PAD 3003 Chapters 4-5 notes

What are some of the strategies managers use to influence the budget process? (Aaron Wildavsky) page 183

1. Clientele support - The support of client groups and other associations interested in the agency's work will be helpful in developing testimony and lobbying in behalf of programs. 2. Confidence of higher executives and legislative officials in your character and ability - Managers who enjoy a good reputation are typically more successful, especially in dealings with the legislature. 3.Agency Officials can take certain tactical positions to attempt to develop or protect their favorite programs. a. One approach verging on unethical is "budget padding" - proposing a higher budget than is actually needed. b. Another approach is "camel nose"- the manager asks for a small amount to begin a program, then later treats this program as part of the base and argues that it would be unfortunate to lose the money already invested by not finishing the job.

Identify some of the quantitative techniques used for policy analysis.

1. Costs-effectiveness approach - compares policies by quantifying their total costs and effects 2. Cost-benefit approach - involves identifying and quantifying both the negative impacts (costs) and positive impacts (benefits) of a proposal then subtracting one from the other to arrive at a measure of net benefit. 3. Decision analysis - a technique for use where decisions are likely to be made sequentially and with some degree of uncertainty.

Discuss the necessary steps for comprehensive policy analysis.

1. Defining the problem - 2. Setting objectives and criteria 3. developing Alternatives 4. Analyzing various policies 5. Ranking and choosing

Other ways of dealing with fiscal stress - Wildavsky

1. Following a multi-year plan to preserve the administrative capacity and the capital investment of the jurisdictions, 2. Targeting cuts in specific programs rather than cutting across the board (all programs cut at the same percentage) 3. Smoothing out the impact of the cuts (lessening their immediate effect). May occur by improving productivity, so the organization can accomplish more with less, or by generating new revenues, such as imposing new user charges for services.

Compare and contrast the several different subsystems that carry forward an organization's work.

1. Institutional subsystem -responsible for adapting the organization to its environment and for anticipating and planning for the future. 2. Technical subsystem - is concerned with the effective performance of the organization's actual work 3. Managerial subsystem - concerned with providing the necessary resources for accomplishing the technical tasks, as well as mediating between the technical and institutional subsystems.

Compare and contrast the different types of budgeting processes.

1. Line-item Budget - Budget format for listing categories of expenditures along with amounts allocated to each. Widely used by agencies. 2. Performance Budget - Budget format organized around programs or activities; includes various performance measurements that indicate the relationship between actually done and its cost. 3. Program Budgeting - (PPBS) Planning Programming-budgeting system - an effort to connect planning, systems analysis, and budgeting. Program budgeting is concerned with the purpose of work 4. Outcome-Based Budgeting - determines the qualitative results of government initiatives. Many government agencies have incorporated outcome-based budgeting with their strategic planning processes, making it possible to observe the level of resources needed to reach goals and objectives and then use the information for budget decision-making.

Contrast Strategic planning and long-range planning.

1. Long-range planning is less concern with specific steps that must be undertaken to achieve goals, whereas, 2. Strategic planning implies a series of action steps will be developed as part of the planning process. 3. Strategic planning pay special attention to environmental complexity. 4. In the public-sector strategic planning involve many individuals at many levels.

Discuss government's role in the budget cycle and the components of each phase

1. March -Formulation of president's budget - the Office of Management and Budget (OMB) collects information on projected revenues for the coming fiscal year and on the outlook for the economy. OMB also, develops information on the progress of the current year's budget. 2. January - Congressional budget process including action on appropriations and revenue measures (beginning 9 months before start of fiscal year) 3. October - fiscal year - Execution of enacted budget - agencies of government carry out agreed-upon programs and policies. Public administrators in all aspects of the management process-planning analysis, personnel management, communications, and other interpersonal skills. 4. September 30, beyond fiscal year) Fiscal data is available. Audit Phase - The final phase of the budget process is the post execution or audit phase. Post audits take place following the end of the fiscal year and are concerned with verifying the correctness and propriety of agency operations.

Explain the two basic concepts of budgetary strategies.

1. Notion of program base. The base refers to those elements of an agency's program that everyone expects will be continued from year to year, remain the same from year to year, and does not comes under scrutiny. 2. The second concept is that of receiving a fair share of the overall budget, success is determined if the program receives a proportionate amount of any increases or decreases that the government generally support.

Allen Schick suggests three different purposes of the budget. Identify and define these purposes.

1. Planning - Involves the determination of organizational objectives; 2. Management - Involves te design of organizational means y which approved goals can be translated into action as well as developing the staffing and resources necessary for execution; 3. Control - Refers to the process of ensuring that operating officials follow the policies and plans established by their superiors. According to Schick, each attempt at budget reform changes the balance among the three purposes - sometimes inadvertently , sometimes deliberately

Steps in strategic planning

1. Statement of mission or objectives 2. Environmental analysis 3. Assessment of strengths and weaknesses 4. Analysis of organizational leaders' values 5. Development of alternative strategies

The second phase of the policy process is implementation of plans. Discuss some of the techniques available to help in the beginning stages of the implementation process.

1. issuing and enforcing directives . disbursing funds 3. awarding grants and contracts 4. analyzing programmatic and operational problems 5. Taking corrective actions and 6. negotiating with citizens, business, and those in other public and nonprofit organizations.

In organizing a planning process, what are the primary concerns of the planning group?

1. the organization's mission or objectives 2. an assessment of the environment in terms of both opportunities and constraints, 3. an examination of the organization's existing, strengths and weaknesses 4. the values, interests, and aspirations of those important to the organization's future

For what reasons does public organizations undertake strategic planning efforts?

1. to give clarity and direction to the organization, 2. to choose from among competing goals and activities 3. to cope with expected shifts in the environment 4. to bring together the thoughts and ideas of all participants in the work of the organization.

Strategic Planning

A type of planning - resulting in the matching of organizational objectives and capabilities to the anticipated demands of the environment to produce a plan of action that will ensure achievement of objectives.

Describe some of the ways government obtains funds for operation. Identify the various type of taxes the government use.

A. Raise taxes 1. individual income taxes 2. corporation income tax 3. Payroll taxes 4. Sales and excise taxes 5. property taxes 6. other revenue sources.

Discuss how government uses the budget to affect fiscal policy.

By varying its own spending or, somewhat more indirectly, by raising or lowering taxes, or removing or increasing funding in the economy.

Long-range Planning

Concerns establishing goals or performance objectives over a period of time; it is less concerned with specific steps that must untaken to achieve those goals

What does the phrase "managing for results" mean? How might such a program be implemented?

Managing for results" (MFR) means focusing on results in every aspect of management. Organizations that perform successfully have a clear vision of why they exist, what they want to achieve and how well they are achieving it. 2. Can be implemented through strategic planning.

What are the different types of evaluation approaches? Discuss the distinctions among them.

Program evaluation- Outcome evaluation-Evaluation focusing on the results of program activity and the extent to which a program meets it objectives Process evaluation - focuses on improvements and organizational processes that will result in more efficient and effective results.

Entitlement Programs

Programs that provide a specified set of benefits to those who meet certain eligibility requirements. Restrictions that are built in the budget and place limitation on what Congress or the President can do regarding changes to the budget.

How does the government spend the money it collects?

The U.S. Treasury divides all federal spending into three groups: mandatory spending, discretionary spending and interest on debt. Mandatory and discretionary spending account for more than ninety percent of all federal spending, and pay for all of the government services and programs on which we rely. Interest on debt, which is a much smaller amount than the other two categories, is the interest the government pays on its accumulated debt, minus interest income received by the government for assets it owns.

Planning

Typically leads to the development of alternative courses of action, and each must be examined to decide which way to go. There are two types, strategic planning and long-range planning.