PA585 FINANCIAL MANAGEMENT IN THE PUBLIC SECTOR Essay

PA585 FINANCIAL MANAGEMENT IN THE PUBLIC SECTOR - Essay Example Responsibility of local governments is increasing day by day but their financial position does not improve with the same speed. Hence local governments resort to intergovernmental transfers for small amounts to meet school related expenditures. Though this is the fact, financial aid from the state and the federal is on a reducing trend. When federal aid was reduced during the Reagan era, state funds came to the rescue of local governments to suffice their revenue needs. Later, state support also declined because it had to manage its budgets. Hence decrease in revenue has led to a collective slowdown in the economy of local regions. (Fahim, 2005). On the whole, the service delivery of local government to citizens is affected which is in turn controlled by political driven policies. This has raised arguments on the role of the American government with respect to its function and costs. Poor funding from federal programs has created an impact on the local government leader’s responsibilities and tasks, opinion on elected leaders and questions the role of citizens and the method with which local governance is carried out. Citizens feel that local governments are more dependable and efficient than the federal or state authorities. Hence citizens require the local government to play a detailed role in terms of requirements, priorities and methods to solve their issues. Though citizens require good service from the government they are reluctant to pay high amount of tax to avail better services. This has put the local government in a thoughtful condition where the government is in a position to implement innovative methods to draft budgets and manage funds in order to maintain a good relationship with citizens. Councils, governing bodies, boards, managers and staff who form the members of the local government structure are responsible to carry out the affairs of the citizens in