Local fiscal administration should provide a structure for choosing policies
and for identifying trade-offs in the use of government resources. Resources
are limited, opportunities for provision of useful government services are
broad, and the budget process should provide a structure for ensuring that
resources are allocated to the uses of greatest importance for the citizenry.
Because not all worthwhile services will be affordable with the resources
available, the fiscal process needs to include a balanced system for making
choices from among the several alternative uses of those resources. The choices
will emerge largely from political deliberations, not scientific analysis, so the
process must be structured to allow as much open identification of alternatives
and trade-offs and flexibility for response as possible to improve the
chances that broad citizen interests will have bearing on the final choices. Local
budgeting provides the greatest opportunity for obtaining direct citizen input
into the allocation of these resources, because the decision process is closest to
the people and input can be obtained at relatively low cost. Citizens need not
travel to a distant capital to be heard by lawmakers in budget deliberations or
to hire professional representation to communicate their interests. The potential
for citizen participation and for transparency of both decision-making and
service results for the citizenry are greatest at the local level.