Question one
The budgeting process is the way a state builds its budget (Foley, 2010). Therefore, the appropriate budget is the one that engages the responsible organizations that adhere to its implementation of the objectives of the organization. The budget of Flint Michigan involves both finance committee as well as the participation of senior staff. The stakeholders that participate in decision making in Flint are the local, federal, and regional governments, philanthropic donors, and community organizations (City of Flint MI, 2013). However, some partners are engaged in sustainability plans and the adaptation of climate change.
Question two: Sources of revenues and expenditures
The main sources of income for Flint Michigan are program and general. Under program revenues, there are charges for services, operating grants and contributions, and capital grants and contributions. The examples of general revenues are property taxes, income taxes, state shared revenues, fees from cable franchise, and unrestricted investment earnings. The expenses of Flint are the general government, judicial, public safety, inspection for the buildings, water and sewerage, interest on long-term debt, facilities, parks and recreational areas, public works, and community development.
Question three: Policy implication of the public budget
The placement of the Flint Michigan City under state receivership twice within twenty-four months has emphasized on the precarious and everlasting financial position of the city. However, Flint is still experiencing unemployment rate in the country. Consequently, the change from homeowners to rentals have increased substantially over the years. Similarly, the crime rate continues to grow even after receiving support from the state. However, the plans of the city of Michigan is growing continuously without any plans soon for its placement.
Question four
The possible changes to the public budget are increasing revenues while reducing expenditures to limit the legacy costs as well as resolving the near financial insolvency in the city. The revenue increases include the increasing water and sewer rates, property tax to cover the cost of waste collection. The expenditure reduction is the elimination of about 20% of the workforce in the city (Comprehensive Annual Financial Report June, 2015)
Question five: Flint water crisis
In 2014, Flint changed its supply of water from Lake Huron through Detroit to the Flint River. However, there were some issues due to the anticorrosive measures that had not been implemented. But after independent studies, the lead poisoning was caused by the water found in the region. This resulted in many lawsuits, the resignation of many officials, about three criminal indictments, and a federal public health state of emergency for the entire Genesee County.
According to historical facts, the water in the Flint River that was pouring downstream of Flint have been of poor quality. Therefore, it has been degraded in the early 1970s due to the presence of fecal bacteria, low dissolved oxygen, toxic substances, oils, and plant nutrients. In 2001, there was an order from the state to monitor the cleanup of about 130 polluted sites within the watershed of Flint River as well as the industrial complexes, farms laden with pesticides, fertilizer, and landfills.
According to the lawsuits, the state Department of Environmental Quality have not been treating the Flint River with the anti-corrosive agents, and this was in violation of the federal law. Consequently, the river was found to be over ten times more corrosive as compared to water from Detroit in Lake Huron. Since waters from Flint was not treated properly, the leads from old service lines to homesteads started to leach into the supply of Flint water supply.
Therefore, the effects of lead exposures led to impairment cognition, behavioral disorders, hearing problems, and delayed puberty in children. In general, the consumption of lead affected the heart, kidneys as well as the nerves.
References
Comprehensive Annual Financial Report, June 30, 2015. (2016). City Of Flint, Michigan.
Foley, E. (2010). The Budgeting Process | Nonprofit Accounting Basics. Nonprofitaccountingbasics.org. Retrieved 14 August 2016, from http://www.nonprofitaccountingbasics.org/reporting-operations/budgeting-process
