Claremont City Budget Activity The recently elected mayor of Claremont has inherited a budget deficit. She has asked you as budge director to cut $600,000 from this year's Proposed Badget. The areas targeted for cuts and the current funding levels are below. Complete the Reduced Budget showing how you would cut out 600.000 Department Proposed New Reduced Budget Budget Parks & Recreation Opening & maintaining six citywide swimming pools $240,000 Replace unsafe playground equipment at City Park 30,000 Youth & Education Programs Summer work program 100.000 High school grade incentive program 110.000 After school athletic program 150.000 After school tutorial program 100,000 Day care program for working families 60.000 Public Safety Safety Patrols For Downtown business district 50.000 For five adjacent neighborhoods near Downtown 75.000 Police and Fire Three additional police officers 120.000 Fire safety and training program 40,000 Public Works Widening and repair of three busiest city streets 200,000 Expand city bus routes into lower income neighborhoods 25.000 Claremont Public Library remodeling 100.000 TOTAL $1,400,000 $800,000 List at least FOUR changes you made above and explain WHY you chose those changes. List at least three tradeoffs you made. (ex: traded off entertainment to keep education) Think about one cut you made that was the last thing you cut or was the most difficult to get rid of. If the city allowed you to put 550,000 back into the budget, where would you put it? Why? In economic terms, what is this called? (Your highest valued item you gave up.) One economic principle you have learned is that decisions made today often have long-term unexpected effects. List at least five possible future consequences (good or bad) of the budget cuts you made. The mayor still needs your help. She must deliver the bad news of all these cuts you have recommended to the citizens of the city. She asks you to help with the following: 1. Prepare a brief statement below for the mayor to read on television telling about the cuts that were made. Explain why you cut the items you did and not others. 2. Incorporate ideas from your 7 Principles chart such as Scarcity Forces Tradeoffs and Costs Versus Benefits. 3. Include an incentive for the citizens to ease their disappointment about the cuts