Question

3-27. The Georgeville city government provides a wide variety of services to the community. Among
them is the protection provided by the police force. In order to provide that force, it spends $3 million
on salaries, $200,000 on vehicle costs, and $300,000 on supplies.
The police force expects to have 7,000 measurable actions, consisting of 1,000 arrests, 4,000 traffic
citations, and 2,000 responses to emergency calls. It has noted that the average cost for each one of these
actions is $429 if you simply divide the $3 million department cost by the 7,000 specific individual
actions. Some have argued that it is not cost-effective to give out traffic tickets since the $429 cost per
ticket exceeds the fine collected. The Georgeville Police Department is considering adopting a
performance budget. The performance areas would be arrests, citations, and emergency responses.
The Police Department believes that activities related to making arrests consume 30 percent of salaries
and 40 percent of supplies. Traffic citations consume 30 percent of salaries and 10 percent of supplies.
Emergency response takes up 15 percent of salaries and 25 percent of supplies. Additionally, it performs
many other activities that collectively take up 25 percent of salaries and 25 percent of supplies. The
Police Department also estimates that its vehicles are used 25 percent for arrests, 30 percent for
citations, andand 5 percent for emergency responses. How much money is budgeted for each arrest,
citation, and emergency response? Regardless of your answer, assume that the cost per traffic citation
exceeds the average fine collected. Should the police cease issuing citations? Why?

Answer 1

Please see the below budget allocation for each catagory: - Based on the below calculation goverment allocates on a avaerge of $ 1070 for each arrest, $ 247.50 for each traffic Citation

and $267.50 for emergency response.

Budget Allocation
Budget for Making Arrest	Amount
Average Arrest		1000
30 % of salaries	$ 900,000.00
40 % of Supplies	$120,000
25% Vechicle cost	$50,000
Total Allocation expense		$ 1,070,000.00
Average money allocated	$      1,070.00
Budget for Traffic Citation
Traffic citation		4000
30 % of salaries	$ 900,000.00
10 % of Supplies	$30,000
30% Vechicle cost	$60,000
Total Allocation expense		$      990,000.00
Average money allocated	$          247.50
Budget for Emergency Response
Emergency Res		2000
15% of salaries	$ 450,000.00
25 % of Supplies	$75,000
5% Vechicle cost	$10,000
Total Cost		$      535,000.00
Average money allocated	$          267.50
Other activity (non Measurable)
25% of salaries	$ 750,000.00
25% of supplies	$75,000
40% of Vechicle Cost	$80,000
Total Non Measurable Budget		$      905,000.00
Total Budget		$ 3,500,000.00

even if the cost per traffic citation exceeds the average fine collected government should not cease traffic budget allocation as it is for safety of the people and motive is not making profit.