Government Financial Analysis

In: Business and Management

Submitted By littlefieldrat
Words 3175
Pages 13
Government Financial Planning
Ronald Dennis
Baker College
BUS311: Accounting for Managers
Kalai McHan
February 18, 2015
Abstract
Financial budget planning for many states can be a complex issue. The planners are looking at the large scale of things and tend to extend costs of operations to the agencies that perform the daily operations of state government without their input. This lack of input may affect many programs and daily operations when the budgets are submitted. There are many areas that may be under funded, such as salary increase, specific legislative programs of interest like energy reduction, establishing a tobacco free environment on state property, unexpected spikes in utility costs and the unpredictable revenues gained or lost from natural resources such as Oil and Natural Gas or any other resource specific to a state’s gain in revenue.
Government Financial Planning State Government will spend a vast amount of time planning for upcoming fiscal years and the budgetary requirements needed to sustain the states operations during that particular fiscal year. Unfortunately many planners look at the big picture only and leave the small details to the individual state agencies to overcome the shortages within their operating budgets that were appropriated and distributed to them through legislation. One of the drawbacks is when legislation passes new requirements such as energy reduction, but fails to include how this new requirement are to be funded and how this type of action impacts the budgets of state agencies especially ones that are already operating on a small budget. Financial analysis planning for local and state government may be impacted severely if total inclusions of budgetary items are not forecast in advance. These items may include pay raises, marketing, price drop in natural resources such as oil and gas and increased…...

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