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.
The response addresses the query posted in 1593 words with APA References.
//The allocation of funding among different projects, by the state government, is crucial for the best use of the available funds. In the following paragraphs, there will be an evaluation of pulling of sources from a different project to allocate it into a new project of construction of interstate freeway. There will also be an evaluation on raising funds through additional sources and pulling of funds from other projects to a particular project.//
State Department of Transportation (DOT) has received $100 million for enhancing and expanding of an interstate freeway over a 5-year period. The funding for this project is taken from the availability of funding for other projects that include improvement of a local county highway and rapid bus services projects. There is a need to evaluate the benefits of the interstate freeway against the benefits from these two projects in order to estimate the best use of available funding for the interstate project against the aforesaid two projects. There is a need to consider an appropriate budget procedure in order to analyze the best use of funds for the given interstate freeways project or interstate projects that include rapid bus services and improvement of the local county highway.
Availability of Funding Resources
One of the major sources for the interstate freeway is the federal government that provides a significant portion of the funding needs of the project. Another source of funding for the project is Surface Transportation Improvement, which is also an important source of flexible funding for the interstate freeway (Grants and Programs, 2015). There are other sources that are related to local people of the state that are in the form of levy of toll taxes, gas taxes, and driver's license renewals. The other source is to allocate the available general fund for the state government for the interstate freeway project. Therefore, there are several sources for the interstate freeway project without pulling funds from another project.
Forecasting of Spending Source in the Budget Accounting System
Forecasting of spending source should be based on the rationality of cost and benefits of spending that means there should be spending only in those activities that are able to provide the most benefits to the people. The spending should be on the preference basis in order to use the funds in the best possible manner with the selection of the most needed projects for the service of the people.
Difference between Increasing Revenue and ...
The expert examines the state department of transportation (DOT). The response addresses the query posted in 1593 words with APA References.