Public Policy and Administration 230Week 1: Introduction and Course ObjectivesPublic Budgeting: DefinitionFunctions/Disciplines of Public BudgetingBudget FormatsFederal v State/Local BudgetingHistory of BudgetingCongressional Dominance Period: 1789-1921Seeds of ChangeSeeds of Change, cont.Slide 11Presidential Dominance Period: 1921-1974California’s Executive MovementEra of Stalemate: 1974 -Budget TheoryBudget Theory -- continuedExamples of Budget Theory QuestionsContemporary Context of Public BudgetingEthical Issues in Public BudgetingSample BudgetsPreview of Week 2Public Policy and Administration 230Public Budgeting and FinanceProfessor Nancy ShulockExecutive DirectorInstitute for Higher Education Leadership and PolicyCourse web site:http://www.csus.edu/indiv/s/shulockn/Spring%2002/ppa_230web02.htmWeek 1: Introduction and Course Objectives•Introductions and information (email addresses)•Review syllabus•What is public budgeting?–Budget formats–Federal/state/local budgeting–History of budgeting–Budget theory•Contemporary context of public budgeting•Ethical issues in public budgeting•Sample budgets•Preview week 2Public Budgeting: DefinitionDonald Kettl: Decision about how much of society’s resources we want to take from the private sector to use for problems of broader public interestFunctions/Disciplines of Public Budgeting•political (political science)•economic (economics)•accountability/control (business)•managerial/administrative (public administration)•organizational (organization theory)Budget Formats•line item -- emphasize control–pushes policy into background–minimizes conflict•program budget -- emphasize policy–what should government do–requires more analysis•performance budget -- emphasize management–productivity of specific tasks, not overall goals–administrative outcomesFederal v State/Local Budgeting•Federal: –economic and political perspectives–expenditure driven–entitlements–defense•State/Local: –organizational and administrative perspectives–revenue driven–more unified executive controlHistory of Budgeting•1789 - 1921 -- Congressional dominance–no executive leadership–no “budgets” as we now know them•1921 - 1974 -- Presidential dominance–Executive Budget Movement–Budget and Accounting Act of 1921•President’s budget•OMB•1974 - Present -- Stalemate–Congressional Budget Act of 1974•Budget committees•CBOCongressional Dominance Period: 1789-1921•Small scope of government, compared to Europe•Temporary increase in executive power in Civil War•Problems:–“bureaucratic feudalism”–no executive leadership–no accountability–inability to respond to growing needs from industrialization, immigration, population growthSeeds of Change•Taft Commission 1912–US budget and policy are controlled by Congress–Executive branch is instrument of Congress“The result is that while in most other countries the budget is in the nature of a proposal or program submitted on its responsibility by the executive to the legislature, in the US the Book of Estimates, our nearest approach to a budget, is rather a more or less well-digested mass of information submitted by agents of the Legislature to the Legislature for the consideration of legislative committees to enable the Legislature both to originate and to determine the policy which is to carried out by the Executive during the coming budgetary period.”Seeds of Change, cont.President’s Message:“Notwithstanding the magnitude and complexity of the business which is each year conducted by the executive branch and financed by the Congress, and the vital relation which each governmental activity bears to the welfare of the people, there is at present no provision for reporting revenues, expenditures, and estimates for appropriations in such manner that the Executive, before submitting estimates, and each Member of Congress, and the people, after estimates have been submitted, may know what has been done by the Government or what the Government proposes to do.”Seeds of Change, cont.•Taft Commission recommendations–President submit annual budget•message on priorities•summaries of expenditures and revenues•needed law changes–Department heads submit annual budgets•Congress rejected recommendations–common theme: power struggle between executive and legislative branchesPresidential Dominance Period: 1921-1974•Executive Budget Movement–borrowed from business and Europe–comprehensive–defined period of time for a budget–standard expenditure categories–developed by executive; staffed by experts–agency heads must support executive budget•Budget and Accounting Act of 1921 (Pres Wilson)–Bureau of Budget in Treasury  OMB–Formal budgeting mechanisms–GAO accountable to CongressCalifornia’s Executive Movement•Preceded federal reform•Some reforms under Governor Hiram Johnson in 1911•Prior to 1911, no schedule for budget preparation–department heads attended all four months of session•Board of Control established to advise Governor•More reforms in 1922 after federal reform–Amended state constitution – section 12 – a consolidated administration proposal–1927 Legislature created Department of FinanceEra of Stalemate: 1974 - •Congressional Budget Act of 1974 •Congress can put forth own budget to challenge the President’s budget•more detail in Schick and Kettl readings•Shutdowns, late budgets•huge staff increases as both sides equalize•constant search for reforms (week 5)Budget Theory•Theory: a framework for accumulating knowledge•Normative, descriptive, positive–normative -- what s houl d be–descriptive -- what is–positive -- what will be (predictions)•V. O. Key 1940 question in search of normative theory: “On what basis should it be decided to allocate X dollars to activity A instead of B”Budget Theory -- continued•Wildavsky–normative theory impossible -- utopian–descriptive theory: incrementalism•how decisions are made (process or outcome?)•how strategies selected•main theory today but partially discredited•Rubin: field lacks good theory–need to merge political and technical–recognize importance of process–complexity of disciplinesExamples of Budget Theory Questions•how much can revenue estimates be politicized before other means are found?•how much of the political can be treated technically without loss of political