PAD 505 Week 3 Discussion 2

Week 3 Discussion 2


The Budget” Please respond to the following: From the first e-Activity, discuss four (4) governmental expenditures that you believe will have a significant impact on your local economy over the next year. Justify your response with examples

The Department of Defense: The DoD contributes billions of dollars each year to state economies through the operation of military installations. This spending helps sustain local communities by creating employment opportunities across a wide range of sectors, both directly and indirectly. Active duty and civilian employees spend their military wages on goods and services produced locally, while pensions and other benefits provide retirees and dependents a reliable source of income. States and communities also benefit from defense contracts with private companies for equipment, supplies, construction and various services such as health care and information technology.

The Department of Education- Though only about 20 percent of the total local budget, higher education programs make up a large share of federal education investments. For example, about half of the U.S. Department of Education’s budget is devoted to higher education (excluding loan programs). Higher education funding also comes from other federal agencies such as the U.S. Departments of Veterans Affairs and Health and Human Services, and the National Science Foundation. The state of Arkansas is now making it were tuition is free for a Veteran. I believe that will also impact the local economy.

The Department of health care- Local governments spend an estimated $85 billion per year on health care, meaning about one of every eight dollars spent by local governments is for health-related activities, including protecting the health of the community, providing health care for low-income and uninsured residents, providing health benefits for their employees and retirees, and helping states finance Medicaid.

Social Security:  A study conducted by the Southern Rural Development Center has found that cutting Social Security payments would have a significant impact on the economy. The study found that Social Security payments play an extremely important and significant role in the country’s economy, especially for the economy in rural areas. In 2009, 51 million people in the United States (about 17 percent of the population) received some sort of Social Security payment each month, which totaled approximately $675 million annually. In August 2016, more than 60 million people in the United States received monthly Social Security payments and their total monthly benefits were more than $75 million. The study found that if Social Security benefits were cut even five percent, the nation’s economic output would be $63 billion less and we would have 419,000 fewer jobs. In addition, tax revenue would decrease by $7.8 billion. It is a benefit that you have earned and that you have the right to collect if you are unable to work because of a permanent disability. The payments could provide you with the monthly income you need to survive, what they need for housing, food and other necessities, and that you put back into your local economy.


Discuss two to three (2-3) challenges an administrator may face when developing and reviewing proposals for budget cuts.

Deciding what to cut. This is generally the most visible and controversial task. Decisions about what to cut have long-term strategic consequences for the organization and those it serves. There are no easy solutions, and the negative impacts of downsizing. Downsizing a program can have unsatisfactory, even disastrous results. In the aftermath of cutbacks, programs may find themselves in serious decline.