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NYS Comptroller

THOMAS P. DiNAPOLI

The Academy for New York State's Local Officials

Multiyear Financial Planning: A Tutorial for Local Government Officials

Module 3: Projecting Expenditures

Contractual Expenses

Sensitive to Economic Change: Yes
Predictable: Sometimes
Controllable: Not usually, but may be in the way the government responds to non-controllable factors, such as using less fuel when prices increase
Large Portion of Expenditures: Yes

Contractual expenses include materials, supplies, and other consumable items, such as utilities.

These are generally in departmental budgets (except unallocated insurance and certain other items). Although these are often affected by factors such as inflation, local officials should take note of any components that are growing at a substantially different pace than the overall CPI, such as gasoline and fuel oil.

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