Financial Contingency Planning: Sources of Funding

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Financial Contingency Planning: Sources of Funding Introduction Over the last several years, the US Department of Justice (DOJ) was forced to deal with tremendous budget cuts from $40 billion in 2011 to $27.1 billion for FY 2013. These figures are illustrating how this could have an adverse impact on the programs they are working with. To mitigate these effects, many officials should consider utilizing financial contingency planning. This is when actuaries will identify different sources of funding (which can help defray the costs of maintaining select programs). To determine if this approach can be effective for the US Justice Department requires examining: sources of revenues, temporary assistance, and funding assets. Together, these elements will highlight possible strategies that can be utilized to maintain programs that are facing severe decreases in funding. ("Cost Control," 2012) Sources of Revenues, Temporary Assistance, and Funding Assets To determine the best way the Justice Department can raise alternate sources of funding there will be a focus on several different areas. To include: public private partners, non profits, bond issuance, grants, multi level government financing, the effects of taxation and the role of financial efficiency. These factors will determine how the DOJ can be able to deal with budget cuts. Private Public Partners One possible strategy that the Justice Department can use to maintain certain programs is to work directly with
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