Committee approved a new structurally balanced budget policy citing GFOA guidance and Wisconsin's statutory balanced‑budget requirement; the policy formalizes focus on recurring revenues covering recurring expenses.
The Village of Ashwaubenon Finance and Personnel Committee adopted a structurally balanced budget policy May 30 that formalizes the village’s practice of matching recurring expenses with recurring revenues and clarifies the circumstances under which one‑time resources may be used.
Greg, a village staff member presenting the policy, said the change follows Government Finance Officers Association (GFOA) guidance and the state requirement that municipal budgets be balanced by law. "Balanced budget just means my expenditures have to equal my expense or my revenues," Greg said, adding the policy emphasizes structural balance rather than using one‑time revenues to fund ongoing expenses.
Why it matters: A structurally balanced policy aims to prevent long‑term budget gaps, improve long‑range fiscal planning and limit use of reserves for recurring costs. The committee discussed narrowly tailored exceptions — for example, temporary dips such as the COVID era where one‑time reserve draws were appropriate — and agreed the policy should be flexible for extraordinary circumstances.
Action taken: Committee members moved, seconded and approved the structurally balanced budget policy on a voice vote.
Next steps: Staff will incorporate the policy language into annual budget materials and use the policy as a checklist when evaluating recurring program requests and personnel additions during the budget process.