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Justification of Discretionary Spending Accounts

I would appreciate assistance with the following questions. The highest discretionary spending accounts are from the state of VA (http://dpb.virginia.gov/budget/buddoc12/index.cfm).

1. Assume that your state is expecting a 25 percent rate increase of its 2011 population based on your previous analyses and forecast. Give three (3) justifications each for an increase or decrease to the four (4) highest discretionary spending accounts which are:
- Education
- Health & Human Resources
- Transportation
- Public Safety

2. Describe how difficult it was to identify and justify this information, and what you think would make it easier.

Solution Preview

EDUCATION
Should increase with a population increase.
1. New people moving into the state with their families will bring new students into the school system. These students will require additional desks, textbooks and other materials for education.
2. A sudden influx of population would mean that the state would need to hire new teachers to meet the immediate need of the students. This may mean that VA would have to pay higher wages or give other incentives to attract teachers from other states.
3. More money will need to be spent on the administrative area of education. How to assign students to schools, planning bus routes and planning curriculum should all increase with an increase in population.

HEALTH & HUMAN RESOURCES
Should increase with a population increase.
1. More people living in the state means that more people would be using hospitals and doctors offices. This would lead to an increased expense for the state.
2. A population increase could lead to an increased number of people applying for social welfare programs like Food Stamps. This ...

Solution Summary

Justification of discretionary spending accounts are examined.

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