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

19 Pages Posted: 3 Jun 2020

See all articles by Spencer T. Brien

Spencer T. Brien

affiliation not provided to SSRN

Philip J. Candreva

affiliation not provided to SSRN

Stephen C. Hansen

University of Southern Maine - School of Business

Mina Pizzini

Texas State University, San Marcos - College of Business Administration

Date Written: Spring 2020

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 different distributions of budget reductions affect organizational goals. 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.

Suggested Citation

Brien, Spencer T. and Candreva, Philip J. and Hansen, Stephen C. and Pizzini, Mina, Looking Forward to Cuts: A Simulation Decision Tool for Cutback Management (Spring 2020). Public Budgeting & Finance, Vol. 40, Issue 1, pp. 3-21, 2020, Available at SSRN: https://ssrn.com/abstract=3616267 or http://dx.doi.org/10.1111/pbaf.12242

Spencer T. Brien (Contact Author)

affiliation not provided to SSRN

No Address Available

Philip J. Candreva

affiliation not provided to SSRN

No Address Available

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

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