Week6 Article Example | Topics and Well Written Essays - 500 words

Week6 - Article Example There is the possibility of reorganizing or refunding debts of the federal government. In order to take these steps, there needs to be evaluation and assessment of refunding or reorganization of debts. A good way that the federal government could reorganize or refund its debts obligation is whereby the city’s administrators highlight upon the debts with high interest rates (Seitz & Ellison, 2004). These types of debts can hamper the government’s ability to perform other financial duties or obligations. Therefore, refunding would imply that the government would add new debt to the existing debt kitty. In turn, the government would be forced to increase debt in order to facilitate payments of both interest and the existing debts (Lee & Joyce, 2008). If the government’s new debt can be increased at high interest rate, this would offer economic prosperity and other possible benefits may be realized in case the interest rates decrease such as transforming the conditio ns of the debt that may permit the local government of Seattle to revise their payment plan that may assist with short-term budget demands. Refunding debts to substitute a lower interest rate may poses some economic merits, if other transformations are made, like term, there is a probability that there will be a net rise in the debt costs over the debt’s term. Furthermore, another refunding or reorganization tactic is the reduction of the overall expenditures gained by the government. This would establish an additional financial base that should be diverted towards settling the city’s debts. In order for the federal government to decrease the high debts, it is vital that alternative funding options are created in order to support its debt obligation. The federal government may provide financial help in quarterly or annual terms. Another alternative is for the city to try to maximize revenues gathered (Shapiro, 2004). My budget has a defined goal that I have to