Whether the board is appointed or elected, and whether it is merely advisory or has authority over the budget, depends on state and local laws.
Typically the Board of Finance is seen as being more cost-conscious than the governing body - that is, it prefers smaller budgets.
School districts in New England do not have separate taxation powers, and must receive their revenues from member towns.
The Board of Finance may return the budget to the respective bodies with requests for changes, or may refer it to the town meeting for approval.
Outside the budget process, the Board of Finance may perform financial oversight duties on behalf of the town.