How much can an item of appropriations be increased or decreased without a public hearing?

An item of appropriations can typically be increased or decreased by a percentage that reflects the threshold established by municipal budget laws, ensuring flexibility in budget management while maintaining oversight. The correct answer, which states a limit of 5%, is significant because it balances the need for municipalities to adapt to changing circumstances—such as unexpected expenses or shifts in revenue—without the time-consuming process of conducting a public hearing, which can delay necessary adjustments.

This 5% threshold allows for reasonable adjustments that can swiftly address minor issues without the need for formal processes that may impede timely financial decision-making. For larger changes, public hearings are required to ensure transparency and public involvement, especially as significant adjustments can greatly impact the community's budget and services. Understanding this percentage is crucial for municipal officials in navigating the balance between efficiency and accountability in the budget process.