Suppose you work for the city budget office. The chief budget officer for the city reports to the staff that revenue for the operating budget are 7.3 percent below the forecasted level of $9.4 million for the first 5 months of the budget year. She asks for ideas on what, if anything, should be done to deal with the problem.

1. (1)What are the possible reasons for the discrepancy between revenue forecast and actual collection during the first 5 months of the budget year;
2. (2)How would you analyze if the discrepancy is a problem;
3. (3)If you decide that something needs to be done, what could be done? The chief budget officer like having a broad range of recommendations to consider, and thus give as many options as possible.

Make reasonable assumptions about the overall legal, political, and economic condition the city is in, but state assumptions clearly. Limit answers to no more than one single- spaced page.