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)