Dec 14, 2017 in Economics

Public Policy and Administration

A budget is a propellant of any successful company or organization. A budget is an estimate of income and expenses of an organization. It includes costs, resources and revenues of a company for a longer period of time. This analysis gives a company the realm where it will perform. It ensures that a company or organization achieves a certain set of goals and objectives. It is also used in measuring the performance of an organization and also the uncertainty of the future.

California’s budget estimates are on the rise at its highest point. This budget equals the budget of the other Unites States senates. California is on a mission to cut its spending nature and increase the rate of tax. However, it is confirmed that the state is changing by avoiding the huge cuts. Confirmed reports claim that California has reduced its spending nature and also its debts.However there are claims for its success, it has a deficit from the past years. This was made not without certain sacrifices.

This recession affecting California is accounted by the high population. The population is influenced by immigration. This overflow of the immigrants  leads to a slower economy and high unemployment rates. Funding schools is one of the key consumers of the budget.This funding is directed to public schools. Due to this aspect, the state recommends that this funding should be slashed to avoid the high consumption of funds. This can only mean that minimum funds are taken for the educational sector or the rate of spending on an individual student reduced.

Health care and social services is another area that consumes a lot of funds. This sector follows the schools sector. It pays the cost of medication for many California citizens including the poor. The state of California plans to reduce the rate of funding to this sector to avoid falling into deficits and debts. This measure includes reducing the funding for the elderly and the disabled.

California needs to cut its spending on colleges and universities. This sector has  allocated a huge amount of cash resulting to the increased deficit. This however may lead to the increased tuition fee. The prison is another sector that studies revealed to rapidly consume a lot of funds. This is due to the penalties set for those involved in crime. Medical attention is provided for prisoners and this consumes a lot of funds. This should be reduced to attain a deficit free budget.

Payrolls of the state also consume a huge part of the state’s funds. This includes the employees of the state, those working in universities and colleges, and judicial employees among others. The state should reduce the payroll to ensure it achieves a deficit free budget. Taxes received by the state are claimed to be reducing. The state should ensure that it raises taxes including gas taxes, vehicle licenses and luxury products like cigarettes.

The budget balancer tool advises that in times of recession or deficit, the state should cut some of its spending and raise its taxes. Part of the sectors that the state of California needs to cut most include funding of the public schools, health sector, college and university sector, prisons’ sector and payroll of state employees. These sectors are squandering a large amount of funds leading to a deficit. The state should emphasize on raising taxes like gas taxes, vehicle licensing and luxury products like cigarettes. Increasing the taxes of these sectors is attributed to the fact that many people use these sectors frequently.

In conclusion, a stable budget is a tool for excellence of a company, organization or state. Proper budgeting should be considered to ensure that the state or organization achieves the set goals and strategies.

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