Ashford Budget Reduction Discussion
Ashford Budget Reduction Discussion
Revenues of a local or state government may increase or decrease based on a number of factors – overall economic growth or decline, implementation of new policies, natural disasters, etc. Assume that the revenues for the State of Mississippi are not meeting the projected levels used in the budgeting process for the current year’s budget. You are asked to research options of how to respond to the reduced revenues including the option of reducing budgets (e.g., Cutback Management).
Prepare a briefing document for the Governor’s Budget Director. The brief should provide the following:
- A summary of the theories, principles, options, and factors to consider in the current situation. You are provided with a list of initial sources obtained by a summer intern. The Budget Director asks that your summary be no more than 10 pages in length.
- A summary of initial recommendations on how to achieve a 5% reduction in budgeted 2019 state spending (see pages 2-3 in the attached budget document). The Budget Director asks for a spreadsheet comparing the current budget with the proposed budget along with the rationale for any changes. The Budget Director also asks that, to the extent possible, the intergovernmental transfers and special funds should be assumed to remain constant.
