What are some differences between the public sector and private sector budgets? Provide examples? (Public and Private Sector)
The differences between the private and public sector budgets include the following:
- In the private sector, budgets determine the net income and the amount required to generate profits save for the not-for-profit corporations and certain philanthropic ventures (Menifield, 2020). In contrast, the public sector budgets illustrate the transparency and governance of tax revenue and its use in sustaining and upgrading infrastructure.
- In the private sector, budgets have no compulsory funding; thus, they must be generated through significant business models to maximize income and minimize expenditure (Menifield, 2020). In contrast, the public budgets are prepared based on needs, and the funding is done through tax revenue (Public and Private Sector).
Given the perpetual imbalance between funding and needs in criminal justice, what are some possible new funding sources for a police department, municipal court, or state prison? (Public and Private Sector)
Traditionally, the funding for criminal justice agencies, including police departments, judicial systems, relied extensively on public budgeting. However, the imbalance of funding accustomed to minor grants from the government has created a door for a new funding source in the private contractors who manage some criminal justice agencies, e.g., prisons. This new dimension has opened doors for private-public budgeting partnerships. For instance, the criminal agencies can rely on municipal bonds and releases to fund large projects (Colorado General Assembly, 2010). Municipal bonds offer a significant channel to get funding from private investors(Public and Private Sector).
Another funding source is the municipal leases, which are significant financing sources for short-term needs projects (Colorado General Assembly, 2010). Municipal leases are exempted from tax, thus allow borrowing through a third party company and, in some cases allow transfer of capital improvement budgets to operating budgets. These agencies can also increase civil and criminal fees. By charging and fining services that are constitutionally required and have initially been free, more revenue can be generated to fund annual budgets.
Other funding sources include private funding organizations, e.g., Benton and Bydale Foundations, which provide funding for technology projects and civil rights and social services, respectively (Bureau of Justice Assistance, 2019). Lastly, there are grants from the local and federal governments that the agencies can apply. Though the application process is tedious and requires an exquisite budget, it remains a significant funding source. In this case, a grant writer can be hired to help in budgeting and effectively demonstrating the need for funds(Public and Private Sector).
Bureau of Justice Assistance. (2019). Funding Sources and Programs. Retrieved 24 March 2021, from https://bja.ojp.gov/program/it/policy-implementation/funding/sources.
Colorado General Assembly. (2010). Funding Ideas and Sources. Retrieved 24 March 2021, from https://leg.colorado.gov/sites/default/files/ncsc_091117_checklist_of_court_facility_funding_sources_revised.pdf
Menifield, C. E. (2020). The basics of public budgeting and financial management: A handbook for academics and practitioners. Hamilton Books.