1 LOCAL GOVERNMENT’S FINANCIAL CHALLENGES A fresh look at local government’s deliver obligations and resource requirements is needed. HILDEGARDE FAST makes the case for a differentiated approach. It is common knowledge that many municipalities in South Africa are financially in dire straits. In the public discourse, the focus is often on operational issues such as poor revenue collection, unsustainable debt burdens, and lack of financial management capacity. In seeking to understand the financial challenges facing municipalities, it is important first to take a step back and ask broader questions, namely: What is local government required to do? Where should the resources come from? And is there a need to change the current …show more content…
The FFC is currently engaged in a project that seeks to understand the various components of municipal service costs. Gaining insight into service delivery costs is only half of the task. It is also necessary to measure the extent to which municipalities are able to raise revenue locally, which is closely related to their economic base. It is important to choose a revenue-raising measure that will encourage municipalities to maximise their revenue sources. A further conceptual issue with the equitable share is its relationship to infrastructure transfers. The equitable share is intended for operating expenditure, although due to its unconditional nature it can be used for capital infrastructure projects. If only a minority of residents in a municipality have access to water and sanitation services and electricity supply, then the operating expenditure needs of such a municipality will be relatively low. The equitable share currently does not take account of this. The solution lies either in encouraging municipalities with substantial backlogs to use a significant portion of their equitable share for capital infrastructure, or to ensure that the equitable share and municipal infrastructure formulas relate to one another. The second and third categories of transfers are infrastructure and capacity-building transfers. The current trend with both types of transfers is to consolidate the numerous grants into one funding stream. It is
These days’ different organisations are involved and are influencing the system when dealing with social problems. Firstly, the citizen’s individual’s participation to improve the wellbeing of the community. Secondly, the community they may represent the interest of a group, organisation and / or individuals. Lastly, the government they have the responsibility for legislation, social and economic planning, public policy and program, safety and protection of community members, etc. Government agencies invest and deliver services for the community such as: education and employment opportunities; secure, sustainable housing and infrastructure; and good health and wellbeing across the life course. These diverse services are provided to people across their life span and include: community development; early intervention services; advice and information; crisis support; and ongoing services. (How government works, 2016)
Under the NPM umbrella, public sector has also been experiencing a shift to greater competition. The need to remove monopoly of service delivery and create contestability, through privatization, public tendering, and term contracts, justifies the adoption of competition principle (Dunleavy 1994; Hood 1991). Insisting to do bureaucratic provision on public services instead of contracting them out, knowing that private sector can deliver them better, it is believed would only force governments to lose comparative advantages on price, efficiency, and effectiveness (Dunleavy 1994. p.49). This way, governments are able to fulfil their responsibility in providing services and the financing, while simultaneously stimulate greater competition among providers under market dynamics. However, it is hard to instigate public service ethos in private parties. Therefore, the capacity of private entities to act consistently with the public interest is greatly questioned in this scenario. Are concerns such as public health and safety, environment sustainability, and social equity likely to be sacrificed underneath market mechanisms? When power is shared with organizations which have business objectives apart from government’s goals, the fundamental issue is how to detect which missions they are carrying out. Many public services being delivered by third parties are targeted for vulnerable sections of the community which can pose a higher risk of potential abuse, neglect, exploitation, and
This memo is to serve as description of how the economy can impact projections related to revenues and expenditures in regards to the city budget. Several examples will be provided including explanations on why these items can have a tumultuous effect on the city budget. These examples include the effect property taxes and income taxes had on our fiscal stability as well as how even with proper accounting and financial reporting, the budget still fell victim to the economy.
Significance: This allows the state/city governments to use the money in a general sense, so they can spend it where they need to.
Irene Rubin’ view that public budgets are not merely technical managerial documents and that they are also intrinsically and irreducibly political is because public budgets reflect the choice of government. As a general rule of thumb, government chooses to go along with programs that fit their own political agenda. Programs should reflect a general consensus about what kind or
Introduction: Federal grant agendas offer state and local governments varying steps of flexibility over the use of grant funds. For example, block grants provide only extensive factors for using those funds, leaving state and local government’s significant liberty when they make spending results. By contrast, state and local governments face more spending limitations on how they use categorical formula grants. For example, definite standards govern the types of roads that state governments may improve using federal highway grant funds. Though, among all probable road schemes that meet the recognized standards, states are normally able to select which ones to fund. Project grants deliver state and local governments the minimum tractability over
For this week’s discussion, I looked no further than the Minnesota State Legislative Auditor’s Report # 00-01 “Program Evaluation Report: State Mandates on Local Governments” (Minnesota Office of the Legislative Auditor, 2000). The report, which comes out of response to a survey of 654 local government officials, from
The main ingredient for a local government bankruptcy to happen is structural weaknesses in the systems and policies of the local government unit (LGU) coupled with political facilitators within the LGU. These weaknesses may refer to rules that are not being followed when issuing licenses or permits, say on building permit or excavation permit in order to favor a friend or a political ally. Poor financial management is another trigger for LGU bankruptcy when an elected official pressures the certain officers and staff in the unit in releasing funds to his/her ambitious project because election time is nearing. This can only be done with the cooperation or collusion of people within the bureaucracy because in return they may also get some paybacks from the elected official. The check-and-balance systems should be in place to prevent getting into the "red". There should be transparency. Periodic audits should be done by an independent party.
Americans are not unfamiliar with the concept of a budget, in fact, most follow a budget on an everyday basis, however, the topic of a public budget can be overwhelming to many them. Although many Americans might have a small concept of how the federal budget works, very few are familiar with their local budget process, and even less familiar to their adopted annual city budget. Every local budget is as unique as the cities who developed them. The following paper will summarize, evaluate, and compare El Paso Texas and San Diego California’s 2012 budgets. It will compare their revenues, expenditures, and budget format. It will attempt to analyze the similarities and differences and determine the causes of such similarities and differences.
The Government Finance Officers Association (GFOA) budget criteria framework covers 27 budgeting categories and was launched in 1984 to encourage the preparation of high quality budgets (Bland, 211). The following memo evaluates the budget of the City of Lake Oswego using GFOA’s Distinguished Budget Presentation Awards Criteria, and also compares it to the budget of the City of Detroit.
Also, we expect our public service to do the best it can with the community resources available to it. Yet there is usually great mismanagement in the public sector, Yet nobody act to resolve this issue or call the minister to order because it will harm the government’s standing and may cost it votes. This portrays a consequence of a community supported reward system unavoidably biased against good public sector management.
Community development around the world is being practised by various entities, addressing various socio-economic issues that are unique to different communities worldwide. According to Bhattacharyya (2004), community development initiatives are dominant in democratic countries. There are various initiatives that have led to significant shifts in the wellbeing of communities using different development tools to develop communities around the world. South African, which is a democratic country has one of the highest income gabs in the world. The country’s income difference is evident in many townships/rural areas around the country’s underdeveloped communities. The positive impact of community development may be seen in the fields of public health, micro-macro development, food and violence (Bhattacharyya, 2004).
In a parallel system to National Government is Local Government who is responsible. For the management and operation of our cities, towns and local environments. The country is divided up into city and District councils. Representatives of the community are democratically elected to sit on councils and represent the needs and views of citizens. Each council is supported infrastructure of local Government employees who carry out the duties of the council. These duties cover every aspect of the everyday life including running services such as rubbish removal and sewerage, through to Maintaining Facilities such as parks and reserves to town planning and Resource Management Act Compliance and even traffic wardens. Councils are funded through rates which are a levy charged to individual households and businesses based on the value of their property or industry. Local councils may introduce bylaws which only apply to the citizens or business located within that councils area. These local bylaws give each council the opportunity to create rules for how that city or district can operate.
A Report for the Honorable Mayor, City Council, & Board of Directors of an African Country
Money is a frequent source of conflict in marriage. While it can bring great opportunities, marriage can also bring stress and strain if couples do not approach their finances and priorities realistically. Working as partners is important to resolve the issues of finances and they can have a healthier relationship. Financial issues may result from one spouse be saver and one spouse being a spender, no budget planning or the opposite there is a budget, but it may be too strict. Unresolved conflict in finances can lead to divorce; the couple are unable to talk about their finances and repair the damage to the marriage. Results from a recent interview by the author with a couple reveal their relationship struggle with financial conflict. For this research paper, the writer choose to discuss financial conflict. In conclusion, the writer will provide statistic data, description of financial issues, techniques to help the couple, Biblical insights and homework.