Students are to utilize the same local or state government from short papers #1 and #2 to research a public finance dilemma in their chosen local or state government. Students should prepare an 8-10 page public finance recommendation addressed to the head of that government (i.e., mayor, commission chair, or governor) with the following components:

• Executive Summary
• Background: Organizational Structure, Economic Conditions/Outlook, and Fiscal Policies, major revenue sources and major expenditures.
• Problem Statement: Identification of high cost/major expenditure
• Analysis of Expenditure:
  • What are expenditures? What programs are covered under this expenditure?
  • What is public good and choice? How does this expenditure reflect both?
  • How does political equilibrium affect public finance? What is the political equilibrium of your chosen expenditure?
  • What is cost-benefit analysis? What are the findings of a cost-benefit of your expenditure’s programs?
  • What are different revenue strategies? What taxation strategies are used to fund your expenditure’s programs
• Recommendations:
  • Is the current funding level appropriate for this public good?
  • What changes should be made to the revenue streams and expenditure level?
  • How will these changes impact the local or state government’s service to constituent