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The final paper is a term paper and you are to search the literature and find a recent or current budget issue. Using the concepts and budgeting tools you have been studying this semester write a five page paper where you highlight how scholars and/or public administrators/officials are speaking on the selected issue, then discuss your point of view.
Some sources you may look at to assist in selecting a topic or issue are the governmental accountability office (GAO), the congressional research service (CRS), the office of management and budget (OMB) or various Public Administration/Public Policy Journals.
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.Introduction
One of the safest forms of debt has been the debt raised by municipalities to raise funds. Investors have been investing in municipal debt due to its safety. However, as there has been an increase in factors such as economic recession, increased levels of distress of municipalities, this has become an important cause for concern. This report presents an analysis of the causes and options for municipalities in financial distress, with particular emphasis on New York which has been one of the most known cases in crisis in the US history.
Costs and expenses characteristics of financial crisis
Knox and Levinson (2009) have stated that financial crisis primary results when the costs exceed the revenues which is an indicator of poor budgeting practices by the municipalities. Since these are non-profit seeking entities, they need to procure adequate sources for financing their developmental projects so that the cash flow situation remains intact. Capital rationing is very important so that the cash flow adequacy can also be maintained. Poor solvency conditions can increase the cost of raising debt in future and...