Multi-Year Budget Evaluation Name Course Professor Date ✓ Solved

Multi-year Budget Evaluation Name Course Professor Date

Goals and priorities of the local government encompass goods and services allocation. In the last three years, the state has been increasing its budget for education, healthcare and mental services, infrastructure and equipment, and criminal justice systems. According to California State, outlined major priority areas are essential for boosting economic growth, addressing historical inequalities, enhancing infrastructural development, reducing costs of doing business, and spending heavily on healthcare services, which is vital for developing a healthier society. Education takes a significant share of the budget and has been increasing notably over the last three years.

In the budget year, for education, Proposition 98 was allocated $51 billion, with increases across various segments, such as public university funding with $348 million ongoing and a one-time $412 million allocation, among others (LAO, 2016; LAO, 2018a; LAO, 2019). Commitment to education is crucial for increasing access and decreasing inequalities in areas where students come from poverty-stricken backgrounds.

Healthcare and human services represent another essential local service receiving the most considerable portion of the budget. In the budget, the allocation for healthcare and human services was $38.1 billion, reflecting an increase of approximately 12%. Notable healthcare and human services expenditures contributing to this increase include Health Home Programs, adjustments in Children's Health Insurance Reauthorization, community care licensing, and expansions in health insurance coverage (LAO, 2016; LAO, 2018a; LAO, 2019).

Continued provisions of healthcare services are vital for fostering a healthier society and increasing access to essential health services. Alongside education and healthcare, the development of infrastructure projects is prioritized, with examples including $630 million allocated to replace the Capitol Annex, flood control expenditures, and clean water programs. Such public projects are integral to enhancing public safety.

However, there are critical internal and external challenges in providing goods and services. One internal challenge includes the budget deficit in the State of California, stemming from inefficiencies in tax collection systems. External challenges, such as federal decisions, economic uncertainties, and budget uncertainties, also significantly influence public service provision. For instance, the recession exerted pressure on revenue collection, necessitating the state to reduce certain expenditures on public goods and services. An assumption in the budget projected that taxes on the MCO would expire in 2019, which could impact services reliant on MCO tax revenues (LAO, 2016).

To address such challenges, careful studies are needed to identify manageable internal and external obstacles to ensure the consistent provision of public goods and services.

Various budget stabilization measures can be utilized to maintain budget integrity. Proposition 58 mandates that deposits be made until the Budget Stabilization Account (BSA) reaches $8 billion. Following the passing of Proposition 2, the state is required to reserve a percentage of General Fund revenue and additional capital gains above a specified threshold (LAO, 2018b). Withdrawals from these reserves are permissible only upon declaration of a budget emergency by the Governor (LAO, 2018b). Underlying these measures, optional reserve deposits can also enhance the BSA.

With the implementation of Proposition 2 and optional deposits, the BSA achieved its required threshold for the 2018/2019 budget period. The BSA, established under Proposition 2 (2014), has the potential to stabilize the budget and address ongoing deficits experienced by the state.

To ensure that public goods and services are effectively provided, three key recommendations are proposed. First, California State should enhance the efficiency of tax collection systems and implement measures that improve revenue generation while minimizing waste. Second, budget formulation should prioritize realistic public goods and services that align with actual revenue capabilities. Finally, increasing the BSA is advisable to cover potential budgetary shortfalls during economic uncertainties, thereby reinforcing financial resilience in the face of fluctuations.

Paper For Above Instructions

The evaluation of a multi-year budget requires a comprehensive understanding of the priorities and challenges faced by local governments. In California, as the budget allocations demonstrate, education and healthcare services are paramount for the state's growth and the well-being of its citizens.

Education funding has historically taken precedence, addressing issues within poverty-stricken areas and expanding access for underprivileged students (LAO, 2016). The ongoing investment in public universities reflects California’s commitment to lifting its educational standards and closing socioeconomic gaps. Moreover, programs aimed at facilitating affordable access to education further contribute to the overall objective of long-term societal growth.

On the health front, significant increases in funding emphasize California's strategy to bolster healthcare services. The increase of approximately 12% in the healthcare budget reflects an urgent need to meet rising demands and establish comprehensive healthcare alternatives for all community members. Healthcare access not only affects individual health outcomes but also contributes to the broader economy, as healthier populations tend to engage more fruitively in the workforce (LAO, 2018a).

Infrastructure projects further showcase the prioritization of state resources towards enhancing public safety and improving living conditions. Allocations such as $630 million to replace aging infrastructure illustrate a proactive approach to maintaining essential services, which are crucial in mitigating long-term damages from environmental challenges (LAO, 2019).

Despite these priorities, California's budget faces serious internal and external challenges. The budget deficit remains a pressing issue owing to ineffective tax collection methods raised over the years. Additionally, economic uncertainties cause fluctuations in revenue collections, thereby obligating the state to reassess service guarantees (LAO, 2016). Hence, strategic improvements in tax systems and careful financial planning become essential for the sustainability of funding for vital services.

Implementing budget stabilization measures such as Proposition 2 strengthens California's capability to face deficits through pre-established reserves. This procedural transparency promotes accountability and ensures funds are available in emergencies (LAO, 2018b). Consequently, rebuilding the BSA is integral to stabilizing the budget.

In conclusion, the evaluation of California’s multi-year budget illustrates essential priorities that align with long-term goals in education, healthcare, and infrastructure. Effective management of challenges through improved tax systems and budget stabilization strategies will ensure the ongoing provision of vital services for the state's residents.

References

• LAO. (2016). The Budget. California’s Fiscal Outlook.
• LAO. (2018a). The Budget. California Spending Plan.
• LAO. (2018b). The Budget. California’s Fiscal Outlook.
• LAO. (2019). The 2019–20 Budget. California Spending Plan.
• Eva, N., Robin, M., Sendjaya, S., van Dierendonck, D., & Liden, R. C. (2019). Servant leadership: A systematic review and call for future research. The Leadership Quarterly, 30(1).
• California Department of Finance. (2020). State Budget Overview.
• California Health and Human Services Agency. (2019). Budget Summary Report.
• Institute for Government Studies. (2020). A Guide to California's Budget Process.
• Pew Charitable Trusts. (2018). California’s Budget Challenge: A Dynamic Analysis.
• National Conference of State Legislatures. (2019). State Budgeting: Issues and Trends.