Public Budgeting in America

Preface xiii Budget Formats and Preparation 1(33) Budget Format 1(1) The Important Means 1(1) Information to Note 2(16) Distinguished Budgets 7(2) Ends Defining Means 9(4) A Different Age---A Different Mindset 13(3) Thinking Differently 16(1) Entrepreneurial Attitudes 17(1) Building the Budget 18(5) Budget Coordination 18(2) Program Financial Schedule 20(1) The Budget Call 20(3) Budget Reviews 23(9) Budget Hearings 23(2) Executive Budget Document 25(1) The Budget Summary and Details 25(1) The Federal Timetable: The Congressional Budget 26(2) Legislative Considerations: Federal, State, and Local 28(2) Legislative Adoption 30(2) Review Questions 32(1) References 32(2) Public Budgeting in Context 34(37) What is Public Budgeting? 35(8) Perspectives on Budgeting 35(1) Politicians 35(2) Economists 37(1) Accountants 37(1) A Public Manager's Perspective 37(1) An Operational Definition 38(2) Budget Realities 40(2) Political Realities 42(1) The Budget Cycle 43(5) The Nature of the Cycle 43(1) Budget Phases 44(3) Local Government Budget Cycles 47(1) Context of American Budgeting 48(8) Ideology 48(2) Federalism 50(1) Decision-Making Models 51(4) The Influence of Technology 55(1) Economic Influences on Budgeting 56(4) Twin Evils 56(3) Influence of Economics 59(1) Monetary Policy 60(2) Central Bank 60(1) Effectiveness 61(1) Monetary Policy and Public Budgeting 61(1) Fiscal Policy 62(5) Role of Government 62(2) Using Macroeconomic Theories 64(3) Macroeconomic Policy and Public Budgeting 67(1) Other Economic Topics 67(1) Review Questions 68(1) References 69(2) Toward Modern Budgeting 71(42) Prelude 71(5) Parliament versus the King 71(2) Colonial America 73(1) Budgeting in the 1800s 74(1) Progressive Reform Movement 75(1) Evolution 76(7) Prior to 1921 76(1) Budgeting and Accounting Act of 1921 77(1) 1940s and 1950s Reforms 78(1) Incremental versus Rational Debate 79(3) Twentieth Century Purposes of Budgeting 82(1) An Executive Focus 83(10) Planning and Analysis 83(2) Management by Objectives 85(1) Zero-Base Budgeting 85(4) TBB and Envelope Budgeting 89(2) Reinventing Government 91(2) A Legislative Focus 93(17) The 1974 Budget Reform Motivations 93(1) Unified Congressional Budget Reforms 94(4) Backdoor or Nondiscretionary Spending 98(1) Impoundment 99(2) Reconciliation 101(2) Sunset Legislation 103(1) Federal Budget Madness Years 104(4) New Public Management 108(1) The State and Local Challenges 108(2) Review Questions 110(1) References 110(3) Budget Behavior 113(36) Politics and Perspective 113(24) Four Institutional Roles 113(4) Role Objectives and Enemies 117(3) Cultivation of an Active Clientele 120(1) Agency Budget Office 121(1) Perspective of the Budget Officer 122(1) Agency Budget Behavior 123(3) What the Research Says 126(1) Four Views 127(3) Develop Confidence 130(2) Results 132(2) Preparing for Hearings 134(3) Strategies 137 Reviewers versus Reviewed 137(1) Spenders' Strategies 138(2) Cutters' Strategies 140(4) New Programs 144(1) Cautions 144 The Myth of the Budget-Maximizing Bureaucrat 135(12) Review Questions 147(1) References 147(2) Analysis Applied to Budgeting 149(43) Theoretical Foundation 149(7) The Holistic System Theory 149(3) Program Impact 152(4) Application Difficulties 156(3) Mix-Up 157(1) Types of Output Measures 157(1) Staff and Service Units 157(1) Nonperformance Option 158(1) Data Measure Constraints 159(2) Elementary Analysis 161(2) Defining Relationships 161(1) Marginal Cost and Discounting 161(2) Crosswalks 163(2) Conceptual Bridge 163(2) Determining Consistency 165(1) Revenue Forecasting 165(4) Three Approaches 165(2) Econometric Forecasts 167(2) Forecasting Practices 169(1) Forecasting Techniques in Brief 169(3) Expenditure Forecasting 172(4) Bargaining and Unit Cost Approaches 172(1) Time Series Methods 172(2) Expenditure Econometric Model 174(2) Productivity Analysis 176(9) Productivity 176(1) Simple Regression Analysis 177(4) Productivity and Budgeting 181(4) The Benefit-Cost Concept 185(4) Concept: What and Why 185(1) Procedures 186(1) Alternative Choice Models 186(1) Benefit-Cost Ingredients 187(1) Benefits and Estimation 187(1) Discount Rate 187(1) Externalities, Risk, and Other Considerations 188(1) Review Questions 189(1) References 190(2) Analytical Processes 192(51) Program Analysis 192(1) Selecting Issues 193(1) Importance of an Issue 193(1) Feasibility of Analysis 193(7) Issue Assessment 195(1) Commentary on Analysis 196(1) Ten Key Factors in Analysis 196(2) Presentations of Results: Some Prescriptions 198(1) Role of the Chief Executive 199(1) Budget Examination 200(18) Information Sources 200(1) Code of Ethics 201(3) Services Performed 204(2) Program Inputs and Outputs 206(3) Emphasis and Change 209(2) Responsiveness 211(1) Effectiveness and Efficiency 212(1) Exploring Private Options 213(2) Forecasting 215(1) Politically Sensitive Subjects 216(1) Detailed Budget Examination 217(1) Automation and Computerization 218(1) Process Analysis 218(15) Focus 224(1) Steps 224(5) Advantages 229(1) Context Is Important 230(1) Needed Interpersonal Skills 231(1) Honesty 232(1) Co-option 232(1) Program Evaluation 233(2) Auditing 235(4) Purpose of Auditing 235(1) Internal versus External Audits 236(1) Auditing Principles 237(2) Use of Analytical Processes 239(1) Review Questions 240(1) References 241(2) Operating Budgets and Accounting 243(48) Achieving Control and Thus Accountability 243(6) Theory of Budget Execution 243(1) Fixing Responsibility 244(3) Pitfalls to Avoid 247(1) Current-Year Adjustments 248(1) Budget Concepts and Reports 249(3) Allotments and Other Control Concepts 249(1) Expenditure Controls 250(1) Ethics versus Red Tape 251(1) Cash Management and Investments 252(17) Cash Management 252(6) Financial Management Systems 258(2) Cash Internal Control 260(1) Commercial Bank Services 261(2) Controlling Payables 263(2) Investment in Marketable Securities 265(2) Revenue Collection 267(1) Types of Marketable Securities 267(1) Portfolio 268(1) Accounting Fundamentals 269(3) Accounting Norms and Budgeting 270(2) Financial Administration 272(5) Basic Government Accounting 274(1) Accounting System Design 275(2) Comprehensive Annual Financial Report 277(11) Statement of Revenue 278(1) Appropriation and Expense Ledger 279(2) Statement of Expenditure and Encumbrance 281(3) Fund Balance Change 284(1) Balance Sheet 285(3) Computers and Accounting 288(1) Review Questions 288(1) References 289(2) Capital Budgeting and Debt Administration 291(45) State and Local Debt 292(9) Definitions 292(1) Classifications of Debt 293(1) Short-Term Debt 293(3) Early Developments in the Debt Concept 296(1) Capital Financing in the 1980's 297(4) Nontraditional 301(10) Tests and Limits 308(3) Looking Back for Future Lessons: Some Important Cases 311(5) New York City Financial Crisis 311(1) Washington State Public Power Supply System (WPPSS) 311(3) Orange County, California 314(1) Government Financial Emergencies 315(1) Capital Budgeting 316(3) Operating versus Capital Budgeting 316(1) Capital Facilities Planning 317(1) Capital Budget Cycle 318(1) Realities of Capital Budgeting 318(1) Bonding 319(10) Designing an Issue 319(2) Deciding Issue Details 321(3) Bond Prospectus, Notice of Sale, and Sale 324(3) Debt Records and Reporting 327(1) Bond Ratings 328(1) Review Questions 329(5) References 334(2) Revenue Systems 336(22) Intergovernmental Revenue Systems 336(3) Historical Background 336(2) A Significant Trend 338(1) Property Tax and Controversy 339(4) A Simple Idea 339(1) Criticisms 339(2) Property Tax Reforms 341(1) Proposition 13 and Property Taxes 341(1) Serrano v. Priest 342(1) Assessment and Taxation 343(7) Taxable Property and Assessment 343(2) Testing Assessments 345(4) Assessment Cycle, Taxation, and Foreclosure 349(1) Other Revenue Sources 350(6) Income Tax 350(3) Sales Tax 353(1) User Charges 354(2) Other Taxes 356(1) Review Questions 356(1) References 356(2) Internal Service Functions 358(34) Property Management 358(11) Preliminary Review 358(2) Purchasing 360(3) Procurement 363(1) Selected Purchasing Challenges 363(2) Central Stores and Inventory 365(1) Property Control 366(1) Bar-Code Technology 367(2) Property Maintenance 369(1) Risk Management 369(13) A Practical Necessity 369(1) Exposure Identification and Risk Evaluation 370(5) Risk Control 375(2) Risk Funding and Self-Insurance 377(2) Insurance 379(2) Administration 381(1) Pension Funds 382(8) Budget Concerns 382(2) The Investment Process 384(1) Policy Issues 385(5) Review Questions 390(1) References 390(2) Glossary 392(12) Index 404