ABSTRACT
This chapter reviews basic concepts and processes in public sector budgeting as well as discussed important city fiscal issues like pension obligations and the effects of the mortgage housing crisis on several cities. Performance measures have long been used in city budgeting as warning signs of impending fiscal stress; a number of these measures were also reviewed. City budgets and finance are part of NASPAA's student learning outcomes for Urban Administration and are considered to be part of the first overall goal, Leading and Managing, as well as the specific SLO for fiscal management under the Urban Administration emphasis. The budgeting and financial management process incorporates the planning document for the city's revenues and expenditures as well as accounting for how much is spent and how much revenue is raised. Local government spending varies enormously by state and size of local government, but certain types of functions are considered to be local functions, and this is reflected in spending pattern.
