Alabama Multi-Year Spending Assessment

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AlabamaMulti-Year Spending Assessment

Education

(US$)

Health

(US$)

Security

(US$)

Water

Supply*

(US$)

Welfare

(US$)

Fuel

(US$)

General government*

(US$)

2013

7.6

3.7

1.8

0.8

0.5

2.1

0.9

2014

8.3

3.9

1.9

0.9

0.2

2.1

1

2015

8.9

4

2

0.9

2.1

1.1

General services

(US$)

Pension*

(US$)

Transportation

(US$)

Recreation

(US$)

Waste and water management

2013

0.8

0.2

1

0.4

0.6

2014

0.7

0.2

1

0.4

0.6

2015

0.6

0.2

1

0.4

0.6

Source(http://www.usgovernmentspending.com/year_spending_2015ALbl_17bs2n_80102050604070#usgs302)

*: Private goods

Goalsand priorities of the government’s goods and services

As highlightedin the table, the local government has placed a lot of importance inthe provision of education, which received 36%, 38%, and 39% for2013, 2014, and 2015 respectively. Moreover, over 50% of the localgovernment’s spending consist of public goods such as education,protection, and healthcare. On the other hand, over the course of the3 years under consideration, private goods received less than 50% ofthe revenue. Private goods provided by the local government includedwater, general government spending, and pensions, which accounted forroughly US$2 billion for each of the year. The provision of theprivate and public goods by the local government endeavors to benefitthe public. Most significantly is the provision of healthcare andeducation, which increases productivity, reduce deaths, and increasesthe welfare of the public. The provision of these goods and servicesshows that the government is committed to creating jobs throughinfrastructure and knowledge development as well as service delivery.The provision of welfare, recreational services, and general servicesshows that the government is concerned about social development.

Internaland external challenges in providing goods and services

The provision ofgoods by local governments is a complex and often challenging processgiven the various governance constraints that a governmentexperiences. Alabama local government experience both internal andexternal constraints during the provision of goods, which affectservice delivery and development. The mismatch between the local andstate strategies as well as mismatch in policy contexts is one of themost common internal challenge experienced by the government. Some ofthe mismatches include policy incoherence, political imperfections,imbalanced performance monitoring and oversight, and challenges infacilitating collective actions. Berman (2015) and Grizzle, Stewart,&amp Phillips (2015) assert that most local governments facemismatches especially when policies and departments collide orperform the same roles, which inhibit the provision of goods andservices in some areas. In fact, the local government experiencesthese challenges, especially given the constant and equal allocationof funds in some areas. On the other hand, the government facesexternal challenges especially through tax frameworks and lack offunds. Like any other government, the local government lacks enoughfunds to provide all the needed services and goods. The government’sgreatest source of revenue is a tax, but the contexts and areas oftax are small, as the government has only identified ad valorem,business charges, and fees as the main sources of revenue.

Stabilizationmeasures

The government has the rainy day fund, a form of budget stabilizationfund meant to diminish the implications of economic fluctuations. TheRainy Day Fund is a form of fund where the government sets a certainamount of money for future (Grizzle et al., 2015). In cases orperiods where the government’s ability to create income is strong,it saves a certain percentage or all the surplus in the permanentfund to use when the generation weakens. The local government has twofunds, as it relies on a different source of income and the factthat, sometimes it gets unanticipated incomes.

Recommendations

The general fundis an effective and beneficial fund for the government especially incases where revenue decreases. However, the government should notreduce spending on education, welfare, security, and healthcare tofund the rainy fund, as doing so will inhibit social development.Moreover, the government should create cohesive frameworks that checkrevenue collection to ensure that any income collected is utilizedeffectively. Finally, the government should streamline alldepartments as well as increase its revenue base to improvedevelopment.

References

Berman, D. (2015).&nbspLocal government and the states: Autonomy,politics and policy. Routledge.

Grizzle, C., Stewart, L., &amp Phillips, J. (2015). Rainy day fundadoption in US states: a case of learning or emulation.&nbspInternationalReview of Public Administration,&nbsp20(1), 17-33.

US Government Spending (n.d.). Alabama Local Guesstimated2 2015Government spending. Retrieved March 29, 2016, fromhttp://www.usgovernmentspending.com/year_spending_2015ALbl_17bs2n_80102050604070#usgs302