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Application: Choosing the Best Way to Finance a Public Project




Determining the best sources of revenue for public projects is a major challenge for public administrators on local, state, and national levels. Every project involves diverse stakeholders whose interests must be taken into account. For example, increasing direct taxes is perhaps the most obvious way to raise revenue for a public project, but this method usually is unpopular with citizens. Alternate possibilities, such as indirect taxes, user charges, grants, and borrowing also must be weighed. The nature and logistics of the projects introduce another level of complexity. Some projects, such as the construction of new roads or buildings, might require large expenditures of money over a relatively short time frame. Other projects, such as the start-up of a new public education program for children, might require a large expenditure of money in the short-term, and then smaller, sustained expenditures for years to come. Thus, financing public projects is both a managerial and political process. Governments must select revenue sources that both fit into their budgets and satisfy all interested parties. In this assignment, you consider what might be the best revenue source for a public project as described in a real-world scenario.




The assignment (2 – 3 pages): Due by Sunday 6/28/15.




  • Explain at least three potential revenue sources to fund the project described in the provided scenario.

  • Briefly explain the advantages and disadvantages of using each of these three revenue sources for the project.

  • Make a recommendation for which revenue source(s) the Lakewood City Council should use, and justify your recommendation.


    Support your work with specific citations from the Learning Resources. You are allowed to draw from additional sources to support your explanation, but you must cite using APA standards. All quoted material must be identified, cited, and referenced per APA standards.


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