Week 2: Politics and Dynamics of Public Budgeting

1. Week 2: Politics and Dynamics of Public Budgeting • Budgeting: political or technical? • Rubin’s model of budgetary decision making • The “baseline” – class exercise • Actors in the budget process • dramatization • Preview week 3

2. Public Administration “Dichotomy” Debate Classical Public Administration: 1880’s - 1930’s • Efficiency of organizations • Scientific principles of administration • Expertise over politics • Left out concern for politics, values, ethics Behavorial: 1940s - 1960s • Dichotomy questioned: administration is political • Irony: more attention to administrative tools (e.g. PPBS) • From efficiency to effectiveness • Human element in organizational decision making • New kind of science of administration (social)

3. Public Administration “Dichotomy” Debate (cont.) The New Public Administration: 1970s - • No dichotomy • Try to bring managerial and political values together • Two branches • Public policy • looked at politics in policy but not in administration • PA moved to Business Schools • Political management • the governance function of public administration • define the role of public managers in political system

4. Political v Technical • Budget Process ___% technical ___% political • Budget as a Document (Expenditure Plan) ___% technical ___% political • Budget Management and Implementation ___% technical ___% political

5. Budget Process: political v technical? • Who plays what roles – who has power • macro and micro issues • Rules and timelines • Estimating revenues • Preparing budget requests • Defending requests (testify, lobby) • Reviewing requests (budget analysis) • Specialized legislative committees

6. The Budget Document: political v technical • scope of government • priorities • variety of funding sources • balance of revenues and expenditures • program and legal requirements • one-time v ongoing accounting • comparative contexts • accountability to public: budget presentation • http://www.sacto.org/budget/pdf/4 - Budget Overview.pdf • http://www.dof.ca.gov/html/bud_docs/backinfo.htm

7. Budget Management: political or technical? • Internal allocations • Reallocation • Managing one’s own unit’s budget • Staying within budget/overspending • Transfer among categories • Determining and using reserves • Publication -- how much to reveal • Appropriate use of different funds • Year end strategies

8. Rubin’s Model of Budgetary Decision Making • Environment • Process • Strategies • Outcomes

9. Rubin’s Model of Budgetary Decision Making • Environment • Affects outcomes directly • Affects process • Affects strategies • Process • Affects outcomes directly • Affects strategies • Strategies • Affects outcomes directly • Affects process

10. The “Baseline” Budget How to compute it: • Current year initial budget • Current year revised budget • Current year expenditures • Current services level adjusted forward (inflation, caseload) • Current law • Current year budget less one-time • CSUS case study: Program of Dance

11. Actors in Public Budgeting • Chief Executive • Executive branch chiefs • Control agencies • executive • legislative • Legislators • Interest groups • Public

12. Mini-Case -- Indian Health Program • What is the committee chair trying to accomplish? • Why is the Bureau Chief in a difficult position? • What power does the committee chair have over the Assistant Secretary and the Bureau Chief? • What power does the Assistant Secretary have over the Bureau Chief? • Did the Assistant Secretary do a good job of responding? • Did the Bureau Chief do a good job of responding?

13. Preview of Week 3 • Schick in reader: Federal Budget Process • Internet readings on CBO, State process • Think about: • Importance of process • Key characteristics of Federal process • Differences between State and Federal Processes • Different roles of CBO/LAO; OMB/Finance • Remember first weekly email assignment (samples on web)