bluuebunny/crossref_metadata_2025 huggingface dataset:
Exploring the micropolitics of principal staffing advocacy
Authors: Lochmiller Chad R.
Published: December 2017

Purpose

The purpose of this paper is to examine the micropolitical strategies principals use to influence school staffing within an urban school district.

Design/methodology/approach

The author used a qualitative case study approach drawing upon 47 semi-structured participant interviews with 25 individual research participants, 80 hours of observations, and 36 district artifacts. The author completed an iterative analysis using ATLAS.ti with a coding scheme informed by the educational leadership, human resource management, and micropolitical literatures.

Findings

The findings illustrate that school principals engaged productively within district staffing procedures to influence the allocation and composition of teaching staff within their schools. The iterative analysis identified three micropolitical strategies employed by school principals, including advocacy, acquiring leverage, and networking. First, principals used advocacy to shape personnel staff’s understanding of school needs. Second, principals acquired leverage over staffing by enlisting the support of their school supervisor. Finally, principals networked with colleagues to identify teachers within the district’s transfer system for possible hire.

Research limitations/implications

The findings have both practical and research significance. Practically, the findings highlight how principals engage in leadership within the context of district staffing processes. With respect to research, the findings address an important gap in the literature as it pertains to principal’s leadership actions in relation to internal district administrative processes.

Originality/value

The findings of this study are unique in that they challenge the conventional view of district staffing procedures, which has typically framed these procedures as barriers to principal leadership. The findings suggest district staffing procedures can be a forum for productive leadership actions.
Audit costs for small cities, large cities, and state governments: a symposium
Authors: Deis Don , Hildreth W. Bartley
Published: December 2017

The three papers in this symposium on governmental auditing examine the general question: "what factors influence the amount of public sector resources devoted to audits of public sector entities?" Despite the passage of the Single Audit Act of 1984, both state and federal auditors have continued to report wide variations in the quality of audits conducted by independent certified public accountants. Hence, it is important to understand factors that contribute to this situation. One approach is to determine the factors that determiine the price paid (budget) for the audit services since the price of audit is generally considered a critical factor associated with audit quality. That approach underlies the articles appearing in this symposium.
The pricing relationship of audits and related services in municipal governments
Authors: Rubin Marc A.
Published: December 2017

For private sector organizations, Palmrose and Simunic document a positive relationship between fees for management advisory services (MAS) and fees for audits paid to incumbent auditors(1). In contrast, Abdel-Khalik provides evidence that the purchase of MAS does not affect audit fees.(2) This study, unlike previous studies, examines the relationship between the purchase of MAS and audit fees in government organizations. Results suggest a negative relationship between audit fees and fees paid for related audit services provided by incumbent auditors. In addition, bond issuance and consulting fees paid to incumbent auditors and all fees paid to nonincumbent auditors are found to be not significant.
Performance budgeting resuscitated: why is it still inviable?
Authors: Lu Haoran
Published: December 2017

Performance budgeting had been tried once and failed. Is there any reason to believe that the new performance budgeting will work? After reviewing existing studies on performance budgeting, the paper proposes that two obstacles continue to undermine its success. They are the poor quality of performance measures and their rare acceptance by budgetary decisionmakers. Unfortunately, these two impediments result from the generic defect of performance budgeting: i.e., its attempt at both comprehensiveness and rationality. The paper concludes by suggesting ways by which performance measures can be better utilized.
Principals and agents: an explanatory model for public budgeting
Authors: Smith Robert W. , Bertozzi Mark
Published: December 2017

Principal agent theory has its roots in the economic theory of the firm, decision theory, sociology, organizational theory, and more recently political science. However, there are only limited applications of the theory in the arena of public budgeting. This paper considers principal agent theory as an alternative method for explaining budgetary outcomes through an examination of interactive relationships not adequately captured by traditional hierarchical-based models of public budgeting. Because implicit and explicit contractual relationships pervade the entire budget making process, principal agent theory can make a major contribution toward developing more inclusive and accurate models of most stages of public budgeting.
Community and migrant health centers: the need for a coordinated national financing policy
Authors: Samuels Michael E. , Shi Leiyu , Campbell Norma J.
Published: December 2017

This article is a descriptive revenue profile of Community and Migrant Health Centers providing preventive and primary health care services to underserved rural and urban populations throughout the United States. The study is a secondary data analysis of the 1994 Bureau Common Reporting Requirements (BCRR) reports of the 626 Community and Migrant Health Centers to the Bureau of Primary Health Care. The purpose of the analysis is to examine the sources of revenue of the centers and consider the implications for public policy. In 1994, the 626 centers generated more than $2 billion from all payment sources to care for more than 7 million users. The findings should guide and assist policy makers at the state and federal levels in first deciding the role of C/MHCs in developing managed health care strategies for underserved rural and urban populations and developing the appropriate funding policies to support these decisions.
When citizen expectations conflict with budgetary reality: discontinuity between the public’s demand for services and its willingness to pay taxes
Authors: Glaser Mark A. , Denhardt Robert B.
Published: December 2017

The tension between demand for services and willingness to pay for those services, referred to here as tax-demand discontinuity, poses a dilemma for local government that will only intensify with growing fiscal constraints. This research is based on a survey of over 1800 citizens in Orange County, Florida, the county including Orlando, to develop a seven-position classification system to define the nature and extent of tax-demand discontinuity. Citizen demographic characteristics, perceptions of the economy and perceptions of government segmented by tax-demand discontinuity classifications are used to offer guidance to local government about opportunities for improving citizen-government relations.
The diligence of audit committees in the healthcare sector
Authors: Vermeer Thomas E. , Raghunandan K. , Forgione Dana A.
Published: December 2017

Problems with governance at non-profit (NP) healthcare organizations have recently led to legislative scrutiny of their audit committee practices. Using data from a survey of chief financial officers of NP healthcare organizations and from the GuideStar database, we examine audit committee interactions with external auditors for a sample of 69 NP healthcare organizations. We find that 71% of the audit committees in our sample meet privately with the external auditor and the mean number of such meetings 1.9. Our results also suggest that audit committee interaction with the external auditor varies in response to resource dependencies, existence of debt, audit quality, audit tenure, and organizational size. These findings suggest that NP healthcare organizations respond to monitoring demands by adopting suitable audit committee related interactions.
State lotteries and education: do they really fix the education quagmire?
Authors: Menifield Charles E. , Clay Joy , Lawhead Casey
Published: December 2017

During the latter half of the 20th century many states began to use the lottery as an alternative method to increasing the amount of revenue within their general funds. Apparently, this method was a lot more palatable than increasing taxes. Passing lottery legislation was easier in states where the funds were partially or wholly designated for primary, secondary, or higher education. The main purpose of this paper is to determine if the presence of a lottery impacts educational outcomes (high school graduations rates, bachelor degrees awarded, ACT, and SAT scores). Using state level data for the period 1985-2000 in a pooled time series regression model, the analysis indicates that the presence of a lottery is useful in models explaining educational outcomes.
Generating the public financial management knowledge base: analyzing method and direction as a sub-discipline of public administration
Authors: Frank Howard A. , Christian Philip C. , Scutelnicu Gina
Published: December 2017

This article analyzes the content of 584 articles published in the Journal of Public Budgeting, Accounting, and Financial Management and Public Budgeting and Finance with principal focus on how the public financial management knowledge base is generated. We find remarkable diversity of authorship and academic domicile. However, we note an absence of simulations and experiments and that much of the survey research does not comport with "best" practice. Practitioners were five times more likely to contribute than graduate students, and content continues a disciplinary tendency to neglect linkages between the macro-economy and public financial management. Our findings may reflect a public administration research ethos detailed by Frank Thompson and colleagues (1998) that is negatively impacted by lack of extramural funding.
Fiscal transparency and authentic citizen participation in public budgeting: the role of third-party intermediation
Authors: Justice Jonathan B. , Dülger Cumhur
Published: December 2017

Much of the current U.S. academic literature on participatory budgeting is preoccupied with direct citizen involvement in budget formulation, reflecting a particular normative theory of democracy. In this essay we suggest that U.S. academics can learn from a contemporary international community of practice concerned with “civil-society budget work”-a quasi-grassroots, quasi-pluralist movement with member organizations throughout the developing world-as well as from the budget exhibits mounted by the New York Bureau of Municipal Research at the turn of the last century. The budget-work movement employs third-party intermediation and advocacy, through all phases of the budget cycle. U.S. academics and budget-work practitioners can learn from each other, and this represents an unexploited opportunity for all concerned. We propose a program of locally based action research and trans-local evaluative synthesis.
Citizen participation in the budget process: the effect of city managers
Authors: Zhang Yahong , Yang Kaifeng
Published: December 2017

Much of the literature on citizen participation in the budget process links the council-manager form of government with higher levels of citizen participation, assuming the council-manager form represents professional administration. This is contradictory to the reality that different forms of government have “borrowed” features from each other and many now have mixed forms of government (i.e., adapted). The literature also contains ambiguities about city managers’ role in participatory budgeting. We review the literature and identify three competing theories about the role of professional managers in the budget process. We directly examine the effect of city managers in terms of their professional dimensions, institutional environment, and individual willingness to represent citizens. Using survey data from Florida, we demonstrate that managers’ professionalism, perceived political environment, and attitude toward citizen input are important factors explaining local governments’ adoption of participatory budgeting.
A descriptive case study of the greene county, alabama bankruptcy
Authors: Deal Keren , Kamnikar Judith , Kamnikar Edward
Published: December 2017

To date, only two counties in the United States have filed for bankruptcy protection: Orange County, California (1994) and Greene County, Alabama (1996). This case study pertains only to Greene County. Although economic decline due to a loss of gaming revenues was involved, financial mismanagement was the primary causal factor for Greene County’s fiscal stress. This research chronicles an impoverished rural Alabama county whose legislative and administrative decisions resulted in its fiscal stress and municipal bankruptcy. The Greene County bankruptcy case was closed in 1999 and the County continues to operate under a fiscal recovery plan. However, the County has yet to comply with the miscellaneous provisions of the bankruptcy plan that could improve the financial management of the County.
Participatory budgeting in north america: the case of guelph, canada
Authors: Pinnington Elizabeth , Lerner Josh , Schugurensky Daniel
Published: December 2017

In 1989, the Brazilian city of Porto Alegre initiated a model of budget participation known internationally as "participatory budgeting." In this process of diagnosis, deliberation and decision-making, city residents directly decide how to allocate part of a public budget, typically at the level of municipal government. During the past two decades, hundreds of cities in Latin America, Europe, Asia, and Africa have adapted this model of participatory democracy to their own contexts. In this article, we explore one of the first Canadian experiments of participatory budgeting. In Guelph, Ontario, a civil society organization called the Neighbourhood Support Coalition uses participatory budgeting to allocate of public and private funds. We discuss the Canadian context for this experiment, as well as the history and evolution of participatory budgeting in Guelph. Based on four years of interviews, ethnographic observation, and primary and secondary literature, we identify several lessons learned through the Guelph process, as well as the conditions that have enabled its development and posed challenges for its success.
The relationship between risk and homeland security financing: a survey of florida city managers and fire chiefs
Authors: Reddick Christopher G. , Frank Howard A.
Published: December 2017

Survey findings from Florida reveal that larger, higher risk communities perceive greater budgetary trade-offs, a view that supports in part the U.S. Department of Homeland Security’s recently implemented strategy in distributing its grants. Per expectations, city managers with graduate education saw higher levels of readiness and lower threat risk than fire chiefs. Consistent with prior research, cities were reprogramming and using existing funds rather than new levies for homeland security initiatives. This finding was buttressed by results that recently enacted property tax limits and cuts in federal aid were seen as the greatest challenges to increased funding. Contrary to mainstream public administration writing, our respondents stated that restrained funding rather than intergovernmental coordination was the biggest issue they faced in meeting homeland security needs. Overall, our respondents saw a low risk of terror threat, a perception that may represent an accurate read of the operating environment or an implicit belief that higher levels of government will provide significant assistance in the event of a major terrorist attack or other conflagration.
Sources of interest cost savings realized through state bond banking: A case of market segmentation
Authors: Solano Paul L.
Published: December 2017

A recent study found state bond bank participants continually realize considerable interest cost savings. Savings were calculated as differences in interest costs of bond bank loans and the bond offerings participants would have sold as alternatives to loans, (alternative market offerings). The present evaluation determines the sources of the savings. Savings are generated by not only differences in issue characteristics of bond bank issues and alternative market offerings, but also differential impacts of the same market forces and institutional factors on the interest costs of both types of sales. These findings verify that bond bank issues and alternative market offerings sell in different sub-markets, and confirm municipal bond market segmentation.
Governmental accounting, global markets and ideologies: A historical study of state and local practices in the united states
Authors: Sacco John F. , Stalebrink Odd J.
Published: December 2017

This paper examines the interaction between changes in governmental accounting, ideology and global capital markets. Based on a historical analysis from the late 1800s to the turn of the 21st century it provides support for the general hypothesis that the strength and support of global capital markets and pro-market ideologies is positively related to the likelihood of the adoption by governments of accounting methods geared toward exposing full costs and total debt. The analysis also illustrates that governments are more likely to use accounting methods that allow for greater flexibility for spending, borrowing and off balance sheet financing during times when global capital markets and pro-market ideologies are in decline.
Accounting innovations: A contingent view on italian local governments
Authors: Anessi-Pessina Eugenio , Nasi Greta , Steccolini Ileana
Published: December 2017

Accounting innovations, and especially the introduction of accruals accounting, are often portrayed as fundamental aspects of publicsector reforms. An increasing body of literature has been studying the experiences of different countries and levels of government, often referring to Lueder's (1992) "contingency model" and its subsequent developments. This model highlights a number of social, political, and administrative variables that are likely to affect government accounting innovations. It applies at a country-wide level and is mainly intended to describe and compare the environments within which accounting reforms take place, as well as the technical features of such reforms. Our paper, on the contrary, tries to expand the contingency model by applying it to individual organisations and by testing its explanatory power.
Developments in financial information by local entities in europe
Authors: Brusca Isabel , Montesinos Vicente
Published: December 2017

In recent years, most Organisation for Economic and Cooperation Development (OECD) countries have brought in important reforms into their public accounting systems with the objective of both improving public service management and increasing the transparency and accountability of governments. Reforms of government accounting share a common direction towards the implementation of accrual-based accounting systems. In this context, this paper presents the situation of local government accounting systems in European countries with the aim of showing the degree of uniformity/ heterogeneity that currently exists among the countries considered and why differences persist nowadays, trying to classify countries into groups according to accounting practice. Results show that three groups of countries can be identified: the first continues using the cash basis; in the second, an accrual or modified accrual basis is used for financial accounting but the cash basis still persists in the budgetary system; in the third, an accrual or modified accrual basis is used both in budget and in financial accounting.
An income tax withholding model: Pervasiveness of overpayment
Authors: Lien Donald , Smith Pamela C.
Published: December 2017

The U.S. government mandates taxpayers remit taxes through a "pay as you go" system. Research indicates employees continue to overpay interim taxes, despite the inefficiencies of this form of forced savings. Theory holds that a rational individual would choose the minimum amount of withholdings prescribed by the tax code. We adopted Kahneman-Tversky (1979) prospect theory to show that, under reasonable conditions, individuals will continue to choose excessive withholdings. This paper is not an attempt to statistically justify prospect theory however; we argue that withholdings increase when the income tax rate increases and when beforetax income increases. Our model extends the income tax withholding literature by modeling a framework to determine an optimal withholding decision for taxpayers.
Public k-12 education as an industrial process: The school as a factory
Authors: Groff James E. , Smith Pamela C. , Edmond Tracie
Published: December 2017

In this paper we argue that public education in the United States is essentially an industrial process organized to produce a finished product. Rising government spending on public education, and the lack of an established rubric to evaluate school performance or accountability deems our analysis relevant and timely. Viewing education as an industrial process will allow policy-makers to obtain more accurate measures of costs and develop appropriate funding mechanisms. Furthermore, regulators may use managerial accounting concepts, particularly activity based costing, to establish future school performance evaluation rubrics.
Dutch local accounting committees: A committee chair’s experience
Authors: van der Hoek M. Peter
Published: December 2017

Most countries have established a General Accounting Office (GAO) to evaluate the effectiveness and efficiency of central government’s policies. A similar office on the local government level is usually lacking. From early 2006, however, local governments in the Netherlands have been legally required to establish an accounting office or committee. These offices and committees aim at reinforcing the local council’s position relative to that of the municipal executive (the mayor and aldermen). The tasks of a local accounting office or committee include monitoring and evaluating the efficiency and effectiveness of local governments’ policies. The office/committee is independent and determines its own working program. This paper reviews the diversity of local accounting offices/committees and the experience in the first years of their existence.
Hospital financial distress, recovery and closure: Managerial incentives and political costs
Authors: Liu Li-Lin (Sunny) , Jervis Kathryn J. , Younis Mustafa (Mike) Z. , Forgione Dana A.
Published: December 2017

The purpose of this study is to examine the association of managerial incentives and political costs with hospital financial distress, recovery or closure. The Medicare Payment Advisory Commission has stated that hospital closures are important for evaluating the distribution of cost, quality and access to healthcare throughout the US. Using Logistic regression, we demonstrate that hospital closure is associated with low occupancy, return on investment, asset turnover, and lack of affiliation with a multihospital system. It is also significantly associated with urban location, teaching programs, high Medicare and Medicaid patient populations, and high debt. Essential access nonprofit hospitals are less likely to close, while this does not affect governmental and for-profit hospitals. Our research hypotheses are supported by these results.
The declining use of internal service funds: how local governments are changing the allocation of indirect costs
Authors: Modlin Steve
Published: December 2017

Studies involving the allocation of funds among local governments usually are broad in nature with foci based on a variety of factors ranging from service demand to performance outcomes. The conundrum of indirect costs allocation associated with service demand continues to confront local governments. The internal service fund (ISF) has been the primary device used in this endeavor, but over the past two decades, its utilization has decreased. County finance officers in the southeastern United States were surveyed to determine why the ISF is not as prevalently used as in previous years and what has happened to indirect costs as a result of these changes. Findings suggest many reasons for ISF's usage decline including limited usefulness and reallocation of indirect costs to departments. In addition, county governments with a cost allocation plan and larger budget sizes continue to use the ISF as an accounting device
Measuring municipal fiscal condition: do objective measures of fiscal health relate to subjective measures?
Authors: Maher Craig S. , Deller Steven C.
Published: December 2017

The intent of this research is determine the extent to which selfreported measures of fiscal condition are consistent with commonly identified measures of fiscal condition using secondary financial data. While the field of government finance has amassed a lengthy list of research on fiscal condition and fiscal stress assessment, there remains a gap in the research on the extent to which practitioners' perceptions of fiscal stress are consistent with such measures. Our results suggest that there is limited evidence of a relationship between self-reported and objective measures of fiscal condition
Structural changes of public expenditures in China
Authors: Zhu Qing , Wang XiaoHu
Published: December 2017

This article describes structural developments of public expenditures in China in the past 30 years and demonstrates an increasing public's need for services in areas of education, health care, social security, and housing. Starting with a theory explaining the need to adjust the spending structure, the article specifies a proper proportion of public service expenditures in total governmental spending and discusses a possible path to this spending structure.
The impact of revenue diversification and economic base on state revenue stability
Authors: Yan Wenli
Published: December 2017

Revenue stability has been an important policy objective for state government administrators. This study explores whether the effect of revenue diversification on revenue volatility varies in terms of the instability of a state’s economic base. To empirically answer the question, an econometric model that explores a series of factors that could affect revenue stability is estimated using panel data on 47 state governments during the years 1986-2004. The findings indicate that revenue diversification reduces revenue instability for states that are economically stable. However, the revenue-stabilizing effect of diversification diminishes as the economic instability of a state increases. Although revenue diversification has been advocated as a desirable practice for sub-national governments, this study indicates that the benefits of revenue diversification are not always clear and its practice should be moderated by the conditions of a state’s economic base.
Incentive policies and china’s economic development: Change and challenge
Authors: Liou Kuotsai Tom
Published: December 2017

Incentive policies have been emphasized by many governments as one of the major policy tools to promote economic development in their societies. For this paper I have examined the application of incentive policies in China to improve economic performance during China’s reform years. In the paper are theoretical reviews about various types of incentive policies and different arguments about their effects. The development of Chinese incentive policies is introduced and analysis of their achievements in improving economic growth and attracting foreign investment is presented. Challenging issues of incentive policies have been related to concerns about effectiveness and equity, accountability and transparency, as well as economic upgrade and balance. Implications of the Chinese development experience are provided for future study of incentive policies.
Determinants of auditee adoption of audit recommendations: Local government auditors’ perspectives
Authors: Kwamena Aikins Stephen
Published: December 2017

This research determines the impact of local government’s internal audit process on the audit client management’s adoption of audit recommendations. Publicity of financial and operational problems in government in recent years has led to concerns about the quality of government audits, the extent of public managers’ adoption of audit recommendations, as well as citizen demand for accountability in government. In spite of this, the importance of the government audit process in ensuring accountability has gained little attention in public management research. A survey of local government audit executives was conducted to determine various aspects of the local government internal audit process and their relationships with audit client management’s adoption of audit recommendations. Results show that client management’s adoption of audit recommendation is a function of auditor professional designation, due diligence, client relations, documentation and tracking of audit recommendations, as well as of follow-up audits to verify implementation of agreed-upon action plans.
The importance of federal earmarks to state coffers: An examination of distribution trends over the decade
Authors: Kunz Karen , O’Leary Sean
Published: December 2017

Earmarks have long been the subject of controversy, touted by pundits and politicians on one hand as the means for bringing home the bacon and on the other as pork-barrel spending. In relation to federal spending, the amount of annual earmarked dollars is insignificant; at its zenith in FY 2005 earmarked spending comprised only 6 percent of the year’s total appropriations. Yet preliminary research indicates that earmarks are an increasingly important source of funding for essential state services, such as infrastructure, social services, and economic development. Especially in times of fiscal stress, earmarks save state governments hundreds of millions of dollars in agency program funds and intergovernmental transfers. This study examines the congressional earmarks contained in appropriations legislation for FY 2000 through 2009 to assess trends in categorical distributions across and within the states during the period. The data illustrate a shift in allocations over the decade, from infrastructure, community development and environmental priorities to social and emergency services, higher education and energy needs.
Adoption of a separate capital budget in local governments: Empirical evidence from georgia
Authors: Chung Il Hwan
Published: December 2017

Adoption of a separate capital budget in local governments receives little attention in the literature. It is important to look at various capital budgeting practices in local governments since a separate capital budget as different budget format and structure affects budgetary decisions, thus leading to different levels of investment in public infrastructure. This paper examines factors that facilitate or impede adoption of a separate capital budget by using time series data. Results show that local governments are more likely to adopt a separate capital budget in order to reflect local demands such as growth rate in capital spending.
A longitudinal analysis of impacts of court-mandated education finance reform on school district efficiency
Authors: Eom Tae Ho , Lee Sock-Hwan
Published: December 2017

While there has been increasing interest in the impact of courtmandated education finance reform on school district efficiency, research on the subject is scant. Taking advantage of New Jersey Supreme Court cases that have altered the way in which state school aid is distributed, this paper examines the effect of changes in the education finance system on school district efficiency. Building on existing literature on public sector efficiency, a longitudinal data analysis based on two-stage DEA models reveals that courtmandated increases in state aid to a limited number of poor school districts decreased the districts' efficiency. Though these results should be interpreted with some caution, in particular, the limitation of DEA as an efficiency measure, they imply that, as with any policy, policy makers and courts should be aware of how policy changes affect local government behavior and that it is necessary to evaluate policy outcome taking into account both resources and performance.
The problem of lapsed funding and the knee-jerk “better information system” solution: The case of the department of national defence in Canada
Authors: Brimberg Jack , Hurley W. J.
Published: December 2017

In this paper, we argue that a better information system is unlikely to solve the problem of lapsed funding that characterizes many government departments. This result is shown to depend critically on the nature of government costs.
Economic incentives in the hospice care setting: A comparison of for-profit and nonprofit providers
Authors: Noe Kelly , Forgione Dana A.
Published: December 2017

We examine the association of for-profit (FP) and nonprofit (NP) economic incentives in hospice care providers with financial and nonfinancial metrics of management performance. Controlling for quality of patient care and differences in cost-efficiency, we find that FP providers (1) selectively admit patients with longer life-prognoses and billable days and hence lower average costs per day, (2) employ a lower average cost/skill mix of workers, and (3) have higher CEO compensation and profit. The NP providers admit more patients with the less profitable life-prognoses attributes, have lower CEO compensation, and reinvest their net earnings under the non-distribution constraint. While the profit incentive may be needed to attract providers into this rapidly growing and underserved market, the NP providers return a lower cost per patient served from the taxpayer's perspective.
Community health centers cost savings: Ambulatory care patients in North Carolina
Authors: Richard Patrick , West Kristina D. , Shin Peter , Younis Mustafa Z. , Rosenbaum Sara
Published: December 2017

In 2010 the Patient Protection and Affordable Care Act boosted the expansion of community health centers (CHCs) with $11 billion in mandatory funding from 2011 to 2015. This study used data from the Medical Expenditure Panel Survey (MEPS) and the North Carolina Behavioral Risk Factor Surveillance System (BRFSS) to assess the cost savings associated with the use of community health centers compared to other primary care providers. After controlling for various demographic, socioeconomic characteristics and health conditions, we found savings at an average of $3,437 in total expenditures and $1,211 in ambulatory care expenditures. These results suggest that continuing investment in health centers are important during times of budget cuts in order to improve access to care and to generate cost savings to the healthcare system.
The impact of tribal gaming on tribal sovereignty and financial management
Authors: Franklin Aimee L.
Published: December 2017

From 1995 to 2011, tribal gaming has grown from $5.5B to $27.2B in revenues (NIGC website, 2012). When so much money is changing hands, a lack of adequate policies heightens the possibility of financial mismanagement. In fact, gaming violations have grown during this time period. This paper explores the relationship between financial management policies and regulatory violations among American Indian Tribal gaming activities. Through empirical testing, we conclude that deductive models of proactive and reactive policies do not accurately predict the incidence of gaming violations and these policies are ineffective. The results raise normative questions about regulatory policy parity. These findings and related implications for future financial management regulations, policies and practices are tremendous, given the amount of money involved.
Determining county government fiscal instability: Independent audit report findings and the prompting of state action
Authors: Modlin Steve , Stewart LaShonda M.
Published: December 2017

Decreasing revenues among local governments across the country have placed an increased focus on governmental financial practices. For states with local government financial oversight organizations, the ratios and other benchmarks used to assess fiscal stability face increased scrutiny. This study examines financial reports sent to North Carolina’s financial oversight body, the Local Government Commission (LGC), to determine the types of operational and policy practices that can lead to fiscal stress based on guidelines established by the LGC. Findings indicate that lowering levels of fund balance, increased salaries, increased debt service levels, and the presence of a countywide water system all increased the probability of a county government receiving notice of potential financing problems requiring immediate action.
Tax abatement reporting: Perspectives of users and preparers
Authors: Harris Judith , McKenzie Karen S. , Rentfro Randall
Published: December 2017

Using tax abatements to spur economic development can be controversial. The potential benefits are stressed when abatements are granted, but subsequent reporting may be insufficient for citizens to hold governments accountable for actual results. We solicited perspectives on tax abatements from three user groups (citizens representing advocacy groups, county board members, and financial analysts) and county officials involved in financial reporting, budgeting, or property tax administration. Users and preparers expressed generally similar views about the need for reporting; however, some differences were evident in the degree of support for reporting specific information items and the format for making information available. We also found that much information desired by users is not available to them currently, and governments may need to create mechanisms to collect information.
Public university presidential compensation: Performance, cost efficiency and spending choices
Authors: Gordon Gus , Fischer Mary
Published: December 2017

Given the well-reported concerns over cost containment in public higher education, we believe performance should be measured based on cost efficiency and spending choices. This study develops three regression models linking presidential pay and public university performance with data for public universities that have no president change for fiscal year 2007 to fiscal year 2010. Analysis finds a statistically significant inverse relationship between presidential pay and resources devoted to instruction, the primary mission of most universities. A relationship for presidential compensation and enrollment is found for the individual fiscal years examined but not over time. Presidential compensation over time is positively related to spending on areas other than instruction.
Examining statements of service performance: Evidence from wastewater services in new zealand
Authors: Keerasuntonpong Prae , Dunstan Keitha , Khanna Bhagwan
Published: December 2017

The statement of service performance is a mandatory report provided by local governments in New Zealand. Despite 20 years' reporting experience, the Office of the Auditor-General (2008) criticised the poor quality of these reports. Past theoretical literature has attempted to develop a framework for the accountability expectations of documents provided by public-sector entities (Stewart, 1984). The purpose of this paper is to measure the consistency of the statements of service performance about wastewater services made by New Zealand local governments with the accountability expectations, using an accountability disclosure index. The paper reveals a moderately high level of consistency. “Probity” and “legality” accountability disclosures are high while “process/efficiency” and “performance programme-effectiveness” accountability are less emphasised. The results suggest that accountability expectations provide a useful tool for evaluating statements of service performance.
Local option sales tax, state capital grants, and disparity of school capital outlays: The case of Georgia
Authors: Zhao Zhirong Jerry , Wang Wen
Published: December 2017

In recent years, the disparity of school capital outlays has received increasing attention as many schools are facing challenges to meet increasing capital needs. With data of Georgia county school districts during FY2003-2008, this study examines how the disparity of school capital outlays is affected by the mix of capital revenues. Using multiple methods including spatial data analysis, quartile analysis, and inequality decomposition, we find that (1) school capital outlays in Georgia counties are negatively associated with the percentage of black population and the poverty rate, (2) state capital grants do not play an equalization role in school capital outlays, and (3) the use of ESPLOST has some equalizing effects on the funding for school facilities, contrary to earlier findings in the literature.
The effect of board composition on public sector pension funding
Authors: Chen Gang , Kriz Kenneth , Ebdon Carol
Published: December 2017

Public pension plans in the U.S. are seriously underfunded, especially following the financial market crisis of 2008-2009 which resulted in large investment losses. However, funding levels vary widely across plans. Pension boards of trustees make key management decisions in pension systems and these decisions have significant effects on funded levels, yet our empirical knowledge of board management is limited. This study explores the effect of board composition on pension funding levels. Existing theoretical debates lead to differing expectations, and previous studies have mixed results. Our research uses a panel data set of large public pension plans from 2001-2009. We also collect data for pension board composition from this time period. We find that increasing political appointees and employee members on the board increases the funding performance of the pension system.
Is california broke or is its budgeting system broken? empirical examination of the budget affordability, the institutional arrangements, and the growth of deficits in California
Authors: Stanisevski Dragan , Fowler Luke
Published: December 2017

Since the 1978 adoption of Proposition 13 California’s fiscal conditions have steadily deteriorated. This article questions whether this fiscal deterioration is due to a lack of budget affordability or of institutional ineffectiveness. In examining the institutional ineffectiveness of California’s budget system the article focuses on: (1) general revenue mobilization, (2) expenditure mandates in education, and (3) legislative party divisions in face of supermajority requirements. To this end, the article develops a pre-post regression model that analyzes the factors that influenced the state budget balances. The article finds that California’s deteriorating fiscal conditions are strongly influenced by the declining effective tax rate. The study also finds that increases in education spending are a statistically significant factor, but finds mixed support for the argument that political divisions drive California’s budget deficits.
The consolidation of state-administered public pension systems in U.S. states
Authors: Matkin David S. T. , Chen Gang
Published: December 2017

There is significant variation in the way state-administered pension systems are structured in the United States. Some states, for example, consolidate their pension activity into a few larger systems while others sponsor several smaller ones. In this paper we (1) identify arguments in favor of and against system consolidation, (2) measure levels of consolidation in state-administered pension systems, and (3) use logistic regression to examine whether levels of consolidation are associated with indicators of the financial health of state pensions. Our results provide preliminary support for claims that the size and concentration of pension activity are positively associated with measures of the financial health of state pensions.
Facing fiscal crisis: Managing counter-cyclical debt financing of the state and local governments
Authors: Zhang Ping
Published: December 2017

The recent recession provides us a good window to reveal fiscal problems and inadequate preparations of state and local governments. To address the fiscal crisis, and more importantly, to prepare for the potential economic downturns, this paper designs a framework of necessary tools to combat fiscal crisis. With matching policies of revenue diversification and counter-cyclical fiscal policy (CCFP), debt financing can be used as an effective tool to help state and local governments pull through fiscal crises. A brief example of local governments in Georgia proves the possibility and effectiveness of the counter-cyclical debt policy. It will be much better to institutionalize these policies to avoid the moral hazards of governments and politicians, which, in a great sense, requires engaging and educating the public and, finally, obtaining support from them.
Central government patronage, donor aid, and budget performance in local government: testing a mediation effect
Authors: Onyango-Delewa Paul
Published: December 2017

Drawing on network and fiscal federalism theories, we investigated central government patronage and donor aid as antecedents of budget performance in local government (LG). A mixed methods design with data collected from 18 LGs, two ministries, and four donor agencies in Uganda was employed. Results revealed that both central government patronage and donor aid predict budget performance. Moreover, autonomy does not mediate the interactions as initially hypothesized. Implications for theory and practice are discussed and future research direction is provided.
Assessing the impact Of city manager ideology On local expenditures
Authors: Blanchard Bush Carrie , Key Ellen M. , Eskridge Robert D.
Published: December 2017

This research explores the role of political ideology in local policy formation by assessing the impact of the city manager's ideology on local expenditures. While previous studies have identified nuanced and overlapping roles between administration and politics, here we extend those investigations by positing that ideology may influence a manager's role in the policy formation of the budget. Although some conceptualizations of city managers assume them to be largely apolitical in a partisan sense, we find a significant effect of ideology on local expenditures among city managers. This adds to the literature that suggests that city managers may not merely passively implement policies created by elected officials; rather city managers may influence policy in multifaceted ways, thereby driving a need to further investigate individual influences upon policy formation.
Assessing the potential impact of abnormal pricing violations on state corporate tax receipts
Authors: Christian Cary , Zdanowicz John S.
Published: December 2017

This paper examines the state corporate tax implications of abnormal transfer-pricing by U.S. companies involved in international trade. The state corporate tax cost of improperly priced imports and exports is estimated through analysis of every import and export transaction for the years 2005 through 2009 using the interquartile range methodology provided in regulations to Internal Revenue Code Section 482. Calculation of the interquartile range using the entire population of international transactions addresses interpretive issues related to abnormal prices that occur with the smaller samples normally used in such analyses. A policy recommendation is made for improving tax compliance through more rigorous state involvement in transfer pricing enforcement and greater formal collaboration with the Internal Revenue Service with respect to transfer pricing.