River city cuts back: A balancing act simulation

Abstract

This case presents the typical scenario in a medium-sized municipality when it appears the economy is headed into a recession. The organization must make spending choices while also considering city council priorities. In this case, Karl Meier, the chief financial officer of River City, has just received some updated economic forecasts at a recent professional development conference. He calls upon his principles of cutback budgeting and citizen engagement to position the organization for the next fiscal year. The expected budget deficit is about $7.5 million. River City will need to consider both revenues and expenditures to achieve a projected budget balance, mindful of the council’s strategic goals and priorities. Students assume a budgeting actor role and use the Balancing Act simulation to propose a balanced budget to the city council reflective of the budgeting actor’s community perspective.