1. PP 500 Public Administration and Management Unit Seven Seminar Dr. Bruce Bordner Kaplan University

2. (Economics), Finance, and Budgeting in Public Administration and Management Welcome to the Unit Seven Seminar! Review of this week’s seminar. Review of this week’s Unit Seven course work. This Week’s Assignments: Read Chapter Eight in the Course Textbook. Read the additional assigned readings and lecture notes. Post to the Unit Seven Discussion (25 points). Attend the Unit Seven Seminar (10 points). Finish your interview.

3. (Economics), Finance, and Budgeting in Public Administration and Management Federal Budgeting involves the Office of Management and Budget (OMB). OMB originated with the Bureau of the Budget that was established through the Budget and Accounting Act of 1921. The president was required to provide Congress with a comprehensive budget. The president had legal authority to influence expenditures in the Executive Branch. Budgeting helps government decide what it will do: Which programs will be funded? At what levels will these programs be funded? Will funding for a program be reduced or eliminated entirely?

4. (Economics), Finance, and Budgeting in Public Administration and Management Economic Policy significantly impacts available government revenues for use on government programs. Economic Policy: The Treasury, the FED, and some terms: The Treasury Department. The Federal Reserve Board: - Established in 1913. - Members are appointed by the President and confirmed by the Senate. - Members serve 14 year terms on the board and may not be removed by the President. - There is a FED Chair and Vice Chair. - There is a Federal Open Market Committee (FOMC).

5. (Economics), Finance, and Budgeting in Public Administration and Management A Couple of Terms: Tight Money. Countercyclical Policies. Congress: Economics, Federal Spending, and Budgeting are of interest to those in the Congress. Fiscal Policy versus Monetary Policy. Goals of Economic Policy: (1) Promote Economic Growth. (2) Promoting Low Levels of Unemployment. (3) Keeping Inflation Low. (4) Achieving a Positive Balance of Trade. (5) Management of Deficits and Debt.

6. (Economics), Finance, and Budgeting in Public Administration and Management Three Reasons we want economic growth for budgeting and finances: (1) Leads to increasing government tax revenues. (2) If the economy is expanding, then perhaps people do not feel as bad about spending on redistributive programs. (3) An expanding economy may allow for an expansion of government programs or of the benefits for those already receiving government assistance. Promoting Low Levels of Unemployment. Keeping Inflation Low. Surpluses, Deficits, and the National Debt. What does Budgeting Involve? Establishing priorities for government programs. Estimating spending needs. Making estimates on the total costs of programs. Note: Budgeting is a political activity!

7. (Economics), Finance, and Budgeting in Public Administration and Management Some budget facts/concepts: Creating a budget takes upwards of 18 months. Economic data must be gathered. Program objectives have to be identified. Expenditure ceilings have to be established. Budgetary baselines have to be created. The Executive Budget is due to Congress by February 1 st of each year. The enacted federal budget takes effect on October 1 st of each year. This is the beginning of the federal governments fiscal year. Budgeting and the Congress: Appropriations and Authorizations. Office of Management and Budget

8. (Economics), Finance, and Budgeting in Public Administration and Management Some Budgeting Concepts: Base-line Budgeting. Line Item Budgeting. New Performance Budgeting. Planning-Programming-Budgeting (PPB). Zero-Base Budgeting. The Process of Budgeting (Five Stages): (1) Preparation (economic studies and fiscal projections). (2) Authorization (establishes spending levels). (3) Appropriations (actually allocates money to programs). (4) Execution (where government funds are actually spent by government departments, agencies, independent agencies, and government corporations. (5) Audit (were funds spent as they were supposed to be spent, were funds left over and need to be returned to the Treasury)

9. (Economics), Finance, and Budgeting in Public Administration and Management The Budget Committee. The Ways and Means Committee. The House and Senate Appropriations Committees. Some terms: Black Budget. Earmarks. Continuing Resolutions. Budgetary Reforms: Creation of Biennial Budgets. Creation of a Capital Budget. Give the President a Line Item Veto.