Directions: Please read all of the questions as well as the accompanying materials prior to answering the questions. Answer questions 2 and 3 in Excel. Questions 1, 4 and 5 can be answered in a word processing program. Please turn in your Excel worksheets and the MS Word file (inclusive of the pasted Excel worksheets to your instructor).

1. Jefferson City has a severe budget crisis and the Mayor has asked you to help the budget director in preparing a report outlining cuts to the citys budget. Jefferson City has 200,000 permanent residents and an additional 25,000 people come to the city for work each day. They have a budget of $200 million dollars. The city also has a museum, a large public theater and provides subsidies for a minor league baseball team as well as a golf course. The city currently has $30 million dollars in its rainy day fund, but the Mayor has advised you not to consider it as an option.

A. Based on what you have learned and what you know about city functions, which part of the budget would you examine first? Why?

B. Which items would you cut? Why? Provide your alternatives to the superintendent.