NEED 3 PARAGRAPH responses (at least) to these discussion post

1.

Week 9 – Evaluating Expenditures

According to Mikesell, 2018, “budgets are prepared for future years, which means somebody going to be forecasting what the future will bring in terms of the operating conditions for the government (p.106). Therefore, individually states spend tens, maybe hundreds of billions of dollars each year through “tax expenditures.” However, tax expenditures are considered tax credits, deductions, and exemptions that reduce state revenue. They can include everything from poverty-reduction tax credits, to substantial benefits, to corporate subsidies. Thus, tax expenditures cost state treasures money, as much as direct spending for schools, healthcare, or road construction. Besides, direct spending, tax expenditures are tool states can use to undertake policy goals (Mikesell, 2018).

Accordingly, Andrew Cuomo, the Governor of New York, he echoed his proposed budget for 2018-19 fiscal year to increase aid for education, healthcare, mental hygiene, human services/labor, transportation, economic development, housing, environment and parks, agriculture, and energy. The Gov. focus his attention on social justice, economic justice, and racial justice. Therefore, the three top proposals laid out in the proposed budget are education, healthcare, and mental hygiene. First, education spending is the most significant portion of the state budget. The Governor is looking to increase education spending by $1 billion, to bring the state’s investment in education up to $26.4 billion. Some of the categories that would increase, pre-kindergarten by $15 million to serve an additional 3,000 students in the neediest districts. Also, after-school programs would get a $10 million boost – funding that is expected to help another 6,250 public school students. $9 million to add 15 new early college high schools focused — a smart program which will expand computer science and engineering education $6 million. Apart from the “No Student Goes Hungry” initiative for” Breakfast after the Bell” $5 million to support the program. And finally, $5 million to support a variety of smaller grant programs.

Thus, Mikesell, 2018, states, “much of the spending is by independent school districts, local government with a single purpose, therefore, New York operate their schools as a department of city government” (p. 216). Second, Health/Medicaid increase by $75.0 million or 0.1 percent to $68.5 billion in SFY 2018-19. Therefore, the federal matching funds that support Medicaid, the healthcare industry is projecting the total impact to be $1.1 billion. Thus, which will use to help fund Essential Plan health insurance coverage for lower-income New Yorkers. Cuomo criticized the federal government’s changes to the deductibility of state and local taxes for the state’s budget gap. By saying that the more significant tax burden has caused some of the state’s wealthy residents to relocate – or at least change their residence for tax purposes. Third, Mental Hygiene – all funds spending for Mental Hygiene agencies would decline by approximately $1.7 billion, or 23.7 percent, from $ 7.1 billion in the current fiscal year to $5.4 billion in SFY 2018-19. However, the reduction caused by a shift in disbursements for general state charges (GSC) for specific agencies to the GSC budget.

The overall budget of $168.2 billion represents a 2 percent spending increase over the current fiscal year. It closes a $3 billion budget gap, principally through restricting state spending and keeping higher taxes on millionaires, as well as sealing a loophole on internet sales tax. Thus, all funds tax receipts projected at $77.4 billion in SFY 2018 – 19, a decrease of 2 percent or approximately $1.6 billion. Based on the Executive Budget Report, the projected decline indicates the expedition regarding some Personal Income Tax (PIT) payments into the 2017 tax year as well as a proposal to shift certain revenues off-budget. Therefore, adjusting for those changes, tax revenue would increase by 4.8 percent in the coming fiscal year. Suggested revenue actions, as identified by the Division of the Budget (DOB), involve means that are predicted to increase All Funds revenues by a net $586 million in SFY 2018-19 and $981 million in SFY 2019-20. Besides, the Executive Budget Report further indicates that “All Funds spending in the coming fiscal year is predicted to increase by 2.3 percent. Including State, Operating Fund spending is projected to rise by 1.9 percent. Based on the data, it reflects several planned actions that would move spending off-budget. And change the timing of disbursement or otherwise affect reported levels of spending and the year – over – year increase.” Therefore, these identifiable actions, such as State Operating Funds spending would increase by more than 4 percent in the coming year.

According to Mikesell, 2018, he demonstrates that the “largest single categories of state government spending are public welfare programs (p. 218). Therefore, through the years, public welfare programs have subjected to many different pressures and criticisms. Hence, based on the “Social Security History” for many years, the public welfare programs they provide an only social safety net for millions of Americans. For example, age, disability, low income, and were unable to maintain themselves and their children without government aid. Thus, government aid provided through unemployment insurance, Social Security, veteran’s pensions, and the myriad subsidized program and benefits for which, many Americans are eligible. Such as funded private and public retirement programs, health insurance, tax credits, and permissible deductions. For anyone to receive any form of benefits, they must prove that they are poor (Social Security History).

The recommendation I would consider based on the tables and the narrative of the Executive Budget are as follows. Since the State Operating Funds currently constituted to no higher than 2 percent; the total disbursements do not reflect the assumed savings. Thus, it reflected instead on a distinct line and labeled “Adherence to 2 percent Spending Benchmark.” Because the projections are subject to many risks and uncertainties, the future budgetary decisions and other factors that are currently unknown. Hence, there is no guarantee that spending growth will hold no higher than 2 percent. Or that all savings from limiting spending growth will be made available to the General Fund. Therefore, if the 2 percent annual State Operating Funds spending growth benchmark exceeded; the projected budget gaps would be higher. And the projected surpluses would be lower. However, the Division of the Budget (DOB) reports reflects net expenditure while the Office of State Comptroller (OSC) reports the gross spending. Therefore, the problem is in the presentation and reporting of receipts and disbursements that cause the difference in the State Operating Funds and all Governmental Funds. For example, Mikesell, 2018, explained that the gross refers to the whole, while the net refers to a part of the whole following some deduction (pp. 218 – 221).

References

Mikesell, J. L. (2018). Fiscal Administration: Analysis and applications for the public sector

(10th ed). Boston, MA: Wadsworth.

Report on the State Fiscal Year 2018 – 19 Executive Budget: New York States

https://www.osc.state.ny.us/reports/budget/2018/executive-budget-report-2-13-18.pdf

Social Security. Social Security History: https://www.ssa.gov/history/

2. Evaluating Expenditures

The 2019 budget for the city of San Antonio the three departments with the highest budgets are; the Department of Public Safety, the Department of Public Works, and the Department of Culture and Recreation. The Department of Public Safety manages law enforcement, emergency services, and the fire departments. It the largest budget by far at $721,695. With a focus on maintaining thoroughfares, and bridges, the Department of Public Works has the second largest budget of $349,150. Lastly, the department of culture and Recreation has the smallest budget of $214,302 includes maintaining cultural and historical areas of the city and manages the parks and recreation venues throughout the city (City of San Antonio, 2018). When looking at the size of the Public Safety budget, it might be tempting to pull money form the budget to cover unexpected needs. Since the budget for Public safety is critical to the wellbeing of all citizen and visitors, it is ill advised to indiscriminately borrow from the department’s funding.

Covering a 2% Reduction

When looking for way to cover a 2% reduction in the general fund, there are several actions the city managers can take to implement the reduction. The city would try to avoid tampering with wages or cutting funding for established supply expenditures. Mikesell (2018) list several options available. The first solution is to find areas of over budgeted projections that would cover the need. If no additional fund could be found within the budget, the next best option is to initiate a general reduction across the board allowing each department to decide how to implement the reduction to their best advantage, moreover, a 2% reduction spread across the board would dilute the impact of the decreased funding. Additionally, city managers could target a specific program that would produce the least impact, or they could postpone the initiation of any new programing. Lastly, it is possible that the city could utilize reserves fund to cover the difference; however, city managers would not utilize reserve funding unless there was some type of emergency or extraordinary event that required funding and no other option was available.

References

City of San Antonio (2018). Comprehensive Annual Financial Reports (CAFR). Retrieved from https://www.sanantonio.gov/Finance/bfi/cafr

Mikesell, J. L. (2018). Fiscal administration: Analysis and applications for the public sector (10th ed.). Boston, MA: Wadsworth.

Public Works (n.d.). Bexar County Public Works. Retrieved from https://www.bexar.org/1380/Public-Works-Department

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