Public Budgeting in Context: Structure, Law, Reform and Results

454 Pages·2014·4.075 MB·English

by  Katherine G. Willoughby

More praise for
Public Budgeting in Context
“Katherine Willoughby’s Public Budgeting in Context is an excellent textbook, and
much more. Students and scholars alike worldwide will find it an authoritative text on
American budgeting and an informed and up-to-date guide to the increasingly diverse
research literature. Refreshingly, American practice is placed in an international com-
parative context. I intend to recommend the book to international colleagues for their
teaching and research.”
—James L. Chan, PhD, Professor Emeritus of Accounting,
University of Illinois at Chicago; Distinguished Overseas
Professor, Peking University, China
“This is a unique and comprehensive book that covers revenue and expenditure institu-
tions and practices at all three levels of the US system using many comparative interna-
tional examples. Eschewing jargon, it is written in readable and clear language for both
introductory and more advanced students and practitioners. It is especially comprehen-
sive, covering for example, the role of the courts in budgeting and efforts of the media
and citizenry to make inputs in and monitor budget execution in the US and overseas
contexts.”
—George M. Guess, PhD, Adjunct Professor,
Department of Public and International Affairs,
George Mason University
“This book showcases Professor Willoughby’s original research on budgeting by sover-
eign and subnational governments and adds a highly recommended, rich texture to our
need for a renewed focus on the theory and practice of public budgeting.”
—W. Bartley Hildreth, PhD, Professor, Andrew Young School
of Policy Studies, Georgia State University
“This book provides a practical and easy-to-read guide to government budgeting. It
equips readers with a functional knowledge of the increasingly complex issues of budget-
ing at all levels of government in an international context. The text provides common
sense examples of public budgeting that give students an understanding of how budget
decisions by government shape all aspects of public policy and everyday life. Most fun-
damentally, it answers the question: Why study public budgeting?”
—Marilyn Rubin, PhD, Program Director,
Master of Public Administration, John Jay College,
City University of New York
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Public Budgeting in Context
STR UCT URE , LAW, REFORM, AND
RESULTS
Katherine G. Willoughby
Cover Design: Wiley
Cover Image: © Jon Boyes / Getty Images
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Library of Congress Cataloging-in-Publication Data
Willoughby, Katherine G., 1958–
Public budgeting in context : structure, law, reform, and results / Katherine G. Willoughby.
1 online resource. — (Bryson series in public & NP management)
Includes index.
Description based on print version record and CIP data provided by publisher; resource not viewed.
ISBN 978-1-118-91311-6 (pdf)
ISBN 978-1-118-91310-9 (epub)
ISBN 978-1-118-50932-6 (hardback)
1. Budget—United States. 2. Budget—United States—States. 3. Finance, Public—United
States. I. Title.
HJ2051
352.4'80973—dc23
2014021832
Printed in the United States of America
first edition
HB Printing 10 9 8 7 6 5 4 3 2 1
C O N T E N T S
Preface xiii
Acknowledgments xvii
About the Author xix
ONE Overview of Modern Public Budgeting 1
What Is a Budget? 3
Macro- and Micro-Budgeting 7
Public and Private Budgeting 8
The Role and Size of Government 10
Modeling the Budgetary Process 13
Budget Principles 20
Conclusion 21
Discussion Questions 22
Notes 22
References 23
TWO Budget Foundations in Selected Countries 25
Developing Versus Industrialized Countries 26
Comparing Budgeting Systems 32
Conclusion 56
Discussion Questions 57
Notes 57
References 61
v
THREE Budget Law and History of the US Federal Government 65
Early Budgeting 66
An Executive Budget Process Is Born 69
Congress Strives for Credibility 73
Budget Balance and Management Improvement 76
Then and Now, Budget Numbers 82
Adherence to Rule of Law 86
Conclusion 87
Discussion Questions 88
Notes 89
References 91
FOUR Budget Foundations in US States 95
The Fiscal Landscape of States: Two Centuries of Growth 96
Legal Foundations for State Budgeting 98
Credit Ratings, GASB Standards, and Professional Guidelines 117
Conclusion 122
Discussion Questions 123
Notes 123
References 126
FIVE Budget Foundations in US Local Governments 129
The Multiplicity and Responsibilities of Local Governments 130
Local Government Powers 134
Local Government Fiscal Stress and Bankruptcy 143
Conclusion 149
Discussion Questions 150
Notes 151
References 152
SIX Executive Leadership and the Budget Agenda 155
Presidential versus Parliamentary Systems 156
Strategic Planning and the Budget Process 158
vi Contents
Public Leadership: Generating a Budget Plan 159
Executive Leadership in Parliamentary Systems 160
US Presidential Leadership and Budgeting 162
Presidential Job Performance 167
State Executive Leadership and Budgeting 169
US Local Leadership 182
Leadership in a Strong Mayor City Government 185
Conclusion 190
Discussion Questions 191
Notes 192
References 193
SEVEN Budget Powers of the Legislative Branch 197
Measuring Legislative Powers in the Budgetary Process 198
Legislative Budgeting in Select Governments 206
Legislative Reform 224
Conclusion 225
Discussion Questions 225
Notes 226
References 228
EIGHT Public Budgeting and the Courts: Judicial Influence on
Economies and Budgets 231
The Judiciary and the Economy 232
Courts and Public Policy 233
The Judiciary and the Budget 240
Judges, Courts, and Corruption 245
Conclusion 260
Discussion Questions 261
Notes 261
References 263
NINE The Bureaucracy, Citizens, the Media, and Public Budgets 267
The Budget-Maximizing Bureaucrat 268
Budget Execution Practices 271
Contents vii
Citizens and Budgets 281
Citizen Participation in US State Budgeting 287
The Media and Public Budgets 290
Conclusion 295
Discussion Questions 295
Notes 296
References 298
TEN Budget Mechanics and Reforms 303
Budget Types 304
Budget Cycles and Timelines 309
Best Practices 315
Budget Reforms 320
Conclusion 335
Discussion Questions 335
Notes 336
References 338
ELEVEN Funding with Taxes and Other Revenues 341
Equity 343
Efficiency 345
Adequacy 347
Transparency 348
Collectability 351
Taxes in the United States and Guatemala 358
Intergovernmental Revenues 366
Conclusion 373
Discussion Questions 373
Notes 374
References 375
TWELVE The Results of Government Spending 379
Human Rights Budget Work 380
Government Presence and Prosperity 384
viii Contents