Committee on Governmental Budgeting and Fiscal Policy

Committee members come from a broad range of governments, including cities, counties, school districts, higher education, other special purpose districts, states, and provinces across the United States and Canada. " Helping to diagnose potential risks and causes of fiscal distress. * Stimulating "big-picture thinking." * Providing a tool for evaluating long-term compliance with financial policies. * Allowing for pre-emptive action to mitigate forecasted financial distress. * Defining parameters for decision-making. * Communicating long-term financial position to residents and other stakeholders, including rating agencies and bond investors. GFOA's best practice on fund balance guidelines for the general fund is often used as a guide when establishing general fund reserve policies. Because of the popularity of this topic and the debate that often goes on within governments about their fund balance policies, the committee has decided to review GFOA's recommendations to ensure that they provide clear guidance, reflect current research into the best practice, are easy to understand, and appropriately consider the diverse risk factors that governments face.