Problem:
Your state Department of Transportation (DOT) has received $100 million in federal funding to enhance and expand an interstate freeway over a 5-year period. The state DOT oversight resources to do this were pulled from another project: improvement of a local county highway. The highway from which the resources were pulled is the main route into the major work centers of the city and is used by most commuters daily. During the same period, the city lost funding for the rapid bus service, which resulted in more workers having to drive their own cars during the work week, increasing traffic congestion.
Select one budget procedure you would use to analyze the utilization of the $100 million and whether that money was put to its best use.
Note. If you prefer to analyze a different program, with instructor approval you may choose to use a public program of interest in your state. Select an actual project to review to create an analysis of management accountability and cost benefit analysis.
Write a paper no more than 1,500 words on management accountability and cost benefit analysis. Your paper must state whether the money was spent as appropriated and whether the decision to use the money to build a freeway was the best use of that fund.
Identify the various funding and revenue sources that the state could use to increase and allocate money for improvements, such as levy, collection, gas taxes, or driver's license renewals.
Describe how each spending source would be forecasted and tracked in the budget accounting system. Distinguish between increasing revenue by raising taxes, cutting other services and programs to divert that funding to transportation issues, or both.
• The paper must include expenditures and associated budgeting procedures, such as lump sum budgeting, object-of-expenditure budgeting, and performance budgeting.
• An abstract or table of contents is not required. You must include at least three references other than the text and lectures. All references must be appropriately referenced in the text and on a references page.