Public Administration
Magna Carta
Mercantilism
Thomas Jefferson's famous phrase
Public Administration
Budgeting and Accounting Act of 1921
Full Employment Act of 1946
Annual Budget
Comprehensive Budget
Detailed Line Items
Identification of all transactions
Apportionment and Allotment
Planned-programming budgeting
Management by objections
Zero-base budgeting
Target-base Budgeting
Nondiscretionary spending
Entitlements
Sunset Legislation
Permanent Authority
Earmarked revenue
What are the challenges of state and local budgeting?
Cost overruns on federally mandated programs and rapid spending growth are a couple of challenges that state and local governments have when it comes to budgeting. When looking at revenue, the collapse of the stock market and the generally slow economy has kept tax receipts well below what most states expected. The largest errors that have been made in forecasting have been for corporate and personal income taxes. On average, total state tax collections have run about 10% below what was forecasted over the past several years. Almost every state has experienced some kind of shortfall. The key point about state and local budgets is that it is the health of the economy that determines the health of both state and local budgets. Ongoing economic weakness limits both states and local administrations to grow their way out of current problems. Sustained improvement in the national and regional economies will be critical to improvement in state and local fiscal conditions (Understanding State Budget Troubles, 2003).
Question 3
Distinguish between rational approaches and incremental approaches budgeting.
The rational approach to budgeting views the budgetary process as a set of logical steps that lead to agency budget decisions based on needs, priorities, plans, goals and objectives. The incremental model of budgeting views the budgetary process as being influenced by past budgeting decisions. Agencies are given a new budget amount based upon what they have been allotted in years past, instead of based upon what they might need for the upcoming and present year (Kettner, Moroney and Martin, n.d.). One approach is always looking backwards while the other is forward thinking in nature.
References
Kettner, Peter M., Moroney, Robert M., and Martin, Lawrence L. (n.d.). Designing and Managing Programs. Retrieved July 7, 2009, from Web site:
http://www.campuskitchens.org/kellogg/images/ves/designing_and_managing_budgeting
.pdf
Understanding State Budget Troubles. (2003). Retrieved July 7, 2009,from Economic Research
and Data Web site: http://www.frbsf.org/publications/economics/letter/2003/el2003-23.html
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