Unit #7 Project This assignment is the second of a three-step process. Step 3 will be completed in Unit VIII. Using the selected government budget from Part I in the previous unit, evaluate the past

Local Government Budget

Brandon Green

Public Finance & Budgeting

Columbia Southern University

Professor Shelley Taylor

Local Government Budget

Trends of Revenue Sources and Balances

The City of Detroit has filed no bankruptcy petition. Over the past three years, the City's revenue streams and balances have changed. For the General Fund, City revenues come from property tax, income tax, and other sources of revenue. The City's General Fund is primarily funded by sales and use taxes on real estate and personal income. The City's income from property taxes has decreased over the past few years while its income from income taxes has stayed stable. To compensate for the decrease in property tax revenue, the City has turned to state revenue sharing (Aydin, 2010).

Also, the City's General Fund has seen its balance fluctuate throughout the last three years. In the fiscal year 2019, the City had a surplus; however, in the fiscal year 2020, the City had a deficit. The fiscal Year 2021 is expected to be a good year for the City. The City's budget has been affected by changes in the City's revenue and expenditure patterns. The City has been forced to cut back on spending to meet its financial obligations. To make up for the decrease in property tax revenue, the City has also turned to state revenue sharing.

Ethical Practices of Financial Policy on Taxes, Fees, and Charges

Taxes, fees, and charges in the City of Detroit are handled ethically. A progressive income tax, fair and equitable tax rates, and tax revenue used for public services are just some of the City's ethical standards regarding taxation. Ethical practices for the City's fees include charging appropriate and required fees and using fees to pay for the service's cost (Walker, 2022).

The budget of the City is affected by the City's ethical tax, fee, and charge policies. Income taxes in New York City are progressive, meaning those who can afford them pay more. This generates cash for the City, allowing it to continue providing public services at a reasonable cost. As a result of the City's fees, the City can maintain a balanced budget.

The Impact of Budgetary Deficiencies on the Organization

A lack of funds can have a significant influence on an organization. A lack of adequate funding might harm the reputation and trustworthiness of an institution. These factors impact service delivery, financial commitments, and operations.

The organization's budget can be significantly affected by budgetary shortcomings. As a result, the organization's ability to offer services, meet financial obligations, and keep things running may be compromised. The organization's reputation and credibility can also negatively impact budgetary shortfalls (Mohd Ali, 2021).

A lack of funds may hinder the organization's ability to provide services. Because of a lack of funding, the organization may have to reduce its services. The organization's capacity to meet financial obligations might also be affected by budgetary shortfalls. Default on debt obligations may be necessary if the organization does not generate adequate money. If the company's credit rating suffers, as a result, it will be harder for the organization to secure loans in the future.

A lack of adequate funding might harm the reputation and trustworthiness of an institution. An organization's reputation could be tarnished, making it more challenging to secure funding and recruit top-tier talent. An organization's reputation might be tarnished if it cannot pay its financial responsibilities.

Internal/External Opportunities and Challenges of Revenue Rources

Regarding revenue streams, there are both internal and external opportunities and obstacles. Increasing taxes on individuals who can afford to pay more, raising fees or charges for services, or generating cash through public-private partnerships are all examples of internal potential.

Budgetary opportunities and challenges arise from within and without the government. These include securing funding from private groups and individuals and bringing in money from visitors to the area: Internal problems include balancing the budget and lowering services to save money while also reducing spending. These include a downturn in the economy, which can affect the amount of money the government obtains via taxes, fees, and charges (Jonnalagedda, 2011). Taxes need to be collected, and public services must be provided. The government must also monitor the economy's impact on revenue sources.

References

Aydin, B. (2010). Cyclicality of Revenue and Structural Balances in South Africa. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1750704

Jonnalagedda, S. (2011). Revenue Generation in the Information Era: Opportunities and Challenges. IIMB Management Review, 23(1), 4. https://doi.org/10.1016/j.iimb.2011.01.008

Mohd Ali, B. (2021). Organization Budgetary Control System. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3794866

Walker, E. (2022). Legal Financial Obligations (LFOs) as Taxes, Regulatory Fees, or User Charges? An Analysis of Washington’s Criminal Legal System LFO Revenue. Federal Sentencing Reporter, 34(2-3), 175-185. https://doi.org/10.1525/fsr.2022.34.2-3.175