Notice of Final Budget Recommendations (the 1782 Notice)
Submitted by: Paige Gregory, Manager

The Department of Local Government Finance (“DLGF”) is required annually to provide taxing units with a Notice of Final Budget Recommendation (more commonly referred to as the 1782 Notice).  The 1782 Notice is a preliminary budget determination.  It is not a final budget certification.  Taxing units are required to respond to the 1782 Notice by the deadline stated on the Notice. Legislation passed in 2006 extended the response deadline from seven to fourteen days and allows taxing units to make budget revisions in its response. 

Reviewing the1782 Notice

When a taxing unit receives the 1782 Notice, it should carefully review the documents.  If there are any discrepancies between the adopted budget and the 1782 Notice, the taxing unit should attempt to determine why the revisions were made.  Reasons for revision by the DLGF may include the following:

• Budget reductions due to insufficient funding;
• Reduced tax rates due to higher certified assessed values;
• Revised miscellaneous revenues to reflect certified state distributed revenues; and,
• Reductions of property tax levies to keep the levies within the maximum allowable by law. 

A taxing unit should also review the maximum levy calculation to ensure that it reflects the appropriate adjustments for items such as cumulative funds, financial institutions tax, and excess levy appeals.

Reasons for Revision by DLGF

Sometimes, revisions are made to adopted budgets because the DLGF lacks sufficient supporting documentation.  Items that are commonly omitted from the budget documents are listed below:

• Proof of publication of the Notice to Taxpayers;
• An accounting document verifying June 30 cash balances and disbursements; and,
• A current year reduction of appropriation resolution. 

The omission of these items and other supporting documentation could result in denial of the budget or substantial budget reductions.  Fortunately, the 1782 Notice provides a window of opportunity to request changes and provide the DLGF with necessary documentation to ensure that the final budget certification reflects the best interests of the taxing unit.

Requesting Changes

To request changes, the DLGF requires that the changes be in writing, described in detail and accompanied by all necessary supporting documentation.  Even if no changes are being requested, the taxing unit must return the first page of the 1782 Notice by the deadline indicated on the Notice. The DLGF will issue a final budget order after making allowable changes as indicated in the 1782 Notice responses. 

Possible Delay in Issuance

Although the budget orders should be issued by February 15, there may be legislation or other statutes that prohibit the DLGF from issuing the budget orders by then.  Unfortunately, this year it is likely that many budget orders will be delayed due to the annual adjustment of assessed values (also known as trending).  Trending is causing a delay in certified assessed values, which in turn may cause 1782 Notices and final budget orders to be delayed. 

If you have any questions about budgeting, or if we can assist in reviewing or analyzing your 1782 Notice, please contact us at footnotes@umbaugh.com.