Carleton University School of Public Policy and Administration Budgetary Policy in the Public Sector PADM 5214 Fall 2008 (Preliminary)
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1 Budgetary Policy PADM 5214 Carleton University School of Public Policy and Administration Budgetary Policy in the Public Sector PADM 5214 Fall 2008 (Preliminary) Instructor: Dr. Stephen L. Harris Time: Thursday (11:30 14:30) Location: Dunton Coordinates Office Mobile Office Hours: Dunton 1118 Th 9:30-11:00 & Fr 10:40 12:00 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: Andrew Graham Canadian Public Sector Financial Management, McGill- Queens Press (Available in the Carleton U Bookstore) Course Pack (Available at Haven Books on Sunnyside) Readings Noted by ** are in the Course Pack
2 Evaluation A few readings will be found on the Web (and so indicated) or on the Electronic Library (and so indicated) 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 15 per cent of the final grade and will include the evaluation of your case study presentation (see below). Three 3 page (single spaced) essays which critically analyze the readings for one week in conjunction with a recent government budget (federal, provincial or local), or a departmental budget. You should try to push the real world through one of the lenses used to filter the literature for this course. Due Dates: First paper October 2 nd ; second October 30 th ; third paper November 13 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.) The papers will account for 45 percent of the final grade. (iii) Seminar Presentation 20 percent: Depending on class each student students will make on or two 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) Group case study: This will be a 15 page budget paper on a topic which 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. Depending on class size students will work in groups of two or three with the groups decided by the instructor. The paper shall be written solely for this course. You must get approval from the instructor for the topic by October 2 nd. In addition, as part of this case study you must submit a 1 page research proposal by October 9 th. This paper and the proposal will account for 20 percent of the final grade. Each student in the group will receive the same grade for the paper. The paper is to be submitted at the last class on December 4 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.) Each group will present its paper to the class and lead a discussion. Each student will grade the contribution of the group members to the project. Report free riders to the instructor if problems cannot be resolved within the group. 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 Participation 15 percent Three Short Essays (3 single spaced pages) 45 Seminar Presentation 20 Group case study paper and presentation 20 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 3
4 mandatory. Grading will be based on the quality of student interventions not on the quantity of interventions. Course Outline and Readings Week One - Sept 4 : Introduction and Overview Week Two - Sept 11: Some Essentials of Public Budgeting Andrew Graham, Canadian Public-Sector Financial Management o Introduction, pp. 1-6 o Chapter One Financial Management in the Public Sector, pp o Chapter Five, Budgets: Overview and Function, pp o Andrew Graham, Canadian Public-Sector Financial Management Chapter Six, The Budgetary Process, pp Week Three Sept 18: The Role of the State: What Does it Mean? And, How is it Measured? **Harold L. Wilensky: Rich Democracies: Political Economy, Public Policy & Performance o Chapter Two: Types of Political Economy, pp o Chapter Twelve: Types of Political Economy Spending, Taxing and Economic Performance, pp o 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) o **Gregory F. Treveton, Governing the Market State, in eds., Robert Klitgaard & Paul C, Light, High Performance Government: Structure Leadership, Incentives,
5 Week Four - Sept 25: Importance of Prudence in Managing the Public Purse **Gerald J. Swanson, America the Broke (New York): Currency/Doubleday, 2004), Chapter One ( Marching Toward Fiscal Armageddon ) pp and, Chapter Ten ( Learning from the Experience of Others ) pp o CIBC World Markets, Is Canada s Fiscal Standing at Risk? August o 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, o Mike Joyce, The Canadian Federal Government s Experience with Prudent Budget Planning, Queen s School of Policy Studies, WP 42, October Week Five - October 2: Processes and the Institutional Setting [First short paper due today] o * **G. Bruce Doern, et. al., Chapter Three ( Budgeting and the Canadian Institutional Setting ) pp o Andrew Graham, Canadian Public-Sector Financial Management Chapter Six, The Budgetary Process, pp o **Don Cozzeto, Mary Kweit and Robert Kweit, The Search for a Budget Theory, in Public Budgeting: Politics, Institutions, and Processes, Longman 1995,
6 o Expenditure Management System of the Government of Canada PR_e.asp?printable=True o 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 eports/rp /finarp03/finarp03-e.pdf o **Michael J. Prince, Budgetary Trilogies: The Phases of Budget Reform in Canada, in ed. Christopher Dunn, The Handbook of Canadian Public Administration, pp Week Six - October 9: Taxation o **Geoffrey Hale, The Politics of Taxation in Canada: Chapter Two, The Tax System and the Politics of Ideas, Chapter Four, The Tax Policy Community, o Jack Mintz, Tax Competitiveness Report: A Call for Comprehensive Tax Reform, Interdisciplinary Perspectives Week Seven - October 16: Public Choice: Economics and Fiscal Policy o **Bruce Doern et al, Budgeting in Canada, Chapter 5, Budgeting and Economics 6
7 o **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 o **Douglas G. Hartle, Chapter Two ( The Political Context ), pp Week Eight - October 23: Bureaucratic and Political Behavior o **Patrick Dunleavy, Democracy, Bureaucracy and Public Choice, Chapter Six, Public Choice Models of Bureaucracy, o **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), o **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 o Tim O Neill, Review of Canadian Federal Fiscal Forecasting: Processes and Systems at: Week Nine - October 30: Fiscal Federalism [Second Short Paper Due Today] o Finn Pochman, Recalibrating the Federal Balance: Federal-Provincial Fiscal Priorities for 2006 and Beyond, CD Howe Institute, May
8 o Council of the Federation, Advisory council of Fiscal Imbalance, Reconciling the Irreconcilable: Addressing Canada s Fiscal Imbalance Week Ten -November 6: Budget Spring 2008 o William Robson, et al, Steering Through the Turbulence: The shadow Federal Budget 2008, o Budget 2008, Department of Finance, Canada Week Eleven November 13: Accountability & Probity [Third Short Paper Due Today] o **Robert D. Behn, Rethinking Democratic Accountability (Washington: Brookings Institution, 2001), Chapter Three ( The Traditional Public Administration Paradigm of Accountability, ) pp o Chapter Four ( The Questions of Democratic Accountability ), pp o Andrew Graham, Canadian Public-Sector Financial Management, Chapter 10, pp o The Gomery Report: Who Is Responsible? / o Response to Gomery Federal Accountability Act 8
9 Possible Topics for Case Study and/or Short Papers The Atlantic Accord Ontario Federal Dispute Fiscal Federalism Winners and Losers Program Spending Budget generally or in a specific policy area: o Health o Child Care 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 9
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