Budgets are more than simply accounting tools. They are legal documents that set the priorities, programs, and policies of a local government for the next fiscal year. This textbook covers critical considerations for those who work with budgets in North Carolina. Topics range from citizen engagement in the budget process to performance management and economic development. It brings together a diverse set of experts, including University of North Carolina at Chapel Hill School of Government faculty, a budget director, the Deputy Treasurer for the State of North Carolina, a town manager, and others. The second edition builds upon the first edition by adding material on the capital planning process, fund balance, budgeting in economic downturns, budget presentations, and so much more. This robust text is a valuable resource for anyone in local government who works in or with budgets.