The mission of the police is to maintain law and order among the citizens. In the US, a large amount of the countys budgetary allocation goes to the criminal justice department. At the moment, this department in my county takes more than 50% of the total budget. The county has experienced high rates of crimes and drug abuse for a long time. It was for this reason that our local government decided to raise the amount allocated to the police department from 20% in 2013 to the current amount. However, this amount is still not enough for fighting crime. We have been struggling to satisfy all the requirements for proper policing with this little amount of money.
Alternative Solutions to High Costs of Security
Our county appropriation authority has asked us to reduce our expenditure by 20%. However, reducing our budget by this percentage will greatly affect our service delivery. Levels of insecurity are likely to reach a critical. As the Chief Administrator of Police in this county, I decided to come up with three possible solutions to this crisis. The solutions are; community policing, strict legislation, and a crackdown on known gangs.
Community policing entails involving members of the community in the provision of security (East Auston Stories, 2009). This program has existed in different parts of this country for many years. However, in my county, this service has not achieved the same results as other county governments did. I plan to revamp community policing by equipping members of the community with basic military skills. I want to attain this goal by bringing military officers to the community to train the citizens. Individuals who go through this training program will then provide security to the rest of the citizens. This training will help reduce the amount of money the county spends on transporting police to places where people live. Citizens will acquire skills that will help them take care of themselves, their families, and their friends.
My second solution is constraining criminal gangs. The department of police has identified all criminal gangs and their hideouts. I would schedule several police operations on these gangs to completely stop them. The police will have arrested and taken to court members of all criminal gangs within the next two months. Arresting criminals will minimize the rate of crime, and, therefore, the department will reduce the money it spends on fighting crime by close to 50 %.
The third solution involves putting in place strict laws to control and punish offenders. I am planning to present a bill to our parliament seeking to introduce a curfew in all our major towns and cities. If this bill comes into law, it will prohibit people from walking around the town after 11 pm. People who will go against this law will spend four months in jail. I came up with this bill when I researched the time when most crimes occur. My study revealed that most criminal activities occur after 10 -11 pm.
Effects of the recommendations and positive and negative sited of the programs
Giving military training to members of the community is likely to have both positive and negative impacts on the functions and image of the police force. The main positive effect of this training is the ability of some members to provide security to the rest of the community. Citizens will not always have to depend on the police for protection. The other positive effect is the ease of arresting criminals. Members of the community know all the criminals in their neighborhood. They, therefore, take less time arresting criminals than the police. Such pieces of training will bring together the police and the community. A partnership between the police and citizens is very critical in improving the image of the police. People will see them as friends, and not enemies as many people think.
However, training ordinary people can be very risky. After the acquisition of skills, individuals can use them in the perpetration of crimes (ATMello3, 2011). They may use their skills in attacking innocent citizens instead of protecting them. The method of selecting the people to join the training, therefore, has to be very careful to prevent recruiting more criminals.
Arresting members of criminal gangs will reduce the crime rate in the community by lowering the number of people with criminal mentalities. Consequently, the police department will spend less money on running after criminals than when the number of criminals is high. The negative side of such actions is that people will see the police as enemies.
Curfews will drastically reduce police expenditure. When people are not free to roam at night, a small number of officers will be able to patrol and deal with anybody with a criminal mind. However, they might arrest or even shoot innocent people who go out for unavoidable reasons. Such actions will portray a negative image of the police.
I will have organized training for all policemen to help them prevent the occurrence of problems during the implementation of this program. They will learn how to differentiate between criminals and innocent citizens while patrolling. They will also learn how to train members of the community without causing injuries to them. The police should also know that it is their responsibility to arrest criminals and not shoot them.
Funding for all intelligence and related activities within all Department of Homeland Security components should be transferred to the National Intelligence Program, under the financial management control of the Director of National Intelligence. The current situation in the country requires an increase in intelligence spending on defense and national security, as well as a clear focus on threats from a number of countries.
The budget should cover a wide range of spending areas, including spy satellites, cyber weapons, and developing a network of foreign spies and informants (Sauter & Carafano, 2019). Despite the fact that the transfer of funds should remain secret, it is possible to disclose some details of the change in costs and explain them by an increase in costs due to a shift in focus from the fight against terrorism to espionage and the fight against cyber threats from other states. A similar reallocation of the budget will be made, taking into account new national security and national intelligence strategies.
Countering the potential available to certain countries is a complex process, and shifting the focus of the information agencies to the competition of countries requires more resources. It is important that such a decision be approved by Congress. In accordance with the new responsibility, the Director of National Intelligence will be able to balance the costs so that all critical areas are covered (Lowenthal, 2019).
The new funding program will sponsor U.S. intelligence community projects and activities to gather the information necessary to ensure Americas national security. It is important that additional injections will give impetus to programs of intelligence, counterintelligence, and monitoring of the activities of foreign countries at the state level. Thus, a series of programs implemented by agencies that are not formally part of structures that directly ensure Americas military security will be included in the national intelligence program.
In addition to the arguments listed above, it should be noted that the United States needs to reassess the capabilities of several countries in the field of space warfare. The increased ability of some countries to interfere with satellites or the possibility of their destruction poses a real threat to the United States, so additional expenditures are inevitable. Countries with greater military potential can consider space as a sphere of the countrys military and economic vulnerability (Sauter & Carafano, 2019). Some countries already have cyber, electromagnetic, and orbital weapons capable of hitting US space objects, which makes the country vulnerable. Against the background of these fears, the National Intelligence Program will require intensive financial injections since they will help maintain US national security in space.
Thus, it can be concluded that the transfer of funds is necessary due to the fact that US opponents are looking for ways to inflict catastrophic damage to the countrys security, primarily through the use of various forms of weapons. They resort to modern technological solutions that pose threats in outer and cybernetic space. The countrys security challenges are becoming increasingly apparent, which requires immediate additional funding infusions. New types of anti-satellite weapons can reduce the level of American military superiority. The transfer of funding to the National Intelligence Program will enhance resilience to cyber threats and increase the volume of information obtained. Moreover, the United States will be able to expand its ability to curb malicious activity from other countries.
It is not recommended to transfer The National Counterterrorism Center (NCTC) to the Department of Homeland Security due to a number of reasons. Firstly, it does not belong to the military component of the US intelligence community and has functions that are different from those performed by the Department of Homeland Security. Its main task is to supervise the activities of United States government representatives in the fight against international terrorism and extremist activity, both domestically and abroad (Meese, Nielsen, & Sondheimer, 2018). Secondly, it combines their capabilities in the interests of ensuring the unity of efforts in the fight against international terrorism.
Thirdly, the center carries out informational and analytical work and collects data from various sources. The organization collects any information regarding international terrorism as well as counter-terrorism. Its task is the early recognition of terrorist threats and the transfer of this information to the appropriate authorities. Also, the center is engaged in strategic planning of operations aimed at protecting the population.
In its turn, the Department of National Security has specific tasks in the field of enhancing cybersecurity and infrastructure security. At present, this structure is the main body dedicated to ensuring the protection of government networks and critical infrastructure from cyber threats. These functions are related to what the former institution is doing; however, their activities do not overlap in all aspects. The Department of Homeland Security is responsible for the proper positioning of forces to protect US infrastructure from digital and physical threats (Meese et al., 2018).
One of the main goals that this organization aims to achieve is a complete reorganization so that the maximum focus is made on cyberspace. Cyber threats from other powerful states that are constantly growing testify to the need to the activities of this structure to be specialized. In addition to this task, the Department of National Security is responsible for the prevention and elimination of the consequences of cyber-attacks on critical facilities of the Armed Forces.
It is worth noting that a specially trained group is constantly working as part of the National Counterterrorism Center, and it monitors the situation in the most dangerous regions of the planet. Consequently, it constantly updates databases on international terrorists and terrorist organizations and ensures the safety of this information. From this point of view, close cooperation between the center and the Department of National Security is necessary so that the data are provided immediately when needed. Nevertheless, collaboration with departments is not a reason for the transition.
The center also actively collaborates with national intelligence to address issues such as harnessing the capabilities of the US intelligence community to counter terrorism (Oliver, Marion, & Hill, 2019). This is achieved by establishing communication and prioritizing data mining. The activities of the National Counterterrorism Center are based on the study, analysis, and assessment of terrorist threats to US national security, and forecasting their implementation in the long term.
Consequently, the transition of the center under the direction of the Department of National Security is not recommended. The first structure is engaged in the management of operational planning, and its task is the strategic outlining of the subsequent actions. The center collects, summarizes, analyzes, and evaluates data and provides intelligence information to other power systems. The Department of Homeland Security has other tasks that overlap with the activities of the center, but it has different goals essentially.
References
Lowenthal, M. M. (2019). Intelligence: From secrets to policy (8th ed.). Washington, DC: CQ Press.
Meese, M. J., Nielsen, S. C., & Sondheimer, R. M. (2018). American national security (7th ed.). Baltimore, MD: JHU Press.
Oliver, W. M., Marion, N. E., & Hill, J. B. (2019). Introduction to homeland security: Policy, organization, and administration (2nd. ed.). Burlington, MA: Jones & Bartlett Learning.
Sauter, M., & Carafano, J. J. (2019). Homeland security: A complete guide (3rd ed.). New York, NY: McGraw Hill Professional.
It is worth noting that the issue of budget transparency about the Intelligence Community is acute, and it is impossible to unequivocally answer the question of whether it is worth supporting or rejecting the Intelligence Budget Transparency Act. This issue is important because the higher the level of secrecy is, the more difficult it is to understand the specifics of Intelligence services, and the more difficult it is to evaluate how effectively they use the funds (DeVine, 2019). In the absence of reliable and up-to-date information, oversight authorities cannot determine and fully assess the role and direction of Intelligence and cannot answer the question of whether funds are being spent to ensure the safety and freedom of citizens.
On the one hand, certain aspects of the Intelligence Community and its activities need to remain hidden since, otherwise, the success of the work of this agency could be compromised. On the other hand, secrecy or partial transparency contradicts the very essence of democratic governance due to the fact that it does not allow establishing full control over Intelligence Community, and this creates a fertile ground for abuse. In this regard, the full implementation of the budget process following the principle of transparency is an unattainable task. In particular, each minor event contributes to the possibility of control or more efficient use of budget funds (Oliver et al., 2019).
At the same time, some budget instruments that are introduced only at first glance increase budget transparency, but in reality, they can be a source of corruption. Even though budget development is proceeding rapidly, problem areas in the direction of transparency of the budget process remain unresolved (Oliver et al., 2019). A compilation of both legal and economic instruments and methods is required to be able to achieve an adequate level of transparency.
Oliver, W. M., Marion, N. E., & Hill, J. B. (2019). Introduction to homeland security: Policy, organization, and administration (2nd. ed.). Jones & Bartlett Learning.
I would consider the total revenue expected for the particular period the budget is being drafted for in order to come up with a manageable budget. The expenditure would also be important as it shows how much the business will spend in relation to the available revenue. In reviewing a budget, it is important to make sure the expenditure does not exceed the total revenue. The business market conditions and future aspirations and goals are also relevant in reviewing the budget. The market conditions enable the budget to consider the expected revenues in the future. Such a consideration is directly related to the business goals as the market conditions make it possible to consider any expenses that may be relevant to achieving the business goals when reviewing the budget for the business (Kemps, 2003).
Under what conditions are a flexible budget more effective than a forecast budget?
A flexible budget is more effective than a forecast budget when the business involved does not have a constant market base and predictable income. A flexible budget also ensures that the management is able to make the necessary changes in the budget in case adjustments are needed.
A forecast budget just depends on the past to be able to predict what may happen in the future in terms of revenues and earnings. Hence, the forecast is only effective when the business conditions are predictable, and the market base is constant. Thus a flexible budget is more effective since it ensures that even with all those ups and downs in the market, the business is able to sustain its operations (Kemps, 2003).
How does understanding how costs behave assist you in managing a hospital under the Medicare prospective payment system?
Understanding the costs associated with the expenses of running a hospital is vital since it is from the costs that we are able to determine the amount of profit the hospital can make in relation to the revenue. A hospital that operates under the Medicare prospective system is bound by the government to provide quality services at a given incentive that is paid by the government. This incentive makes many patients prefer utilizing this system of payment than paying for the whole service in cash (Mayes & Berenson, 2008).
Hence, if the management understands how the expenses increase or decrease, they are able to relate these to the number of incentives received, and they can be able to make a profit. If it happens that they cannot predict or estimate the amount of money to be spent on expenses and at the same time they are not aware of how much money is expected through the Medicare Prospective payment system, then such a hospital is at risk of making losses.
The behavior of costs can be predicted or regulated depending on the budgeting mechanism present at the hospital. Hence, a hospital with fewer costs will tend to gain more from the Medicare prospective system as compared to one with many costs and are unable to regulate its costs. When costs are understood, they can be easily reduced by cutting down on spending. In this manner, the expenses are monitored and kept within allowable limits, thus enabling the management of the hospital to make profits even under the Medicare payment system. In this system, the hospital should try as much as possible to limit the number of days a patient is admitted. This is because the medical coverage only caters to a specific number of days, and when exceeded, the extra cost is incurred by the hospital (Mayes & Berenson, 2008).
References
Kemp, S. (2003). Budgeting for managers. New York: McGraw Hill Professional.
Mayes, R., & Berenson, R. (2008). Medicare Prospective Payment and the Shaping of U.S. Health Care. Baltimore, Maryland: The Johns Hopkins University Press.
In the present day, nurse burnout may be regarded as a highly serious problem that should be addressed due to its negative impact on the whole health care system. It is traditionally caused by nurses necessity to provide high-quality and safe health care delivery under the pressure of heavy patient loads, inefficient communication between clinicians, and a lack of leadership in medical facilities. Thus, associated with emotional and physical exhaustion, low morale, self-efficacy, and self-esteem, a lack of motivation and job commitment, cynicism, and depersonalization, nurse burnout leads to inappropriate patient outcomes and increased turnover (Aryankhesal et al., 2019). That is why it is highly essential to introduce an intervention that will address the issue of burnout for its reduction. The purpose of this paper is to introduce an approach reflected in the organization of yoga classes for health care providers and explain how it will contribute to the minimization of nurse burnout in clinical settings.
Outcomes
The introduced intervention should be efficient in the reduction of nurse burnout and the improvement of health care providers resilience for its prevention in the future. While there are multiple factors that lead to nurse burnout, mind-body meditation training and programs may not only relieve the symptoms of this occupational phenomenon but help a nurse develop efficient protective mechanisms. According to Cocchiara et al. (2019), yoga provides some innovative solutions, scientifically recognized as effective methods to enhance empathy, reduce stress and improve physical work-related issues in healthcare professionals (p. 2). In addition, it is a cost-and time-efficient method that will allow to achieve appropriate outcomes. All in all, the intervention goals, or outcomes, may be presented in the following way:
S: It is necessary to reduce nurse burnout, eliminate its symptoms, and develop resilience.
M: Yoga classes should be organized for nurses in a medical facility.
A: The acquisition of equipment and inviting an instructor is a cost-efficient way to reduce burnout and related turnover.
R: Yoga classes are a relevant decision as they will address a critical issue of nurse burnout and contribute to the quality and safety of health care.
T: Yoga classes will not take a lot of time and will not place an additional burden on nurses.
Approach/Implementation
The whole period of the projects implementation process will last for 12 weeks. It will be divided into three phases with four weeks in each phase. The first one will imply the analysis of burnout levels, preparation for classes, and open class signups. The second period will consist of yoga classes, respectively, and the third phase will refer to the evaluation of the interventions results.
At the initial stage, nurses whose level of burnout will be regarded as high will be provided with all necessary information related to yoga classes and their benefits. In addition, they will receive an opportunity to signup if they agree to participate. Moreover, all preparations, including space setup, the acquisition of equipment, and the invitation of an instructor, will be in the first phase as well.
The second stage will include yoga classes that will be conducted by a yoga-trained instructor. Classes will be held one time a week with two sessions in the morning and in the evening on the basis of participants opportunities and preferences. As these classes will target the reduction of burnout, they will be adapted to include relaxation techniques and an introduction to psychology in relation to stress and the ways of its minimization (Hilcove et al., 2021). Moreover, nurses will be provided with instruction that will allow them to practice yoga independently at home.
The third stage will be dedicated to the evaluation of the intervention. While nurses feedback will be collected after every class, their feedback related to the whole program and its impact on their wellbeing and the levels of burnout will be collected after all classes as well (Ciezar-Andersen et al., 2021). In addition, collected data will contribute to the interventions improvement in the future.
It goes without saying that one of the main causes of nurse burnout is inappropriate and stressful working conditions. While yoga classes will help cope with already existing stress, the improvement of the working environment will lead to its prevention. Thus, for more efficient and positive outcomes, a medical facilitys authorities should gather regularly to discuss in what way existing negative policies and regulations may be changed.
Budget
In general, the projects expenditures include new equipment, an instructors salary, upgraded software for signups, feedback, and analysis, and renovations of a yoga space. On the one hand, the implementation requires additional costs for a medical facility. On the other hand, these costs cannot be compared with the costs of employee turnover (Kelly et al., 2021). According to Shaffer and Curtin (2020), the average turnover costs result in hospitals losing $4.4 million to $6.9 million each year (p. 57). At the same time, yoga delivery will cost no more than $307 per participant (Groessl et al., 2020). The total expenditures may be presented in the following way:
Category
Cost
New equipment
$1000
Instructor
$2000
Software upgrade
$500
Yoga spaces renovation
$1000
Total
$4500
Conclusion
The issue of nurse burnout requires particular attention due to this occupational phenomenons devastating consequences. Nurse burnout leads to exhaustion, depersonalization, anxiety, depression, and low self-efficacy and self-esteem that impact the quality of health care delivery and cause employee turnover (Aryankhesal et al., 2019). In turn, the introduction of yoga classes in nurses routing will help them reduce stress and develop resilience. In addition, this decision may be regarded as more cost-efficient in comparison with turnover.
References
Aryankhesal, A., Mohammadibakhsh, R., Hamidi, Y., Alidoost, S., Behzadifar, M., Sohrabi, R., & Farhadi, Z. (2019). Interventions on reducing burnout in physicians and nurses: A systematic review. Medical Journal of the Islamic Republic of Iran, 33(77), 1-8. Web.
Kelly, L. A., Gee, P. M., & Butler, R. J. (2021). Impact of nurse burnout on organizational and position turnover. Nursing Outlook, 69(1), 96-102. Web.
The purpose of this paper is to identify how the health care budget is severely impacted by health care prevention & intervention, fraud initiatives, and insurance reforms. All these are initiatives that have been formulated to reduce the strain that health care is having on the pockets of the majority of Americans. Insurance costs are estimated to cut into the pay of most workers with many families living on the edge as one accident or illness can easily ruin these families financially and emotionally. Past initiatives have been formulated but implementation has become the real challenge as has been noted by both policymakers and also the public. Prevention techniques and methods can greatly reduce the amount spent by families, employers, insurers, and the government in combating common diseases. Another cause of concern is the cost of insurance as many families remain uninsured in the face of increasing risks and unemployment. This paper will detail the successes of initiatives formed through policy and also through insurance companies and how the public stands to benefit in terms of cost reduction.
Methodology
The paper will first address the factors driving the cost of healthcare in America and the budget estimates. We will also look into how the prevention rather than treatment initiatives drive down the cost of healthcare. Insurance companies also stand to drive down the cost of premiums charged to their customers. This is all because the general health of the population is bound to improve when initiatives are implemented.
Conclusion
There is considerable impact on the budget through the above-said initiatives.
Introduction
Health care in the United States is wide and very complex due to the many factors and impact of stakeholders have on legislation and practice. Health care in the country is the most expensive in the world when compared to other health care systems around the globe. Delivery of health care services to the citizens is propagated through partnerships between various healthcare providers and insurance firms that cover the individuals. Up to recent times, unfortunately only a small number of individuals are covered by medical insurance (Cameron, 2009).
One of the biggest challenges and continuous need for preventive care are the challenges associated with demography are continually being faced by health care organizations and governments in the provision of health care to the masses. A growing population in the United States has to be taken care of by sufficiently extensive medical cover and this comes at a cost to both the government and the medical organizations as facilities are stretched to the limit (Behan, 2006). This fact is made more difficult by the increase in the population of women, as it is assumed by researchers and scholars that there will be a higher need for medical facilities to cater more to the women population. A good example of how the population has changed over the years is how in the early 1900s there were about ninety-six men for every one hundred women. In 1979, there was a dramatic drop as we now witnessed forty-five men for every one hundred women and it is estimated that there will be about thirty-nine men for every one hundred women above eighty-five years old in the second part of this decade. Change in demography is also being witnessed through the rising number of the immigrant population from all over the world. With low monthly incomes, immigrant families are placing a strain on the delivery of health care as some minority populations are more prone to certain diseases. It is estimated that a higher concentration of Hispanic women are prone to cervical cancer and this fact has manifested itself in the Texas state where over half of all cervical cancer cases are reported from Hispanic ladies.
Health caregivers have to contend with various factors and challenges to improve health care in America. We should not lose sight of the benefits that the population stands to benefit from if given a chance to ratify the issues we still have with current policies.
Prevention and Intervention Initiatives
One of the main sources of a family budgetary drain on American pockets is the high cost of health care. Scores of families are sickness or disaster outside financial destruction. Health insurance costs lessen workers pay to an extent that is both underappreciated and pointlessly huge. In the same instance, health expenses are overshadowing a mounting share of state and government resources. The United States expends over two and a half trillion on health care annually. This is approximately $8,000 per individual (Green, 2009). This number accounts for roughly 16 percent of the entire economy and is on the rise quickly. If we do not take action immediately, by 2018, almost twenty percent of the economy, more than four trillion dollars will be used upon health care.
. In estimating its budgetary effects, the regulatory body considers any projected savings that can outcome from better utilization of such preventive care as well as the estimated expenditure of that extra care. Although there is a variety of types of preventive care methods, each has a different consequence on budgetary costs. The facts imply that for the majority of preventive services, expanded usage leads to greater and not minimal, medical expenses. For instance, many onlookers point to past historical cases whereby a straightforward medical examination, if given early, can divulge a condition that can be treated at a tiny proportion of the cost of treating the disease after it has developed. In such cases, prevention advances the health of the individual and community at large and shrinks spendingfor that person.
To ward off a case of severe illness, it is usually essential to present preventive care to the majority of patients, who would not have experienced that illness. When the charge of a particular preventive service, is small; costs can mount up rapidly as soon as a big number of patients are taken care of preventively of individuals who would make greater utilization of preventive care. As a consequence, preventive care can have the major payback comparative to costs when it is aimed at individuals most prone to experience a specific medical issue; though, such targeting can be complex as preventive services are generally offered to patients with the possibility of contracting a given illness but have not yet exhibited any signs. Researchers who have studied the results of preventive care normally find that the extra expenses of extensive utilization of preventive services are inclined to surpass the money saved from prevented illness or diseases. An editorial published in the past year in the Times offers a fine synopsis of the existing proof on how preventive care impacts costs.
The researchers concluded that these measures would considerably decrease the expected number of heart attacks and strokes that took place but would also augment the total expenditure on health care as the decisive funds would balance out only about ten percent of the total costs of the preventive services, as the standard. Of specific note, the study wanted to capture the costs and payback of offering preventive care over a thirty-year timeline.
Certainly, just because preventive measures increase the total expenses, this does not imply that it is a dire investment. Specialists have concluded that a big portion of preventive care adds to household expenditure but should be seen and taken as cost-effective, in the long run denoting that it offers clinical benefits that substantiate the supplementary costs: Roughly sixty percent of the preventive services inspected in the evaluation cited above have supplementary costs that many individuals in the health sector believe to be practical in comparison to their clinical benefits. This is also considered by providing that preventive care would signify a net utilization of assets more than as a basis of backing for other activities. (About twenty percent of the medical services evaluations have costs that are big in comparison to their reimbursement, and a small portion messes up health care while totaling to costs.
Challenges to Prevention and Intervention Initiatives
Changing Demography
Challenges associated with demography are continually being faced by health care organizations and governments in the provision of health care to the masses. A growing population in the United States has to be taken care of by sufficiently extensive medical cover and this comes at a cost to both the government and the medical organizations as facilities are stretched to the limit. This fact is made more difficult by the increase in the population of women, as it is assumed by researchers and scholars that there will be a higher need for medical facilities to cater more to the women population. A good example of how the population has changed over the years is how in the early 1900s there were about ninety-six men for every one hundred women. In 1979, there was a dramatic drop as we now witnessed forty-five men for every one hundred women and it is estimated that there will be about thirty-nine men for every one hundred women above eigheighty-fivers old in the second part of this decade. Change in demography is also being witnessed through the rising number of the immigrant population from all over the world. With low monthly incomes, immigrant families are placing a strain on the delivery of health care as some minority populations are more prone to certain diseases. It is estimated that a higher concentration of Hispanic women are prone to cervical cancer and this fact has manifested itself in the Texas state where over half of all cervical cancer cases are reported from Hispanic ladies
Fraud
Health care fraud is an international crisis, widespread in federal and state as well as private insurance programs. It appears that fraud is increasing and the criminal elements who commit it have become more structured and complicated. Unfortunately, very few people know precisely how the costs of health care fraud and how it impacts our budget. We can only guess it to be in the range of billions of dollars annually. Insurance companies and the government are working hand in hand to coordinate anti-fraud initiatives across the country (Jonas, 2008). It is through the establishment of new affiliations with the private sector that the government can be able to address the issue of insurance fraud. The effects of fraud can impact improper expenditures. Fraud also results in uneconomical payments in health care programs. Payments paid to officials and programs for redundant medical services, for declarations made with inadequate records, for disqualified patients, and to ineligible contributors. These are just some of the patterns of inappropriate spending that waste taxpayer cash and push up the cost of health care.
Whether you boast of employer-sponsored health coverage or you pay for your policy, health care fraud inescapably interprets into increased premiums and extra costs to the members, as well as minimized remunerations or coverage (Gerard, 2009). For owners or managers of either private or government organizations, fraud raises the cost of offering insurance benefits to employees and which in turn, raises the cost of conducting business functions. For many individuals, the amplified cost resulting from fraud could signify the difference between offering health insurance for their employees or not.
Nonetheless, financial losses initiated by health care fraud represent only a fraction of the chronicle. This type of fraud comprises of a human face as individual sufferers of health care fraud are easy to stumble on. These are individuals who are oppressed and exposed to pointless or dangerous medical procedures. Or whose medical accounts are infiltrated or whose rightful insurance information is applied to present fallacious claims.
Description of Health Care Fraud
The bulk of health care fraud is perpetrated by a small minority of deceitful providers. The actions of these fraudulent few eventually serve to smear the reputation of possibly the mainly trusted and valued members of our communityour physicians.
Regrettably, the trade of these evildoers is to gain the assurance that has been delegated to them to gain and commit unending fraud on a very large scale (Bucy, 2007). And in envisaging fraud methods, these individuals have extra time and access to being innovative as they have contact to a vast array of variables from which to imagine all nature of the unlawful activity:
The total populace of our countrys patients;
The complete collection of possible medical conditions and handling methods on which to support bogus claims; and
The capacity to distribute fake billings amongst various insurers at the same time, plus public programs such as Medicare and Medicaid, escalating fraud earnings while reducing their odds of being spotted by any sole insurer.
The most common types of fraud committed by dishonest providers include:
Billing for products and services that have never been delivered. This is done by both, use of actual patient records, occasionally gained through identity theft, to formulate complete claims or by filling claims with costs for actions or services that have never taken place.
Billing for more costly services or measures than what was offered or executed, commonly known as upcoding , this is erroneously charging for treatment at a higher fee than was offered ( often requiring the additional price increase of the patients analysis code to a more grave circumstance consistent with the sham process code).
Performing medically redundant services only for the reason of creating insurance expenditure observed frequently in nerve-conduction and further diagnostic-testing formats.
Misrepresenting a patients findings to substantiate tests, surgeries, or other procedures that are not medically needed.
Charging a patient extra than the co-pay sum for prepaid services
Accommodating rewards for patient recommendations.
Ignoring patient co-pays or deductibles and overcharging the insurance provider or benefit plan.
Mitigation of Health Care Fraud
An example of fraud is being mitigated is through Mergers and acquisitions between HMOs and other care providers has been on the rise in the past few years and this can be shown through the numerous consolidations and exchange of assets between the organizations. There are different criteria of mergers and acquisitions but the major categories are ones between practitioners organizations, who are mostly primary caregivers. Health care providers, (outpatient facilities, nursing homes) and payers (Browley, 2007). This affords the merged organization the ability to expand their reach towards other people and also increase and develop the range of services offered to their clients. Both the organization that has been acquired and the acquirer profit from the initiatives. The situation has been fuelled by a condition where health care funds have been diminishing rapidly for some years now and this has necessitated the organizations to come up with better strategies in acquiring managed care monies. Apart from economies of scale a merged organization also benefits from better negotiations with insurance firms and employers.
Fraud has driven up health care costs, and in some cases, a patients life to some extent has been put in danger. Turning around the issue will entail a long-term, sustainable solution. It will require us to consider the right approach to be successful in turning over deception and abuse. It is only through coordinated efforts between the public and private sector and the general population to come together to eliminate this vice. The population should be more vigilant about their medical records. Any cases of fraud should be reported and protection given to the whistleblowers as the fraudsters have the capability of doing anything to protect their illegal acts.
Following the introduction of the National Summit on Health Care Fraud, The fraud Summit assisted in publicizing the governments advancement to improve federal inter-agency collaboration to target fraud and categorize methods to strengthen these efforts. This comprises enhanced and faster methods of exploring claims data to distinguish fraud, impeach perpetrators and use the current civil and administrative remedy to improve and reimburse back funds money to the Medicare Trust Fund, Medicaid programs, and other sufferers. The Summit has also encouraged an innovative structure of strategic ideologies to progress a CMS program integrity operation.
Case Study
Insurance Reform
Health insurance reform was enacted in March 2010. The new regulations do little to ease the fundamental pressures of rising costs but do considerably widen health insurance coverage among the population. Consequently, associations in organizations should make better financial plans for their employees healthcare benefits and remunerations (Rushefsky, 2010).
The act will expand the health insurance coverage of all citizens of America. There is a command that all persons, with definite exceptions, either be insured by employer-sponsored group plans or acquire self coverage. The command is a feeble one, though, because the fine imposed is less than the fee of acquiring an insurance cover. On the employers side, officially there is no directive to offer employees any insurance coverage.
A Delicate Grandfather Clause
Whilst the new Act grandfathers in health policies in subsistence as of the March Twenty Third which is the enactment date, the grandfather position is delicate and a little deceptive. Its deceptive because the law necessitates several reforms to grandfathered policies. It is fragile as any reforms done to a health plan, except totaling or deducting employees and individuals obligated by the law, fails grandfathered positions. In other words, if a manager or owner adjusts a grandfathered policy to limit premium rise by augmenting copays or deductiblesa characteristic policy-renewal incidencegrandfathered status is misplaced (Henderson, 2010).
Almost certainly, payments issued on grandfathered plans are set to be amplified, not just owing to normal costing pressures; this is also for the reason that regulations entail definite amendments to all policies and plans. This also includes grandfathered plans. Those changes, collectively with probable effectual dates, contain the following:
Broadening insurance coverage to members kids up to the age of twenty-six (effectual for plan years commencing on or after September Twenty Third, 2010);
Eliminating lifetime restrictions on vital health benefits (September Twenty Third, 2010), which are to be described in policies;
Allocating minimum yearly restrictions via guidelines (September Twenty Third, 2010) and later barring yearly restrictions (January First, 2014) on vital health benefits ;
No rejection of insurance coverage for preexisting provisions for children under nineteen (September Twenty Third, 2010) and afterward none for any person (January 1, 2014);
Apart from fraud and material falsifications, no rescission of insurance coverage (September Twenty Third, 2010);
The waiting stage to go into plans cannot go beyond ninety days (January 1, 2014);
For owners or managers with more than two hundred employees, automatic enrollment into the plans (almost immediately as the regulations are issued).
Requirements for New Plans
These changes will have an effect on charges, and to control costs, owners and managers have to make the necessary proposal changes to numerous, save for most, plans. When this occurs, the grandfathered position will be misplaced (Northrop, 2008). New plans have to include several extra features, together with:
No cost distributioncopays or deductiblesfor preventive care, which is to be described in policies (September Twenty Third, 2010);
Assured accessibility and renewability (January First, 2014);
Restrictions on distributing costs with members. Part of the prerequisite is that members may not be obligated to shell out additional cash than the health savings account caps, currently $5,950 for one person and $11,900 for family insurance coverage (January 1, 2014).
Many reforms will occur almost immediately as plan renewals come to effect in the final quarter of this year. Under these situations, association managers should arrange to get together with their health insurance brokers in advance and more regularly than usual to get a deep perceptive of the impact on their budgets.
That credit, which totals to twenty-five percent for tax-exempt institutions (Thirty-five percent after 2013) of the sum utilized by the owner or manager of the business on health insurance, is relevant for those with less than Twenty-five FTEs who have a standard reimbursement of fewer than Fifty thousand dollars. The highest credit affects the organizations with ten or fewer employees and an average reimbursement of twenty-five thousand dollars, and phases out fully at the twenty-five employees, fifty thousand average reimbursement stages.
Conclusion
The cost of health care is bound to come down when these initiatives are carried out by a collaboration of honest health providers and the government. This will ensure that the bulk of the population is covered sufficiently and that benefits and compensation are rewarded to those who need them. Many patients will continue to suffer if the fraudsters continue to perpetrate their trade of falsifying records which jeopardizes the health and safety of many individuals.
Prevention initiatives also lead to further reduction of costs on family and government budgets. Savings will be achieved in the long run if these initiatives are implemented as soon as possible. Many persons are bound to benefit also health-wise as diseases can be detected earlier and medications administered in time.
References
Behan, P. (2006). Solving the health care problem: how other nations succeeded and why the United States has not. California: SUNY Press.
Browley, R. (2009). Healthcare fraud: auditing and detection guide. London: John Wiley and Sons.
Bucy, H. (2007). Health Care Fraud. New York: CRC publishers.
Cameron, E. (2009). Essentials of health care finance. Perth: Jones & Bartlett Learning.
Gerard, P. (2009). National health insurance in the United States and Canada: race, territory, and the roots of difference. Vancouver: Georgetown Press.
Green, M. (2009). Health Care Prevention. London: Oxford Publishers.
Henderson, W. (2010). Health Economics & Policy. Washington: Cengage Learning.
Jonas, S. (2008). Health care Delivery in the United States. Washington: Springer Publishing Company.
Northrop, E. (2008). Health Insurance Resources: A Guide for People with Chronic Disease and Disability. New York: Demos Medical Publishing.
Rushefsky, M. (2010). Health care politics and policy in America. New York: M.E. Sharpe.
The great recession has resulted into increased cost of living characterized by a general increase in prices of items. According to McLaughlin, the effects have also been felt by the learning institutions.
Many colleges and universities have experienced huge losses, forcing them to make major decisions and adjustments to compensate for them. This paper gives a summary of McLaughlins opinion in his article Colleges response to budget issues will affect students .
Among the major adjustments and decisions that colleges have employed is the amendment of their No Loan policies. Prior to this major amendment decision, a number of colleges in the United States offered grants and scholarships to middle income earners to facilitate their studies.
The scholarships and grants program proved expensive due to the endowment losses that most of these universities encountered. As a result, they all started reviewing their scholarship and grants policies and some of them preferred to scrap of their No Loan policies. In addition, these colleges and universities increased their preference for the richer out-of-state students to the low income in-state-students.
These universities finally resorted to doing away with more faculties staff, and reducing student service option with an aim to accommodate the budget shortfalls. These layoffs have resulted into fewer courses being offered in the colleges and universities, elimination of majors, and delays in student service areas.
McLaughlin advises that students in search of higher education should start by finding out the financial aid policies available in the colleges and universities and if these programs are prone to such changes.
The students should also find out the popularity of the major they intended to pursue in their college of choice. If it is expensive they should opt for another college or take another more affordable major. To ameliorate the impacts of these changes, students may find it cheaper to live off campus with a roommate instead of the expensive in-campus accommodation.
In my opinion, the effects of the recession are widespread and no one is immune from them. The changes the universities and colleges have put in place are an evidence of this strain, and the students can only cope if they employ cost-effective measures. These measures should be able to favor them in this period of budget cuts.
Works Cited
McLaughlin, Sharon. Colleges Response to Budget Issues Will Effect Students. EzineArticles, Dec. 2009. Web.
I want to express my views to you on regard to the new education budget-cutting scheme. The decision, according to me, can really do harm to the students. And this is really going to be a matter of worry for both the schools and the parents who want their wards to get a good education.
Sir, education is the only important and secure investment for a childs future. It makes a person worthy of living rightly. And in todays really competitive world the decision of budget-cutting from the field of education is nothing but a really hasty decision. There are a lot of fields in our society where the budget-reduction can be done, and these reductions will not affect society in many cases. For a better and developing community, it is not wanted that the policies on education remain confused. Sir, money can not really solve all the problems of a community, but less money in education funds means a lot of future problems will arise (Lamb 118). Which will ultimately have to be faced by the community.
A school has always been and always be mixed bag of students. There will be always some students who will be interested in studies. And they suffer most through this decision. Along with the development of their intellectual properties will stop to develop as it develops in the modern educational system, and we are responsible to give them the best education we can, and here we are cutting the budget to maybe fulfilling some other things.
Sir, the education system is not a place to gamble decisions. The general people must protest this decision. The best for our own self that it decision gets reversed and some more funds get allocated for education and hire professions who will really help to develop the education system and ultimately be much help to the students.
Works Cited
Lamb, David. Education for the Mass: The path of enlightenment. New Delhi: BLT Press, 2008.
Letter 2
Sir,
If the development of society is considered as a spear, then education is the spearhead of this instrument. And the spearhead is needed to be sharp. Education is the most important aspect of every growing child and the idea of cutting the budgets on education is not really a very wise decision according to me. The world is now facing some serious economic problems due to recession and other problems, but cutting the educational budget only extends these problems, not solves them.
It is a paramount duty of the state to make proper arrangements for education for everyone in the state and the constitution also highlights the fact. The state while making the budget can cut on different things but must not compromise with the basic requirement of education. The cost-cutting will thoroughly affect the system of education. When the decision-makers have to think about making new channels for studies, or importing teachers from other states, they are constraining the budget. It will affect the students immensely, as some important extended classes have been cut off due to budgetary constraints, also there are fewer teachers (Lamb 128). No one has the right to play second fiddle with the future of the youth. And if education is not proper, the prison system will be filled up by the uneducated youth, who will have nothing to do in life without proper education, and for earning a living have to play with the law.
Sir, public education is the most important foundation of a country. It is the stepping stone for higher education, and the dream one sees to become independent. There have been a lot of actions for which we have not earned anything. But please do not cut the education budget, because, in the process of saving funds now, we will only damage our future and the loss will be irreparable for both our society and the country.
Works Cited
Lamb, David. Education for the Mass: The path of enlightenment. New Delhi: BLT Press, 2008.
Sequestration has many meanings depending on the field in which one uses it. For example, in the legal field, this term means a process of seizing properties on behalf of the state or creditors, while jury sequestration is the process of isolating a jury. On the other hand, budget sequestration is a legal process that entails invoking routine spending cuts. This paper will look at the latter concept of sequestration. The United States added this method in its Budget Control Act of 2011 as a tool for controlling the federal budget. This legal procedure became operational in the 2013 fiscal year.
The federal government aimed at controlling its expenses in order to curb the ceiling national debts. The entire process deals in applying spending cuts in all sectors of the economy. As a result, budget sequestration intends to limit the size of the US budget. Clearly, this procedure of setting a hard cap on federal spending has mass effects on all programs and departments by an equal measure. This research paper analyzes the effects that sequestration has on the budget. Moreover, the paper will look into the impacts of sequestration on government agencies and the operations of the government.
Introduction
The fiscal policy of budget cuts to certain levels on the US spending took effect on March 1, 2013. This followed the ratification of the Federal Budget Control Act of 2011; the process targets to reduce federal spending by close to $85.5 billion during the 2013 fiscal year. In July 18, 2012, a national debt of $15.882 trillion and the $15.003 trillion GDP at the end of June 2011 sparked discussions in the Congress thereby necessitating the Congressional Budget Office (CBO) to come up with policies that could take the nation back to a sustainable fiscal discourse (The National Association of Regional Councils, 2012). The nations debt had been increasing by over $500 million annually since the 2003 fiscal year.
Clearly, the US debt crisis was the key reason for the passing of the Budget Control Act of 2011, which President Barack Obama signed on August 2, 2011. The Act had to institute legislation that was to cut the debt-ceiling crisis by $1.2 trillion in the next decade. The CBO established a Congressional Debt Super Committee that was tasked to come up with the procedures of making reductions on the federal debt. Notably, the disagreement within the Super Committee led to automatic sequestration.
The government was to split the mandatory cuts across the board equally between domestic and defense spending. The federal government plans to reduce their spending for the years 2014 to 2021 with a similar margin in all the subsequent years. On the other hand, the government will record an increase in outlays by over $238 billion annually up to 2023. Notably, the rate at which the outlays will increase will be lesser than the past fiscal years owing to budget sequestration. The federal government applied this process in order to curb increasing debt margins. For instance, US targets to reduce her debts by over $1.4 trillion and receive interest savings of $228 billion from spending cuts on outlays of $996 billion. Some of the programs and departments that budget sequestration targets include Social Security, Medicare, and Military pensions.
An example of reductions in budget spending is in Medicaid, where the sequestration procedure will reduce the spending by 2% per annum as compared to the initially planned level (The National Association of Regional Councils, 2012). Even though this procedure targets to reduce the federal debts and stabilize the economy from a long-term perspective, it has received criticisms from several organizations. Some people argues that the timing is early and should have waited for the economy to improve while others want the federal government to increase the spending cuts in order to clear the debts within a short span. At the time sequestration was taking effect, the President was not clear on the issue, as the House remained divided. The House speaker cited a lack of leadership at a time when the nation was at crossroads on the next course of action.
Effects of Sequestration
The GDP
According to the non-partisan Congressional Budget Office (CBO), sequestration will lead to loss of close to 770,000 jobs by the end of the 2013 fiscal year due to the $85 billion cuts on the federal budget. However, some economists have disagreed with the CBOs projection; they claim that the projection is too far from the actual effects. They contend that sequestration will lead to job losses that total to 300,000 since the federal government agencies have high chances of reducing the working hours in order to prevent layoffs (The National Association of Regional Councils, 2013). Evidently, sequestration will lower the budgetary allocations to programs that touch the lives of the American citizens. According to economists, government contract workers are at higher chances of losing their jobs than any other group of workers due to the sequestration of the budget.
Presently, the economists argue that it is not easy to determine precisely the consequences of automatic federal budget cuts on the layoffs since there are no pieces of information, which exemplify the size of the government employees who are on contract. The actual impacts of sequestration on contractual jobs are obtained by taking into account the amount of savings that the federal government foresees to obtain after deducting the savings they expect from the overhead costs cutbacks. The economists are still not convinced on whether this effect of sequester cuts will occur instantly or gradually throughout the year. Evidently, job losses will pressurize the unemployment rate on the upward trend since the entire process will lower the growth of payrolls, thereby undercutting earnings.
The economists agreed that the sequester cuts would affect the hours worked heavily which will result to undercut in net payments. Even if the economists do not agree with the CBOs position of 700,000 job losses, it is factual that the sequestration process will lower the payouts due to the decline in the number of working hours. Further, CBO projects that the automatic spending cuts will knock 1.5 points from the GDP growth for the 2013 fiscal year. On the other hand, Stephen Fullers prediction has put the loss of the FY2013 at $215 billion, which represents a two-thirds decrease on Real GDP growth rate (The National Association of Regional Councils, 2013).
The Transport Sector
From another perspective, average Americans felt the effect of the automatic spending cuts in the month of April when there were massive flight delays since the Federal Aviation Administration (FAA) experienced unpaid leave for its employees. All the FAA workers have to take two furlough days during the pay season up to the end of this year as a mode of recovering the budget cuts on the agency in the 2013 fiscal year. Moreover, the air traffic controllers have to take one day off for every 14-work days starting April 22 to September 30; this totals to 11 furloughing days (Ehley, 2013). FAA targets to use these moves as options of absorbing the cuts. The delays at the Custom and Immigration departments are also forcing the White House to cancel most of its tours.
In addition, the budget cut affected low-income Americans in areas such as health services, education, and food industry. By mid-April of this year, over 70,000 preschoolers had stopped attending Head Start, several food outlets had stopped operating, and there was reduction in health services among the low-income Americans, as clinics were turning away cancer patients under the Medicaid program (Ehley, 2013). Some analysts have viewed the Congress idea of cutting spending on some programs as discriminative in comparing the delayed take offs that middle-class American could experience at the airports to lack of food and housing by the poor Americans.
Medical Sector
On the medical field, economists expect the sequestration process to have an impact at the National Institutes of Health (NIH). In comparison to the 2012 fiscal year, this government agency will record a fall in budgetary allocations by $1.70 billion from the initial $30.85 billion. Obviously, NIH budget shrinks due to the automatic spending cuts and the new political reality that have affected the spending on conferences and travels. Therefore, the agency is focusing on cutting continuing grants that it had been offering to a commitment level that is manageable within the aspects of the sequestration process. In line with the sequester cuts, government organizations have also started to announce their sequester arrangements. Interestingly, NIH has implemented numerous programs that have helped to avoid furloughs (Ehley, 2013). Defense Sector and the Judiciary
Additionally, sequestration has led to substantial effects on the defense sector. For example, the 2013 sequester expects a cut of over $40 billion in the defense sector. The Navy and Air Force department of the US Military plan to cut the purchases on aircraft by $3.5 billion, $13.5 billion cut on services that touch on military operations and a cut of about $6 billion on military research services. In addition, the sequester initiative will cut military benefits such as TRICARE program and the tuition support program (Impact of sequestration on federal agencies, 2013). The cuts on defense and non-defense will result to loss of jobs in the military both directly and indirectly.
Stephen Fuller predicts a total number of 2.13 million jobs losses. Markedly, the states will experience different levels or numbers of job losses since the sequestration will also affect the states at different levels. For instance, a state like California expects job losses of over 200,000 while Wisconsin expects job losses between 10 and 100,000. The sequester cuts impacts greatly on defense and domestic discretionary hence resulting to decreases in job absorption rates. This initiative is also expected to reduce the overall payouts among the long-term unemployed person by $450.
The budget cuts have also made Federal courts close on Thursdays implying that they do not operate on Fridays. The courts are furloughing 21,000 employees for 15 working days and cutting spending on information and communication systems within their premises. Federal courts in San Francisco Bay will remain closed for one day every month from April to September as a way of absorbing the automatic federal spending cuts. The Judiciary, which has 33,271 employees, has received a budgetary allocation of $5.2 billion in the 2013 fiscal year.
The Judiciary plans to cut close to $350 from its initial funding level. This action will result to 15 furlough days (Furlough Watch: Agency-by-Agency Impacts of Sequestration, 2013). Such federal departments register long queues that do not materialize leading to delays in service provision. The effect resulted from the layoffs that these organizations have undertaken. Notably, some of these government agencies have opted not to fill the vacant positions as a strategy to operate within the automatic federal budget cut. Sequestration has also led to closure of Public Broadcasting transmitters as the government bodies cannot maintain the systems under the sequester cuts.
The Broadcasting Board of Governors (BBG), on the other hand, does not intend to hire any workforce and even foresees to eliminate employees bonuses and reduce broadcasts. Notably, BBG is one of the federal agencies that intend to function without practicing furloughing. The Government Printing Office (GPO) has 2,378 employees and expects to operate within the $83.6 million budget. The budget cuts have not only forced some agencies to suspend their employees contributions towards the retirement plan but also use furloughs as a means of making employees absorb the shock on their pay cuts. For instance, at the Salt Lake Community Action Program, the executive director agrees that they are employing the above tactics as a way of going through the tricky budgetary times.
In Alaska, the South East Alaska Regional Health Consortium board members unanimously agreed to close the Bill Brady Healing Center, which has been treating diseases related to alcohol and other drugs in Alaska (Furlough Watch: Agency-by-Agency Impacts of Sequestration, 2013). Clearly, the cuts on government spending have reduced the services that government agencies offer to the public. On the Housing and Urban Development, over 120,000 Americans are projected to lose the support from Voucher program and there are possibilities of removing the formerly homeless Americans from their present houses. HUD uses these reactions as a means of recovering the cut funds. This agency has 9,594 employees and does not plan to furlough the employees in order to meet the costs of the cut. However, it has given out 10 days between May 10 and August 30 in which it will not offer services to the public.
Education Sector
The education sector has not been exempted either; for instance, there have been proposals within the military to reduce the school days to four in a week. The sequester cuts have massively affected the operations of these government agencies. The entire teaching fraternity also expects to face furloughs in the next couple of months. The billions that the budget has cut from the military spending could force Fort Bragg schools to adopt the above plans. The spokesperson Commander Leslie Hull-Ryde of the Department of Defense revealed that the sequester cuts will lead to closure of military schools during the furlough periods, which does not exempt the military schoolteachers (Furlough Watch: Agency-by-Agency Impacts of Sequestration, 2013).
However, Leslie Hull-Ryde assured the stakeholders that the Department of Defense has prioritized on minimizing the repercussions of the automatic budget cut on their students in order to enhance quality education for all students thereby preserving the institutions image and status. In Maryland, the budget cuts have slowed down various community outreach programs that the Army community has been conducting at Fort Meade. The Army community also expects to stop the aerial demonstrations and military open houses until April 1, 2013. The Army Parachute Team was also expected to stop public performance until the next fiscal year, and a ban on house members from using military planes in their trips has been implemented.
Further, in the Cincinnati-Hamilton County Community Action Agency, coordinators have figured out how they will cut the number of children under the Head Start program. Clearly, the plan may affect the number of learners that study through the program, the number of teachers and bus routes. The budget cuts have worried most families that have been relying on the Head Start program in educating their children. Michelle Hopkins of the Community Action Agency wonders whether the federal budget cut may result to sub-quality care for the Head Start program or unskilled teaching force that will be ready to accept the pay cuts, but offer no skills to learners needs (Furlough Watch: Agency-by-Agency Impacts of Sequestration, 2013).
The CAA announced that federal funding cuts have made over 200 kids drop out of the Head Start program in Cincinnati-Hamilton County. In addition, close to 10 classrooms will have fewer teachers than before the sequester cut since over 20 teachers are likely to lose their jobs. The federal funding cuts expect to save about $1 million from the Head Start Program. Some of the targeted avenues under the program include transportation routes, teachers payouts, and the students fee.
Another example is the University of North Carolina that expects to cut over 30 work-study jobs in the subsequent academic year. The University intends to save $84,000 through the program in order to maintain the services within the institution. However, the University management holds that the directive will not reduce work opportunities for the affected students (Furlough Watch: Agency-by-Agency Impacts of Sequestration, 2013). The University has also revealed their frustration towards the governments failure to work together thus forcing them to come up with their own means of handling issues surrounding the new budget. The work-study program has enabled students to have jobs and study at the same time. The sequester cut, therefore, will reduce the rate at which students gather the industrial working skills while in school.
The failure by Congress to enact legislation that was to decrease the government debts by March 1, 2013 led to the automatic federal budget cuts. The Federal Student Aid Programs have also felt the pinch of sequestration. The Direct Loan Program, for instance, will increase its interest rates that it levies on borrowers as from March 1, 2013. The Unsubsidized or Subsidized Direct Loan will attract an increase of 0.051% in interest rate to 1.051%. On the other hand, Direct PLUS Loans will register a fee increase of 0.024% from the initial 4.0% thus making both parent and graduate student borrowers to adjust the repayment interest (Hananel, 2013). The Education Department has notified borrowers of the alterations and offered vivid explanations on how it has reached on the fee increase. The budget cuts have also not exempted the Iraq and Afghanistan Service Grants from experiencing reductions of the amounts that beneficiaries receive.
The disbursements that the Department of Education conducted after March 1, 2013 were decreased by 10.0% of the original entitlement amount. For example, the 2013-2014 award of $5,000 will be reduced to $4,500 due to the 10.0% deduction. Moreover, the Teacher Education Assistance for College and Higher Education (TEACH) Grants has reduced the disbursement for eligible students by 7.1% effective from March 1, 2013. For instance, an award of $3,000 attracts a reduction of $213 thus resulting to an award amount of $2,787. Even though the Pell Grant Program is exempted from the cut, it has to stabilize the maximum award that it gives in each fiscal year. The program has been increasing its grants with a large margin, but will have to remain within a given limit due to the sequester cuts. For example, the Department of Education will have to maintain the maximum award of 2012-2013 at $5,500, and the maximum grant for the 2013-2014 at $5,645 (Furlough Watch: Agency-by-Agency Impacts of Sequestration, 2013).
Department of Security
The federal government holds that the automatic $85 billion cut on the budget will reduce the ceiling trillion debts that have accumulated over the past years; therefore, the American citizens must be ready to cope up with the effects. Homeland Security Secretary Janet Napolitano held that the sequester cuts will reduce their services, cause furloughs and force them to hire freezes. The management at Homeland Security has viewed budget cut as having high possibilities of affecting their activities at the Customs and Border Protection. Specifically, all Customs and Border Protection employees are receiving reduced overtime cuts and have 14 non-consecutive working days that began on April 6. On public services, the agency has released 1,000 illegal immigrants in order to reduce expenses (Hananel, 2013). According to Immigration and Customs Enforcement chief John Morton, some of the immigrants were financial criminals and robbers. Clearly, sequestration affected the operations of ICE in enhancing national security. Some of these foreign national offenders had posed the highest level of risk to the entire world.
The National Aeronautics and Space Administration (NASA) on its part expects over 20,500 contract workforce to lose their jobs in line with the sequester policy. The administrators intend to cut most expenses in education and public outreach programs. Some of the programs that NASA expects to enforce immediate cuts include NASA public programs that aim at reaching out to the public and stakeholders, videos and educational workshops. Moreover, NASA has experienced reductions on research grants and cancellation of some key projects due to unfilled vacancies within the workforce. The National Science Foundation (NSF) has cut over 1,000 grants intended for research and close to $35 million contractual funds that have been supporting the environmental and oceanographic research.
Environmental Aspects
Two months into the sequestration, government agencies focus on how to relocate spending in their operations following the budget cuts across the board. The Environmental Protection Agency has reacted to the budget cuts by furloughing its employees. The 18, 655 EPA employees are facing furloughing for a period not exceeding 10 days. Here, the management layoff workers temporarily, but the move does not affect the pensions and health care coverage. Therefore, no employee is fired in furloughing. Federal agencies like the Government Accountability Office and the Small Business Administration had initiated plans on how to counter the automatic spending cut hence did not employ the furloughing method of adjusting to the budget cuts across all programs (Hananel, 2013).
The GAO, which has 2,975 employees planned to cut costs in areas like IT and travel spending in order to work within the $526.2 million budget allocation. The agriculture Department that has over 100,000 employees received a budget allocation of $155 billion this fiscal year. In the Food Safety and Inspection Service, close to 2,100 employees were to undergo furloughing, however, the continuing resolution bill that the Congress passed saved the employees. Farm Service Agency officials argued that the stopgap bill has made it possible for them to recover the budget cuts from other avenues like conferences and travels hence assisting the agency to prevent furloughing.
Other Agencies
The Interior Department experienced up to 14 furlough days on its employees. As a result, there were delays on issuance of drilling permits and leases. The fish restoration program had a cut of $44 million on the grant money for all the states (Impact of sequestration on federal agencies, 2013). The Yellowstone National Park has been beginning its operations late during the spring season in a bid to save money. Several Parks are operating for fewer days than before the sequester cuts took effect and even closing their visitors centers. For example, the Bureau of Indian Affairs schools have reduced the schools days due to sequestration. The Treasury, of all the agencies, expects to furlough its employees for 5 days after the end of the tax-filing season. According to IRS, the federal budget cuts have affected the tax collection process.
The State on its part has experienced delays in visa processing times and security provision for diplomats and ambassadors that travel abroad. The Economics Development Administration has to furlough all the 206 employees for a period of six days in order to work within the 2013 budget allocation of $220 million. The Social Security Administration (SSA) officers close their offices at noon on Wednesdays and half an-hour early for the remaining days. SSA has also lost over 100 employees who were working at the front-line due to attrition. From another perspective, the job losses due to sequestration have brought harsh economic times to the current workforce in the United States.
Small Business Administration has also experienced the effect of sequestration, as it cannot process close to 2,000 loans that have been supporting 22,700 jobs in the small business enterprises. Consequently, business-counseling centers across US have recorded reductions in the number of clients as a way of absorbing the shock of budget cuts. The Office of Management and Budget furloughs 485 workers and expects the affected employees to take their unpaid vacations between April 21 and September 7 as a way of recovering the 5% reduction in its budget. The National Oceanic and Atmospheric Administration (NOAA) has also felt the effects of sequestration and, therefore, has reduced spending on training, management positions and travel and, at the same time, leaving over 2,500 positions unfilled.
The federal workforce at NOAA has four furlough days. On the energy sector, at the Hanford Nuclear Reservation, over 250 employees lost their jobs and there are expectations of furloughing more than 3,000 workers for several weeks. Federal labor agencies like the Mine Safety and Health Administration expects to layoff 30 lawyers by June 1 after the closure of two of its offices that handle cases of mine-safety appeals (Impact of sequestration on federal agencies, 2013). The National Labor Relations Board had predicted 22 furlough days for its employees and reductions in staffing levels during job trainings.
Conclusion
The research paper has discussed the effects of sequestration on the budget, government agencies, and their functions. However, some economists were in contention that sequestration can be avoided from a technical aspect. They proposed that Congress could have passed legislation to reverse the legal requirement in the BCA thereby making President Obama sign it before January 2, 2013. The National League of Cities had urged the President and Congress to avoid sequestration and adopt a non-partisan plan to minimize the debt deficits and balance the necessary reductions in spending in order to enhance revenue (The National Association of Regional Councils, 2012).
In addition, the National Association of Counties did not support the move; it argued that Congress would not be able to reduce the trillion-budget deficit by applying cost reductions on domestic and non-military discretionary programs. The association further held that Congress should not shift costs to counties; for example, expected cuts on Medicaid as a way of accomplishing debt deficit reduction. Even though the automatic cut on the federal budget is underway, it received negative receptions from the majority of American citizens. Sequestration has caused numerous impacts across departments and programs in the US barely two months into action. The automatic federal cuts on the 2013 budget and the subsequent ones have caused furloughs and layoffs across the government sectors.
References
Ehley, B. (2013). Sequestration Effects On Government Business Insider. Business Insider. Web.
Furlough Watch: Agency-by-Agency Impacts of Sequestration. (2013). Government News, Research, and Events for Federal Employees GovExec.com. Web.
Hananel, S. (2013). Furloughs Vary Widely At Government Agencies Amid Sequestration Cuts. The Huffington Post. Web.
Impact of sequestration on federal agencies. (2013). Washington Post. Web.
The National Association of Regional Councils. (2012). Understanding Sequestration and Its Impact on Local Governments & Regions. mwcog.org. Web.
The short term and long term benefits of having deficits
There are myriad of reasons why federal deficits would be desired. As a matter of fact, the benefits are often put into consideration when exploring the possibility of balancing the United States government budget. Generally, there are benefits which are obtained from deficits attached to government spending in expenditure areas like salaries, defense, financial aid and cash flows. According to Huntley (71), prevalence of deficits does not always attract negative outcome since there are some benefits derived from them. These benefits are divided into two categories namely the short and long term benefits. The short term deficit has its own merits.
For instance, such deficits assist in solving immediate monetary problems that a government may be facing. On the other hand, long term benefits that are associated with deficits in government budgeting are usually spread over a long period of time. Huntley (56) notes that the most important consideration when discussing the benefits accrued from this type of deficits is that the economy is not slowed down by any margin contrary to the perception of some economic critics.
Short term benefits
The federal, state and local deficits can be of great help to modern generation. For example, borrowing in order to finance the federal and national governments can quickly generate employment opportunities to those who are jobless. When the unemployed youths secure jobs, it implies that they can economically sustain themselves instead of indulging in other anti-social activities such abusing prohibited drugs. Huntley (35) argues that deficits can cause interest rates to rise significantly. When interest rates go up, it is possible for major institutions to invest huge sums of financial resources for purposes of reaping greatly in the long term. Therefore, federal and national borrowing can help solve some immediate problems in the country. For example, it is possible to allocate finances in areas that require huge funding. If a government corporation is collapsing, it is possible secure more funds to it so that its activities can be revived as part and parcel of boosting productivity.
Long term benefits
In most cases, deficits are meant for long term measures. According to Huntley (2011), some of the major investments that are undertaken with deficits include social security and infrastructural development. In essence, budget deficits are usually associated with trading taxes and which means that the country and the region would have long term benefits. The public is capable of spending wisely and saving to the maximum. When considering financing the defense, it is a long term measure of ensuring border security. With increased terrorist threats and attacks in the world, it only makes sense for a country United States to invest a lot in border security. Enhanced border security means that the country would continue in its productivity with little or no fear. As well, the short term measure of putting the young ones in the country with enhanced sustainability is a long term benefit. When the current generation is well financed, it means that the future of the country is in good hands.
The short term and long term costs of having benefits
In most cases, deficits are known for negative outcomes rather than merits. There are quite a number of accrued costs that are usually attached to national and federal budget deficits. Even though there are some benefits attached to a well financed defense and social security in addition to infrastructure, the overall cost is huge. According to Kennedy (30), a massive rescue of a national or federal economic growth has its negative.
Majorly, budget deficits means putting the current government and future governments to always be in huge debts. Kennedy (329) is of the view that the government would result to using some crude measures so as to cushion itself from being in huge debts. For example, it may result to adjusting taxes upwards which means that the population would be compelled to give more than usual. The overall cost of having budget deficits is putting the general population in more burdens.
Short term costs of deficits
There are short term disadvantages of having budget deficits. These are the costs that are felt by the government and the general population almost immediately after the deficit has been incurred. Traders, creditors and investors get into high alert that the government may fail to pay this amount. For example, if the government results to raising Central Bank lending rates, the banks in the country may increase their lending rates. The creditors therefore will have to pay more to refinance their loan in banks. The increase of interest rates by the government may mean that the exchange rate would depreciate. There would also a decline in the confidence which can significantly reduce the prices of stocks and household wealth. As well, this form of financing the budgets may results to increased costs of doing and financing business. Significantly, it also means reducing domestic spending of the private investors in the country. Majorly, the short term costs are on fear of general population whether foreign or local in investing more in the country.
Long term costs of deficits
Perhaps the short term costs may not mean a lot to the government and the country which has heavily borrowed to finance the budget. The long term costs become the real costs. This is because borrowing can mean putting the governments in future problems. In most cases, the borrowing of the government to finance the budget is a mutual agreement to repay after a long period. This means that the government borrowing may not be the one to pay. According to Kennedy (23), the real cost is in a long term uncertainty on sustainability of the government. The investors and business owners may have a long term fear that the business would not be good in the country. If investors opt to go, it means that the government would have to look for other means of sustaining itself. The projections given in the budget become uncertain simply because there is no certainty that the government would be able to reduce the deficits.
The costs and benefits of occasional deficits (as opposed to regular, annual deficits)
Some deficits are occasional as opposed to well planned budget deficits. Occasional borrowing is done to finance solve problems immediately. For example, if there is a crisis in a state corporation, the government may borrow to put the company on a winning track again. Such occasional deficits are bad because they are haphazardly done. Haphazardly done borrowing can add more uncertainty than deficits that are done with full knowledge of the public and other interested parties in the country. However, there are some benefits that are accrued to having such kind of benefits as opposed to regular or well planned deficits. Just as it is the case of putting uncertainty when there is a prompt borrowing for a budget, there could be certainty because the people in the country would manage their immediate problems. For example, the government may decide to have deficits for the purposes of increasing employment of youths in the country.
Benefits of occasional deficits
Heniff (211) is categorical that the occasional deficits are not always problematic. Such kind of borrowing can help the federal and national governments to put in place viable taxation system and outlays that can shield taxpayers to finance their programs. When the taxpayers are given the value of their money, they get confidence. The deficit cost is always on the governments and not on the people. As far as people have their problems solved immediately, they continue with their routine form of development. It is possible that increased productivity resulting from occasional deficits can multiply development. on the other hand, regular or planned deficits mean that the government have to wait until some specified time to get the money. When this is the case, people have to wait until the government responds to continue with their normal forms of productivity.
Costs of occasional deficits
Government borrowing is never a solution to issues affecting the country. This is the same case with federal deficits because it means being in perpetual problems. It is more problematic if the government indulges itself in deficits having not planned adequately for it. All borrowing comes with some form of interest. This means that the more the government indulges into deficits, the more the interest. At least, when the government has a regular borrowing, the people in the country are assured that there are planned forms of paying. The long term benefits of deficits may be more when there is a plan for the deficits rather than when they are done occasionally.
The costs and benefits of paying for the deficits: how is this to be accomplished?
According to Hyman (493), payment for deficits is both a benefit and a disadvantage or cost. If the government is to result to paying this debt, it is possible that it will offset the burden sooner than expected. This is because deficits are always problems for the future and the sooner they are paid, the sooner the government gets off the hook. However, payment of deficits can mean slowed economic growth (Hyman 493). The following are costs and benefits of paying deficits by the governments.
Benefit of paying deficits
It is a way of reducing the burden. If the government is to start paying the amount today, it means that the people would not be compelled to pay for the amount tomorrow or in the future. Generally, it is better to pay when the amount is small rather than paying when the amount has accumulated. It is not certain that the government would be in good positions to pay for accumulated debt. However, it is possible to continue borrowing if there is a system of paying the amount promptly. Payment of deficits regularly means that the government is only paying the amount it can afford. The real benefit in this is that people would not be compelled to pay for this amount when it is late. Generally, a government which is compelled to pay for huge amounts in the future would result to increasing taxes and other measures. Therefore, prompt payment of deficits is an advantage to the general population.
Disadvantaged of paying deficits
According to Hyman (342), national debt means positioning the country well in the international arena. If a government such as the United States is in debts, it means that it is in mutual trades with the lenders. These lenders will be compelled to be in touch with the government and mostly will increase their investment in the country. On the other hand, payment of deficits means that the government wants to put itself independent. It may actually be good to be in debt to continue financing major projects than leaving within the means. Borrowing more without paying means more investment and so productivity of a country rather than scaling due to payments of the money borrowed.
How deficits are paid
There are several ways that governments use to pay off the accrued deficits as a result of borrowing. In some instances, the government results to selling some of the assets it has. For example, the British government resulted to sale of assets in the year 2010 which was thought to probably include the Royal Mail. For the United States of America, selling of some assets is thought to be a good way of removing the country from perpetual debt. One of the assets that is thought to be on its way to be sold is the New York Federal Reserve Building.
Costs and benefits as defined by employment and real economic growth
In most cases, the cost and benefit of deficits is measured in economic growth of a country. According to the International Monetary Fund (98), the real implications of government borrowing are either improved economy or slowed economic performance. The following are cost and benefits emanating from deficits as measured in real economic growth.
Costs of deficits
It is always a host of challenges when a government attempts to go trough the cost of deficits. This can be synonymous to when an individual person is in debt, it means that he or she may not continue to function well without first of all paying. For a government, it may not result into massive investments without first of all understanding how the accrued debts will be paid back. In any case, debts may not necessarily translate to real benefits in an economy. In essence, there may be possibility of wasteful public spending. When there is adequate liquid cash to spend, the end result may be slow rate of investments from individuals.
Financing of debt is always a challenge endure by governments. For example, the British government has resorted to selling of its important assets in order to pay for the amount borrowed. Therefore, it is better to be free from large debts because it would mean taking out some of the assets. On the same note, the general population may be uncertain on how the amount would be paid. Such doubts may end up slowing down an economy.
Benefits of deficits
The presence of deficits implies that there is likelihood of economic growth. If the monetary resources are invested wisely, it would be possible to compound both the macro and micro investments in key performing sectors of an economy. Indeed, deficits act as tools of managing flow in demand. As a result, a governing authority is indirectly compelled by the forces of demand and supply to put financial resources into appropriate use. Since the borrowed resources will eventually be paid back, the government is automatically obliged to execute profitable investments with impressive returns.
Works Cited
Heniff, Bill. The federal budget process: A description of the federal and congressional budget process, including timelines. Alexandria: The Capitor.Net, Inc, 2009. Print.
Huntley, Jonathan. Federal debt and the risk of a fiscal crisis. New Jersey: John Wiley & Sons, Inc, 2011. Print.
Hyman, David. Public finance: A contemporary application of theory to policy. Belmont: CengageBrain Learning, 2010. Print.
International Monetary Fund. Fiscal Stimulus to the rescue? Short Run benefits and potential long run costs of fiscal deficits. Washington D. C: IMF Working Paper, 2009. Print.
Kennedy, Peter. Macroeconomic essentials: Understanding economics in the news. Massachusetts: The MIT Press, 2011. Print.