Case Analysis Budget Project—PA 6650
Updated November 27, 2016
. Part I
A. Write a narrative analysis of the entire
budget which answers the following questions (refer to budget page numbers
in your answer so I may verify the information).
1. Identify and explain the budget format and
approach being used and assess how this budget fits the general concepts of
public budgeting.
2. Analyze and evaluate the quality of the
budget presentation and discuss the policy implications of the budget.
3. Identify key executive proposals and goals and identify the social, political economic, ethical and cultural factors involved in those goals.
4. Identify the total revenue and
expenditure amounts for the budget year (BY).
5. Identify the three largest programatic revenue
and expenditure categories and amounts and discuss the policy implications.
6. Identify the percentage & amount of intergovernmental
transfer payments.
7. Identify the amount and category of the costliest
service provided and discuss the policy implications.
8. Identify the costliest line item for each department.
9. Identify the dollar and percentage cost of
full-time equivalent (FTE) employment.
10. Compare public safety (police, fire, 911) and
public assistance costs.
Part II
This is a case analysis exercise where you are provided limited information
and are building your own case for analysis. The case analysis process is
outlined at this link: Case analysis
worksheet
SITUATION: You are the director
the department which I have assigned to you (each student is to select a different
department) and I will be the city manager for the exercise.
I have notified you that because reduced tax revenue expectations,
federal funding cuts, and pressures to reduce taxes (all current issues),
our community will have large revenue shortfalls.
As a result, I am directing all departments to submit a revised budget
request for your department cutting 20%, which can be presented to the city/county
legislature (council/commission). Your
task is to prepare a case analysis following the format in the case analysis
worksheet that addresses all of the following points
for your department:
1. Identify available alternatives that will achieve
the proposed reduction in your department, and select the preferred alternative
based on your assessment criteria.
2. Identify potential obstacles to your proposed
alternative, and provide cogent arguments why your particular department cannot
absorb its full share of the proposed cuts.
3. In discussing how to overcome your identified obstacles, consider and include discussion of specific recommendations as to which other departments should absorb the portion of the
cuts your department cannot, and/or your specific recommendations
for sufficient revenue enhancements to make the cuts to your department unnecessary.
BE SPECIFIC IN YOUR CUTS AND RECOMMENDATIONS: Remember, detail is the key to success.