Budget Issues Facing the Public Sector Agency

Budget Issues Facing the Public Sector Agency

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Budget Issues Facing the Public Sector Agency

The two main issues facing the public sector agency currently is revenue and cost.it is therefore mostly under pressure to reduce their costs of operation and to lower expenditures of capital for it to be able to payback for revenue shortfalls, for example tax. The big problem in the public sector is reduced funding which brings up reduced staffing and old assets. Sales and property taxes are two entities which largely fund the public and are not recovered in a nearer future. Most counties and cities have been historically recover from the recession stages in eighteen to twenty four months after a national recovery of economy due to the lag in the collection of tax revenue.

However, the biggest challenge facing the public sector is budget constraints because of a reduction in tax revenues.it has been realized that everything that is done by the public sector revolves around money ;maintenance, salaries, tools, facilities, shop supplies and equipments. The constraints of finance will therefore continue to affect the fleet for years to come. The challenge of the public sector here is to stretch the capital as far as they can. Vehicle purchases replacements, maintenance are to be considered and weighed on the expenses.

Another huge the problem in the public sector is the pressure to extend replacement vehicle cycling. The public sector has extended lifecycle vehicles. the problem with extended cycling therefore is an increase in maintenance cost hence changing the servicing levels, for instance an increased unscheduled repairs. They have also tried removing those vehicles which are not mostly used. Long life cycles generally lead to a high cost of maintenance cost because of the life extension of the equipment.

Another problem facing the public agency is an alternating crime patterns. Whenever officials of the police are asked about the progress of the crime levels whether there is an increase or a decrease, a larger percentage say they have experienced a decrease while a smaller percentage talk of an increase. Their reaction towards crime increase became effective because they used methods like night patrols and therefore the threat brought about by economic crisis is that they will have no more options to keep violence and crime down.

Moreover, another problem is the anemic new-vehicle orders. The orders were realized to decrease gradually in the years 2009-2010 when the organizations which were customers, re-evaluated their operations internally and found out the equipment which were no longer needed for turn-in.Every sector is rating back operations due to budget constraints and sharply declined transportation and vehicle needs.

The effects of new diesel emissions standards on truck operations. This fuel is generally expensive based on the acquisition prices, causes increased maintenance therefore costing the public agency more money. The new selective catalytic reduction devices need only dealer based service, hence increasing the expenses of maintenance. Adding on this, it needed changing operation and specifications. For example, the (SCR) trucks sometimes had to be added wheelbase dimensions to hold (DPF), the diesel particulate filter, and systems. With the 2010 engines, the economy of fuel decreased despite the clean emissions.

An increased concern about staff ‘burn out’. The sector has in another way tried to ease of employees to at list reduce budget gaps to which most of them are multi-phased. Management of employees is a major issue. The ones from the public sector are used to business impacting economic downturns, and not the government. All the managers are to manage the operation although more fundamentally managing people. Keeping up with employees who have fear of losing their job, increased contribution for medical assurance, minimal raises and related services. Stress levels leads to a low production and time-off in time from work is what they require.

Unpredictability of the future fuel prices on budgeting. Two fuels diesel and gasoline prices became fixed in the year 2010.if there will be no improvement in the economy, the prices of fuel will remain manageable and low therefore the fuel costs rise as the economy improves. The instability of fuel changes makes the making of the fuel budget very hard.it has been volatile because it is no longer based on demand and supply or production. Its currently up to speculation of commodities ,geographical events and weather related supply disruptions.it is therefore bare that the public sector agency are facing many issues in their making of the budget and it is a major problem facing many other sectors.

References

Copeland, C., Cody, B. A., & library of congress Washington dc congressional research service. (2006). Terrorism and Security Issues Facing the Water Infrastructure Sector. Ft. Belvoir: Defense Technical Information Center.

Library of Congress Washington DC Congressional Research Service, Copeland, Claudia, &

Cody, B. (2006). Terrorism and Security Issues Facing the Water Infrastructure Sector.

Williams, M. C., & United States. (2003). Department of homeland security: Challenges and

steps in establishing sound financial management. Washington, DC: General Accounting

Office