Part III Using the selected government budget from Parts I and II in the previous units, expand upon your previous works in discussing the following areas: Privatization efforts that have been made a

MULTI-YEAR BUDGET EVALUATION 6

Multi-year Budget Evaluation

George Landry

Columbia Southern University

Multi-year Budget Evaluation

The federal budget is separated into two main points, expenditure and revenue. The section of revenue addresses the funding sources that the local government depends on to cater for its operating expenses (Telvin, 2020). The section of expenditure marks the resources disbursed on goods and services and it is grouped as the facets of need for the municipal government of the city. This paper aims to evaluate the spending plan of San Diego city focusing on its products and services from the fiscal year 2018 to 2020.

An assessment of the funding levels of the local government discretionary spending section forecasted the allotted funds, which establish the priorities of San Diego. Government spending ranked the highest for law execution agencies as of 2018, with an aggregate provision of $6,772,300 compared to improvement in infrastructure that was estimated to take $2,578,600 and budgeted $1,362,593 non-departmental expenses. There was a shift in core values in the year 2019 that majored on funding for public safety with not less than 39 million dollars being allotted towards the city's security. In the same year (2019), the second-biggest operating expenses were recorded with a budget of $35.7 million (Telvin, 2020). The debt services expended approximately $35.5 million and fell in third place as the most funded expenditure.

A comparative analysis with 2018 indicates that law execution and public safety agencies generated the biggest volume of spending, with both reflecting proficiency in safety. As for the year 2020, the highest spending for the government was on city employees, which were the top priorities. $11.5 million and $18.3 million were respectively allotted to economic services and benefits in the 2020 proposed budget (Faulconer, 2020). It has been noted that the priorities and objectives of the municipal’s government have taken a new turn every fiscal year, with the regular spending strategy growing considerably in the year 2020 as related to previous periods.

External challenges are associated with the expansiveness and hold damaging repercussions. With the covid-19 pandemic, many firms are finding it harder to fund their operations. The outbreak of Covid-19 has considerably affected San Diego's city collection exertions. Collectively with the failure of the government to promote economic growth that meets San Diego's spending, there have been hostile effects. This points out the escalating number of local governments attempting external financing and assistance from the state. Economic downturns have also been known to influence the government agencies' performance to get capital for their goods and services (Faulconer, 2020). The outbreak of poor economic patterns adversely affected by the covid-19 pandemic has delayed the funding the consumer goods, resulting in adjustments in the expenditure by the local governments.

There is another extreme challenges, inflation, which has restricted the municipal’s government ability to finance their goods and services. Furthermore, regulatory agencies and external legislation have also been emphasized as impacting the financing of goods and services at San Diego City (Faulconer, 2020). These external policies hold a major impact on the mechanisms convoluted in budgeting and financing, causing a heavy effect by external legislation on the products when the city concludes a goods and services realignment.

Allocation of budgetary steadying financial resources is a portion of management regulation programs for the budget. Commonly described as the rainy-day-funds, the local governments underwrite surplus income to the savings account to guarantee stabilization in main moments of a sudden reduction in revenue. Rainy-day funds can further be utilized to fix the budget deficit in case the need arises (Robbins-Meyer, 2020). Other initiatives to stabilize the budget include boosting the internal processes to better the effectiveness of resources. Inadequacy in internal regulations can lead to the inability of the local government to meet its financing needs, which is the major reason behind the optimized internal processes to boost the administration. Additionally, optimizing the hiring process is essential regarding the stabilization of the budget. The process of stabilizing the hiring process should include people in the position to serve the budgetary operations equally and sufficiently. It is also imperative to provide the teams with effective and reliable staff to steer the local government in the right way. In sectors having inadequacy, outsourcing of management services can be encouraged. Essential goods can also be outsourced to guarantee the effectiveness of the budget to realize the city's aims and goals.

Major problems faced by San Diego's local government have considerably impacted their exertions to address their expenses on goods and services. The proposed budget of 2020 has greatly been affected by the covid-19 pandemic and thus the need to execute safeguards such as reduction in ongoing spending on compensation packages and other frequent costs can be among the recommendations for San Diego. Deceleration of the operating expenses for the fiscal year 2020 can enable the city to concentrate on financing essential services. The move will help to lessen the financing crisis in the local government and counter the decline in revenue (Robbins-Meyer, 2020). A decrease in internal spending and raw materials can further lead to more organized managerial control of the budget. It is worth noting that the financing of products and services of San Diego's City is an essential part of controlling budgets. To ensure that there is a cutting in the budget for goods and services in San Diego, which happens to consume the highest revenues, the government can introduce budgetary stabilization strategies such as creating a spending stabilization fund.

References

Faulconer, K. (2020). Adopted Budget Fiscal Year 2020. City of San Diego Official Website. Retrieved June 8, 2021, from https://www.sandiego.gov/sites/default/files/fy20ab_v1generalfundrevenues.pdf

Robbins-Meyer, H. (2020). San Diego County Budget Portal. Retrieved from https://www.sandiegocounty.gov/openbudget/

Telvin, A. (2020). Office of the independent budget analyst (IBA). City of San Diego Official Website. Retrieved June 8, 2021, from https://www.sandiego.gov/iba