Miami Budget

Budgeting, particular during pressing economic periods, is critical to the overall solvency of public organizations. Budgeting and proper forecasting provides a means for organizations to remain viable irrespective of the economic circumstances prevailing. History has proven that businesses along with public enterprises must endure various economy cycles and environments. The past decade has provided substantial evidence as to the importance of proper budgeting. Organizations that have failed to budget properly have suffered immensely in regards to lost reputation, profit and productivity.

The subsequent decade will be no different in that regard. Budgeting in the public domain, must provide adequate reassurance that the public organization can withstands a litany of economic and monetary circumstances (Parks, 1991) A budget provides organizations financial priorities in dollar terms. Particular in recessions or depression, public budgets, when analyzed, provide an idea as to the organizations priorities. During periods of mass euphoria and over optimism, budgets tend to reflect the positive confidence about future performance. This optimism is all too often overdone.

When periods such as 2008 arise, many public organization are forced to cut many of the more discretionary aspects of the budget. What remains if often the core focus of the public institute as it relates to the organizations mandate (Muir, 1953). One budget of particular interest is that of Miami-Dade county. Miami-Dade county is unique for its location, weather, and overall attractions. As such, the government must facilitate the exchange of not only goods and services, but as individuals as well.

When reviewing the budget, 29% of each dollar is spend on public safety. According to the budget, public safety is defined as funding for the court system, law enforcement, fire rescue and other public services. The county has seen as increase in spending in this area, primarily to protect visitors and patrons from criminal activity. As a result, the county has achieved the lowest violent crimes rate in the past 5-year. Another 24% of the budget is allocated towards public transportation.

As a large tourist destination, patrons often do not have access to transportation. As such, the county has attempted to alleviate the public transportation issue by investing 24% of its $6 billion budget into transportation related activities. Aspects such as trains, public buses, metro rails, and cruise terminals all facilitate the process. The country intends to allocate a greater portion of its budget to this area as the economy continues to recovery. Executives anticipate further growth in this field as unemployment continues to decline in the region and across the nation.

As such, discretionary income may begin to increase which will allow individuals to spend more during their travels to Miami. Finally, 21% of the budget is spent on infrastructure related activities. These activities include beach erosion control, drainage improvements, and overhaul of waste water plants. These additions, although often unnoticed are essential to society. Beach erosion and drainage are particularly important during hurricane season as floods are common in the region. In regards to GFOA criteria, the Miami-Dade budget satisfies many of them.

The document includes a very coherent statement regarding the overall objectives of leadership and how they intend to obtain them. The budget is very transparent as each individual segment is highlighted on an individual basis for review. Each line item is given a definition and explanation. In addition, independent third party operators have review the budget as well. The budget explained both the long-term and short-term factors considered by management in determining the budget. Of particular interest in the overall budget was the discussion on economic factors influencing the region.

Miami in particular was severely damanged by the economic downturn of 2008. Even more alarming is that Miami has one of the highest debt levels on a per capita basis in the United States. As such, the affects of unemployment were compounded by the increase reliance on debt to finance purchases. Individuals faced with these unfortunate circumstances are therefore fighting an difficult battle. First, they are needing to find viable employment. Second, these individuals must content with mounting debt.

This does not bode well for the budget of Miami-Dade county who depends on property tax, sales tax, and sales tax for 37% of its revenue. The document further outlines many of the assumptions prevailing in its forecast and estimates. This is particularly important in ascertaining the dependability of records and assumptions. For instance, the county estimates a 6% return on many of its investments. This, by historical circumstances seems correct as the S&P 500 has returned 8% on average.

Through this transparency the budget can be properly evaluated for its overall quality of assumptions. In addition to investment returns, the document describes long-term debt obligations. This aspect,.