CLC summary

LaToya N. Robinson

ADM 626 Public Budgeting

Grand Canyon University

November 13, 2018

Memo I Summary

It appears that the Great Recession which left the entire nation in financial conflict has a lingering effect on the town of Hadleyville, Az. Without the revenue generated from the Wilson Performance Automobile Plant, which closed 3 years ago, the town is suffering not only on the business level but socially as well. The goal of the review is to create a proposal to end the local government’s recession. Utilizing the newfound skills and information over the next 8 weeks should result in a better understanding of how the budget failed, what needs to change and most importantly how to avoid the same issues from reoccurring. The recommendation needs to present a 13% reduction in the budget and meet the designated deadline.

Challenges and Opportunities

As with any budget planning there will be challenges to overcome, I suspect that with Hadleyville that a main concern will be getting the proposal approved through the local government (i.e. mayor, city council etc.). The deadline of 3 to 5 years recovery plan has also come after the town has experienced financial turmoil for the past 3 years therefore there needs to be some aspect on immediate relief for the citizens in order to have their support. High debts to income households, especially those that are anchored to their unaffordable mortgages, will may require financial assistance which may present as an issue for the town. Also, if there is an opportunity to create more jobs within the city there needs to be qualified laborers to work otherwise the plan will not succeed. There is a great opportunity to revamp the city budget to ensure that the resources are been utilized efficiently. Selecting of the correct budget format or combination of formats could present as challenge, if the budget format needs to be changed that involves a lot of data transfer which can be time-consuming and tedious. Having complete access to financial records of the town to determine which two departments prove to be the most problematic can create hostile and tension between the departments. I believe that by covering both the positives and negatives of the various expenditures the solution created will be more fact based with less subjectivity.