Budget cuts affect young and old people...

Gian Jyoti Institute of management and technology

Topic: Budget cuts affect young and old people

Subject: Accounting for management

Submitted to: Submitted by:

Gurdeepak singh Ajay

MBA 1^st year

Roll no. 4

BUDGET

A budget is a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending.[1] A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms.

In summary, the purpose of budgeting is to:

1.Provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out.

2.Enable the actual financial operation of the business to be measured against the forecast.

BUDGET TYPES:

1. Sales budget: The sales budget is an estimate of future sales, often broken down into both units and dollars. It is used to create company sales goals.

2. Production budget: Product oriented companies create a production budget which estimates the number of units that must be manufactured to meet the sales goals. The production budget also estimates the various costs involved with manufacturing those units, including labor and material.

3. Cash Flow/Cash budget: The cash flow budget is a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing.

4. Marketing budget: The marketing budget is an estimate of the funds needed for promotion, advertising, and public relations in order to market the product or service.

5. Project budget: The project budget is a prediction of the costs associated with a particular company project. These costs include labor, materials, and other related expenses. The project budget is often broken down into specific tasks, with task budgets assigned to each.

BUDGET CUTS WILL ADVERSELY AFFECT YOUTH:::

Opportunities for youth employment and training are critical to putting youth on a path to self-sufficiency. We know from research that early work experience matters. The more teens work this year, the more they work next year and that less work experience today leads to less work experience tomorrow and lower earnings down the road. In many cases, youth programs funded by the Department of Labor provide both low-income- in-school and out-of- school youth their only lifeline. Local programs leverage this important source of funding with other public and private revenue sources to create jobs, provide education and training services, leadership development and civic engagement activities, all of which prepare young people for the world of work today and tomorrow.

At a time when youth unemployment rates stand at an astounding 24.1 percent for youth ages 16 to 19 and 16.1 percent for youth ages 20 to 24, much higher than the overall national average of 8.9 percent, these programs are critical to their economic futures as well as the nation’s.

In closing, big cuts to youth employment and education programs may satisfy some lawmakers’ need to slash the budget at any cost. But I must emphasize that these budget cuts undermine America’s current and future economic engines and simply don’t make sense if we want to make sure more of our young people have the opportunity to get or stay on track and have hope and promise for bright futures.”when budget cuts in your state and/or school district are impacting you, children/youth, and your school, in areas such as:

Impact on student learning/achievement;

Change in class size;

Change in workload/caseload;

Impact on collaboration time;

Layoffs;

Impact on services/resources provided;

Impact on professional development opportunities;

If budget cuts keep happening we will start to see our schools focus more on fund raising programs when that time can be spent to better education.I think that are funds should first go to the education of our children and not less important things.It really is tough for schools, even for college students who are paying so much for a degree when they aren't even sure if they'll have a job or not.

With the help of example :::

House 2011 Budget Cuts: The Impact on Youth

March 09, 2011

The Children’s Leadership Council released analysis of the cuts to a number of youth-related programs in H.R. 1, the bill passed by the House of Representatives to fund the federal government through the end of fiscal 2011.The bill is a continuing resolution that would cut $57 billion in spending from the 2010 levels and eliminate, among other things, AmeriCorps and YouthBuild. The Senate rejected the bill today, which means it is now on the House to consider whether or not to alter the legislation.CLC’s analysis focused on eight areas. Among them:

Head Start: The current House proposal would reduce Head Start’s funding by nearly $1.1 billion, enough to serve about 157,000 children. The expiration of the 2009 Recovery act scheduled to expire in September already represents a loss of services for about 61,000 children.

Maternal and Child Health Block Grant: Would lose $50 million under the proposed House budget, a 7.6 percent decrease from 2010.

School-Based Health Clinics: Would lose a total of $1.7 billion. If enacted, these cuts will force half of the school-based health centers across the country to close, according to CLC. The centers provide a range of medical and psychosocial services to children on school grounds, and are particularly popular in rural areas.

Pell Grants: Over nine million students will see their Pell Grant award reduced under H.R. 1. Pell grant funding would be reduced by approximately $5.7 billion, and the maximum discretionary Pell Grant award would drop from $4,860 to $4,015.

Workforce Investment Act: The primary funding source for job training opportunities for youth and young adults would see its youth activities zeroed out along with an elimination of the YouthBuild program. CLC estimates that more than 250,000 youth and young adults would not receive employment services under the H.R. 1 plan.

BUDGET CUTS WILL ADVERSELY AFFECT ON older people:

Older people have been particularly affected by rising energy and food prices, as well as reduced income from savings. As retirement means they have less opportunity to increase their income through paid work, their financial well-being can depend on levels of state provision of pension and welfare benefits and services.

A previous JRF research programme looking at the changing needs and resources of older people provides some insight into the potential implications of government policies and budget cuts. New updates to this study have found that:

•On a positive note, the government has committed to re-link state pension to earnings with a 'triple guarantee' and a matched protection of Pension Credit. The research highlights how even small changes can make a big difference to people's budgets. As such, these measures are likely to help maintain older people’s income levels.

•However, the other side of the equation is the impact of cuts in Government spending. Those on a low income will be relatively harder hit by the forthcoming increase in VAT. It is also possible that older people's outgoings will increase if they have to pay (more) for services that were previously free or subsidised. And a withdrawal of services may affect people’s general well-being and quality of life.

The research showed how much older people valued local services, from healthcare, shops and Post Offices to hairdressers, as well as help received at home such as cleaning, gardening and warden services. Face-to-face contact was a vital part of this, especially for those living alone, and forming a relationship that developed over time helped establish trust.

•Those responsible for cuts and changes services need to consider the potential impact on the most vulnerable. While face-to-face service delivery could be seen as expensive, the value to some older people cannot be underestimated. For example, where resident warden cover had been reduced, it was those living alone with deteriorating health who most missed the human contact.

•There is a need for meaningful consultation when planning and implementing changes in services to avoid older people feeling overlooked and excluded. Ideas around 'smarter spending' include preventative early intervention integrating health, care and housing and if enables people to stay in their own homes longer could make better use of existing resources.

Older people's financial well-being depends on the interplay between finances (income/savings) and a range of other resources. Support from family and friends can be crucial helping to pay for things, initiating and encouraging people to claim benefits and grants, providing lifts, help in the home etc., all of which lessen the need to pay for services. While this help was valued, and feeds into policy ideas of encouraging individual rather than state responsibility, older people sometimes felt a sense of guilt about accepting it. It is also important that family members providing help should not be left unsupported.

For some older people the Big Society agenda could create positive opportunities (getting involved in community activities). But it could also create problems, if people felt pushed into roles they were uncomfortable with (such as being asked by others for help with financial affairs where a service had been withdrawn). Again, this highlights the need to think broadly about the consequences of changes to services, and to involve people at an early stage in a meaningful way

Conclusion: According to me, budget cuts affect the youth as well as elder. Older people's financial well-being depends on the interplay between finances (income/savings) and a range of other resources. , big cuts to youth employment and education programs may satisfy some lawmakers’ need to slash the budget at any cost