What is a "Rollover"

 

 

The term "rollover" in a government budget can have two meanings:

1. Year-End Rollover: This is an accounting process that happens at the end of a government's fiscal year (which may be different from the calendar year). It involves transferring any unspent funds or authorized but unused borrowing capacity to the next fiscal year's budget. This ensures accurate record-keeping and compliance with government accounting regulations.

2. Rollover Budget (Planning Tool): This is a preliminary budget used as a starting point for creating the actual budget for the next fiscal year. It's particularly helpful when there's uncertainty about future revenue streams, such as state or federal aid. A rollover budget typically assumes:

   • Funding remains constant from the previous year.
   • Expenses are projected based on historical data and current trends.

This gives government officials a foundation to build upon while they wait for confirmed funding amounts.