2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Costing and Profitability Solutions
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
Contact information: paul.young@ca.ibm.com
3. Agenda
Household Income
Federal Government / Taxation
Fiscal Management / USA
GDP by President
GDP and the Various States
Fiscal Management / State Level
Highest per capita debt / States
Bottom 10 debt per capita / States
Fiscal Management Cycle / States
GDP Growth
Key Cities
Democratic Mayors
Homelessness
Electricity
Green Agenda
Economic Development
Housing / Taxation
Education
Healthcare
Public Safety
• Poverty Ranking
• Fiscal Management ranking
• Bond Rating / States
• Performance Audits and Operational
Audits
• Portland, Oregon
• Seattle, WA
• Chicago
• San Francisco
• California
• New York State
• Michigan
• Pennsylvania
• Summary
• Training/Development Courses
13. Tax Reforms
Wealth taxes do not work - https://www2.slideshare.net/paulyoungcga/does-the-world-need-a-wealth-tax
Capital Gain taxes – (20% to 21% tax rate) - https://taxsummaries.pwc.com/quick-charts/capital-gains-tax-cgt-rates
Consumption tax – USA is one of a few G20 countries that does not have a federal sales tax - https://www.brookings.edu/on-the-
record/the-pros-and-cons-of-a-consumption-tax/ - A potential consumption tax of 1% to 2% could bring the treasury $50B to
$100B per year.
eCommerce is changing on how to best to collect sales taxes - https://www2.slideshare.net/paulyoungcga/ecommerce-what-is-next
Corporate Tax Rates https://taxfoundation.org/publications/corporate-tax-rates-around-the-world/
Tax havens cost tax treasuries billions -Taxpayers around the world lose at least $427 billion each year to individual tax evasion and
multinational corporate profit-shifting, which undercuts public funding for a COVID-19 response, according to a new report.
https://www.accountingtoday.com/news/global-tax-avoidance-costs-countries-427b-each-year-says-report
Estimated cost to USA govt is about $90B per year
BEPS / USA - https://tax.kpmg.us/services/transfer-pricing/post-beps-controversy-readiness.html
Digital Taxation - https://www.cnn.com/2020/11/25/tech/france-digital-taxes/index.html
20. GDP by President
Source - https://www.thebalance.com/gdp-growth-by-president-highs-lows-averages-4801102
Trump number does not reflect the
COVID19 pandemic
23. States and GDP
Source - https://economics.bmo.com/en/publications/detail/f7fb61e7-1794-4548-b905-
3a327d762477/?keyword=states
24. GDP by State
Source - https://www.bea.gov/news/2020/gross-domestic-product-state-3rd-quarter-2020
25. GDP by State
Source - https://www.bea.gov/news/2020/gross-domestic-product-state-3rd-quarter-2020
26. GDP by State
Source - https://www.bea.gov/news/2020/gross-domestic-product-state-3rd-quarter-2020
27. GDP - USA
Source - https://economics.bmo.com/en/publications/detail/f7fb61e7-1794-4548-b905-
3a327d762477/?keyword=states
28. GDP by State
Source - https://www.bea.gov/news/2020/gross-domestic-product-state-3rd-quarter-2020
29. Fiscal Management / State
Source - https://www.usnews.com/news/best-states/rankings/fiscal-stability
30. USA / State Level
Source - https://www.usa.gov/state-taxes
31. USA / State Spending
Source - http://edr.state.fl.us/Content/local-government/data/revenues-expenditures/stwidefiscal.cfm and
https://www.census.gov/data/tables/2017/econ/state/historical-tables.html
32. Top 10 States – Highest per Capita Debt
Source - https://www.usgovernmentspending.com/compare_state_debt
33. Bottom 10 States – Debt per Capita Debt
Source - https://www.usgovernmentspending.com/compare_state_debt
34. Fiscal Management
Cycle
40 states cannot afford to
pay their bills -
https://www.forbes.com/s
ites/mayrarodriguezvalla
dares/2018/09/24/fortyus
statescannotaffordtopaya
lloftheirbills/#4b8989607
18a
35. 7 Fiscal Lessons
Source - https://www.governing.com/finance/7-State-and-Local-Fiscal-Lessons.html
1. Progressive taxation has its drawbacks when the economy tanks.
2. Rainy day funds are an essential component of fiscal policy at all level
3. A deficit-burdened Uncle Sam cannot forever come to the rescue.
4. States and localities shouldn't overplay their hand in Congress.
5. America needs a real-time national fiscal databank.
6. The Fed's Municipal Liquidity Facility needs a tune-up
7. Public pension funds are not out of the woods
36. Bond Rating / States
Source - https://www.treasurer.ca.gov/ratings/current.asp
37. Local Government
Here is a look at few key cities in the USA:
Chicago finances - https://chicago.suntimes.com/2020/1/28/21095089/chicago-budget-pension-debt-new-study-fiscal-health-ranking-taxes-bond-
rating “Moody’s Investors has already ranked Chicago and Detroit as the U.S. cities least prepared to weather the storm of another recession because
of “extraordinarily high” fixed costs and crushing pension obligations.”
Minneapolis - https://www.southwestjournal.com/news/city-hall/2020/04/city-of-minneapolis-is-in-dire-financial-position/ “Minneapolis is currently
in a “dire financial position,” according to Mayor Jacob Frey, with the city’s external revenue expected to drop this year between 7% and 15% — by
roughly $100 million to $200 million. ” –
Top 20 worse fiscally managed cities - https://www.businessinsider.com/us-cities-most-financially-stressed-housing-market-unemployment
City of San Francisco – Fiscal Cliff - https://www.bloomberg.com/news/articles/2019-12-17/san-francisco-faces-budget-gap-as-6-billion-can-t-meet-
costs
The 2020 budget that Mayor Melvin Carter proposed in August included a levy increase under 5%; in the months since, the city has had 30
homicides, prompting the mayor to propose a supplemental public safety budget that could require more tax dollars. Council members haven’t
gotten details yet but have generally expressed support. ” Source - https://www.startribune.com/minnesota-homeowners-get-an-early-peek-at-
property-tax-bills/565020362/ “
Los Angeles –“Los Angeles Mayor Eric Garcetti's $10.5 billion budget for fiscal 2020-21 painted a bleak picture while acknowledging the
unprecedented harm to the city's economy from measures enacted to contain the coronavirus pandemic. The mayor declared a state of fiscal
emergency in the letter attached to his proposed budget unveiled Monday. The budget followed his State of the City speech, during which he had
announced furloughs affecting 16,000 city employees.” https://www.bondbuyer.com/news/los-angeles-budget-paints-a-bleak-coronavirus-picture “
California cities - “The state budget is flush with a $21 billion surplus. The longest-ever economic expansion in California history has unemployment
at historic lows. But the wealth is not spread evenly among California cities, where some local government budgets are straining with debt and
declining revenue. The California State Auditor’s Office on Thursday unveiled a new online dashboard revealing the fiscal health, or lack thereof, of
471 cities in the Golden State, paying special attention to 18 “high risk” communities. Read more here: https://www.sacbee.com/news/politics-
government/capitol-alert/article236610128.html#storylink=cpy” or https://www.sacbee.com/news/politics-government/capitol-
alert/article236610128.html
38. Homelessness
Homelessness - Seattle
https://www.forbes.com/sites/niallmccarth
y/2020/01/14/the-american-cities-with-
the-highest-homeless-populations-in-
2019-infographic/#344db5c014a9 – Where
is the talk about affordable housing?
All cities need to do better urban planning
-
https://www.slideshare.net/paulyoungcga/
urban-and-rural-planning-whats-next
High property taxes -
https://taxfoundation.org/property-taxes-
per-capita-2019/ or
https://www.usatoday.com/story/money/2
020/01/17/states-with-the-highest-and-
lowest-property-taxes/40974431/
Cost of Living -
https://www.quickenloans.com/blog/15-
most-expensive-cities-in-the-us
39. Electricity
Rural China has more reliable power than Northern California -
https://www.nextbigfuture.com/2020/12/northern-california-has-less-reliable-electricity-than-rural-
china.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadva
ncednano+%28nextbigfuture%29
40. Economic Growth
Wages and Employment – People want to move where it is more affordable -
https://www.cnbc.com/2019/10/16/biggest-cities-in-us-are-losing-hundreds-of-workers-every-day.html
Best cities to work (many are in the Midwest or Central/Northern California or on the East Coast
(https://fortune.com/2019/01/17/best-cities-to-work-in-2019/
Cities hiring the most tech workers - https://www.usatoday.com/story/money/business/2019/03/25/stem-jobs-15-
cities-hiring-most-high-tech-workers-us/39125247/
Best cities to find employment in 2020 - https://www.cnbc.com/2020/01/10/these-are-the-best-cities-to-find-a-
new-job-in-2020and-the-worst.html
Manufacturing employment (Top 10 States) - https://www.globaltrademag.com/top-10-states-for-manufacturing-
2019/
44. Poverty Ranking by
major USA City
Source -
https://www.indexmundi.co
m/facts/united-states/quick-
facts/cities/rank/percent-of-
people-of-all-ages-in-
poverty
45. Fiscal Management
Source - https://wallethub.com/edu/best-cities-at-money-management/19256/ or https://www.usnews.com/news/cities/articles/2020-01-28/study-many-
us-cities-struggled-with-debt-in-2018 or https://www.truthinaccounting.org/news/detail/2020-financial-state-of-the-cities
46. GDP / City - USA
• Austin has the best GDP growth
• Many cities have strong growth but still face challenges with income inequality, poverty, affordable housing, and
cost of living - Source - https://www.businessinsider.com/us-metro-area-city-best-economy-ranking-2019-8
• Many cities have strong innovation hubs, like San Francisco and Seattle -
https://www.comptia.org/content/research/best-tech-cities-it-jobs
• Top cities for economic development / Blacks
• Atlanta, GA
• Washington, DC
• Austin, TX
• Baltimore, MD
• Raleigh, NC
• Charlotte, NC
• Houston TX
• San Antonio, TX
• Source - https://www.ajc.com/news/the-cities-where-african-americans-are-doing-the-best-
economically/aV6HMTUklKq4Hem3dYXQNK/
47. What is performance-based auditing
Source - https://chapters.theiia.org/vancouver-island/Events/Pages/Performance-Based-
Auditing.aspx
Auditing in the public sector means more than simply determining if controls are in place and regulations are being
followed. Public sector auditing, in many cases, means you will be dealing with varied constituents and often working in a
more public forum.
For new and experienced government and public sector auditors facing these unique challenges, this course will provide
new insight that includes assessing whether or not control frameworks are working to further an organization’s goals and
achievements. By learning to review an organization or department’s objectives and assess the risk to achieving them,
public sector auditors in this program will be able to effectively evaluate the organization and ensure that it is working
toward or maintaining a high level of performance.
Areas of focus:
• Management Issues, Concerns, and Functions
• Control Frameworks
• Risk-based Approach to Performance Auditing
• Value-for-money Approach to Performance Auditing
• Performance Measures
48. Value for Money
Source - https://www.iasplus.com/en-ca/standards/assurance/other-canadian-standards/section-ps-5400-value-for-money-auditing-in-the-
public-sector or https://www.niauditoffice.gov.uk/value-money-audit
An independent evidence-based investigation which examines and reports on whether economy, effectiveness
and efficiency has been achieved in the use of public funds.
Objectives
The primary objectives of value for money (VFM) audit are to:
• provide the Assembly with independent information and advice about how economically, efficiently and
effectively departments, agencies and other central government public bodies have used their resources;
• encourage audited bodies to improve their performance in achieving value for money and implementing
policy; and
• identify good practice and suggest ways in which public services could be improved.
An Organizations seeks to promote better value for money by highlighting and demonstrating to audited
bodies ways in which they could make improvements to realize financial savings or reduce costs; guard against
the risk of fraud, irregularity and impropriety; provide a better quality of service; strengthen and enhance their
management, administrative and organizational processes; and achieve their aims and objectives more cost-
effectively.
49. Crisis and Emergency Management
The pandemic has accelerated underlying trends and pushed many companies to the brink of crisis. Reinvention is the
key not only to survival but also to long-term success.
It should be also noted that pandemic is not the only factor impacting both the private sector and public sectors. Both
the private and public sectors need to revise their risk policies and procedures including audited crisis and emergency
management reports on annual basis
Both the private and public sector need to embrace data and AI as part of managing their financial performance and
results.
Source - https://www.bcg.com/featured-insights/how-to/crisis-
transformation?utm_medium=Email&utm_source=esp&utm_campaign=none&utm_description=ealert&utm_topic=no
ne&utm_geo=global&utm_content=202101&utm_usertoken=3e7e80a519d37879a15cb0322ecd17140a8832dc
Here is my work on crisis and emergency management https://www2.slideshare.net/paulyoungcga/crisis-and-
emergency-management-how-best-to-manage-risk
50. Can any
organization
undertake
Internal audit
and controls?
All organizations can set up internal control process and/or reporting:
Triggers can be created based on pre-defined measurement and/or control
framework - https://www.investopedia.com/terms/c/continuous-auditing.asp
Performance Measurements can be set up as part of measuring program
outcomes against success criteria. (AI and BI tools can be set up to help with
performance measurements reporting)
External Audit firms can work with organizations to set up control
frameworks, performance measurements, etc.
IT personal/Accounting teams can set up triggers with databases and/or
accounting software by establishing audit reporting (i.e. error reports,
reconciliations reports, security access reports, etc.)
51. Education
AZ hikes top earners taxes https://www.forbes.com/sites/ashleaebeling/2020/11/04/arizona-voters-
approve-massive-tax-hike-on-high-earners-could-your-state-be-next/?sh=34ca357e1f98
Best educational systems - https://worldpopulationreview.com/state-rankings/public-school-rankings-by-
state or https://wallethub.com/edu/e/states-with-the-best-schools/5335
Teachers’ salary - https://worldpopulationreview.com/state-rankings/best-states-for-teachers
USA’s educational systems ranks 11th in the world - https://hechingerreport.org/what-2018-pisa-
international-rankings-tell-us-about-u-s-schools/ or https://ncee.org/what-we-do/center-on-international-
education-benchmarking/top-performing-countries/
USA has solid post-secondary system - https://www.master-and-more.eu/en/top-ten-countries-with-the-
best-education-systems-in-the-world-2020/
52. Healthcare
United States spends the most per capita on healthcare
https://www.commonwealthfund.org/publications/issue-briefs/2020/jan/us-health-care-global-perspective-
2019
USA has low rank on the healthcare index - https://take-profit.org/en/statistics/health-care-index/
Best and Worst Stats for Healthcare- https://www.thestreet.com/personal-finance/best-worst-states-
healthcare or https://www.beckershospitalreview.com/rankings-and-ratings/america-s-health-rankings-how-
all-50-states-fared.html
Medicare for all cost - https://thehill.com/blogs/congress-blog/healthcare/484301-22-studies-agree-
medicare-for-all-saves-money
Here is my look at reforming healthcare - https://www2.slideshare.net/paulyoungcga/how-does-the-world-transform-
healthcare-238832381
53. Public Safety
Violent Crime has gone down over the years - https://www.bbc.com/news/world-us-canada-53525440
Crime and USA - https://www.fbi.gov/news/pressrel/press-releases/fbi-releases-2019-crime-statistics
Here is my work on Public Safety - https://www2.slideshare.net/paulyoungcga/policy-analysis-public-safety-crime-
and-policing-october-2020
54. Portland, Oregon
Local cities - https://www.slideshare.net/paulyoungcga/fiscal-
health-usa-cities-local-government
https://www.opb.org/news/article/portland-city-council-
unanimously-approves-budget/ “”Among these changes were
$50,000 to bolster security for council members” – Council has
private security, why?
City voted to defund police, but up their security support to
council -
https://www.kgw.com/article/news/local/protests/defunding-
portland-police-city-council-budget-15-million-cuts/283-
239c5e3a-cfed-4dce-8775-d2c52a9df9aa
Crime rate - https://www.kgw.com/article/news/portland-is-
oregons-third-most-dangerous-city-report-says/283-
47d57828-1d90-46a2-8aab-a3b0852dd95c
Homelessness - https://www.heritage.org/poverty-and-
inequality/commentary/why-portlands-homeless-problem-
the-worst-the-nation
55. Seattle
Crime on the rise in Seattle - https://mynorthwest.com/1697840/rantz-seattle-crime-dashboard-not-
updated/
Homelessness – Seattle is ranked in the Top 5
https://www.forbes.com/sites/niallmccarthy/2020/01/14/the-american-cities-with-the-highest-homeless-
populations-in-2019-infographic/#16d727af14a9
Seattle an income inequality - https://www.seattletimes.com/seattle-news/seattle-is-so-far-gone-on-
inequality-were-beyond-the-movie-parasite/
56. Chicago
City of Chicago continues to have operating deficits - https://www.civicfed.org/civic-federation/blog/city-
chicago-projected-budget-deficit-increases-8382-million
Chicago has enormous issues with Debt - https://chicago.suntimes.com/2020/1/28/21095089/chicago-
budget-pension-debt-new-study-fiscal-health-ranking-taxes-bond-rating
Crime continues to plague cities like Chicago - https://heyjackass.com/
Homelessness - https://www.usatoday.com/story/money/2019/10/07/48-major-us-cities-struggling-to-
shelter-growing-homeless-population/40242171/
Chicago scores low when it comes to best managed cities in the USA - https://wallethub.com/edu/best-
run-cities/22869/
57. California
Forest management practices - https://www.nextbigfuture.com/2020/09/giant-cloud-of-incompetence-
hangs-over-
california.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadvan
cednano+%28nextbigfuture%29
Shortfall in tax collections - https://www.cbpp.org/research/state-budget-and-tax/states-grappling-with-hit-
to-tax-collections
Fiscal Woes - https://www.sacbee.com/news/politics-government/capitol-alert/article245426340.html
GDP - https://www.sacbee.com/news/business/article245494575.html or
https://www.statista.com/statistics/304869/california-real-gdp-by-industry/
58. San Francisco
Fiscal - https://www.sfchronicle.com/bayarea/article/San-Francisco-projecting-budget-
shortfall-as-high-15169360.php
Unemployment - https://tradingeconomics.com/united-states/unemployment-rate-in-san-
francisco-oakland-hayward-ca-msa-percent-fed-data.html
Economic woes - https://www.bizjournals.com/sanfrancisco/news/2020/08/20/sf-chamber-
taxes-viewpoint.html
59. New York State
New York was running a $6B deficit despite a growing an economy -
https://www.bloomberg.com/news/articles/2019-12-13/cuomo-runs-up-6-1-billion-n-y-deficit-despite-
strong-economy
New York has taxation issue - https://ballotpedia.org/Historical_New_York_budget_and_finance_information
Cumo waste and miss management - https://nypost.com/2020/08/21/audit-finds-cuomos-buffalo-billions-
a-waste-of-tax-money/ or City issues -
https://www.wnypapers.com/news/article/featured/2020/08/14/142817/state-audit-poor-financial-
management-leads-to-financial-woes-in-nt
Medicaid waste - https://www.osc.state.ny.us/press/releases/2020/09/dinapoli-medicaid-audits-find-more-
700-million-unnecessary-costs-and-overpayments
60. Michigan
Michigan has seen return of investment in MFG due to Trump’s policies -
https://www.crainsdetroit.com/other-voices/commentary-we-cant-lose-sight-
importance-economic-development or
https://detroit.cbslocal.com/2020/10/20/gm-announces-big-investments-in-
tennessee-and-michigan-manufacturing-facilities/ or reshoring -
https://www.bloomberg.com/opinion/articles/2020-09-04/manufacturing-jobs-
from-reshoring-will-be-different
61. Pennsylvania
6th largest GDP in USA by State -
https://www.forbes.com/places/pa/?sh=3ec645554fc1
$2B state fiscal shortfall - https://www.witf.org/2020/07/09/by-the-numbers-
covid-19s-big-hit-to-pa-s-economy/ or
https://local21news.com/news/local/pennsylvania-government-finishes-short-of-
revenue-estimate-for-fiscal-year
62. What needs to be done
All levels of governments need to moved forward with digital framework
Better balanced between GDP and the economy - https://www2.slideshare.net/paulyoungcga/economic-and-fiscal-scorecard-
united-states-september-2020-and-october-2020
All local government need to undertake a program by program review -
https://ballotpedia.org/Analysis_of_spending_in_America%27s_largest_cities
All levels of governments need to adopt analytics and data sciences
Audits and Reporting - https://www.slideshare.net/paulyoungcga/internal-audit-and-performance-base-auditing or
https://www.ibm.com/ca-en/products/cognos-analytics
All levels of governments need to have audited risk management reports
All level of governments will need to be transformed - https://www.slideshare.net/paulyoungcga/the-role-of-operational-and-
performancebased-auditing-on-government-and-the-private-sector
Pension funding
Compensation
Review of both discretionary and non-discretionary spending
Annual audits of risk and crisis management plans
63. Training and Development
If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel free
to review my material on
https://www.udemy.com/
(search Paul Young CPA
CGA)
These subjects address
how to fixed issues with
housing and/or systemic
issues related to economy
including government
policies