Question 4
You have been hired as a special consultant by the U.S. Government Accountability Office (GAO) to provide recommendations on whether privatizing the Transportation Safety Administration (TSA) will increase efficiency, cost effectiveness, and satisfaction by the public.
The following assumptions apply:
1. There will be an estimated cost savings of 15% by privatizing the TSA.
2. 25% of existing employees will lose their jobs.
3. Privatized employees will have less training and education and will be paid less.
4. Government contractors will earn a generous profit.
5. Public satisfaction and overall efficiency may decrease as a result of privatization but the majority of Congress will be favorably inclined towards the change.
6. There may be other unknown results both good and bad in terms of risks to the public, safety, and overall fiscal policy.
In making your recommendation, be sure to consider the following:
a. What organizational, financial, political, and human resource issues would you consider in making such decisions?
b. Who are the stakeholders here and in the TSA and how will they be affected?
c. What are the benefits and drawbacks to privatization considering not only fiscal but other theoretical aspects?
When discussing all of the above be sure to incorporate into your discussion the decision making process, social and ethical issues affecting the public, applicable theory and trends, any diversity issues, and fiscal considerations.
Question 5
You are the superintendent of Mt. Rossmoor Community College (MRCC). Mt. Rossmoor Community College is the fifth fastest growing community college in the nation. The college’s student body has grown 24% in the past 5 years largely due to the recent housing boom. Due to budgetary cuts on the state level, state universities will increase the cost of tuition by 8% this year, on top of last year’s increase of 14%. The result is that more students will be “priced out” of the state university system. Many of these same formerly state university students will attempt to satisfy general education requirements at local community colleges, including MRCC, thereby increasing demand for courses.
At the same time, however, MRCC’s budget will drop 15% this year due to the state budget crisis. As superintendent, you face some tough choices. Should the college significantly increase fees per unit, or maintain current fee levels by drawing down on its budgetary reserve, knowing that next year will not get better? Should the college increase or reduce course offerings? Should the college pursue furloughs, layoffs, or “golden handshakes?” There is even the question of offering online courses and shuttering buildings on MRCC’s main campus, so as to save on electricity and air conditioning.
In a white paper, please identify the policy problem, detail the policy options, identify stakeholders, and apply your own financial knowledge to make sound and ethical decisions in the public’s interest.
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