Carleton University School of Public Policy and Administration Budgetary Policy in the Public Sector PADM 5214 Fall 2009
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1 Carleton University School of Public Policy and Administration Budgetary Policy in the Public Sector PADM 5214 Fall 2009 Instructor: Dr. Stephen L. Harris Time: Monday (11:30 14:30) Location: Dunton 1110 Coordinates Office Mobile Office Hours: Dunton 1118 Monday 9:30 11 & 14:30 16:00 Objectives of the course The purposes of the course are (a) to provide the students with an understanding of the key elements of federal government budgeting: goal setting, planning and control processes; and (b) to provide an understanding of budgets as public policy and thus reflect compromises among competing interests and objectives. The course will achieve its purpose by using an interdisciplinary approach. The relevant issues will be examined from the perspective of the economics, politics, political economy and management literature. Students will become familiar with federal budgeting controversies; will gain an understanding of politics and the process of budget-making; and will see the budget as an important overarching framework for governance, and will be exposed to the size and composition of federal budgets. Readings Required Texts: David Good, The Politics of Public Money, University of Toronto Press, Available in the Bookstore. Course Pack (Available at Haven Books on Sunnyside) Readings Noted by [CP] are in the Course Pack
2 A few readings will be found on the Web (and so indicated) or on the Electronic Library (and so indicated) Evaluation There will be four components considered for the final grade: (i) (ii) Class participation: Each student is expected to actively participate in the discussions for every class. An important part of the learning process is to critically evaluate the readings and bring your ideas to the seminar. Critical evaluation is the operative term. Question what the authors write you can disagree with them. There is no right answer in this business. We all see the world through different lenses. Using real examples from the daily press (Globe & Mail, Financial Times, National Post), weekly news magazines (Economist, Time, Mcleans) will help you make the readings relevant. This component of the course will be worth 20 per cent of the final grade. Two 3 page (single spaced) essays that critically analyze the readings for one week in conjunction with a recent government budget -- national (Canada or any country), provincial/state, local), or a departmental/program budget. There is lots of flexibility here just choose a yopic that interest you. You should try to push the real world through one of the theoretical/analytical lenses used to filter the literature for this course. Due Dates: First paper October 5 th ; second November 2 nd. No late submissions, no electronic submissions. All late submissions will be penalized one full grade for each day following the deadline. (So, after one day an A paper becomes a B paper.) The papers will account for 20 percent of the final grade. (iii) Seminar Presentation 20 percent: Each student will make one seminar presentations on the assigned readings for the week. It is anticipated that there will be two presentations per class in addition to the lecturer s remarks. Each presentation should be about 30 minutes. Students should not simply summarize the readings but shall provide a critical evaluation of the readings. This may require additional research beyond the assigned reading. The two students presenting each week shall decide among themselves how the weekly readings will be apportioned for the seminar presentations. 2
3 (iv) Case study/research Paper: This will be a 15 page paper (double spaced) on a topic that you choose, but that is related to a theme from the course. You can choose to write a budget for the government (any level) as a whole, write a budget for a department, a proposal for a new program or the reform of the budget process, incentives driving bureaucrats or politicians. You must get approval from the instructor for the topic by October 5 th. See notation in (ii) above again there is lots of flexibility to undertake a project that is of interest to you. In addition, as part of this case study you must submit a 1 page research proposal by October 19 th. This paper and the proposal will account for 40 percent of the final grade. The paper is to be submitted at the last class on December 7 th. No late submissions, no electronic submissions. All late submissions will be penalized one full grade for each day following the deadline. (So, after one day an A paper becomes a B paper.) All papers should be double spaced, 12 point font, 1 inch borders. Please staple in upper left corner no paper clips and no fancy covers. Ensure citations are accurate and grammar and spelling have been thoroughly checked. Summary of Evaluation Class Attendance & Participation 20 percent Two Short Essays (3 single spaced pages) 20 Seminar Presentation 20 Case study/research paper 40 percent 100 The Class Participation Component: Students are required to complete all the readings each week prior to each class and to come to the class prepared to discuss them. This means being able to present your assessment of the readings, responding to questions, asking questions and participating fully in each week s discussion. Attendance is mandatory. Grading will be based on the quality of student interventions not on the quantity of interventions. Course Outline and Readings Week One - Sept 14 : Introduction and Overview Week Two - Sept 21: Some Essentials of Public Budgeting 3
4 Andrew Graham, Canadian Public-Sector Financial Management [CP] Chapter Six, The Budgetary Process, pp David A. Good, The Politics of Public Money o Chapter Six: Fiscal Aggregates o Chapter Seven: Budget Allocations Gregory F. Treveton, Governing the Market State, in eds., Robert Klitgaard & Paul C, Light, High Performance Government: Structure Leadership, Incentives, [CP] Week Three September 28: The Role of the State: What Does it Mean? And How is it Measured Harold L. Wilensky: Rich Democracies: Political Economy, Public Policy & Performance [CP] Chapter Two: Types of Political Economy, pp Chapter Twelve: Types of Political Economy Spending, Taxing and Economic Performance, pp J. Stephen Ferris and Stanley L. Winer, Just How Much Bigger Is Government in Canada? A Comparative Analysis of the Size and Structure of the Public Sectors in Canada and the United States, , Canadian Public Policy, June 2007, (Available on the Electronic Library) Week Four October 5: Politics of Money David A. Good, The Politics of Public Money o Chapters 1-3 Week Five October 19 David A. Good, The Politics of Public Money o Chapters 4 & 8 4
5 Robert D. Behn, Rethinking Democratic Accountability (Washington: Brookings Institution, 2001), Chapter Three ( The Traditional Public Administration Paradigm of Accountability, ) pp [CP] Chapter Four ( The Questions of Democratic Accountability ), pp [CP] Week Six October 26: Importance of Prudence in Managing the Public Purse Gerald J. Swanson, America the Broke (New York): [CP] Chapter One ( Marching Toward Fiscal Armageddon ) pp and, Chapter Ten ( Learning from the Experience of Others ) pp Paul Martin, The Canadian Experience in Reducing Budget Deficits and Debt, Paper for the Federal Reserve Bank of Kansas City for a Symposium on Budget Deficits and Debt: Issues and Options, 1995, CIBC World Markets, Is Canada s Fiscal Standing at Risk? August Week Seven - November 2: Processes and the Institutional Setting G. Bruce Doern, et. al., Chapter Three ( Budgeting and the Canadian Institutional Setting ) pp [CP] Don Cozzeto, Mary Kweit and Robert Kweit, The Search for a Budget Theory, in Public Budgeting: Politics, Institutions, and Processes, Longman 1995, [CP] Expenditure Management System of the Government of Canada PR_e.asp?printable=True House of Common Standing Committee on Finance, 2007 Pre-Budget Consultations, Report Three - Taxing To Prosper: Canada s System of Taxes, Fees and Other Charges at inarp03/finarp03-e.pdf 5
6 Michael J. Prince, Budgetary Trilogies: The Phases of Budget Reform in Canada, in ed. Christopher Dunn, The Handbook of Canadian Public Administration, pp [CP] Week Eight - November 9: Taxation Geoffrey Hale, The Politics of Taxation in Canada: [CP] Chapter Two, The Tax System and the Politics of Ideas, Chapter Four, The Tax Policy Community, Jack Mintz, Tax Competitiveness Report: A Call for Comprehensive Tax Reform, Interdisciplinary Perspectives Week Nine - November 16: Public Choice: Economics and Fiscal Policy Douglas G. Hartle, The Expenditure Budget Process of the Government of Canada: A Public Choice-Rent-Seeking Perspective (Toronto: Canadian Tax Foundation, 1988), Chapter One ( Economic Considerations ), pp [CP] Douglas G. Hartle, Chapter Two ( The Political Context ), pp [CP] Week Ten - November 23: Bureaucratic and Political Behavior Patrick Dunleavy, Democracy, Bureaucracy and Public Choice, Chapter Six, Public Choice Models of Bureaucracy, [CP] William Niskanen, A reflection on Bureaucracy and Representative Government, in Andre Blais and Stephane Dion, eds, The Budget-Maximizing Bureaucrat: Appraisals and Evidence (Pittsburgh: University of Pittsburgh Press, 1991), [CP] Laurence E. Lynn, The Budget-Maximizing Bureaucrat: Is there a Case? in Andre Blais and Stephane Dion, eds, The Budget-Maximizing Bureaucrat: Appraisals and Evidence (Pittsburgh: University of Pittsburgh Press, 1991), pp [CP] Tim O Neill, Review of Canadian Federal Fiscal Forecasting: Processes and Systems at: Week Eleven November 30: Fiscal Federalism 6
7 Finn Pochman, Recalibrating the Federal Balance: Federal-Provincial Fiscal Priorities for 2006 and Beyond, CD Howe Institute, May Council of the Federation, Advisory council of Fiscal Imbalance, Reconciling the Irreconcilable: Addressing Canada s Fiscal Imbalance Week Twelve December 7: Budget Crisis November 2008 & Budget January 2009 [This will be a general discussion led by the instructor ] Fiscal Update November Budget Coalition Proposal Constitutional Issues Canada s Economic Action Plan (1) - March Canada s Economic Action Plan (2) - June Possible Topics for Case Study and/or Short Papers The Atlantic Accord Politics of the Ontario Federal Dispute in 2008 Fiscal Federalism Winners and Losers Program Spending Budget generally or in a specific policy area: o Health o Child Care 7
8 o Defense o Social Housing o Security o Environment o Etc Corporate Taxation and Competitiveness The budgeting process (or spending process in comparative perspective) Budget for certain merit goods: o Public Broadcasting o National Arts Center o Subsidies to the Arts Political Use of Budgets o Conservative Government Spending o GST Cuts vs. Income Tax cuts o Child Care Benefit (Conservatives vs. Liberals) Municipal Tax Pressures and spending burden The 2008 Fiscal and Constitutional Crisis The global fiscal crisis resulting from the global financial meltdown 8
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