True or False: The budgets of all funds are closed out at the end of the budget year.

The statement is false because not all funds' budgets are closed out at the end of the budget year. In municipal budgeting, certain funds, particularly those associated with ongoing projects or programs, may carry over their balances into the next fiscal year. For instance, special revenue funds or capital project funds often maintain their balances to ensure that there are sufficient resources to continue funding projects as needed. Additionally, some funds might be governed by specific regulations or policies that allow for the extension of budgets beyond the fiscal year to accommodate multi-year projects and initiatives. This flexibility in budget management is crucial for municipal governments to effectively plan and utilize their resources over time.