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Public Decision Making-Budgeting Problems in a City

Public Decision Making-Budgeting Problems in a City

It is crucial to understand that the budgeting process is always onerous for a vast majority of the governments of cities. The COVID-19 pandemic has worsened this issue. Budget issues inadvertently often result in a recession that makes work extremely difficult (Moore, 1980). The spending plans that many cities have adopted all through the country are entirely based on estimates of revenue that have more than the normal uncertainty dose.

In this case, some other challenges that affect the budget for a given city are aspects of not creating a good time for budgeting. Time is of utmost importance and needs to be put in mind. Failure to take time to make an annual budget would result in a rushed process, thereby inevitably making mistakes. It is crucial to understand that in creating a budget, plenty of time is taken. As such, time should be taken to look over both the long and short-term goals. For a monthly review of a budget, a rolling budget should be considered, given that it changes yearly. Therefore, it needs to be updated every time financial statements are created as it saves one’s time at the year’s end due to the frequent updates (Bhimani et al., 2018). Another alternative is zero-based budgeting. It implies that, for every year, this budget starts at zero (Wetherbe & Montanari, 1981). These solutions are useful because they play a vital role in reducing expenses that the City governments could incur and help determine where the funds should be prioritized.

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References

Bhimani, A., Sivabalan, P., & Soonawalla, K. (2018). A study of the linkages between rolling budget forms, uncertainty, and strategy. The British Accounting Review50(3), 306-323.

Moore, P. (1980). Types of budgeting and budgeting problems in American cities. International Journal of Public Administration2(4), 501-514.

Wetherbe, J. C., & Montanari, J. R. (1981). Zero-based budgeting in the planning process. Strategic Management Journal2(1), 1-14.

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Question 


Public Decision Making-Budgeting Problems in a City

Describe an issue a city would face (infrastructure, budgeting, self-driving cars). Discuss alternative solutions to that issue. Discuss why you believe the alternatives would be best for the problem. Include citations for your answers.

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