«Finance» - Free Essay Paper


Question One

Local governments have the responsibility of providing various public services to the citizens under their areas of jurisdiction. It is, therefore, the expectation of the citizens that local authorities will provide such services as building and maintenance of roads. In this respect, the decisions regarding the types of public services local governments are supposed to provide are vested in the hands of the citizens. Bartle, Hildreth, & Marlowe (2012) affirm that citizens are supposed to be involved directly in important decision making regarding public services to be provided by local governments. However, politicians and bureaucrats have taken away the power of decision making from the citizens. That is, the politicians and bureaucrats are using money that has been set aside for the provision of public services for their individual gains. In addition, the power of decision making among the citizens is sometimes not considered potent, as the citizens lack the basic knowledge in order to ensure that their requirements regarding the provision of public services are implemented.

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Question Two

Basically, after the government goes through the process of budgeting, it can reduce its incurred costs through consolidation and cooperation. After the approval, the budget is monitored and amended by the budget director. Particularly, the actual revenues and expenses are compared to the budgeted ones, and the differences are determined. Therefore, Bartle et al. (2012) assert that corrective actions are taken whereby the decision of either consolidation or cooperation comes in. The local authority takes a look at the revenues collected and the taxes paid by the citizens, and determines the costs that should be reduced based on the budget. In the process of consolidation and cooperation, the government looks at the most and least urgent costs to be incurred. The government then determines the costs to be consolidated in order to ensure that the process of budgeting is not altered and that the government has adequate finances to take care of all the budgeted costs.

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Question Three

As far as I am concerned, the privatization of public service delivery is not a good strategy for reducing the costs of government. Currently, most citizens are considering private services because the services provided by the local authorities can be termed as poor. Basically, poor services are fueled by the lack of funding from the federal and state authorities. Bartle et al. (2012) explain that there is the provision of defective services because of the lack of resources, such as adequate manpower. Consequently, there is an increase in the costs of public services due to high demand. Nevertheless, public services should not be privatized because of the abovementioned reasons. The federal and state governments should accomplish their assigned task of ensuring that the public services are adequately funded. The state should also ensure that the public services receive the needed resources for the efficient provision of public services so that citizens do not run into the private sector for the lacking services.

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Question Four

The Florida State should not add an amendment to its constitution which would place a limit on the annual increases in spending by all local governments. Adding the amendment would harm the economy of the local authorities. However, as a way of cutting down spending, local state should eliminate waste, duplication of costs as well as the inappropriate local spending. Bartle et al. (2012) explain that the local governments should ensure that the tax payers’ money is spent in the right away and the misappropriation of funds is avoided completely. There should also be the enforcement of firm spending gaps in all local governments. Spending gaps will enable the law makers to protect the interests of the taxpayers and therefore ensure reductions local spending. The limit of expenditures should therefore be determined by the limit of growth of the local state or the local GDP. Local state authorities should also reduce the size and scope of governance with an aim of cutting down on costs. A limited government will use its resources efficiently hence avoiding additional expenses.

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Question Five

Local governments should not just depend on taxes for their own funding and for the funding of schools provided that voters and legislators require property tax reductions. Rather, local state should identify other sources of revenue, such as the sale of services. The sale of services is an acceptable avenue for the local government to raise additional financial resources. To begin with, local authorities can earn income from franchise fees in addition to water and electricity pricing. Franchise fee is money that is raised by the local government from such utilities as streets that are owned by municipalities. Bartle et al. (2012) propose that the local authorities can also raise a lot of revenue from the collection of tickets and fines. With regard to the funding of education, local governments can come up with community collaborations to ensure that people participate in the process of funding education. For instance, the community can engage in various projects aimed to raise money for the funding of schools. Parents can also participate in such fundraising initiatives by making contributions towards the establishment of educational institutions or learning facilities in schools. Conclusively, local governments have various avenues of raising revenue rather that depending on the payment of taxes by its citizens.

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