Department of Public Administration ADMINISTRATION OF FINANCIAL RESOURCES SPRING SEMESTER 2012

Transcription

1 Department of Public Administration ADMINISTRATION OF FINANCIAL RESOURCES SPRING SEMESTER 2012 CLASS TIMES: LOCATION:, January 27, 5:30 8:30 pm RH 303, February 3, 5:30 8:30 pm RH 303, February 4, 9-12 and 1-5 pm RH 303, February 24, 5:30 8:30 pm RH 303,February 25, 9-12 and 1-5 pm RH 303, March 23, 5:30 8:30 pm RH 303, March 24, 9-12 and 1-5 pm RH 303, April 13, 5:30 8:30 pm RH 303, April 14, 9-12 and 1-5 pm RH 303 INSTRUCTOR: Dr. Greg Protasel Office: RH 307A Office Hours: Wednesdays 3:00-4:00 pm & by appointment Phone: (907) Class website: Class list:

2 PADM 628 Administration of Financial Resources Spring 2012 Dr. Protasel page 2 of 6 Course Description: This course is an introduction to the study of public administration of financial resources. Four general topics are explored: Public Budgeting; Revenue Sources; Financial Management in the Public Sector; and Performance Management and Budgeting. In Part One, Public Budgeting is presented in a comparative local-state-federal government context. How the federal-statelocal fiscal environments have changed in the last 30 years is reviewed. This is followed by an analysis of how national demographic, economic and political changes have affected state and local government finances. Issues of federalism are raised and the power relations between the different levels of government are analyzed. In addition, the stages of the budgetary process are outlined with special attention given to budget request strategies and the implications they have for democratic governance. Line item budgeting, performance budgeting, program budgeting, zero based budgeting, and PART budgeting are studied and contrasted. Part Two, Revenue Sources takes a look at tax policy and studies the problems of financing government through various revenue raising mechanisms: Income taxes, property taxes, excise taxes, retail sales taxes, value-added taxes, user fees etc. Criteria for evaluating these taxes are discussed with special attention given to Alaska Issues. Part Three, Financial Management in the Public Sector is a guide on how to use financial management and budgeting tools in the public sector. Techniques for revenue forecasting, financial monitoring, cash management, and financial reporting are introduced through practical case-studies. Also, in view of the current economic recession, special attention is given to financial condition analysis and problems of debt administration. Part Four, Performance Management & Budgeting addresses the age-old problem of how governments can learn from experience. Our text describes performance budgeting as the integration of performance management components (planning, performance measurement, and benchmarking) into the three phases of the budget cycle used by state and local governments: budget development; budget implementation; and budget evaluation. The aim of this section of course is to give students a comprehensive theoretical and practical framework for informing budget decisions. In addition, the role of citizen participation in performance budgeting is examined and management tools use to support performance budgeting such as the balanced scorecard are introduced. Grading and Course Format: The class will be taught in a combined lecture/discussion format. At the beginning of each class, the instructor will lecture on the day s topic. This will be followed by class discussion of the assigned readings. The readings from the textbooks are listed below in the syllabus. Responsibility for reporting on a particular reading will be assigned to specific students to summarize and comment on during class. Grades will be assigned on the basis of written performance on four essays ( 5-7 pages each,

3 PADM 628 Administration of Financial Resources Spring 2012 Dr. Protasel page 3 of 6 doubled spaced, 12-point font), a team project, and classroom participation. Students will be expected to discuss their essays, exercises, and projects in class. Essays and exercises must be finished and ed in pdf format to the instructor by the due dates listed in the table below. The team projects are due on the last day of class. More will be said about the essays, exercises and team projects in class. The dates the assignments are due and their relative weights are listed in the following table: Assignment Date Due Weight Essay #1 (Public Budgeting) February 13 15% Essay #2 (Revenue Sources) March 5 15% Essay #3 (Financial Management) Essay #4 (Performance Management) April 2 15% April 23 15% Team Projects April 14 30% Class Participation 10% TEXTBOOKS: ( listed in order of use) Rubin, Irene. The Politics of Public Budgeting: Getting and Spending, Borrowing and Balancing, 6th Edition. Sixth ed. CQ Press, 2009 Mikesell, John. Fiscal Administration. 8th ed. Wadsworth Pub Co, Wang, Xiao Hu. Financial Management in the Public Sector. (Second Edition) M E Sharpe Inc, Janet M. Kelly and William C. Rivenbark, Performance Budgeting for State and Local Government, Second Edition, M.E. Sharpe, 2011

4 PADM 628 Administration of Financial Resources Spring 2012 Dr. Protasel page 4 of 6 Introduction and overview of the course January 27 5:30 8:30 pm PART ONE: PUBLIC BUDGETING February 3 5:30-8:30pm RUBIN: Chapter 1, The Politics of Public Budgets; Chapter 2, Revenue Politics MIKESELL: Chapter 2, The Logic of the Budget Process February 4 RUBIN: Chapter 3, The Politics of Process; Chapter 4, The Dynamics of Changing Budget Processes MIKESELL: Chapter 3, Budget Structures and Institutions: Federal and State-Local; Chapter 4, Budget Methods and Practices 1:00-5:00 RUBIN: Chapter 5, Expenditures: The Politics of Choice; Chapter 6, The Politics of Balancing the Budget; Chapter 7, Budget Execution: Politics of Adaptation; Chapter 8, Budget Implementation and Control; Budgetary Decision Making & Politics MIKESELL Chapter 5, Budget Classification Systems, and Reform: Trying to Make Better Choices; Chapter 6, Capital budgeting, Time Value of Money, and Cost-Benefit Analysis: Process, Structure, and Basic Tools

5 PADM 628 Administration of Financial Resources Spring 2012 Dr. Protasel page 5 of 6 PART TWO: REVENUE SOURCES February 24 MIKESELL: Chapter 1, Fundamental Principles of Public Finance; Chapter 7, Taxation: Criteria for Evaluating Revenue Options 5:30-8:30 pm February 25 MIKESELL: Chapter 8, Major Tax Structures: Income Taxes; Chapter 9, Major Tax Structures: Taxes on Goods and Services 1:00-5:00 MIKESELL: Chapter 10, Major Tax Structures: Property Taxes; Chapter 11, Revenue from User Fees, User Charges, and Sales by Public Monopolies; Chapter 13, Intergovernmental Fiscal Relations: Diversity and Coordination PART THREE: FINANCIAL MANAGEMENT IN THE PUBLIC SECTOR March 23 5:30-8:30 pm WANG: Chapter 1, Revenue Forecasting; Chapter 2, Resource Development Analysis; Chapter 3, Cost Estimation; Chapter 4, Cost Comparison; Chapter 5, Incremental Cost Analysis; Chapter 6, Cost-Benefit Analysis MIKESELL: Chapter 12, Revenue Forecasts, Revenue Estimates, and Tax Expenditures Budgets March 24 WANG: Chapter 7, Financial Performance Monitoring; Chapter 8, Cash Management: Determining the Optimal Cash Balance MIKESELL: Chapter 15, Managing Public Funds: Cash management, Employee Retirement, and Sovereign Wealth Funds

6 PADM 628 Administration of Financial Resources Spring 2012 Dr. Protasel page 6 of 6 March 24 (cont.) 1:00-5:00 pm WANG: Chapter 9, financial Reporting and Analysis; The Statement of Net Assets; Chapter 10, Financial Reporting and Analysis: The Statement of Activities;, Chapter 11, Financial Reporting and Analysis; Fund-Level Statements: Chapter 12, Financial Condition Analysis; Chapter 13, Debt Capacity Analysis; Chapter 14, Financial Risk Assessment: Analyzing the Risk of Revenue Loss MIKESELL: Chapter 14, Debt Administration PART FOUR: PERFORMANCE MANAGEMENT & BUDGETING April 13 KELLY & RIVENBARK: Chapter 1, Redefining Performance Budgeting; Chapter 2, The Lineage of Performance Budgeting 5:30-8:30 pm April 14 KELLY & RIVENBARK: Chapter 3, Planning for Performance; Chapter 4, Performance Measurement; Chapter 5, Efficiency 1:00-5:00 pm KELLY & RIVENBARK: Chapter 6, Benchmarking; Chapter 7, Performance Budgeting; Chapter 8, Sustainable Performance Budgeting