Local governments have many tasks and responsibilities, and one of them is the allocation of goods and services within its area. That is why councils, with San Diego being no exception, typically draw sufficient attention to address this issue in their budgets. The allocation of goods and services can be challenging because many phenomena, including governmental goal-setting, internal and external issues, and stabilization measures, can affect it. Thus, this paper evaluates the allocation of public goods in San Diego budgets for the past three years.
Goals and Priorities
To begin with, one should draw attention to what goals and priorities the local government has regarding the allocation of its goods and services. On the one hand, it is possible to admit that the local government’s focus did not significantly change over the selected years. It refers to the fact that road repairing, parks, and public safety were considered core community services in 2018 (City of San Diego, 2018). Simultaneously, the 2019 and 2020 budgets admit that a Clean San Diego initiative should only be added to the list above (City of San Diego, 2019; City of San Diego, 2020). This information reveals that the local government keeps promoting services that are of value for all the local citizens.
On the other hand, it is reasonable to focus on the Supplies category to assess the local government’s priorities regarding goods allocation. The rationale behind this statement is that they cover “office supplies, books, tools, uniforms,” and others (City of San Diego, 2018, p. 86). When it comes to the three selected years, they reveal an evident tendency to reduce the Supplies category. It becomes possible by canceling a one-time transfer of funds for the repair and maintenance of traffic signals, sidewalks, and street lights (City of San Diego, 2020). This finding demonstrates that the San Diego council tends to reduce its spending on a specific task.
Internal and External Challenges
A few specific external issues make it challenging to provide goods and services. Firstly, the three budgets admit that uncertainty, inflation rates, and federal policies exist. Unpredictable changes of any of these phenomena can result in significant challenges. Secondly, numerous experts predicted that the US economic expansion would soon come to an end. Such statements are present in the 2019 and 2020 budgets (City of San Diego, 2019, City of San Diego, 2020). This information demonstrates that natural development processes result in the fact that the San Diego council faces external challenges that adversely affect the allocation of goods and services.
Simultaneously, some internal issues impact the provision of goods and services. These challenges refer to the fact that the local government should spend more funds to cover other expenses. It relates to personnel costs that keep increasing for the three years. The council is forced to increase salaries, meaning that additional funds are required to cover this category (City of San Diego, 2020). Furthermore, growing debt can be considered an essential internal challenge. This category included $13.3 in 2018, $9.6 in 2019, and $20.1 in 2020 (City of San Diego, 2020). Even though the dramatic increase in 2020 occurred because of the recategorization of expenditures, increased debt can adversely influence the allocation of goods and services. The presence of both external and internal challenges denotes that appropriate measures are required to mitigate them.
Each of the selected budgets implies specific stabilization measures to ensure that the local government can meet the necessary expenditures. Firstly, the reductions of $18.4 million were made in 2018. It referred to the elimination of City Attorney positions, non-personnel reductions for the City Auditor office, and others (City of San Diego, 2018). Secondly, 2019 saw declines of $13.5 million, and they related to ongoing operating expenditures. In particular, stabilization measures affected many spheres and structures, including the City Treasurer, contractual services, communications, and many others (City of San Diego, 2019). Thirdly, the reductions of $13.8 million were included in 2020. Similar to the previous years, this budget offered to cut expenditures for numerous areas, and the specific examples include the reduction of positions in the Department of Finance, lower spending for the Debt Management Department, and so on (City of San Diego, 2020). This information demonstrates that the local government makes an effort to optimize its budget.
Recommendations
In conclusion, it is reasonable to offer a few recommendations regarding a budget for the local government. Firstly, it is necessary to find more effective ways to reduces expenditures and optimize the whole budget. This step is required because total expenses keep increasing with every passing year. Secondly, it could be rational to have some reserve funds that can protect the local government against unpredictable situations. It has been stated that differing inflation rates and federal policies create an external challenge, meaning that the budget should address them. Even though the 2020 budget did not address the COVID-19 pandemic, it is necessary to keep in mind that the future can bring similar crises. That is why all the governments should do their best to become more prepared for such challenges.
References
City of San Diego. Fiscal year 2018 adopted budget. Web.
City of San Diego. Fiscal year 2019 adopted budget. Web.
City of San Diego. Fiscal year 2020 adopted budget. Web.