Crosby_PBPL1_W25_Wk7B (1)

Course Overview

• PBPL 1: Intro to Public Policy Analysis

• Instructor: Andy Crosby, PhD

• Winter 2025: Week 7B

Class Reminders

Housekeeping

• Office hours change:

  • Tuesdays: 2:30 - 4:30 PM

  • Thursdays: 2 - 3 PM

• Meeting #1 grades have been posted.

• Note on upcoming Exam 2:

  • Class will not meet on Thursday, February 27

  • Study guide discussed on Tuesday, February 25

  • More application-heavy questions on Exam 2 and 3 (e.g., surveys, cost-benefit analysis).

Public Meetings Assignment #1

• Discusses the role of public meetings in policy analysis.

Policy Analysis Topics

Policy Analysis and Evaluation

• Continues from previous weeks with tools for policy analysis.

Cost-Benefit Analysis (CBA) Examples

Private Company Example: Ice Cream

• Cost per gallon: $3.50

  • $2 ingredients, $0.50 labor, $1 maintenance

• Benefit (Selling Price): $10

  • Net Benefit: $10 - $3.50 = $6.50

Decision Making

• Compare Option 1 (Status Quo) with Option 2 (New Speakers).

• Net Benefits Calculation:

  • Option 1: Costs $10,000, Benefits $12,000 → Net Benefit = $2,000

  • Option 2: Costs $10,000, Benefits $8,600 → Net Benefit = -$1,400

Applying B/C Ratio

• Option 1 Ratio: 12000/10000 = 1.2 (Profitable)

• Option 2 Ratio: 8600/10000 = 0.86 (Not profitable)

Community Pool Project: Options & Costs

Options Identified

1. Competition only pool

2. Competition and recreation pools

3. Recreation only pool

Construction Costs

• Option 1: $8,967,689

• Option 2: $8,030,032

• Option 3: $10,918,432

Projected Operating Costs

• Site Plan Option 1: Revenues and expenses projected over 5 years show significant net losses.

• Comparison Table: Evaluating revenues and operating expenses for each option.

Recommendations

1. Combine competition and recreation programming.

2. Proceed with Site Plan Option 2 for its balanced development cost.

3. Evaluate a joint venture with the Davis Joint Unified School District for better cost recovery.

Multi-Attribute Analysis (MAA)

• Considers factors beyond efficiency (e.g., political feasibility, fairness).

• Identify criteria, weight them, and score options.

Examples of Applying MAA

• Case studies on transit projects in Calgary demonstrate how MAA aids fund allocation and investment decisions.

Extensions of CBA

• Sensitivity Analysis: Review results based on assumption changes to gauge robustness.

Study Focus for Upcoming Exam

• Understand policy analysis and basic cost-benefit analysis principles.

• Prepare for further discussions on policy tools.