Culminating Project Part I

Culminating Project Part I




The closure of the Wilson Performance Automobile Plant has sent the town of Hadleyville, AZ into a financial crisis. This business provided more than 2,500 jobs in a town with a population of only 40,000. The loss of income from this closure has caused families directly affected by the layoff to spend less money, which has in turn created a ripple effect causing unemployment to rise throughout the town. The reduction in spending has resulted in a reduction of sales tax, upon which the town government relies to fund services. Although the town’s budget has been reduced twice, with the budget for last fiscal year alone being cut by 12%, additional funding shortfalls are predicted for the coming fiscal year.


The Budget and Finance Department has been divided into teams, who will each have eight weeks to develop a three-to-five-year recovery plan proposal.  Using the Budget Briefing Books, as well as group knowledge and experience, each team will analyze direct and entitlement obligations in the adopted budget, decide which departments need immediate operating budget revisions, determine how best to cut 13% from the budget immediately, and develop a plan to eliminate deficit spending within the next three years.  Additional challenges, such as attracting employers, dealing with insolvent public utilities, and maintaining a positive town reputation, will be addressed.


However, with challenges come opportunities.  The teams will look for ways to improve efficiency and delivery of services.  Research will also be conducted on both permanent and one-time options to increase town revenue.  Once the analysis is complete each team will present their findings to the town council, which will include discussion of the positives and negatives of each recommendation.


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