By Brycen Garrison
Budget leadership in fire departments is a crucial skill, especially for those in senior roles. Like any leadership discipline, the skills involved are built over time through practice, reinforcement and the steady pressure of real-world challenges. To prepare our future leaders to be effective in budgeting, we need to involve them earlier in their careers.
Budgeting probably wasn’t part of your fire academy curriculum. It does surface in promotional exams and administrative roles, but the most powerful development happens when people are empowered to make real decisions, even in small ways. Giving individuals ownership of budget decisions in their areas allows them to learn through the small wins and hard lessons that come with resource allocation.
Here we’ll highlight some of the core principles of budget leadership and how we can teach them in a way that supports both the mission and the people we serve.
Establishing a foundation: Mission, vision, and values
Every strong budget strategy starts with a clear understanding of your organization’s mission, vision and values. Without that grounding, it’s far too easy to spend money on shiny new things that will collect dust in a station corner. Your mission, vision and values serve as your compass, directing you toward what matters most.
In our organization, we live by the mantra “People over things.” So, when a team brings forward a new purchase, we pause to ask a series of questions:
- Where does this take us?
- What are we trading off?
- Is this aligned with our values, or are we chasing convenience?
We also challenge our teams to reframe the questions as follows:
- If you used this money to invest in people, what would that look like?
- Could you enhance training, fund education or grow new capabilities that move the whole organization forward?
Leadership is about creating clarity and modeling reflection. When people start asking these questions on their own, you know your values have taken root.
Core budgeting principles
Every purchase, big or small, matters. Million-dollar purchases usually get rigorous scrutiny, but it’s the accumulation of small, unchecked expenditures that can quietly drag your organization down. The truth is, the big-ticket items are often better planned. It’s the unmonitored spending on the margins that catches up with you.
Budget leaders must be just as disciplined with the small stuff. That means long-term forecasting, sustainable personnel costs, and a realistic replacement plan for every program or asset. One of the best ways to teach this is by building systems that mentor others. Use a structured command and oversight model, embed mentorship into budget planning, and equip your team with tools to track and manage funds effectively. In our organization, we place a chief as oversight of the team lead to help be a guide.
Remember, Excel isn’t just a spreadsheet, it’s a mirror. If your people don’t know where they stand on budget-to-actuals, they’re flying blind. And when multiple teams are in the red, it’s not always a team leader problem, it’s a system problem.
Funding sources for fire departments
Good budgeting starts with knowing where your money comes from. Most fire departments rely on some combination of mill levy assessments, sales taxes and general funds. Others may receive revenue through impact fees, mineral rights, grants, donations or permitting.
No matter the source, these funds are not ours. They are entrusted to us. That trust is fragile – and essential. Misuse not only threatens future funding, but also the very faith the public places in us. As fire service leaders, we must always remember: We are stewards, not owners. Our job is to reinvest these funds in ways that elevate service, response, training and people. Nothing less.
Long-term planning and debt management
Salaries and benefits typically account for 60% to 85% of the operating budget, though that varies depending on whether you’re in a city department or a fire district. Either way, long-term sustainability matters.
Five-year planning isn’t optional. It’s the safeguard against decisions today that bankrupt us tomorrow. I was taught that when we hire someone, we are making a long-term commitment to them and to their families. Budget accordingly. I’d go out 10 years, but I’m not that good yet! Still, a five-year forecast helps us avoid overcommitting and underdelivering.
As for debt, avoid it when you can. Borrowing often doubles the cost of capital projects due to interest. And every dollar you commit to debt service is one you can’t spend on people. Worse yet, long-term debt outlives leadership. A decision made today can handcuff your successor 20 years from now. Our job is to make things better, not just now but for the leaders who follow us.
Capital purchases vs. operational costs
Capital means long-term investments – stations, apparatus, facilities. Operational costs are the day-to-day expenses – wages, benefits, fuel, insurance. Understand that these are separate budgets. Unlike your personal checking account, you can’t just move money between them.
Amending the budget to cover poor planning? That’s not leadership. Set your plan. Stick to it.
Labor and management collaboration
Joint Labor-Management (JLM) meetings are essential for building partnerships. We open every budget meeting to anyone who wants to attend. Every document is transparent. We use the process to teach, to build trust, and to invite participation.
Sure, we won’t always agree on how the money is spent, but working through those differences together, with respect and openness, creates smarter decisions and stronger teams. And when we take care of our people, guess who benefits? The community.
Strategic thinking and problem-solving
Leaders need to think beyond the numbers. Triple Constraint Management – balancing time, cost, and quality – is one framework to help navigate trade-offs. You might be able to save time, but at what cost? Can you maintain quality?
There are many thinking strategies – divergent, convergent, lateral. Each challenges you to look at problems differently.
- Divergent thinking allows you to explore many solutions.
- Convergent thinking narrows to the one option.
- Lateral thinking helps solve problems in unexpected ways, usually by seeing the problem as an advantage.
I encourage you to explore these ideas further. Think different, lead better. And remember, great decisions are both data-driven and people-driven. Rely too heavily on one, and your perspective falters. Combine both, and you’ll get it right more often than not.
Preparing for growth
As communities grow, so must we. But expansion takes foresight. You need quiet time to imagine the future – to see what isn’t there yet – and then translate that vision into something others can believe in. That’s your job as a leader: to paint the picture, then guide people into it. Most won’t see it at first. But if you communicate clearly and consistently, they’ll get there. That’s how buy-in happens.
Pro-tip: Skip the arbitrary increases. Adding “10% across the board” shows a lack of understanding. Instead, dig into the actuals. Track and trend your expenditures so you know what things really cost – and what they’re going to cost.
Encouraging a learning culture
Every mistake is tuition. Sometimes you pay it in a college classroom, other times you pay it with a budgeting decision that didn’t go as planned. Either way, experience is a great teacher.
If you want innovation, reward experimentation. Make it safe to try. When people stop learning, it’s usually because they’re afraid of failing in front of you. Let them know that mistakes are opportunities. Growth is the goal, not perfection.
Building alignment and trust
Budget alignment takes more than spreadsheets. It takes trust. Communicate. Listen. Ask questions. Give people space to weigh in. And if resistance shows up, lean in. Understand where it’s coming from. Clarify your message.
If people are working against the vision, confront it directly but with empathy. You can’t build unity without accountability. Everyone has to paddle in the same direction. And that only happens when trust runs deep.
Key takeaways
To lead effectively in budget management, fire service leaders must:
- Align decisions with the organization’s mission and values.
- Strike a balance between fiscal responsibility and people-focused leadership.
- Leverage strategic thinking to prepare for both immediate and long-term challenges.
- Foster a culture of trust, alignment and continuous learning.
Remember, budget leadership isn’t just about numbers; it’s about stewardship, vision and people. The most effective leaders don’t just balance the budget. They build teams, teach others and leave the organization better than they found it. That’s the legacy worth leaving.
