1 5 Multi-year Budget Evaluation Name Course Professor Date Goals and priorities of the local government goods and services In the last three years, State has been increasing the budget for education, healthcare and mental services, infrastructure and equipment and criminal justice systems. According to California State, outlined major priority areas are essential for boosting economic growth, addressing historical inequalities, enhance infrastructural development which is an engine to open the economy, reduce the cost of doing business and also, heavy spending on healthcare services which is essential in the quest to develop healthier society. Education takes a big share of the budget and has been increasing significantly in the last three years. In the budget year 2017-2018, for education, proposition 98 was allocated $51 billion which was increased across various segments in 2018-2019 such as increasing funding for public universities with $348 million ongoing and one-time $412 million amongst others and the same applies in 2019-2020 (LAO, 2016; LAO, 2018a; LAO, 2019). Commitment to education is necessary to help increase access to education and also decrease inequality that prevails in the areas where students are from poverty-stricken areas. Healthcare and human service services is also another essential local service for the greatest portion of the budget. In the 2017-2018 budget, the allocation for healthcare and human services was $38.1 billion and an increase of approximately 12% in the 2018-2019 budget. Health home programs, adjustments in Children's Health insurance reauthorization, community care licensing and expansion of health insurance coverage are notable healthcare and human services that contribute to a significant increase in healthcare expenditure (LAO, 2016; LAO, 2018a; LAO, 2019). Provision of healthcare is necessary for the quest to promote a healthier society and increase access to health care services. Development of infrastructural projects such as $630 million to replace Capitol Annex, flood control expenditures and clean water programs are examples of priority projects and services to California State. These are examples of public projects which enhance public safety. Internal and external challenges for providing goods and services The budget deficit is one of the internal challenges of which the State of California. This is attributed to inefficiency in the tax collection systems. Federal decisions, economic uncertainty and budget uncertainties are external challenges that influence the provision of public goods and services. For example, the recession put pressure on the revenue collection because investment contract which requires the state to reduce some expenditures on the public goods and services. In the 2017-2018 budget, an assumption was made that taxes on the MCO would expire in 2019 which means services tied to MCO tax would be affected (LAO, 2016). There is a need to conduct a car ...

1. 1
5
Multi-year Budget Evaluation
Name
Course
Professor
Date
Goals and priorities of the local government goods and services
In the last three years, State has been increasing the budget for
education, healthcare and mental services, infrastructure and
equipment and criminal justice systems. According to California
State, outlined major priority areas are essential for boosting
economic growth, addressing historical inequalities, enhance
infrastructural development which is an engine to open the
economy, reduce the cost of doing business and also, heavy
spending on healthcare services which is essential in the quest
to develop healthier society.
Education takes a big share of the budget and has been
increasing significantly in the last three years. In the budget
year 2017-2018, for education, proposition 98 was allocated $51

2. billion which was increased across various segments in 2018-
2019 such as increasing funding for public universities with
$348 million ongoing and one-time $412 million amongst others
and the same applies in 2019-2020 (LAO, 2016; LAO, 2018a;
LAO, 2019). Commitment to education is necessary to help
increase access to education and also decrease inequality that
prevails in the areas where students are from poverty-stricken
areas.
Healthcare and human service services is also another essential
local service for the greatest portion of the budget. In the 2017-
2018 budget, the allocation for healthcare and human services
was $38.1 billion and an increase of approximately 12% in the
2018-2019 budget. Health home programs, adjustments in
Children's Health insurance reauthorization, community care
licensing and expansion of health insurance coverage are
notable healthcare and human services that contribute to a
significant increase in healthcare expenditure (LAO, 2016;
LAO, 2018a; LAO, 2019). Provision of healthcare is necessary
for the quest to promote a healthier society and increase access
to health care services. Development of infrastructural projects
such as $630 million to replace Capitol Annex, flood control
expenditures and clean water programs are examples of priority
projects and services to California State. These are examples of
public projects which enhance public safety.
Internal and external challenges for providing goods and
services
The budget deficit is one of the internal challenges of which the
State of California. This is attributed to inefficiency in the tax
collection systems. Federal decisions, economic uncertainty and
budget uncertainties are external challenges that influence the
provision of public goods and services. For example, the
recession put pressure on the revenue collection because
investment contract which requires the state to reduce some
expenditures on the public goods and services. In the 2017-2018
budget, an assumption was made that taxes on the MCO would
expire in 2019 which means services tied to MCO tax would be

3. affected (LAO, 2016). There is a need to conduct a careful
study and establish internal and external challenges that can be
managed to ensure the smooth provision of public goods and
services.
Budget stabilization measures.
According to various options used to maintain budget
stabilization, preposition 58 requires deposits to be made until
when BSA reaches $8 billion. Proposition 2 was passed, the
state is required to set aside two amounts-1.5% of General Fund
revenue and a portion of capital gains which is greater than the
required threshold (LAO, 2018b). Further, under proposition 2,
the legislature is only permitted to make withdraws only when
Governor calls for a budget emergency (LAO, 2018b). Further,
there is optional reserve deposits which is used to increase
BSA. Upon implementing proposition 2 and optional deposits,
the BSA deposit reached the required threshold for 2018/2019.
BSA under proposition 2(2014) potentially helps to maintain
reserve account used to stabilize the budget which is essential
in addressing deficit continue to be experienced by the State.
Recommendations
To ensure public good and services are provided to the people,
three recommendations are suggested. First, California State
improves efficiency in the tax collection systems and put
measures that will improve collected revenue and also reduce
wastages in the tax collection. Second, realistic public goods
and services commensurate with revenues should be the core
principle in budget formulation. Third, BSA should be increased
to cater for the budget in the event when economic uncertainties
arise. Raising the threshold is a sure way to cushion budget
shortfalls that negatively impact the provision of public goods
and services.

4. References
LAO. (2016).The 2017-18 Budget. California’s Fiscal
Outlook.https://lao.ca.gov/Publications/Report/3507
LAO. (2018a). The 2018-19 Budget.California Spending Plan.
https://lao.ca.gov/Publications/Report/3870/1
LAO. (2018b).The 2019-20 Budget. California’s Fiscal Outlook.
https://lao.ca.gov/Publications/Re port/3900
LAO.(2019).The 2019‑ 20 Budget. California Spending Plan.
https://lao.ca.gov/Publications/Report/4083
References
Eva, N., Robin, M., Sendjaya, S., van Dierendonck, D., &
Liden, R. C. (2019). Servant leadership: A systematic review
and call for future research. The leadership quarterly, 30(1),
111-132.