Introduction

Budgets are political documents that reflect the priorities and interests of those who write them. They are also financial documents used to account for funds expected to be received and spent during the year. A budget is never "etched in stone." During the year, most budgets will be amended. In some jurisdictions, amendments or changes will require the approval of the governing board, council, or legislature. In others, the chief executive has the power to move money around within overall limits.

Employers frequently plead poverty when it comes to increasing our wages and benefits. Do not listen to these pleas without first taking your own look at their finances. Often, a simple review of a jurisdiction's finances will raise doubts concerning the merits of these pleas. This guide will help the union conduct this review and develop the questions.

A note of caution before we proceed. While finding the money for a wage or benefit is important, the discovery alone will not get the union the wage increase. Unless the union can convince the employer that workers deserve an increase and have the power to get it, they will simply use the new found funds elsewhere. This is the difference between the ability to pay and the willingness to pay. Budget analyses address the former, not the latter.

When in negotiations, budget analyses can help provide:

• Ammunition for the Bargaining Table
  By analyzing the budget and other financial materials, the union can determine the financial condition of the jurisdiction and identify any "slack" in the budget. The union can use this information to counter or verify management arguments of inability to pay.
  
  
• New Insights Into the Jurisdiction's Operations and Plans
  Analyzing the finances of a jurisdiction will improve the union's understanding of the jurisdiction's operations and future plans. As a result, the union can be more forceful in discussing budgetary and other financial issues with management.
  
  
• The "Demonstration Effect"
  The union's interest in detailed budget information and the questions resulting from the union's analysis will demonstrate to management that the union will scrutinize the jurisdiction's finances and will not accept unsubstantiated claims of poverty or tight finances. The answers to the questions flowing from the budget analysis may expose or prevent "bluffing" behavior by management.