Looking forward to cuts a simulation decision tool for cutback management Spencer T. Brien, Philip J. Candreva, Stephen C. Hansen and Mina Pizzini
Contributor(s): Brien, Spencer T
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Material type: 
ArticlePublisher: 2020Subject(s): GASTO PUBLICO | INGRESOS FISCALES | REDUCCION | MODELOS DE SIMULACIÓNOnline resources: Click here to access online
In:
Public Budgeting and Finance v. 40, n. 1, Spring 2020, p. 3-21Summary: This study addresses managerial strategies to adapt public spending in anticipationof fiscal stress. It simulates a cutback to a federal agency, providing a decision toolthat applies normative recommendations from the cutback management literature. Using agency data, we develop a menu of options that illustrate how different distributions of budget reductions affect organizational goals. We show five al-ternatives that consider the political, legal, and fiscal implications of the agency’s responses to anticipated budgetary pressure. This simulation demonstrates that public agencies can apply existing data to generate rational and viable strategic plans for weathering fiscal stress.
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| OP 1716/2019/3-2 The efficiency - equity tradeoff in school aid | OP 1716/2019/3-3 Local government fiscal health | OP 1716/2020/1 Public Budgeting and Finance | OP 1716/2020/1-1 Looking forward to cuts | OP 1716/2020/1-2 Assessing the financial impact of natural disasters on local governments | OP 1716/2020/1-3 Predicting TIF distress | OP 1716/2020/2 Public Budgeting and Finance |
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This study addresses managerial strategies to adapt public spending in anticipationof fiscal stress. It simulates a cutback to a federal agency, providing a decision toolthat applies normative recommendations from the cutback management literature. Using agency data, we develop a menu of options that illustrate how different distributions of budget reductions affect organizational goals. We show five al-ternatives that consider the political, legal, and fiscal implications of the agency’s responses to anticipated budgetary pressure. This simulation demonstrates that public agencies can apply existing data to generate rational and viable strategic plans for weathering fiscal stress.
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