Plans to Engage and Prioritize Local Government Finance Starts Now

​As units of local government begin thinking about the new year, implementing budgeting is likely a priority. Resolutions made on this priority create discussions and decisions on valuable services impacting your security and comfort. Being a part of those discussions and decisions can pay dividends in services provided to farmers and rural members. Included in the 2025 Local Government Priorities are opportunities to better understand local government finance and engage in efforts to promote fiscal transparency. Work on this priority starts with identifying local government revenue sources and spending obligations.
On the revenue side, property tax, sales tax and state revenue sharing, in the form of income tax and motor fuel tax dollars, are the primary sources of general funding for many units of local government, especially counties, townships and municipalities. Of those, property tax is generally the largest contributor. This is a revenue source that provides more stability and local control compared to those other funding sources listed above.
However, tax revenue is not the only source of local government funding. Across the state, local units of government can fund specific projects and programs with grants and user fees. While these grants and fees are part of the larger revenue portfolio, these dollars often do not have flexibility in spending and are earmarked for designated expenditures. Units of local government have much more discretion with tax revenue.
So, with the stability and flexibility that comes with property tax revenue, it’s no surprise that it is, and will likely continue to be, the primary revenue source for local governments, a large expense for property owners and a priority for local government engagement. That engagement begins now with making plans for participation and building relationships in preparation for those budget discussions happening this fall in county board and committee rooms across that state.
While there is no uniform timeline for county budgeting, most counties’ fiscal years run from January 1 to December 31. In that case, they begin their budget process in the fall, often in September or October. During that time, the finance committee in counties structured under the township form of government, or the committee as a whole in counties structured under the commission form of government prepares a tentative budget. These early meetings are open to the public and offer a great opportunity for transparency and information sharing on revenue needs and spending.
Over the course of the budget process, there are other opportunities for the public to engage including:
• A public hearing prior to approving the final budget
• Review of the published tax levy request and total amount budgeted for individual funds
• Attending Truth in Taxation meetings (required to be held if the proposed aggregate levy is greater than 5% of the previous year’s tax extension)
Except for a few mandatory services, the expenditure side of the equation is largely driven by the wants and needs of citizens in the district. At the county level, these can include services addressing transportation, public health and safety needs and recreational interests. Opportunities to engage and manage expenses include:
• Promoting intergovernmental cooperation
• Advocating for spending on services that specifically address rural needs
• Encouraging your county government to adopt a Pro-Agriculture Resolution recognizing agriculture as an economic engine within the county and supporting the need for rural services and infrastructure
As we continue into the new year, county Farm Bureaus can play a significant role in advocating for local government fiscal responsibility and promotion of the 2025 Local Government Priorities.