From the Advisory Committee handbook, also known as the Association of Town Finance Committee Handbook.

The Budget Process An effective budget process begins with a clear understanding of who will be responsible for the essential budget activities: 

• issuing budget guidelines. 

• preparing budget requests; 

• assembling requests into a comprehensive budget for review; and 

 • reviewing, analyzing, and recommending a budget to town meeting. 

Statutory responsibilities, town bylaws, and the town’s organizational structure dictate, or at least influence, who is responsible for each of these activities. In general, the executive branch of town government should be responsible for the first three budget development activities. The finance committee should focus on the last of these four activities.

. Unless required by town charter or bylaws, however, it is not advisable for the finance committee to take on the budget-making role directly. Such a role usurps some of the powers and responsibilities of elected officials and their appointees and compromises the committee’s primary statutory role as objective advisor to town meeting. In addition, this process can be a daunting task for a volunteer committee, particularly without the help of a professional in the town’s administration, such as the town accountant.

Budget Formats There is a common misconception that the Commonwealth prescribes a mandatory budget format for towns. There is no such requirement; therefore, no two town budget documents are alike. The Division of Local Services of the Department of Revenue, however, has determined that towns may rely for guidance upon M.G.L. Ch. 44 s 32, which sets forth the budget format for cities