Economic Assignment

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BudgetingBasics-9.12.pptx

What is Public Administration?

Government in Action - what government can do and what government can do efficiently using the least amount of time or money

Public administration is the management of people and materials in the accomplishment of the purposes of the state

The objective of public administration is the most efficient utilization of resources at the disposal of public officials and employees

1

(Scarcity ⇒ Competition ⇒ Limited Choice)

= Budgetary Politics

Lewis, Carol W. and W. Bartley Hildreth, 2012. Budgeting: Politics and Power, 2nd ed. New York: Oxford University Press

Lewis, Carol W. and W. Bartley Hildreth, 2012. Budgeting: Politics and Power, 2nd ed. New York: Oxford University Press, figure 1.3.

Accountability

answering to someone

such as legislature, chief executive, taxpayer

for something

such as a decision, a program, or mistake

Democracies hold public officials and employees accountable through elections, public records (such as accounts) and disclosure, and the chain of command in organizations.

Lewis, Carol W. and W. Bartley Hildreth, 2012. Budgeting: Politics and Power, 2nd ed. New York: Oxford University Press

Democracies

hold public officials and employees

accountable through

elections

public records (such as accounts) and disclosure

chain of command in organizations

the courts

Lewis, Carol W. and W. Bartley Hildreth, 2012. Budgeting: Politics and Power, 2nd ed. New York: Oxford University Press

A

B

C

C

B

C

Transparency

information is readily available and understandable or clear and

decision-making processes are regular, known, open, and participatory

Lewis, Carol W. and W. Bartley Hildreth, 2012. Budgeting: Politics and Power, 2nd ed. New York: Oxford University Press

A budget can include only those things that can be counted and valued in dollars.

“Not everything that can be counted counts,

and not everything that counts can be counted.”

Albert Einstein

Reproduced from the original held by the Department of Special Collections of the Hesburgh Libraries of the University of Notre Dame.

Lewis, Carol W. and W. Bartley Hildreth, 2012. Budgeting: Politics and Power, 2nd ed. New York: Oxford University Press

Overall importance of the budget

Budgets serve as a guide for public administrators

Define gov’ts economic & political role in a community

Serve as plans for the future

Mold the future that is planned

Brings about order and cohesion

Political Importance of Budgeting

Property tax

Public perception of taxes

Public education and budgets

Financing public education

Laboratories of democracy

Citizen participation

Budget Process Logic

Wrangling over public services—budget is a communication device

Overarching functions of the budget process

Decision plan

Allocation vehicle

Fiscal discipline & control

Response to strategic priorities

Efficient implementation

The Context of Local Government Budgeting

The budget document along with its preparation, implementation and adoption express the basic political values of a government.

Budgets reflect the compromises negotiated in the contentious process of budget adoption.

Summary/ The role of budgeting in local government

Allocation of resources between public & private sectors

Invest in infrastructure

Promote economic growth

Give legitimacy to gov’t actions

Help manage a complex bureaucracy

Provide social and political functions

Overall, the budget establishes the level of supply for public goods and services delivered to citizens