Step 5 of the GFOA 12 steps to recover from financial distress is called “Near-Term Treatments.” Near-Term Treatments build upon the retrenchment techniques outlined in Step 3 and in the GFOA paper “Cash Is King.” Near-Term Treatments are the next level of treatment. They are things you can do to make progress on Near-Term Treatments—and see positive impact from them—during the next year or so. Near-Term Treatments might be enough to resolve minor cases of financial distress. For severe cases, the Near-Term Treatments buy time for extensive changes, such as those suggested in Step 8, Long-Term Treatments.
Below are the links to a two part series of papers to guide you through using the near-term treatments.
Part 1 covers:
- The decision-making environment for Near-Term Treatments. These are things leaders can do to shape the environment to help reach the best decisions about how, when, and why to use Near-Term Treatments.
- A two-part management system for using Near-Term Treatments. These practices will help you get the most from your uses of the treatments.
- The “primary” Near-Term Treatments. These are the lowest risk things you can do to balance your budget.
Part 2 covers:
- How to evaluate Near-Term Treatments. A defined set of criteria will help you make a clear-eyed assessment of the risk.
- Riskier Near-Term Treatments