PUBPOL 523: ADVANCED BUDGETING IN THE PUBLIC SECTOR AUTUMN QUARTER 2016 Tuesday s 9:30am - 12:20pm Smith Hall 307 Sharon N. Kioko, PhD skioko@uw.edu Parrington Hall 229 206.221.6356 Course Website: https://canvas.uw.edu/courses/1070585 Office Hours: M and W 3:00pm 5:00pm and by appointment COURSE DESCRIPTION: This course is designed to provide students with foundational knowledge in municipal government finance with an emphasis on the fiscal structure of sub-national governments in the United States. Key themes include: local government structures and fiscal autonomy, budget processes, institutions, and political actors; revenue alternatives and evaluation standards; trends in state and local governments revenues and their impact on budget processes and policy priorities; intergovernmental transfers and intervention policies and practices; and the impact of the Tax Revolt on local government fiscal structures. The course is designed for students who plan to be practitioners that is, those whose careers will demand they make recommendations and/or decisions about alternative sources of revenue, reliance on intergovernmental transfers and use of intervention systems, use and impact of tax incentives on revenues/economic development etc. As such, our discussions will largely be focused on the intersection of theory and practice. Caveat Emptor: Course readings and discussions largely focus on sub-national governments in the United States. If you are an international student, keep in mind budgeting and taxation principles are universal!
COURSE POLICIES: Class begins at 9:30pm and continues until 12:20pm. We will typically take a short break about halfway through. Please arrive promptly. All announcements will be made at the start of each class meeting. I encourage you to bring a notebook, tablet, or computer to class, but please do not spend time in class using social media or doing work not related to this class. If you can t fully engage, stay home! The course is structured much like a seminar. For this reason, I expect you will actively participate in class by responding to questions posed on the course site, myself, or your colleagues. To facilitate a collegial learning process, you should come to class having covered all the assigned readings (except where noted). I will grade your participation (10 percent of your final grade) based your responses to discussion questions, your ability to pose questions (to me and your fellow students), and your response to questions I or your colleagues pose in class. I expect all students to abide by the Evans School s Policy on Academic Integrity (see Student Handbook) as well as the School s Conversation Norms of professional and collegiate conduct (see the School s Conversation Norms) Please let me know if you have a disability that might inhibit you from demonstrating your comprehension of the course material. I will make appropriate accommodations. You should also contact the Disability Resource for Students (http://depts.washington.edu/uwdrs/). DRS is responsible for coordinating disability-related accommodations and will issue students with documented disabilities Accommodation Authorization Letters, as appropriate. Since accommodations may require early planning and generally are not provided retroactively, please contact DRS as soon as possible. Try and communicate with me in person. I can probably address most of your questions before or after class or during office hours. The office hours listed on the first page are not the only times when I will be available to meet. If the listed times don't suit your schedule, please send me an e-mail (skioko@uw.edu) and propose three alternative times you could meet with me and I will let you know which option works best for me. If you are unable to make it to Parrington Hall, please send me an email that concisely articulates your questions or concerns. I will check my e-mail regularly and make every effort to answer respond to your question(s) in a timely manner. You will be required to submit your assignments to the electronic drop-box at the course website. For group work, please provide one submission per group and list all group members on the submitted group document. Let me know if you can t deliver an assignment on time. We may be able to negotiate a different due date or a substitute assignment. Let me know if you plan to miss a class. Attendance is not required, but I appreciate knowing if you ve missed several classes, mostly so I can anticipate if you might need additional assistance or if I need to make accommodations to your participation grade. No extra credit. Page 2 of 6
COURSE GRADE: ASSIGNMENTS/EXAM % OF YOUR FINAL GRADE 3 Group Exercises (Monday s 5:00pm see dates on schedule) 45% Individual Research Project (Monday December 5 th, 5:00pm) 45% In-Class Participation 10% TOTAL 100% Your weighted average will be used to determine your numeric grade point. In assigning grades, I will follow the grading system required by University of Washington Graduate School (http://www.grad.washington.edu/policies/general/grading.shtml). Please refer to the Student Handbook regarding your course grades and overall grades in the program. Keep in mind that a minimum of 2.7 is required in any core course in the MPA curriculum. A minimum cumulative grade-point average of 3.0 is required for graduation. Weighted Average Numeric Point Letter Weighted Average Numeric Point Letter Weighted Average Numeric Point 100% 4.0 A 89.9% - 88.0% 3.4 B+ 77.9% - 76.0% 2.8 B- 99.9% - 98.0% 3.9 87.9% - 86.0% 3.3 75.9% - 74.0% 2.7 97.9% - 96.0% 3.8 A- 85.9% - 84.0% 3.2 <73.9 2.0 95.9% - 94.0% 3.7 83.9% - 82.0% 3.1 93.9% - 92.0% 3.6 81.9% - 80.0% 3.0 B 91.9% - 90.0% 3.5 79.9% - 78.0% 2.9 Letter Page 3 of 6
READINGS AND SCHEDULE OUTLINE LECTURE1: Oct. 4 th INTRODUCTION: PUBLIC BUDGETING AND PUBLIC FINANCE Svara, James H, and Kimberly L Nelson. 2012. "Government Structure as Context for the Finance Function." In Management Policies in Local Government Finance, edited by John R Bartle, W Bartley Hildreth and Justin Marlowe. Washington DC: ICMA. Benton, J Edwin. 2010. "Trends in Local Government Revenues: The Old, the New, and the Future." In Municipal Revenues and Land Policies, edited by Gregory K. Ingram and Yu-Hung Hong, 81-112. Cambridge, MA: Lincoln Institute of Land Policy. Pew Charitable Trusts The State Role in Local Government Financial Distress LECTURE 2: Oct. 11 th & 18 th BUDGET PREPARATION, REVIEW, APPROVAL, EXECUTION, & CONTROL Franklin, Aimee L. 2013. "Budgeting." In Management Policies in Local Government Finance, edited by John R Bartle, W Bartley Hildreth and Justin Marlowe. Washington DC: ICMA. Lienert, Ian. 2010. Role of the Legislature in the Budget Processes. International Monetary Fund. Allen Schick. 2009. Budgeting for Entitlements. OECD Journal in Budgeting Vol. 9, No. 2: 1-13. Case: Boston Big Dig and City of Dixon Illinois Budget Review For the FY 2017 federal budget, go to https://www.whitehouse.gov/sites/default/files/omb/budget/fy2017/assets/budget.pdf For state budgets, go to National Association of State Budget Officers state by state listing of state budget offices (http://www.nasbo.org/resources/state-budget-office-directory) For local governments, search by the government name. A number of local governments put their annual budgets online. Exercise 1 (Due 5:00pm, Monday Oct. 24 th ) Individual Project Topic (Due Oct. 18 th ) Page 4 of 6
LECTURE 3: Oct. 25 th REVENUE EVALUATION Reading: Mikesell, John L. Taxation: Criteria for Evaluating Revenue Options, in Fiscal Administration, 9 th edition (Belmont, CA: Wadsworth), pp. 350-388. Bird, Richard. "Smart Tax Administration" The World Bank Pew Charitable Trusts States Revenue Estimating: Cracks in the Crystal Ball Case: The Latte Tax Exercise 2 (Due 5:00pm, Monday Nov. 14 th ) LECTURE 4: Nov. 1 st PROPERTY TAXES Bland, Robert L. 2013. "The Property Tax." In Management Policies in Local Government Finance, edited by John R Bartle, W Bartley Hildreth and Justin Marlowe. Washington DC: ICMA. Gravelle, Jennifer, and Sally Wallace. 2009. "Overview of the Trends in Property Tax Base Erosion." In Erosion of the Property Tax Base: Trends, Causes, and Consequences, edited by Nancy Y. Augustine, Michael E. Bell, David Brunori, and Joan M. Youngman, 117-142. Cambridge, MA: Lincoln Institute of Land Policy. Connolly, Katrina D., David Brunori, and Michael E. Bell. 2009. "Are State and Local Finances Becoming More or Less Centralized and Should We Care?" In Erosion of the Property Tax Base: Trends, Causes, and Consequences, edited by Michael E. Bell, David Brunori, and Joan M. Youngman, 69-115. Cambridge, MA: Lincoln Institute of Land Policy. LECTURE 5: Nov. 8 th REVOLT AGAINST THE PROPERTY TAX & UNINTEDED CONSQUNCES OF TAX AND EXPENDITURE LIMITATIONS Mullins, Daniel R, and Bruce A. Wallin. 2004. "Tax and Expenditure Limitations: Introduction and Overview." Public Budgeting and Finance no. 24 (4):2-15. Be sure to review at least three articles 1. Hoene, Christopher. 2004. "Fiscal Structure and the Post-Proposition 13 Fiscal Regime in California Cities." Public Budgeting and Finance no. 24 (4):51-72. 2. Shadbegian, Ronald J. 1999. "The Effect of Tax and Expenditure Limitations on the Revenue Structure of Local Government, 1962-87." National Tax Journal no. 52 (2):221-38. 3. Mullins, Daniel R. 2004. "Tax and Expenditure Limitations and the Fiscal Response of Local Government: Asymmetric Intra-Local Fiscal Effects." Public Budgeting and Finance no. 24 (4):111-147. 4. Sexton, Terri A. 2009. "Assessment Limits as a Means of Limiting Homeowner Property Taxes." In Erosion of the Property Tax Base: Trends, Causes, and Consequences, edited by Nancy Y. Augustine, Michael E. Bell, David Brunori, and Joan M. Youngman, 117-142. Cambridge, MA: Lincoln Institute of Land Policy. Page 5 of 6
5. K.R. Ihlanfeldt, 2011. "Do caps on increases in assessed values create a lock-in effect? Evidence from Florida's amendment one." National Tax Journal, (March): 7-26. 6. M. Skidmore, C.L. Ballard, and T.R. Hodge, 2010. "Property Value Assessment Growth Limits and Redistribution of Property Tax Payments: Evidence from Michigan." National Tax Journal, (September): 509-538. 7. Kioko, Sharon N, and Pengju Zhang. 2016. Impact of Tax and Expenditure Limits (TELS) on Local Government Debt Burdens. Conference paper presented at the Association of Budgeting and Financial Management. Grand Rapids, MI. 8. Cornia, Gary C., and Lawrence C. Walters. "Full Disclosure: Unanticipated Improvements in Property Tax Uniformity." Public Budgeting & Finance 25.2 (2005): 106-123. Individual Project Outline (Due Nov 8 th ) LECTURE 6: ANYTHING BUT THE PROPERTY TAX! Nov. 15 th Mikesell, John L. 2013. "Consumption and Income Taxes." In Management Policies in Local Government Finance, edited by John R Bartle, W Bartley Hildreth and Justin Marlowe. Washington DC: ICMA. Exercise 3 (Due 5:00pm, Monday Nov. 28 th ) Nov. 22 nd Bland, Robert L., 2005. Service charges and regulatory fees In A Revenue Guide for Local Government, Second Edition (Washington, DC: ICMA) Bland, Robert L., 2005. Impact Fees and Special Assessments. In A Revenue Guide for Local Government, Second Edition (Washington, DC: ICMA) Bland, Robert L. 2013. Strategic Choices: Using Taxes for Economic and Political Purposes In A Budgeting Guide for Local Government, Third Edition (Washington, DC: ICMA), pp. 129-150. Nov. 29 th Wildasin, David E. 2010. "Intergovernmental Transfers to Local Governments." In Municipal Revenues and Land Policies, edited by Gregory K. Ingram and Yu-Hung Hong, 47-76. Cambridge, MA: Lincoln Institute of Land Policy. LECTURE 7: Dec 6 th In-class Presentations will largely depend on course enrollment. Students should be prepared to present their research in class on Dec. 6 th. If course enrollment exceeds 20, I will let you know no later than December 4 th, students that have been randomly selected to present their research in-class. Final Draft of Individual Project (Due 5:00pm, Monday Dec 5 th ) Page 6 of 6