Research Paper 3
Elizabeth Conditt
Helms School of Government, Liberty University
GOVT 327 State and Local Government
Professor Heather Piedmont
December 17, 2021
Introduction
Structural deficits are a major and controversial topic of discussion when it comes to
discussing America’s economy. This goes for every level of government. For this research paper,
I will be analyzing and discussing how I would solve a particular dilemma. The dilemma I chose
is the scenario from a mayor’s point of view facing a structural deficit of $100,000. The town has
an annual revenue of $1,200,000. As the mayor, I am being lobbied to build a high-tech facility
in my community to create more jobs. However, this year the town will have outlays topping
$1,300,000 and the annual projections appear to only get worse.
Strategic Planning
To begin, I would immediately establish a strategic planning committee to help with the
dilemma. Strategic planning is a crucial first step because it “moves the economic development
issue from goal setting to implementation” (Bowman & Kearney, 2018, p. 374). One of the main
goals of this committee would be come up with ways that the town can draw-in, maintain, and
cultivate “a workforce with the education and skills to succeed” in the economy (Bowman &
Kearney, 2018, p. 374). Another goal would be to adjust local tax, “incentive, and regulatory
policies to best support the growth of high value target sectors” (Bowman & Kearney, 2018, p.
374). Additionally, encouraging “small business development and entrepreneurism” should be
made a priority along with setting these businesses up to be successful in the community
(Bowman & Kearney, 2018, p. 374). The committee would also need to come up with ways on
how the town can better invest its money in a way that will be beneficial for the future (Bowman
& Kearney, 2018).
Assessing the Budget
The purpose of any public budget is to ultimately serve the public and reflect their
desires. My next step following establishing a strategic planning committee would be meet with
my budgeting committee. This meeting would include the assessment of the current budget
including what method of budgeting is being used and seeing where we can make cuts to
decrease the current deficit. I would ensure that we are implementing zero-based budgeting for
the budget. This method of budgeting requires the justification of “every dollar being requested
from the ground up, with last year’s spending not acceptable as a justification for next year’s
allocation” (Ibrahim, 2019, p. 332). In other words, it will force us to look at every program and
project and justify its cost. In this case I would be seeing where I can make cuts to free up some
funds to put towards the town’s deficit. This would be my initial strategy before resorting to
raising taxes. In addition, we need to look at establishing new streams of revenue to also put
towards the deficit.
Additionally, as part of this scenario, the teachers union collective bargaining agreements
are in need of some adjusting. They are demanding a 1 percent raise. I believe this is justifiable
as teachers are an essential part in the town’s education making this a good and necessary
investment. Unemployment is up by 1 percent and there is currently no local college where the
lobbyists desire to build the new high-tech facility. This is an important detail to consider when
deciding whether or not to building the new facility can be squeezed into the budget. This is
because this means that the town’s population lacks the necessary skillsets to work at the facility.
Justifying A New Facility
Once I have assembled a strategic planning committee and they have provided some
strategies to decrease the deficit along with preventing this from happening again and I have met
with the budgeting committee and reassessed the budget it is time to assess my town’s need for a
new facility. Assuming the town has made it to a more financially stable point, investing in
building a new high tech facility could be a great addition to the town. It could help lower the
unemployment rate and be a great starter investment towards new technology for the town.
However, before this could happen, I think it would be in the town’s best interest to build a
college in an effort to further educate the population to better their skill sets to work at the new
facility and for it to be a lasting success. I also believe that the town would need to be in a better
state financially before starting this project.
Conclusion
In conclusion, it is clear that structural deficits are a major problem in America at every
level of government. This is why it is crucial to establish a strategic planning committee to come
up with ways to strategically achieve realistic goals and ways to prevent this problem from
happening again. It is also important to meet with the budgeting committee to better assess the
budget to see where things went wrong as well as seeing where things can be cut. When it comes
to justifying an investment it is important to consider certain factors within your community to
make sure the investment will be set up for lasting success. Lastly, it is important for public
administrators in leadership positions to realize that the money they are spending is not their
own, but the money of the people and should spent with their interests and needs in mind.
Scripture says in Proverbs 10:4 “He who has a slack hand becomes poor, but the hand of the
diligent makes rich” (New King James Bible, 1982/2021, Proverbs 10:4). Public officials in
leadership positions should refrain from being slack handed with the public’s money. They
should be diligent with the public’s money in order for their community to prosper.
References
Bowman, A. & Kearney, R. (2018). State and Local Government. 10th ed. Cengage Learning.
https://ebooks.cenreader.com/#!/reader/58ee96e0-c357-4d8f-8d15-
d22ad7449391/page/91d74226e220c70dd1403c4b4dd1a68a
Ibrahim, M. (2019). Designing zero-based budgeting for public organizations. Problems and
Perspectives in Management, 17(2), 323-
333. https://doi.org/10.21511/ppm.17(2).2019.25
New King James Bible. (2021). Bible Gateway. https://www.biblegateway.com/ (Original work
published 1982)
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