The following question deals with externalities and water management policy: As the CFO you must propose a funding plan for a proposed Water Management Policy in Ventura, CA County that will require an initial outlay (projected budget) of $25 million and subsequent annual outlays (projected budget) of $10 million near future. Additionally, the Ventura County cannot raise taxes, and any new program spending will increase a deficit. The proposed policy would result in a higher price of the average gallon of water.

2. How will you approach this task?
4. What information do you need to know?
6. What possible alternatives are there?
8. What are their pros and cons?
10. Are there externalities involved that would change either the costs or benefits of this program? Make a recommendation supported by evidence and reasoning