Board of Finance

The Board of Finance (also called Budget Committee, Finance Committee and Ways and Means Committee in different parts of New England) is an elected or appointed body that reviews town or school government budgets in towns or school districts that have the town meeting form of government.

Its role is to act as a balance against the Board of Selectmen or School Board , which set the budget and present it to the public at town meeting. Typically the Board of Finance is more cost-conscious that the governing body of the community - that is, it prefers smaller budgets. Whether it is appointed or elected, and whether it is merely advisory or has authority over the budget, depends on both state and local laws.

In many towns, the budget is split between general government, administered by the Board of Selectmen and the school district administered by the Board of Education. Typically, the school district is coterminous with the town, however some smaller towns have merged their school districts with surrounding towns creating "regional" (Connecticut, Massachusetts, New Hampshire) or "unified" (Vermont) school districts. School districts in New England do not have separate taxation powers, and must receive their revenues from member towns.

Typically, after the Board of Selectmen or School Board review their respective budgets, they are submitted to the Board of Finance for review. The Board of Finance may return the budget to the respective bodies with requests for changes, or may refer it to the town meeting for approval.

Outside the budget process, the Board of Finance performs financial oversight duties on behalf of the town.