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Manage Accountability - Essay Example

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Summary
The state has received an lump-sum of $100 million for the improvements of the infrastructure. The funds are to allocated by the state to improve the road, and infrastructure in the state. How the state should use the funds is being debated. When the state uses the funds and proposes an object-expenditures budget the state realizes there will not be enough funds available to fix the main road that leads into a major city…
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Manage Accountability
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The has received an lump-sum of $100 million for the improvements of the infrastructure. The funds are to allocated by the to improve the road, and infrastructure in the state. How the state should use the funds is being debated. When the state uses the funds and proposes an object-expenditures budget the state realizes there will not be enough funds available to fix the main road that leads into a major city. Many commuters use this road on a daily basis. This road is used by the commuters to get to the commuters jobs.

The state will have to raise additional funds to be allocated to repair this road. The state will raise the funds by increasing some taxes. The state has decided to increase the taxes on tobacco, alcohol, and gasoline. The increase of 2.5% on each will increase revenue for the state. The state needs to repair all the roads that need repairing. Increasing these commodities will be a certain increase in state revenue. There are many in the state who drink, and smoke, and these citizens are not going to be willing to give up these commodities because of the 2.

5% increase in the bottle of alcohol, or pack of cigarettes. Citizens will not be willing to give up their commute either. This is the only fair way to increase the taxes. This will tax many citizens, however, this will not increase all the taxes, like the states income, or sales tax. In conducting an analysis of the funds, and how the state intends to appropriate the funds, the state has performed an object-expenditures, performance, and lump-sum budget analysis. A lump-sum budget analysis is an estimate of how much will be appropriated, and where, the state received the funds in one lump-sum, (N. A., N. D.).

With an initial analysis of the lump-sum budget the state was able to determine that the state needed to raise more funds to make all the improvements. The state determined after conducting an object-expense budget the state would encounter a budget deficit to repair all the roads that need to be repaired. Conducting an object-expense budget analysis told the Department of Transportation how much was going to be appropriated for the equipment, and salaries, (N. A., N. D.). The Department of Transportation discussed the matter with the state Congress.

Before debating on how to cover the budget deficit the state Congress performed a performance-based budget analysis. A performance-based budget analysis will tell the state legislatures if the prospective budget allocated the funds appropriately, (N. A., N. D.). The state congress determined the Department of Transportation was going to making good use of the $100 million appropriated by the United States Federal Government. The state Congress then debated on how to raise the funds to cover the budget deficit the state faced in repairing the roads.

The state Congress debated many hours on how to raise taxes without the citizens become outraged. The legislatures decided to raise taxes on tobacco, gasoline, and alcohol. This would increase the states revenue enough. The legislatures decided the new commodities tax will take effect in 45 days. When the new tax takes effect the citizens will need to make a few minor adjustments to personal budgets. The state legislatures understand this might be difficult for some citizens, however, the state legislatures think this is the only option.

So, the state will raise the taxes on tobacco, gasoline, and alcohol to raise the necessary funds for the budget deficit the state is going to face in repairing the states roads. The state has decided which of the roads need the most attention. The state would like to try to repair all of the roads as soon as the state can. When the state runs into a budget deficit the only thing they can do is raise the taxes. Normally legislatures do not raise the states sales, or income tax. Therefore, raising taxes on tobacco, alcohol, and gasoline seems to be the only, and best option the state had.

References Cash assistance handbook, (N. D.), http://services.dpw.state.pa.us/oimpolicymanuals/manuals/bop/ca/ 157/157-04.htm, May 13, 2011 Oklahoma capital improvement authority, (N. D.), http://www.ok.gov/osfdocs/budget/bb96-105.html, May 13, 2011 Performance based budgeting, (N. D.), http://www.john-mercer.com/pbb.htm, May 13, 2011

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