Assignment
2:
The Capital Budget


Due
Week 6 and worth 280 points



Refer
the Scenario for Assignments 1–5. Forecast salaries, revenue estimating, and prepare
the capital budget.



Using
the budget from the selected agency, write a five to six (5-6) page paper in
which you:



  1. Analyze the
    agency’s compensation for employees. Provide a rationale on what the costs
    and benefits would be for a 2 percent, 4 percent, or 5 percent pay increase
    for the fiscal year 2014. In your forecast, (a) discuss the effects of the
    increase on benefits for the agency and (b) provide a chart depicting the increase
    for each percent. (Title this section Payroll Forecast.)

  2. Review the trend
    of the agency over the past five (5) years and prepare an analysis
    explaining the trend for expenditures. Include a figure depicting the
    trend. (Title this section Trend Analysis.)

  3. Prepare and
    explain a five (5) year forecast of the four (4) highest expenditures.
    Make an XY plot of these data. Include
    in the analysis whether the costs should be approved or not approved.
    Justify the reasoning with examples. (Title this section Expenditure
    Forecast.)

  4. Compare two (2) options
    for predicting the cost of needed repairs to the current building that
    houses the selected agency by completing Exercise 1 at the end of Chapter
    1 (page 92). Provide a rationale for recommending one (1) of the two (2) options.
    Include the figures to support the rationale. (Title this section Capital
    Budget.)

  5. Provide names
    and URLs of the Websites for the state’s budget(s) analyzed and any other
    government Websites used to support the assignment’s criteria.



Your
assignment must follow these formatting requirements:



  • Be typed, double
    spaced, using Times New Roman font (size 12), with one-inch margins on all
    sides; citations and references must follow APA. Check with your professor
    for any additional instructions.

  • Include a cover
    page containing the title of the assignment, the student’s name, the
    professor’s name, the course title, and the date. The cover page and the
    reference page are not included in the required assignment page length.



The
specific course learning outcomes associated with this assignment are:



  • Analyze the basic skills and
    tools needed for budgeting for public sector agencies and / or
    departments.

  • Recommend appropriate policy
    actions based on the evaluation.

  • Evaluate a budgeting system at
    any governmental level.

  • Analyze the scope and sequence of
    budgeting in terms of sources of revenues, purpose of government
    expenditures, budget cycles, budget preparation, and debt administration.

  • Analyze the steps required for
    budgeting, such as preparing a budget, making a financial plan, conducting
    a cost-benefit analysis, and making budget decisions.

  • Prepare a preliminary budgeting
    system for presentation before Congress, state / local government, or
    other organization.

  • Develop various budget charts
    that represent segments of the budgeting process.

  • Use technology and information
    resources to research issues in public budgeting and finance.

  • Write clearly and concisely about
    public budgeting and finance using proper writing mechanics.



Grading
for this assignment will be based on answer quality, logic/organization of the
paper, and language and writing skills, using the following rubric.