Government Overview Final Project
Use the entity selected in Week 2 as well as the information from the Weeks 2, 3, and 4 papers as a basis for this paper.
Complete a 500 word paper.
The final project must cover the municipality from week 2 as a whole and must combine concepts from the earlier assignments as well as the following topics:
o Political, economic, social, and cultural influences on the public budget
5
Grace,
Good work. You addressed the required elements, including the two major budget reforms. Your information is accurate and well organized.
Budget Approaches
Professor P. May
AJS/574
Grace Acevedo
July 27, 2020
Budget Approaches
Public budgeting has to do with the expenditure and decisions on revenue collection for the general public’s benefits. Public budgeting is important for any government that has assumed office to ensure the proper allocation of resources. Public budgeting also helps in optimizing resources by narrowing them down to the most crucial government functions requiring development. Aspects considered during public budgeting are such as underprivileged communities and the growing demand for social amenities such as education of health care services. Different budgeting approaches impact the development and implementation of government programs.
Public budgeting approaches differ in their usage of information, especially concerning expenditure and the categorization of expenditures. Swain (2015) outlined the lump-sum budgeting approach as entailing the proposition of expenditures as the total amount or lump sum. For the individual programs with a combined expenditure, their implementation would be in line with the fraction of its expenditure in the entire amount. Relatively, the implementation of programs covered by the expenditure in the lump sum budgeting is dependent on priority. Swain (2015) outlined zero-base budgeting as a what if budget, meaning that the organization of expenditures is dependent on the work requiring completion due to priorities labeled as outcomes or outputs. As such, events with the most outcome are given preference. Swain (2015) highlighted the program budgeting approach as arranging the expenditure depending on the desired results. As such, the programs that would yield the desired result would be implemented first with the others taking a step back.
Two of the major budgetary approaches are performance and program-based budgets. Harun and Vyas-Doorgapersad (2016) outlined the performance budgets as narrowing down to measurable aspects of efforts or services whose expenditure associate with set objectives. As such, the expenditure target results that gear towards achieving the goals of a particular entity. Brumby (GGG) highlighted top-down budgeting as entailing the division of the various aspect of budget decision making while formalizing the interactions between the said components. This reform approach ensures the prioritization of the key elements of a decision-making process. As such, the considered aspects would be the most important to the decision-making process and contribute to achieving the most needed requirements. It is through this reform that noncrucial programs receive a less important treatment. The other approach is hierarchical. This approach strives to ensure the achievement of aspects depending on the hierarchical arrangement. This arrangement depends on the level of importance and how crucial the changes would be to the public.
The highlighted approaches would be of great importance to communities striving to cope with decreased funds. The top-down approach helps in capitalizing on the crucial projects in a country. Services rendered to community members are important for the achievement of the desired goal while eradicating particular challenges. However, the level of importance among programs differ. In the wake of a shortage of funding, it would be imperative to capitalize on the most critical programs while concentrating on the other programs when funds are allocated at another time. Using the hierarchical approach, available funds are utilized depending on a set order of programs. This order outlines the programs that would be fulfilled first, and which would follow next. This hierarchy could be predetermined due to the anticipation of a shortage of funds. On the other hand, the order could be what is developed and to be followed despite the absence or presence of adequate funds.
The budget office has a lot to learn from the budgetary reforms. First, expenditures are recurrent and is something that cannot be avoided. As such, it is important to have a week laid out plan to navigate the expenses associated with the various programs in society. Also, the level of importance differs among the various programs. It is crucial to determine the most important programs that people, or entities cannot do away with. Also, it is important to determine the less important programs. Such an understanding would help in the determination of the order to follow in completing programs. The approaches highlighted the importance of results in the determination of expenditures to particular programs. Results with a high association to an entity’s objectives should be given priority. What should follow next are the components that influence the said results. The other thing that could be learned is the formalization of interactions as denoted in the top-down budgeting reform. This move ensures that individuals do not take interactions between components casually. These interactions could impact the budgeting process and the performance of the entire system.
References
Bromby, J. Chapter 16. Budgeting Reforms in OECD Member Countries. https://www.internationalbudget.org/wp-content/uploads/Budgeting-Reforms-in-OECD-Member-Countries.pdf
Haruna, F. P. & Vyas-Doorgapersad, S. (2016). Public Budgeting in African Nations:Fiscal Analysis in Development Management. Routledge
Swain (2015). Budgeting for Public Managers. M.E. Sharpe 2
Feedback for student
Team 4,
Good job on the week 3 assignment. You exceeded the maximum word count requirement, but otherwise you fulfilled the requirements, and your work is accurate and well organized.
Budget Influences
City of Atlanta
Professor P. May
AJS/574
Grace Acevedo, Diana Kline, Cori Purnell
August 3, 2020
Introduction
The public budget indicates a forecast of the revenue that the State will receive and a limit on the expenditure it intends to make. The revenue provided in the budget will come from taxes, fees, and other resources set by tax law, while expenditures will be made on investments and services for the benefit of the community.
This paper intends to describe the political and economic influences in the public budget, as of the social, and cultural influences, in the City of Atlanta. In addition, it will portray the elements involved in the budget preparation, enactment, and execution.
Political Influences in the Atlanta Public Budget
Public budget includes three phases: development and preparation, implementation and execution, audit and review. In addition, four main bodies are involved theorizing and finalizing the budget.
In the City of Atlanta, there are four main bodies involved in conceptualizing and finalizing the budget.
The Mayor is responsible for preparing and submitting a proposed annual budget ordinance to the governing body and takes into consideration the ruling presented by the Finance/Executive Committee of the Citys Council.
The City Council may conduct more than one public hearing on the propose budget. It can also modify the proposed budget countless times until the final version allocates all legitimate and charter-mandated expenditures.
The Budget Commission collaborates with the City Council in submitting a predicted revenue report to be used in the preparation of the budget performed by the Mayor which are binding and needs no approval or disapproval.
The Chief Financial Officer delivers a comprehensive copy of the final version of the budget before submitting the final budget to the City Council.
The City Council implements overall, special revenue and debt service fund budgets with the level of legal budgetary control that the office level establishes. City Council approves appropriations for capital projects on an individual basis, at the projects original approval.
Economic Influences in the Public Budget
Economic disparity and inequality are an imminent threat to an economy. The government can address these kinds of threats by introducing public and economic welfare policies for the underprivileged sections of the society through the budget.
As the budget is an instrument of the government to improve the economy, it is necessary to describe the main economic problems that need to be addressed: macroeconomic imbalances and economic fluctuations, that is, the economic cycle of the main macroeconomic variable that is GDP (gross domestic product), the breadth of which should be moderated with the help of fiscal policy. Precisely, fiscal policy in the short and medium term must be aimed at stabilizing the economy, that is, to smooth economic cycles and reduce imbalances.
Economic growth is one of the main concerns of governments and has therefore been extensively analyzed in all its aspects by different authors. According to Adam Smith, the theory of economic growth is based on three fundamental elements: division of labor, capital accumulation, and international trade (Adam Smith: The Inspirer of Modern Growth Theories).
Social and Cultural influences in the Public Budget
The City Council holds public hearings throughout the budget process. These meeting are advertised in the newspaper at least seven days before the hearing. During the hearing, the public is welcomed to propose items for the budget as well as provide feedback and ask questions about proposed monies scheduled for specific items such as the General Fund. (Virtual/Interactive Public Hearing. Atlanta City Council, GA, 2020).
Edwards (2009) said that there is a very real and powerful role that presidents have in setting an agenda for the nation, which in turn influences the fiscal, economic, and social path of the country. He describes presidential leadership in terms of the chief executive as director or facilitator. These kinds of roles are discussed by others in a budgetary context and relate to theoretical perspectives about the budget and policy process. (BibliU – Reader, n.d.)
The City of Atlanta also provides cultural services that require funding from the General Fund. Their mission is to create and promote rich and diverse cultural experiences in the city of Atlanta that enhance quality of life and expand the citys international reputation while preserving and protecting Atlantas cultural heritage. Some of the cultural experiences that are offered are through museums, performance, and art centers, as well as art galleries and festivals. (Mayors Office of Cultural Affairs | Atlanta, GA, n.d.).
Elements involved in the Budget Preparation, Enactment, and Execution
Budgeting is the process through which the government allocates prioritized needs for a company and projects. The budget is essential for the legal basis of spending and to be accountable for how the money was spent. Budgeting is vital for easy revenue measures that help in fiscal policy for most organizations to achieve their target. Therefore, a budget has to be influenced by various elements that help in budget preparation, enactment, and execution.
Budget preparation in Atlanta’s city happens every year to determine how funds are spent and the allocation of resources in the city. This is the first stage establishing the budget policies and regulations that will help guide budget preparation. A budget calendar and document should be set to allow easy identification of programs to be carried and the finances required to support the activities. Hence the measures will help in efficiency and effectiveness. After budget preparation, the budget has to be taken by the minister of finance to the legislature to be approved(Ibrahim, 2019).The enactment process is crucial because it will set parameters on how revenues will be generated and resource distribution.
Budget execution is the last process of budgeting; therefore, three principals have to be achieved for it to prosper. The principles are the proper purpose of the expenditure. The obligated appropriations must occur within time limits, and the obligations set by the congress have to be established within amounts set(Kelly, 2015).This will help in recording the budget for the fiscal year of the specified appropriations. Also, the allocation process will help divide the budget according to expenditure activity, programs, and functions. Executive of the budget will help in the allotment system in which time elements are allocated monthly or quarterly. The allocation process is essential because it will ensure funds are available when needed and serve its purpose.
The allocation of public expenditure are key elements of a financial policy, having a decisive impact on the growth of the economy and on social development, which are long-range impacts. The public budget stimulates the accumulation of physical capital and the investment in human capital, this influenced by politics, economics, society, and culture.
References
Adam Smith: The Inspirer of Modern Growth Theories https://www.sciencedirect.com/science/article/pii/S1877042815037374/pdf?md5=3081cda2339746b373ba42e20d7fe954&pid=1-s2.0-S1877042815037374-main.pdf
BibliU – Reader. (n.d.). Bibliu.Com. https://bibliu.com/app/#/view/books/9781118913109/epub/OPS/xhtml/Chapter06.html#page_0
Budget & Fiscal Policy | Atlanta, GA
https://www.atlantaga.gov/government/departments/finance/budget-fiscal-policy
Budget Policy and Analysis of Major Budget programs http://portal.uned.es/portal/page?_pageid=93,56233773&_dad=portal&_schema=PORTAL&idAsignatura=26618211
Citycouncil.atlantaga.gov. 2020.Virtual/Interactive Public Hearing | Atlanta City Council, GA. [online] Available at:
References
Ibrahim, M. M. (2019). Designing zero-based budgeting for public organizations.Problems and Perspectives in Management,17(2).
Kelly, J. M. (2015).Performance budgeting for state and local government. Mesharpe.
Mayors Office of Cultural Affairs | Atlanta, GA. (n.d.). Www.Atlantaga.Gov. Retrieved August 2, 2020, from https://www.atlantaga.gov/government/mayor-s-office/executive-offices/office-of-cultural-affairs Government Overview Summary 1
Team 4,
Very thorough job on the week 2 government overview summary, in which you used the CAFR information for Atlanta. You covered the required elements, and your information was accurate, informative and well organized. Please be mindful of the word count limit in the future.
Government Overview Summary
Cori Purnell, Diana Kline, Grace Acevedo, and Jarett McCullum
University of Phoenix AJS 574
July 27, 2020
Introduction
Annual budgets provide structure. A budget is especially useful for providing an organization guidance regarding the direction in which it is to spend its monies, predict cash flows, allocate resources, and measure performance. This summary will provide a government overview regarding the City of Atlanta, Georgia. Within you will find information on population, government structure, the size of the budget and its interrelationships with the comprehensive annual financial report (CAFR), major industries located in the entity, the budget calendar, and other pertinent demographic information.
Population
Atlanta had 1.1 million new residents between the years of 1990-2000. In 2019, Atlanta had a population of 5,689,000. So far in 2020, there is an approximate population of 5,803,000. (Atlanta Metro Area Population 1950-2020, n.d.)
Government Structure
In Atlanta, the City Council is responsible of creating the governing laws by developing policies that control operational standards and determines the boundaries for the City government administration.
There are two forms of legislation: Ordinances – an ordinance institutes a perpetual rule of government. Each official act of the council must be an ordinance due to it having the power and effect of law, and the ordinance must be presented to the full council at two regular meetings. An exception to this rule would be a city charter amendment which requires three interpretations; Resolutions commonly conveys support of several projects or businesses or creates a legislative policy. These are presented only once before the full council and can be approved and implemented in the same meeting. (How Your Council Works | Atlanta City Council, GA).
The council is composed of fifteen (15) members of which twelve (12) are elected from what is known as single member districts and the remainder (3) elected citywide. In the case of a tie in votes, it is the vote of Council President that decides. The Council President applies all privileges and emits all duties in the absence of a mayor be it by disability or vacancy.
Members of the Council are elected for a four- year term starting the first Monday of January and elect an interim president serving a one-year term beginning with the first meeting in January, having 4 interim presidents in a four-year term. The interim president has the duty to oversee council meeting in the absence of the president.
The government counts with the responsibility of the following departments: Aviation, Corrections, Finance, Fire, Human Resources, Information Technology, Law, Parks and Recreation, Procurement, City Planning, Watershed Management, and Public Works.
Size of Budget and CAFR
A Comprehensive Annual Financial Report (CAFR) is an important document that outlines the U.S. government’s financial statements. CAFR depicts the financial statements of all government entities, including states, municipals, and counties. The information presented in CAFR can help ascertain the government’s operational structure, population, and relationship between the government and major industries.
The government budget is the main element of CAFR, comprising of proprietary funds, fiduciary funds, and government funds (Thornton, 2012). The funding history of the government depicts the structure of government operations. CAFR shows that the government structure includes public operations, business transactions, and the maintenance of trusts with other people.
CAFR also determines the state’s population by mentioning the main sources of resources and the distribution of the resources. The main population groups addressed in CAFR include the taxpayers and the beneficiaries of government programs. All the population groups appear in the budget of the government (Thornton, 2012). CAFR also reveals the relationship between the government and all industries. Industries and the government have a mutually sustainable relationship, enabling the government to benefit through taxes. At the same time, it implements policies that help maintain a balance among the industry players. CAFR mostly focuses on the people and the financial resources rather than the place where the people live (Thornton, 2012). Therefore, demographics are an important factor in developing a comprehensive CAFR, which can apply to learning more about government operations, structure, and relationships.
Major Industries
The City of Atlanta has some of the Nations major industry giants like Coca-Cola, Bell South, Delta Airlines, Home Depot, UPS and Georgia-Pacific and as of 2000 there were 24 Fortune 500 companies based in Atlanta.
Atlanta has an incentive program for people to start new an up incoming businesses as well for companies that are planning to leave the area as wellAtlanta has seen a decrease in unemployment due to the major industries located in Atlanta because these business bring in more jobs for the residents to be gainful employed. (Atlanta: Economy-Major Industries and Commercial Activity, Incentive Programs New and Existing Companies, 2014)
Budget Calendar
The fiscal year for the City of Atlanta ends June 30th annually. The Mayor, City Council, Budget Commission, and the Chief Financial Officer (CFO) all have a role in the budget process. The Mayor prepares and submits the proposed annual budget to the governing body no later than its first regular meeting in May, preceding the commencement of the fiscal year. He/She then will consider the resolution submitted by the City Councils Finance/Executive Committee, based on council members suggestions for budget priorities. The Mayor and Chief Financial Officer (CFO) may choose to consider the resolution in preparing the budget. The City Council will hold one or more public hearings on the proposed budget and must advertises those meeting(s) in a general publication at least seven (7) days before the date of the hearing.
Any amendments to the proposed annual budget mat be made as necessary, so long as the final version allows for all legal and charter-mandated expenditures. The City Council has until June to adopt the annual budget for the upcoming fiscal year. The Budget Commission works alongside the City Council to submit an anticipated revenue report to the Mayor for use in preparing the budget. The anticipated revenue needed needs no approval or disapproval, as they are binding upon the City Council. Chief Financial Officer had five days before the meeting at which the final budget will be submitted to the City Council, the CFO must provide a complete detailed written copy of the final version of the budget. (City of Atlanta Keisha Lance Bottoms Mayor Fiscal Year 2021 Proposed Budget. (n.d.).)
Demographic Information
Atlanta is the largest city in Georgia. It is also the 36th largest city in the United States and has seen a 24.7% increase in its population since 2020. Atlanta possesses a GDP (gross domestic product) of $276 billion, ranking as the 10th city economically stable in the nation.
The urban population of Atlanta represents 4.5 million while the metropolitan area represents 5.6 million, being Atlanta the 9th largest city in the U.S. It is the second largest black majority metropolitan area in the country and during the last ten years, African Americans have been relocating to the suburbs, decreasing the population in the city to a 54% in the year 2010. The white population in its metropolitan area exceeded 5.5 million citizens in 2013. Atlanta also represents the 19the major U.S. LGBT population, estimating a 4.2% of the population. Cherokee and Creek Indians are the nearest Indian settlement to Atlanta.
The projected population growth for 2020 is of over 8 million people. (Atlanta Population & Demographics, Median Income – Point2)
Conclusion
Putting together a working budget for the City of Atlanta continues to be a positive experience for everyone involved. All parties are aware that over the years expenses increase as areas degrade and labor and supplies increase in cost. A good budget shows that the inhabitants of that City are looking out for the publics wellbeing and overall workforce. They continue to show a strong performance and effort aiming for the improvement and prosperity of the economy.
References
City of Atlanta Keisha Lance Bottoms Mayor Fiscal Year 2021 Proposed Budget. (n.d.). Retrieved July 26, 2020, from https://aimewebapp.blob.core.windows.net/sitefiles/FY2021%20Proposed%20Budget%20Book_Final%2005032020.pdf
Atlanta Population & Demographics, Median Income – Point2. Retrieved from
https://www.point2homes.com/US/Neighborhood/GA/Atlanta-Demographics.html
How Your Council Works | Atlanta City Council, GA. Retrieved from
https://citycouncil.atlantaga.gov/how-your-council-works
Atlanta Metro Area Population 1950-2020. (n.d.). Retrieved from
https://www.macrotrends.net/cities/22922/atlanta/population
Atlanta: Economy-Major Industries and Commercial Activity, Incentive Programs New and Existing Companies. (2014). Retrieved from
http://www.city-data.com/us-cities/The-South/Atlanta-Economy.html
Thornton, J. B. (2012). Archiving of Comprehensive Annual Financial Reports (CAFRs) on State Government Web Sites.Behavioral & Social Sciences Librarian,31(2), 87-95 4
Feedback for student
Grace,
You completed the week 1 assignment by posting by the deadline and meeting the minimum word count requirement.
Regarding the content, you touched on the elements, but you did not explain the budget cycle (schedule) or list the different positions in the city regarding who is responsible for what part of the budget cycle. Also, a significant portion of revenue for a city is fees, such as water and sewer, trash collection, building permits, other types of permits, etc.
Your writing is well done without grammatical error.
Budget Cycle
Professor P. May
AJS/574
Grace Acevedo
July 19, 2020
Budget Cycle
The budget cycle is an essential process for any government operation or small business ventures. The process helps in maximizing resource utilization while maintaining accountability. The following are the processes that best describes the budget cycle to be followed by the city council.
Development of the Cycle
The development of the budget is the first step of the cycle. In this step, there is a need to determine the amount of resources required to cater to the city council’s needs. However, the estimated resources would be known to determine all the needs of the various sections of the city council. In this step, there is the determination of the measures to take in covering the expenses that cannot be covered by the resources at the council’s disposal. In my role of budgetary director, my leadership will help determine what to include in the budget and what will be exempted. I will compare the anticipated resources against the expenses such as employees’ salaries, among others. The development of the cycle will entail the cooperation of junior and senior management. The highlighted individuals need to be members of the financial committee. Junior managers are adequately informed about the needs of their departments. As such, they have an idea of areas requiring financial resources and the required amount of allocation.
Execution
Execution of the budget is the next process that follows in the budget cycle after approval from the relevant authorities. The stringent measures placed on government resources mean that no resources could be utilized unless the right signatories approve. According to Najimi (2018), execution is the most important step in the budget cycle. The author noted that the improper execution of the approved budget results in the inability to achieve the city council’s desired outcomes. To prevent the council’s funds from being impounded by the state government, there would be a need to ensure proper utilization of the allocated resources. Characteristically, record management would be of great importance to enable agencies to check on resource utilization, such as the auditors to do their work. The role of executing the budget cycle is entrusted to the city’s budget director. The budget director will be in charge of ensuring the allocation of resources while looking out for dockets that have higher allocations than others. The execution stage becomes the base of comparison in the future budget cycles.
Evaluation
Evaluation is the last phase of the budget cycle that entails the assessment of resources to determine the appropriate and effective utilization of the allocated financial resources. In order to ensure transparency in the evaluation process, there would be a need to involve independent parties to help in the evaluation process. Garman and Forgue (2011) highlighted evaluation as occurring at the end of the budgeting process. Evaluation of the county councils budget cycle would be essential in capturing changes to be implemented in the budget cycle for the next financial budget process. Aspects such as the changes in expenses, changes in costs of products and services could be considered in the evaluation. The evaluation would capture the effective utilization of resources to determine an area requiring changes to maximize resource utilization. Evaluation of the budget cycle would be by individuals appointed in the internal control systems. Still, the evaluation would also be by the independent agencies as mandated by the federal or state government. Though, the issue of concern is where these agencies are transparent enough to give a true representation of the state of affairs in the city council.
Available Funds
Funds available to the city council are the federal categorical grants, project grants, and the proceeds from tax collections. Earlier governments had applied for the allocation of funds to projects that would benefit the immediate community. The received finds would cover the anticipated projects. The federal categorical grants are the primary source of revenue for the local government. These funds would help cater to social amenities such as health care and improving access to education. The funds would also help in the provision of social services, environmental protection, and community development. The categorical grants accompany conditions stipulating the utilization of funds. As such, the utilization of the finds would be in line with the conditions put by the government.
References
Garman, E. T. & Forgue, R. (2011).Personal Finance. Cengage Learning
Najimi, B. (2018). Gender and Public Participation in Afghanistan: Aid, transparency and Accountability. Springer
