What is a disadvantage of placing the budget under the CFO?

Placing the budget under the CFO can lead to reduced responsiveness to elected officials because the CFO typically operates within a more technical and financial-focused environment. This organization can create a disconnect between the budgetary decisions made by the CFO and the priorities or directives from elected officials who are more attuned to public sentiment and political considerations. In this structure, the emphasis may skew towards fiscal management and compliance rather than addressing the immediate and varied needs of constituents or responding promptly to political changes.

This dynamic could hinder collaborative decision-making and adaptability, which are often crucial in public finance management, where elected officials need to react swiftly to changing environments and community needs. Hence, while the CFO's oversight can provide operational efficiency, it may inadvertently stifle the responsiveness of the budgeting process to broader policy goals set by elected leaders.