Case Analysis Budget Project—PA 6650
2022
As a class, we will use the 2020 (last pre-pandemic) Norfolk, Virginia budget. Since major cities in Virginia are independent (so they operate like a combined city and county), the Norfolk budget contains all the areas I want to highlight and the key points I want you to take from the course. It allows you to work with a complex local government budget. More specific instruction will be provided at the appropriate time. In preparing your project, be sure to note page numbers in the budget that show from where you obtained your information. Keep in mind this is an individual project, you are to work on your own.
. Part I
- Write a narrative analysis of the entire budget which answers the following questions (refer to budget page numbers in your answer so I may verify the information). If the budget does not provide adequate information to answer these questions, contact the responsible budget office for information, and document your discussions appropriately.
- Identify and explain the budget format and approach being used and assess how this budget fits the general concepts of public budgeting.
- Analyze and evaluate the quality of the budget presentation and discuss the policy implications of the budget.
- Identify key executive proposals and goals and identify the social, political economic, ethical and cultural factors involved in those goals.
- Identify the total revenue and expenditure amounts for the budget year (BY).
- Identify the three largest revenue and expenditure categories and amounts.
- Identify the percentage & amount of intergovernmental transfer payments.
- Identify the amount and category of the costliest service provided and discuss the policy implications.
- Identify the costliest line item for each department.
- Identify the dollar and percentage cost of full-time equivalent (FTE) employment.
- Compare public safety (police, fire, 911) and public assistance costs.
If you are unsure of the meaning of any of these terms, post questions in ask the professor for all to see.
Part II
This is a case analysis exercise where you are provided limited information and are building your own case for analysis. The case analysis process is outlined in the Case analysis worksheet.
SITUATION: You are the director the department you have selected (each student is to select a different department–I will assist you in this process). I will be the city/county manager for the exercise. I have notified you that because reduced tax revenue expectations, federal funding cuts, and pressures to prepare for an impending healthcare crisis (pandemic), our community will have large revenue shortfalls. As a result, I am directing all departments to submit a revised budget request for your department cutting 20%, which can be presented to the city/county legislature (council/commission). Your task is to prepare a case analysis following the format in the case analysis worksheet that addresses all of the following points for your department:
- Identify available alternatives that will achieve the proposed reduction in your department, and select the preferred
alternative based on your assessment criteria.
- Identify potential obstacles to your proposed alternative and provide cogent arguments why your particular department cannot absorb its full share of the proposed cuts.
- In discussing how to overcome your identified obstacles, consider and include discussion of specific recommendations as to which other departments should absorb the portion of the cuts your department cannot keeping in mind other departments also have to make cuts, and/or provide your specific recommendations for sufficient revenue enhancements to make the cuts to your department unnecessary.
BE SPECIFIC IN YOUR CUTS AND RECOMMENDATIONS: Remember, detail is the key to success.
