In local government budgeting, what does 'subject to appropriation' mean?

• A. Programs or expenditures may be funded by general revenues without council approval.
• B. Programs or expenditures may only be funded by council appropriations; authorities cannot spend beyond approved amounts.
• C. Appropriations cannot be adjusted after they are approved.
• D. All spending requires voter approval.

Answer: (B)

In local government budgeting, the idea of being “subject to appropriation” is that spending authority is created by the council through appropriations. An appropriation is the formal approval that sets how much money can be spent and for what purposes. When something is subject to appropriation, it means funds can only be spent if there is an approved appropriation for those programs or expenditures, and only up to the amounts and for the purposes that were approved. It also implies that authorities cannot spend more than what has been authorized; adjustments or reallocations have to go through the proper appropriation process.

So the correct understanding is that programs or expenditures may only be funded by council appropriations, and authorities cannot spend beyond those approved amounts. The other statements aren’t accurate: funding generally can’t occur without an appropriation, not all spending requires voter approval, and appropriations can often be adjusted or re-appropriated through proper process rather than being frozen forever.