PAD505: Ch 4 Exercises Question 1&2

Expenditures Analysis in Current Dollars: A. You are a fiscal analyst in the city's budget office. Complete the current dollar portion of table Table 4.4 analyzing the Health Department's expenditures, use the available data in Table 4.1 .

 B. Write a memo from you (as a fiscal analyst) to the budget director explaining the trends.

2.Expenditure Analysis in Constant Dollars A. In this exercise, you will complete the rest of the spreadsheet in Table 4.4, conducting the same analysis you did above, only you will convert all the Dollars in constant Dollars. This exercise allows you to adjust a spreadsheet for inflation. The technique is to convert current Dollars expenditures using cost of living indexes to constant (real) Dollars by removing inflations as a factor.

B. After you complete the spreadsheet calculating constant Dollars, write a paragraph from you, as a fiscal analyst, to OMB's budget director. In it you will explain what differences you found when you controlled for inflation compared with the first exercise when you did not control for inflation.

To complete the following two exercises, use the spreadsheet file titled 'Budget Tools Ch 4 text examples and exercises'