Looking Forward to Cuts: A Simulation Decision Tool for Cutback Management

32 Pages Posted: 25 Jul 2019

See all articles by Spencer Brien

Spencer Brien

Naval Postgraduate School - Graduate School of Defense Management

Philip J. Candreva

U.S. Naval Postgraduate School

Stephen C. Hansen

University of Southern Maine - School of Business

Mina Pizzini

Texas State University, San Marcos - College of Business Administration; Naval Postgraduate School

Date Written: July 23, 2019

Abstract

This study addresses managerial strategies to adapt public spending in anticipation of fiscal stress. It simulates a cutback to a federal agency, providing a decision tool that applies normative recommendations from the cutback management literature. Using agency data, we develop a menu of options that illustrate how organizational goals will be affected by different distributions of budget reductions. We show five alternatives that consider the political, legal, and fiscal implications of the agency’s responses to anticipated budgetary pressure. This simulation demonstrates that public agencies can apply existing data to generate rational and viable strategic plans for weathering fiscal stress.

Keywords: Federal Budgeting, Cutback Budgeting, Management of Decline, Defense Budgeting

JEL Classification: H50, H56, H61, H68

Suggested Citation

Brien, Spencer and Candreva, Philip J. and Hansen, Stephen C. and Pizzini, Mina, Looking Forward to Cuts: A Simulation Decision Tool for Cutback Management (July 23, 2019). Available at SSRN: https://ssrn.com/abstract=3425495 or http://dx.doi.org/10.2139/ssrn.3425495

Spencer Brien (Contact Author)

Naval Postgraduate School - Graduate School of Defense Management ( email )

555 Dyer Road
Monterey, CA 93943
United States

Philip J. Candreva

U.S. Naval Postgraduate School ( email )

1 University Circle
Monterey, CA 93943-5001
United States
831-656-2884 (Phone)

Stephen C. Hansen

University of Southern Maine - School of Business ( email )

P.O. Box 9300
Portland, ME 04104
United States

Mina Pizzini

Texas State University, San Marcos - College of Business Administration ( email )

San Marcos, TX 78666
United States

Naval Postgraduate School ( email )

555 Dyer Road
Monterey, CA 93943
United States

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