Agency Budget Exercise

Abstract
This paper addresses budget issues of agencies in communities of the U.S. It will give a brief overview of agency samples as to community size, agency size, and responsibilities of agencies. This paper will describe the type of budget process utilized by three differing agencies and discuss the advantages and disadvantages of the budgets. The paper will assess the effects of the budget on employees, citizens and stakeholders. Lastly, a summation of findings and recommendations are offered.
Agency Budget Issues: Size and Responsibilities
Legal services serve a large community characterized by low-income individuals, children, families, seniors, and veterans in 813 offices in every congressional district. With a budget of $375m for the fiscal year 2015, the Legal Services Corporation (LSC) stands out as the largest single funder of civil legal aid distributing more than 90 percent of its total funding to 134 independent nonprofit legal aid programs in the United States (Legal Services, 2019). LSC responsibilities includes promotion of equal access to justice by providing funding to 133 independent non-profit legal aid programs in every state, the District of Columbia, and U.S. Territories.

Budget Process

The operating budget is the most common type of budget used in the public and private sectors. LSC utilizes the program Compare Doc to see clearly a summary analysis of the fiscal year and Appropriation Spreadsheet that details line items, comparing each item’s appropriations to coincide with each budget decision. Annually updated tables in Excel and PDF formats are created going back to the 1970s (Legal Services, 2019).

Advantages and Disadvantages of Differing Budgets

            There are various advantages and disadvantages of budgets.  The educational budget is shared for K-12 schools and community colleges. It is intended to give students who cannot afford their education a chance at higher education. Emergency services are our first responders and is responsible for emergencies. This budget is used to add more staff, training and update and replace equipment. Legal services budget operates in assisting those who cannot afford legal representation. The advantages and disadvantages of the various budgets; education receives more teachers or new computers or learning tablets and learning supplies, emergency services receives extra help, or training and tools needed to carry out jobs safely. Providing the community with free legal services when they need it has proven to benefit the innocent and has saved a lot of people from serving time for crimes they did not commit. The disadvantage is that there still does not seem to be enough money to sustain any of these services because the need and the demand is just too great (Paviour, 2018).

Effects of Budgets on Employees, Citizens, & Stakeholders

The city of Chicago, IL is facing an $838 million budget gap. Mayor Lori Lightfoot is in favor of a property tax hike which affects citizens and business owners. However, aldermen of Chicago are urging Lightfoot to contemplate imposing “in lieu of” payments on hospitals, universities, and nonprofits who utilize public safety services, yet pay no property taxes (Spielman, 2019, p. 9). Universities, hospitals, and nonprofits have immense grants and resources that enable them to fully pay for services.
New York Mayor De Blasio who ran a presidential campaign promised to make the city more equitable, contrasting the haves versus the have nots, using the campaign slogan “A Tale of Two Cities”. In May, De Blasio stated that New York’s $92.5 million budget would be very cautious, yet with a police overtime cap, De Blasio allows overtime for officers who follow him around all day as security while on the campaign trail (Sanders, 2019). De Blasio also refused to say whether taxpayers have a right to know how much his campaign spends on security for his travels outside of the city. For instance, administrative officers are capped at 20 hours of overtime a month and homicide detectives are limited to 30 hours per month (Sanders, 2019).
The Los Angeles City Council approved their $9.9 billion budget with $450 million set aside for homeless services. Also included in the budget are allocated funds for emergency shelters, yet citizens of Koreatown are at odds with such a service. City Councilman Paul Krekorian states it is a trial to address homelessness, but it poses a challenge to all residents (Southern California, 2019).
Findings and Recommendations
Based on the previous above-mentioned research, improving the budgeting process to fund programs and to maintain existing programs, is often a necessity. One way to improve the budgeting process is to classify income and expenses into various categories. Budgeting and forecasting should be flexible and be communicated early on. Budgeting should involve a teamwork philosophy as it affects citizens, policy makers, businesses, and other stakeholders. Clear goals should be set, and various scenarios worked out for the common good. Track progress throughout the fiscal year.    
Conclusion
This paper looked at several agencies and the issues each one faces during a fiscal year in the budget process. Each agency works out a budget, making decisions on how to increase revenue, spend money, and fund budgets that often fall short of the target goal. These budgets affect stakeholders in various ways; increased property taxes, hiring employees, taxing businesses, funding programs and initiatives, etc. Each agency works as a team to accomplish the goals and objectives of the budget and assesses these goals with progress reports. The budget created will not please everyone as the main goal is to fund operations for a fiscal year.
References
Legal Services Corporation (n.d). How Legal Aid Works. LSC: Americas Partner for Equal Justice. Retrieved from https://www.lsc.gov/
Paviour, M. (2018). 2018 ACT budget: Growing services for our growing city. ACT Government. Retrieved from https://apps.treasury.act.gov.au/budget/budget-2018-2019/media-releases/2018-act-budget-growing-services-for-our-growing-city
Sanders, A. (2019). De Blasio’s police detail will reap overtime from presidential bid despite OT cap. Daily News. Retrieved from https://www.nydailynews.com/news/politics/ny-bill-de-blasio-nypd-detail-police-overtime-cap-20190522-3n2nimywwncufns6lopungtgfy-story.html
Southern California Public Radio. (2019). $9.9 billion Los Angeles city budget approved with $450 million for homeless services. 89.3KPCC The Voice of Southern California. Retrieved from https://www.scpr.org/news/2018/05/21/83368/9-9-billion-los-angeles-city-budget-approved-with/
Spielman, F. (2019). How can Chicago erase $838 million budget shortfall? Lightfoot asks alderman for ideas. Chicago Sun Times. Retrieved from https://chicago.suntimes.com/city-hall/2019/9/26/20884212/mayor-lightfoot-city-budget-deficit-aldermen-ideas-revenue-cost-cutting


Comments

Popular Posts