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Suppose that you are on board of directors of a

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Imagine that you are on the board of directors of a church-based child care center.  After reviewing the budget for next year, you and your fellow board members realize that the center will have to make some tough decisions.  Choose one of the following budget scenarios to discuss.

  1. Budget Cuts: In order to stay profitable, the center will need to make budget cuts.  You are concerned because you know that if salaries don't go up, some teachers may resign.  On the other hand, if tuition rates increase, some of the families may not be able to afford to stay at the center.  How will you and the board go about making these cost-saving decisions?
  2. Budget Surplus: Your center is in the enviable position of having a budget surplus that has resulted from careful financial management over the past several years.  The center must allocate the excess funds in order to ensure future funding from the church.  How will you and board go about making these spending decisions?

Reference no: EM13457602

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