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Budgetary process refers to the procedure by which local governments make and endorse budget (Peak, 2012). Local governments are municipalities or state agents and can only exercise those powers that are granted to them by the state. They lack inbuilt law making capability. Local government can be changed, constricted or stretched by the federal government anytime. The national government sovereignty over the local government comes from the constitution. Local governments relinquished their sovereignty to the national government when they signed the constitution forming the United States of America. Currently the national government does not allow the local governments to spend local tax without congressional and presidential approval.

The local government treasury usually work together with sate agencies to prepare the annual budget documents, the proposed budget is then sent to the legislature for approval (Budget Process, 2013). After the receipt of the proposed budget, the local government legislature sends the matter to the joint standing committee on appropriations and financial affairs. The rule established by the house requires the appropriations committee to hold public hearings on each agency’s or department proposed budgetary allocations. These public hearings are held in conjunction with the policy committee because it has jurisdiction over the matter unless it has opted out. Each policy committee usually appoints a sub committee to serve together with the appropriation committee. All theses committee participates in the public hearings. After receiving all the necessary inputs on the proposed budget, the appropriation committee’s votes on the new proposals and amendments. The report on the budget proposal is sent by the appropriations committee to the legislature for approval.

The legislature will then vote on the proposed budget, after, the budget has been passed by the legislature then the budget is approved (Trade). If the legislature fail to pass the budget then the governor has no power to use up his funds, only expenditures expressively authorised by the constitution could be spent.

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