Public Budgeting PAD 3003-01
Popular in Public Administration in American Society
Popular in Department
This 4 page Class Notes was uploaded by Leah Burkett on Friday October 23, 2015. The Class Notes belongs to PAD 3003-01 at Florida State University taught by Jiasheng Zhang in Fall 2015. Since its upload, it has received 24 views.
Reviews for Public Budgeting
Report this Material
What is Karma?
Karma is the currency of StudySoup.
Date Created: 10/23/15
Public Budgeting A Brief History of Budgeting Prior 0 1921 congress dominated the federal budgeting process 0 Budget and Accounting Act of 1921 gave the executive branch a roe in the budget process Taft Commission 1912 made recommendations to improve ef ciency including creating he Bureau of Budget and Government Accountability Of ce BOB was replaced by the office of management and Budget in 1970 during the Nixon presidency Main Federal Budget Agencies 0 Office of Management and Budget OMB OMB is the agency through which the president prepares to formal budget to be presented to Congress 0 Government Accountability Of ce GAO GAO is responsible for auditing the federal budget directed by the comptroller general who is appointed by the president to serve one 15year term General Budgeting Steps and Federal Budgeting Procesi o PreparationApprovallmplementationAuditing to ensure that public money is spent appropriately Federal budgeting process 0 The President presents Congress with a budget request in February for the upcoming scal year that begins in October 0 Budget request is prepared by the OMB which receives funding estimates by federal agencies OMB sends budget examiners to agencies to verify if the estimates are reasonable 0 Examiners meet with agencies and hold hearings with to examine what the agency does and whether the amount requested is needed Budgeting Process CONT o Examiners make recommendations to OMB who provides nancial information to Congress 0 Both Chambers of Congress hold meetings and develop separate budget resolutions 0 Difference in budget resolutions are ironed out and a single budget resolution is produced o In this spending is de ned as either quot or budget authority is the amount of money Congress permits the federal government to spend outlays refer to the actual amounts that are spent 0 After the joint resolution is passed it is sent to the Appropriations Committees which divide the discretionary spending into 13 individual appropriations bills 0 Differences in the appropriations bills and original budget resolution are settled in a conference and the House and Senate vote to approve the 13 appropriations bills this is usually completed byJune Appropriations bills are presented to the president for approval or veto Types of Budget 0 Concern daytoday operations shortterm yeartoyear budget nanced through fax dollars 0 longterm plans that concern the nancing of capital projects such as constructing buildings bridges and even parks nanced through borrowing usually with bonds Shows where public money will be spent item by item Popular among local governments Advantages from in terms of accountability relatively easy to understand Disadvantages is that this budget is not tied to performance Types of Budgets CONTJ How much money is allocated to department x determined by how well department x preforms Requires preestablished performance levels and data coHec on Indicators are usually outputs and outcomes Outputs are typically units produced or the quantity of services provide outcomes re ect how well the department is meeting its mission and goals Department must defend their funding each year Department must demonstrate how different levels of funding would impact the delivery of services Performance Budgeting39s Central Points 0 Amount of work that is done is measured o The quality of the work is measured 0 This impacts how much the department will get in the future Controversial because it takes money away form struggling department possibly making matters worse Output Miles of streets monthly objective could 1000 miles per month 0 Outcomes Street cleanliness measured through visual inspection goal could be to maintain a level of 90 streets rated quotcleanquot ZBB AdvantagedDisadvantages results in ef cient allocation resources Drives managers to nd cost effective 0 Dif cult to de ne dEClSth UhltS and decision packages ways to improve operations Useful where outputs are dif cult to Time consuming and GXhaUStiVe identify Forced to justify every detail related Provides staff with greater initiative to expenditure and responsibility in decision making RampD is threatened which could Increasing communication and mean less innovation coordination Requires training of manager to Identi es and eliminates waste implement in organization Some Theories of Budge ng o VO Kev a normative theorv of budgeting o three philosophical viewpoints rights deserts and needs Rights assumes a legal or contractual obligation Deserts is synonymous with merit and utilitarianism Needs is redistributive in nature haves to havenots quottragedy of the budgetary commonsquot Clear expression of public preferences Produces net bene ts for all Decrease rent seeking All participation What You Should Know 0 A brief history of public budgeting important time and agency 0 Types of budgeting de nition of every type comparison 0 Process of budgeting general and federal budgeting process 0 Some theories of budgeting VO Key David Miller s and Brubaker