bluuebunny/crossref_metadata_2025 huggingface dataset:
Do Politicians Listen to Experts? The Budget Enforcement Act of 1990 and The Capacity to Budget
Authors: Caiden Naomi
Published: October 2003

Last year offered a unique opportunity to compare the ideas of experts and politicians. The 1990 Budget Enforcement Act changed the federal budget process. Allen Schick's 1990 book, The Capacity to Budget, included ideas on how to improve budgeting at the federal level. A comparison is made between the new law and the new ideas in several areas of the budgetary process: deficit reduction; resource rationing; adjustment to changing expenditures; increasing budget honesty; decreasing conflict; rou‐tinizing the process; integrating the parts of the budget; and balancing claims and resources.
The Bush Administration's Proposal for Credit Reform: Background, Analysis, and Policy Issues
Authors: Bickley James M.
Published: October 2003

Large recent and forecasted federal outlays to cover losses on deposit insurance and federally‐assisted credit have increased concern in the executive and legislative branches about potential future liabilities of the federal government. These potential liabilities include federal credit; consequently, this renewed interest in federal credit reform. Credit reform would have to change the budgetary treatment of federal direct loans and federal guaranteed loans. Currently, the unified budget measures the cost of federal credit on a cash flow basis. Critics (including the Bush Administration) maintain that the appropriate budgetary measure of the costs of federal credit is the present value of the subsidies to credit recipients in the fiscal year that the credit is advanced. The Bush Administration's proposal for credit reform is presented in most detail in the Federal Credit Reform Act of 1989 (the Act), which was proposed but not enacted. The Act would have had federal officials estimate credit subsidies based on the equivalent interest rates in private credit markets. These subsidies would have been used to measure the budgetary cost of federal credit and would have required annual appropriations. Two credit revolving funds would have been established in the Treasury to finance credit flows. Many of these credit reform practices were included in the Omnibus Budget Reconciliation Act of 1990 though.
Local Taxation in the Netherlands
Authors: van der Hoek M. Peter
Published: October 2003

Provincial governments in the Netherlands have only one general tax at their disposal. However, it has become an insufficient source of revenue for this level of government in the Dutch system. To increase the revenue raising capacity of the provincial governments, thirteen broad‐based general tax proposals not used at the local level were examined. The objective was to find a fair and equitable tax that could easily be collected and would result in fl. 200 million in additional revenue for the provincial governments.
Federal Credit Reform
Authors: Cuny Thomas J.
Published: October 2003

The Congress has now enacted, and the president has signed, legislation requiring credit reform accounting in the 1992 budget. This article summarizes the state of federal budgeting for credit activities, covering (1) where we are now with regard to budgeting for ciedit, (2) how we got where we are, (3) the major weaknesses of the older approaches and why credit reform is important, and (4) the fundamental elements of the recently enacted credit reform legislation.
Public Capital Investment and Economic Growth in Forth Worth: The Implications for Public Budgeting and Infrastructure Management
Authors: Nunn Samuel
Published: October 2003

There is a common assumption that local government investment in infrastructure stimulates private development. This article examines relationships in one southwestern city between public capital spending and city infrastructure assets and private economic activity as measured by building permit activity, permit values, and assessed property valuations. Two research questions are examined: (1) Is public investment in new capital associated with private capital formation? and (2) Is public investment associated with improvements in the property tax base? The findings hold implications for infrastructure planning, budgeting, and management. First, public and private capital spending patterns varied in tandem across several cycles, and tracking such cycles may help public managers predict short‐ and mid‐term infrastructure needs. Second, utility capital spending is critically related to private capital formation, and may offer higher fiscal returns than other public infrastructure. Third, infrastructure capital had a strong significant effect on the assessed value of urban property, and will therefore influence the property tax base.
Analyzing the Contracting‐Out of Government Services: Relevant Cost‐Benefit Considerations
Authors: Wisniewski Stanley C.
Published: October 2003

This article reviews various approaches to analyzing the contracting‐out decision and distills a set of cost/benefit considerations which each analysis must address in order to properly ascertain whether there is any advantage to contracting out as compared to performing the work in‐house. The author describes an approach to analyzing the contracting‐out decision that begins with an unambiguous, comprehensive statement of service goals to facilitate the measurement of outcomes and is followed by an examination of the other considerations on the cost side of the equation which are basic to the proper measurement of all direct costs, indirect costs, and social costs.
Expenditure Forecasting in Selected Operating Departments in Three States of Malaysia
Authors: Doh Joon‐Chien
Published: October 2003

Expenditure forecasting attempts to look forward to help determine future government spending needs. Although common in Western countries, multi‐year expenditure forecasting is not routinely done at the national level in Malaysia. But some expenditure forecasting takes place. This article discusses the techniques used for expenditure forecasting in three states of Malaysia: Johore, Penang, and Perak.
Budgeting for Our Times: Target Base Budgeting
Authors: Rubin Irene S.
Published: October 2003

Target base budgeting sets limits on how much a department may request in its budget. Departments must submit two budget requests—one within the target base and another for additional funds. Some supplemental requests may be funded from a reserve pool. Target base budgeting has been used in parts of the federal government over the last forty years. Its use continues to slowly expand. This article examines the experiences in three cities: Rochester, Tampa, and Phoenix.
Policy Development, Planning, and Resource Allocation in the Department of Defense
Authors: Jones L. R.
Published: October 2003

The U.S. Department of Defense develops policies, plans, and allocates resources using PPBS—the Planning, Programming, Budgeting System. The system is used to formulate both long‐range policies and resource allocation plans. The scope of DoD's activities make this an enormous undertaking. It is also politically charged because of the role of Congress in determining the department's budget and activities. Therefore, complexity and plurality characterize these processes.
Privatization of Municipal Wastewater Treatment
Authors: Holcombe Randall G.
Published: October 2003

Privatization of wastewater treatment facilities was encouraged by changes in the law and in the attitude of government officials during the early 1980s The idea was for localities to benefit from the efficiency gains expected when operations were transferred from municipal administration to a profit‐making organization. However, significant differences between the ideal and reality often existed, particularly when contracts all but eliminated the profit motive.
Internal Controls in State, Local, and Nonprofit Agencies
Authors: Coe Charles K. , Ellis Curtis
Published: October 2003

This study analyzes 127 cases of losses of internal accounting controls in state, local, and nonprofit agencies in North Carolina. The reasons for losses in control are identified and discussed along with ways of preventing such incidents.
Unified Service Planning and Budgeting: The Next Generation of Service Management
Authors: Gunyou John
Published: October 2003

Like many large cities, Minneapolis faces the challenges of declining intergovernmental revenue, federal and state restriction on actions, and increased service demands. However, unlike most other places, Minneapolis does not suffer from severe fiscal stress. It has managed this feat by making changes in the organizational structure, planning, and budgeting process. This allowed the development of a comprehensive and coordinated approach to service delivery in the city.
The Role of Civil Servants in National Budgeting: An International Comparison
Authors: Imber Valerie
Published: October 2003

Beginning in October 1988, a budgeteer‐exchange program has existed between Her Majesty's Treasury in the United Kingdom and the Office of Management and Budget in the United States. Cultural and constitutional differences make the jobs of the budgeteers in each country analogous but not equal. Differences that exist include organizational structure, work content, and information presentation to legislative bodies.
Generally Accepted Accounting Principles and Federal Government Financial Reporting
Authors: Mautz R. K.
Published: October 2003

This article considers the nature of generally accepted accounting principles and how well they match the purpose and activities of the federal government. A comparison of fundamental differences affecting accounting and reporting for private business and the federal government shows that although the generally accepted accounting principles do not work for the federal government, it does not follow that the federal government has nothing to gain from these principles.
The Federal Accounting Standards Advisory Board: An Introduction for Non‐Accountants
Authors: Bramlett Robert W.
Published: October 2003

This article discusses the disagreement over set accounting standards for federal agencies that GAO published in “Title 2” of its Policies and Procedures Manual for the Guidance of Federal Agencies. The Office of Management and Budget has declined to require agencies to follow the standards although many agencies do follow the standards in completing financial statements. These differences are a result of doubt regarding the appropriateness of the standards as well as the constitutionality of the standards. Therefore, the Federal Accounting Standards Advisory Board was created with the goal of securing agreement on standards for federal accounting.
The Role of Market‐Value Accounting in Reducing Potential Taxpayer Subsidies: The Case of Deposit Insurance
Authors: Mantripragada Krishna G.
Published: October 2003

The federal deposit insurance program required billions of dollars in taxpayer subsidies in recent years. Unless reforms are initiated soon, the program will continue to incur losses and will likely sizeable require subsidies in the future. Some of the blame for the past losses of the deposit insurance program has been attributed to the regulatory discretion and lack of information on the potential losses arising from the exercise of regulatory discretion. It is often argued that market‐value accounting can be an effective check on regulatory discretion and can minimize the future costs of the program to the taxpayers. This study examines the role market‐value accounting can play in reducing the potential taxpayer subsidies to the program. It examines the relationship between accounting system and losses to the deposit insurance program, discusses the problems in implementing the market‐value accounting, and shows how market‐value accounting can improve the effectiveness of the system of public regulation and reduce the adverse financial consequences of regulatory discretion. While the direct focus of the article is on the deposit insurance reform, the discussion and the arguments have applicability to improving the regulatory effectiveness of other public agencies and programs.
Municipal Debt Issues in Foreign Markets: Managing Currency and Interest Rate Risk
Authors: Ramsey James R. , Hackbart Merl
Published: October 2003

Since the mid‐1980s, there has been an acceleration of state and local government interest in the taxable bond market as a source of capital. This has resulted from, among other factors, restrictions imposed on economic and industrial development loan programs resulting from the passage of the Tax Reform Act of 1986. Increased state and local government involvement in the taxable bond markets has increased competition for such capital between the public and the private sectors. In turn, the developing capital competition has expanded into overseas securities markets. Private sector corporations have frequently accessed foreign capital markets to take advantage of lower interest rates and reduced financing costs. By contrast, state and local governments have accessed such markets only recently. This article discusses the policy issues considered by a state or local government entity when it decides to borrow funds in foreign markets and discusses the issues involved in managing currency and interest rate risk when issuing municipal bonds in foreign markets. It includes a review of the hedging techniques used by the Kentucky Development Finance Authority (KDFA) to protect against changes in the Yen/Dollar exchange relationship on a recent Samurai bond issue sold by KDFA as an example of such a transaction.
An Investigation of the Characteristics of Local Governmental Units Disclosing High Deposit and Investment Credit Risk as Defined by Governmental Accounting Standards Board Statement No. 3
Authors: Langsam Sheldon A. , Kreuze Jerry G.
Published: October 2003

As a result of severe financial losses by local governments in the mid‐1980s due to falling interest rates, the Governmental Accounting Standards Board Statement No. 3 was issued. The GASB No. 3 provides information for assessing a government's actual and future deposit, investment market, and credit risks. This article investigates the number of governments disclosing deposits and investments in the high risk category and determines if there are common characteristics among those reporting high risk deposits and investments.
Cost Containment in a Public‐Private Health Care System: The Case of Italy
Authors: France George
Published: October 2003

Health care cost containment has become an important issue in Western countries in recent years. However, most efforts have met with only limited success and Italy is no exception. This article examines the mixed public‐private system existing in Italy. It also describes and evaluates cost‐containment efforts in the Italian public health care system.
Performance and Accountability: Budget Reform in New Zealand
Authors: Goldman Frances , Brashares Edith
Published: October 2003

Since 1984, New Zealand has made major changes in public sector management. This article describes the perceived problems with the previous New Zealand system and discusses the reforms designed to address these problems. The changes attempt to increase efficiency by: (1) separating commercial functions from other government operations; (2) strengthening lines of ministerial and executive accountability; and (3) designing budget and financial management systems to improve measurement of public sector performance. This last reform includes shifting from an input to an output‐based system, changing from cash to accrual accounting, and creating different forms of appropriations for different types of government activities. While it is too early to assess whether the reforms are successful, we note potential problems.
The Budget Enforcement Act in 1991: Isometric Budgeting
Authors: Doyle Richard , McCaffery Jerry
Published: October 2003

The immediate effect of the Budget Enforcement Act (BEA) of 1990 was to cancel a pending $110 billion sequester and to change the Gramm‐Rudman‐Hollings deficit targets. These and other changes allowed Congress and the administration to escape responsibility for increases in the deficit if discretionary spending was kept within the caps and no new entitlement programs or revenue enhancements were added. This assumption and others relating to the empowerment of the Appropriations Committees and the new authority of the OMB are explored in this article.
The Budget Enforcement Act and Its Survival: Congress Hears from Experts
Authors: Joyce Philip G.
Published: October 2003

The unpopularity of the Budget Enforcement Act of 1990 grew in light of the recession, recent international events, and continuing record budget deficits. This prompted many Congress members and congressional committees to consider the future of the Budget Enforcement Act of 1990. Two hearings, held in October and November of 1991, exemplify the kinds of choices facing the Congress and the type of advice that Congress has been receiving. This article reviews the testimony given at the hearings by experts with established knowledge of federal budgeting.
State Policies Affecting Cities and Counties in 1991: Shifting Federalism
Authors: Gold Steven D. , Ritchie Sarah
Published: October 2003

States experienced considerable fiscal distress in 1991 as the recession led to widespread revenue shortfalls. In this environment, discretionary spending did not fare well. This article discusses five major policy areas: (1) state financial aid; (2) major changes in the “sorting out” of responsibilities between the state and local governments; (3) revenue diversification; (4) changes in limitations imposed on local taxes; and (5) new mandates handed down to cities and counties.
Linkages Among Poverty, Development, and Budget Systems
Authors: Lee Robert D.
Published: October 2003

The achievement of economic growth and social equity in developing nations, whatever path they pursue, has been hampered by uncertainty, instability, and uncontrollability in budgeting. It appears likely that left to themselves, these budget systems will continue largely unchanged, with little or no progress toward eliminating poverty and advancing development. However, several options are available for restructuring budget systems through implementation of carefully devised systematic action plans.
Improving Financial Management of the Governments of the Americas
Authors: Wesberry James P.
Published: October 2003

Several factors have created an environment that encourages the development of improved financial management systems in the Western Hemisphere. The U.S. Agency for International Development recently created the Latin American and Caribbean Regional Financial Management Improvement Project (LAC/RFMIP) which has several region‐wide initiatives underway as well as country‐specific activities. In addition, other donor/lender institutions, such as the United Nations, have major projects in progress in the region and a regional Donor Working Group composed of ten donor agencies meets regularly to coordinate activities. A comprehensive catalogue of all financial management improvements in the region has been prepared for the use of the Working Group. Finally, AID has drafted a long‐term strategy for improving financial management which is being circulated for comments.
Budgeting for Development: The Case of Nigeria
Authors: Nwagwu Emeka O. C.
Published: October 2003

This article evaluates the developmental efforts of the federal government of Nigeria and how these efforts have proceeded during the “boom and bust” cycles that have been a major feature of the Nigerian economy. The unpredictability of resource flows creates uncertainty in resource allocation and capital accumulation. Thus, economic development is subject to the characteristic “boom and bust budgeting,” resulting in disastrous delays and cancellations of expenditures and projects. For economic development to continue uninterrupted, Nigeria must develop a core of ability‐based, as opposed to needs‐based, programs that must be protected from the hazards of boom and bust budgeting and the business cycle.
Federal Budgeting and Finance in 1991: The Future is Now
Authors: Meyers Roy T.
Published: October 2003

The large federal deficits run throughout the 1980s generated concern that we were mortgaging our future. In 1991, the note came due. The potential for aggravating the long‐run deficit problem constrained fiscal policy from reacting to the recession. Institutional and partisan conflict and the controls established by the Budget Enforcement Act (BEA) limited responses to a remarkable budgetary opportunity—the dissolution of the Soviet Union—and to a serious budgetary threat—exploding health care costs. The BEA controls were applied rigidly with a few minor exceptions, and credit reform was implemented successfully; on the other hand, Congress and the president made no headway on further deficit reductions even though long‐run projections worsened. The agenda‐setting role of the president's budget for the fiscal year 1993 diminished, as the document's format was heavily influenced by the upcoming presidential election. In contrast to this mixed record for federal budgeting, progress was made in building a financial management structure and developing accounting standards.
A Primer on the Budget of the European Community
Authors: Pitsvada Bernard T.
Published: October 2003

The integration of twelve Western European countries into a single market in 1992 will make the European Community (EC) a major force in world affairs. To familiarize the reader with the EC, this article examines the EC budget‐how is it prepared, what it includes, and how it is financed. Some selected comparisons with U.S. institutions and processes are also offered in order to facilitate understanding.
The Impact of Capital Spending on Municipal Operating Budgets
Authors: Bland Robert L. , Nunn Samuel
Published: October 2003

What is the impact of capital spending for buildings, equipment, and other facilities on future operating expenditures of municipal governments? Because capital spending decisions are made independent of operating decisions in many larger municipalities, managers make long‐term capital commitments without fully understanding the repercussions for operations. This implies the need for research that examines more closely the linkages between these budget cycles. This article develops a theory of the relationship between capital and operating expenditures, then uses data from the fortyeight largest U.S. cities to estimate both the magnitude of capital's impact and the time it takes for operating budgets to adjust. The study finds that five of six commonly provided municipal services were affected to varying degrees by past years' capital expenditures. Especially notable is the finding that the operating budgets of labor‐intensive services, such as police and fire protection, are most sensitive to capital spending. For public managers, the findings point to the need for closer coordination between the capital and operating budget cycles, especially in those cases where capital outlays have clear, unambiguous positive implications for future operations.
Selling CDBG Housing Rehab Loans in the Private Sector
Authors: Dommel Paul R.
Published: October 2003

The author examines three cities that have sold a portion of their CDBG housing rehabilitation loan portfolio to secondary mortgage markets and private banks to secure additional capital for their revolving loan funds. Through case studies, the article focuses on some of the key issues in these sales including discounting, assumption of default risk, and loan documentation. It is concluded that such markets may become of increasing importance in the future as a source for augmenting declining public sector funds.
Virginia's Revenue Forecasting Process and Models
Authors: Jonas Kirk , Rest Gregory J. , Atkinson Terry
Published: October 2003

In Virginia, major differences between revenue forecasts and actual revenue collections raised questions from legislators about the adequacy of the state's econometric forecasting models and the forecasting process itself. Consequently, Virginia's process and models were examined by the Joint Legislative Audit and Review Commission (JLARC), a legislative watchdog agency. The review found most of the differences could be attributed to declining economic factors and not poor forecasting. However, a surprisingly large component of the forecast was based on undocumented judgmental inputs that required greater oversight. Other states in similar circumstances may wish to evaluate their own forecasting process and econometric models using the JLARC approach.
California's Structural Deficit Crisis
Authors: Savage James D.
Published: October 2003

California's 1991–92 budget is suffering from the cyclical effects of the current recession and from structural pressures that could keep the state's budget in the red for the rest of the decade. This article outlines the causes of California's deficit crisis, and briefly examines some of the potential solutions that are being considered to resolve the state's short‐ and long‐term fiscal difficulties.
Financing Arlington County, Virginia's Capital Programs: The Experience of the 1980s, The Outlook for the 1990s
Authors: Jinks Mark B.
Published: October 2003

County governments in the 1970s had few responsibilities beyond the courts and jail functions. Now, due to large suburban growth in the 1980s, county governments will find themselves immersed in capital financing issues. Arlington County, Virginia, is the setting of this article on the effects of major financings in the 1980s on a county government in the 1990s.
The New President Makes a Budget: From Eisenhower to Bush
Authors: O'Lessker Karl
Published: October 2003

Beginning with Eisenhower in 1953, newly elected presidents have proposed revisions to the budgets their predecessors submitted just before leaving office. Only Eisenhower and Reagan enjoyed substantial success in these efforts; the other four soon found that Congress has become increasingly determined to work its own will in budgetary matters. While we have only six cases of new presidents who tried to revise their predecessors' budgets, it seems clear that the two most significant determinants of success have been the personal popularity of the president and a favorable ideological (not partisan) balance in Congress.
Revolving Fund Finance: The Case of Wastewater Treatment
Authors: Holcombe Randall G.
Published: October 2003

This article examines the general topic of revolving fund finance by looking at the specific case of wastewater treatment. The analysis that follows focuses on the organization and administration of the fund to see what types of benefits are generated for the future rather than the present.
Taxing and Spending in Japan and Texas: Whose Cities Are Better Off?
Authors: Rickards Robert C. , Maeda Takashi
Published: October 2003

This article compares the budgetary positions of Japanese and Texas cities. The appropriate criteria for evaluating municipal taxing and spending policies are identified. After determining which municipalities are better off, recommendations are offered for improving the less well‐off cities' budgetary position.
An Analysis of the Budget of Greece in the 1980s
Authors: Apostolides Anthony D.
Published: October 2003

This article investigates the past two decades of public budgeting in Greece. The article first discusses the deficits and analyzes the contributing factors on the revenue and expenditure sides of the budget. Discussion then turns to the impact of deficits on the national debt and economic growth.
New Matching Requirements for Housing Programs: Intergovernmental Conflict and the National Affordable Housing Act of 1990
Authors: Khadduri Jill
Published: October 2003

This article describes the surprisingly diverse matching requirements for new federal housing programs that were introduced by the National Affordable Housing Act of 1990 and analyzes their development through the political compromise of the federal legislative process. It explains how the matching requirements reflect the divergent interests of the federal government and state and local governments in the policy outcomes of the new programs.
Implementing Federal Credit Reform: Challenges Facing Public Sector Financial Managers
Authors: Pariser David B.
Published: October 2003

This articles discusses the budgetary accounting framework instituted by the Federal Credit Reform Act of 1990. It identifies challenges facing credit agency managers who will be responsible for implementing new credit reform budgetary accounting systems, as envisioned by the legislation and the Office of Management and Budget's revised credit apportionment and budget execution instructions.
Tax Design and The Meddling Factor: Lessons From Hawaii's Liquor Tax
Authors: Suyderhoud Jack P. , Seo K.K.
Published: October 2003

Tax design decisions are subject to many influences, including economic and political realities. Those who make tax policy at the state level are under constant pressure to modify taxes and tax structures at the margin. In making their decisions, policy makers must assess and weigh the often conflicting advice that results from varying outlooks and interests among, as well as within, the groups providing such input.

Using Hawaii's liquor tax as a case study, this paper illustrates how seemingly innocuous policy meddling can turn a good tax into a bad one. The events that led the Hawaii Legislature to decide to substitute a flawed gallonage levy for a successful ad valorem tax are reviewed. The relative merits of ad valorem and per‐unit liquor taxes are discussed. Implications of adoption of the gallonage tax are presented. Finally, the article discusses the reasons why meddling may be attractive to both taxpayers and those who levy the tax, and it concludes that tax design criteria should include disincentives to meddle as a reasonable principle of taxation.
Federal Financial Management Reform and The Chief Financial Officers Act
Authors: Jones L. R. , McCaffery Jerry L.
Published: October 2003

This study analyzes the development of financial management reform in the federal government. A series of reform initiatives culminated in passage of the Chief Financial Officers (CFO) Act that prescribes a wide spectrum of changes in federal accounting, budgeting, and financial reporting. The CFO Act may well be the most significant executive branch federal financial management reform since the adoption of the Budget and Accounting Act of 1921.
The Federal Accounting Standards Advisory Board: A View of Its Role One Year Later
Authors: Bramlett Robert , Rexford Frank
Published: October 2003

The secretary of the Treasury, the Director of the Office of Management and Budget (OMB) and the comptroller general established the Federal Accounting Standards Advisory Board (FASAB) at the end of 1990. The Board recommends accounting principles for the United States government, including those to implement the Chief Financial Officers Act. This article reviews some results of research conducted by the Board during the past year and presents a conceptual framework for understanding the role of the Board and how it differs from the roles of FASB and GASB.
Performance‐Based Budgeting to Enhance Implementation of the CFO Act
Authors: Roth William V.
Published: October 2003

On August 5, 1992 the United States Senate Committee on Governmental Affairs passed the “Government Performance and Results Act” sponsored by Senators Roth and John Glenn. In introducing this legislation in 1991 Senator Roth made the following statement.* This legislation (S. 20) is intended to put teeth into federal efforts to introduce performance measurement currently under implementation by the Office of Management and Budget under the authority of the Chief Financial Officers Act of 1990.
State Policies Affecting Cities and Counties in 1992
Authors: Gold Steven D. , Ritchie Sarah
Published: October 2003

Most states did not make major changes in their policies affecting cities and counties in 1992. California and Maryland are the two leading exceptions. As many states continued to experience fiscal stress, fourteen states cut aid to local governments, while ten states increased aid. Some important changes also occurred in local revenue authority, sorting out responsibilities, and restrictions on unfunded mandates.
Balancing Cities' Books in 1992: An Assessment of City Fiscal Conditions
Authors: Pagano Michael A.
Published: October 2003

Cities, like states, have faced serious fiscal challenges and decisions during the economically strained 1992 year. This article is an analysis of cities' fiscal situation and policies of 1992. Specifically, cities' fiscal status, varied coping fiscal policy actions, and the relation between ending balances and fiscal policy are addressed.
The Determinants of State Budget Periodicity: An Empirical Analysis
Authors: Kearns Paula S.
Published: October 2003

States budget for a one‐year or a two‐year period. Little attention has been paid to the determinants of budget periodicity decisions at the state level. This article relies on existing surveys to develop hypotheses for the factors that influence the periodicity decision at the state level. The hypotheses are tested using a sample of 300 observations of the fifty states at various times in recent history. The results suggest that overall expenditures, budget complexity, political culture, revenue variability, and frequency of legislative session are statistically significant factors in the determination of budget periodicity.
The Vision of Federal Financial Management
Authors: Mazur Edward J.
Published: October 2003

This article provides a definition of what “good financial management” means in the respective local, state, and federal arenas and highlights some successful efforts of financial management improvement. Furthermore, eight evaluative criteria for assessing financial management performance developments are suggested and illustrated through current federal examples.
Implementation of the Federal Chief Financial Officers Act
Authors: Jones L. R. , McCaffery Jerry L.
Published: October 2003

The Chief Financial Officers (CFO) Act of 1990 proposes to rationalize the many financial practices and systems of the federal financial establishment. Due to the significant number and magnitude of the changes required by the Act, those involved in implementing the Act are encountering unanticipated practical problems and issues. This article addresses some of the surfacing difficulties, including, the qualifications of CFO's; implementation costs, standards, and authority; content of financial statements; and the scope of audits including performance measurement.
Federal Financial Management Control Systems: An Integrative Framework
Authors: Hildreth W. Bartley
Published: October 2003

The increasingly large and complex web of federal government finances seems to require ever more comprehensive and consistent financial management control systems to achieve managerial responsibility. This article identifies a framework for promoting integrated accounting, budgeting, and financial reporting in order to achieve the goal of providing relevant information to management and policy leaders. The article identifies four central areas in which endeavors to develop effective financial management control systems should concentrate: accounting for funds; assessing the cost of operations; managing cash; and collecting money due the government.
Counterpoint Essay: Nine Reasons Why the CFO Act May Not Achieve its Objectives
Authors: Jones L. R.
Published: October 2003

The goals of the Chief Financial Officers (CFO) Act of 1990 are numerous and highly ideal. While these goals are commendable, several potential roadblocks to their achievement may exist. This article points out nine such potential reasons why, in practice, the CFO Act's goals may not be obtainable.
Profligacy Or Prudence? Changes in Employment and Compensation of State and Local Government Workers
Authors: Miller Glenn H.
Published: October 2003

As the 1990s began, state and local governments across the country found themselves in a situation of fiscal stress. That stress has been attributed to several sources. Recently, it has been suggested that governments themselves brought on the fiscal squeeze by their own profligacy —a profligacy rooted in excessive increases in employment and compensation of government workers during the 1980s. After summarizing some arguments presented for and against describing state and local practices of the 1980s as profligate, this article compares its evidence on the growth of employment and compensation and notes some different interpretations. The article concludes that a strong statement of the profligacy position has not been proved.
The Budget Enforcement Act in 1992: Necessary But Not Sufficient
Authors: Doyle Richard , McCaffery Jerry
Published: October 2003

The 1992 budget process followed the Budget Enforcement Act of 1990 (BEA) script, although not without a protracted conflict concerning the walls separating the three categories of discretionary spending. The walls were retained, spending caps were met, and the process was timely. What deficit reduction occurred was the result of spending below the FY 1993 defense cap. Congress neither raised taxes nor cut entitlements to reduce the deficit further. The deficit grew significantly, driven by entitlement spending, chiefly health care programs. The limits of the BEA approach to spending control and deficit reduction became apparent.
The Federal, and the State and Local Roles in Government Expenditures
Authors: Hush Lawrence W.
Published: October 2003

This article compares government expenditures by functional category of the federal government relative to state and local governments and the changes in their respective roles since 1955. The article includes a review of the federal role relative to the state and local role on a function‐by‐function basis for these three and a half decades. This analysis demonstrates considerable stability in the federal sector and the state and local sector, but also the capacity for change.
Perceptions on Federal Budget Reforms: Public Budgeting Researchers' View
Authors: Lynch Thomas D. , Liou Kuo‐Tsai
Published: October 2003

This study examines budget experts' perceptions on suggested federal budget reforms. Based on the response of a group of selected public budgeting professors (N = 46), the study identifies several specific reforms that are supported by the experts from both the viability and adoptability consideration. The study also reveals the fact that the respondents are less optimistic about the adoptability of the suggested reforms even though they generally agree with most of the reforms. Addressing the federal deficit problem, the authors further discuss the implication of the experts' perceptions on federal budget reforms.
The Single Audit Act of 1984: A Survey of Practitioners
Authors: Brannan Rodger L.
Published: October 2003

The Single Audit Act of 1984 (SAA) attempted to strengthen Congress's control over disbursement and monitoring of federal funds intended for governmental and nonprofit entities. The SAA's primary agent of federal control is the auditor. This article examines the historical development of the SAA and discusses the results of a survey of auditors and accountants who are members of the Intergovernmental Auditing Forum. The survey addresses auditors' conception of the SAA and the auditor's role in achieving better control of federal disbursements.
Local Government Reserve Funds: Policy Alternatives and Political Strategies
Authors: Tyer Charlie B.
Published: October 2003

Local government officials are operating in a policy void when it comes to the establishment and use of reserve funds. In part, this is due to confusion about the distinction between reserve and contingency funds. The limited research that has been conducted shows that relatively large sums of money are maintained in reserve by many local governments. Some governments refer to these sums as reserve funds and their intended use is clearly indicated in one or more local documents, such as a budget or audit/financial report. Others simply maintain an unreserved fund balance. This article identifies rationales for using reserve funds, discusses the alternative ways reserves are accumulated, and outlines key issues a local government financial plan should address when reserve funds are utilized.
Municipal Capital Budgeting: An Examination
Authors: Forrester John P.
Published: October 2003

The state of capital budgeting theory is going through its growing pains. While traditional literature on capital budgeting is grounded in rational decision‐making, Nunn (1990) has suggested that such an approach is too limited to be of significant value. New theories, he argues, need to reflect differences in capital demand and differences in approaches to local policy, thereby reflecting both the economically‐rational and other components of capital budgeting. In this study, we examine the rigor of the traditional rational approach and the typology put forth by Nunn. Based on a broad cross‐sectional analysis of municipal finance directors, we find that capital budgeting is more complex than usually presented. Yet contrary to the argument by Nunn, we also find that the process is restricted more to internal participants, with limited and targeted participation by the public and other external actors.
The Reiterative Nature of Budget Reform: Is There Anything New in Federal Budgeting?
Authors: Joyce Philip G.
Published: October 2003

This article will attempt to demonstrate the limitations of budget reforms to bring about fundamental change in budget outcomes. In an effort to determine the extent to which these reforms have had any lasting effect, the author first discusses the history of federal budgeting since the advent of the executive budget in 1921. Second, the author reviews three reforms that are prominent in the U.S. Congress current budget debate—enacting fixed budget targets, granting the president increased power in the budget process through enacting a line item veto, or implementing a performance‐based budget. Lastly, the author will cite the limitations of each to bring about lasting changes in budget outcomes or decision processes.
Seizing the Opportunities of Fiscal Retrenchment
Authors: Suttenfield Nancy D. , Wharton L. Carole
Published: October 2003

As both a trust establishment and a public institution, the Smithsonian Institution is a recipient of both public and private sector funding. This article examines the financial crisis within the Institution that resulted from increasing costs, a weakening economy, and eroding federal support. It further shows how the Institution's senior management recognized the permanence of their economic situation, accepted the structural nature of their fiscal plight, and initiated the downsizing and restructuring of a public institution that, until recently, experienced nothing but growth.
The Kansas Financial Information System (KFIS): Policy Design and Policy Failure
Authors: Ubokudom Sunday E.
Published: October 2003

States are reported to have spent large sums of money on information resources management in financial year (FY) 1989. Of concern to several authors is the fact that most states have not attempted to integrate their accounting and budgeting systems. Calls for integrating accounting, budgeting, and personnel systems frequently fail to take into account the design problems associated with such tasks. This article uses a case study of the Kansas Financial Information System (KFIS) to highlight the importance of policy design to successful policy implementation. The results support the theory that design is an integral part of decision making and policy development. Policy design is an important determinant of implementation outcomes.
Signaling Government Financial Reporting Quality to Credit Analysts
Authors: Sanders George , Allen Arthur
Published: October 2003

The quality of governmental financial reporting and auditing is of continuing concern to oversight bodies and to those interested in the financial accountability of governments. While governments may have operational incentives to improve financial reporting, external incentives depend on external users' ability to distinguish cities with better reporting practices from those with inferior systems. Two methods that cities with better systems may use to distinguish themselves are the GFOA's Certificate of Excellence for Financial Reporting and through the reputation of the audit firm. This article examines whether the degree of reliance that bond raters place on accounting data is influenced by the Certificate and by the type of auditor. In addition, since inadequate fees have been cited as a possible cause of substandard audits, we examine the trend in audit fees for cities for the period 1985–1989. The findings suggest that the use of a Big Eight audit firm does increase the reliance placed on cities' financial statement numbers but there is only weak evidence that the Certificate has a similar effect. In addition we find evidence of a significant decline in audit fees for the period 1985–1989.
Decentralizing the Development Budget Process in Indonesia: Progress and Prospects
Authors: Leigland James
Published: October 2003

Decentralization of the development budget process in Indonesia has been a high priority of official reform efforts for over fifteen years, but in many respects the process remains highly centralized. This article describes the forces that helped shape this centralized process, in which central planners traditionally have had a degree of influence over budgeting that is unusual in the developing world. Efforts to help local officials play a more meaningful role in this process are reviewed, including innovative training programs introduced recently in response to enduring problems affecting local level participation. Although these recent efforts appear to be productive, government reformers recognize that meaningful decentralization over the longer term will be difficult to achieve without more fundamental changes in policies, procedures, and attitudes at the central level of government.
Valuing Massachusetts' Fixed Assets: A Contemporary Solution To An Historical Problem
Authors: Keith Richard L. , McHugh Joseph A.
Published: October 2003

The “Miracle of Massachusetts” is a slogan of the past. The FY 1992 deficit was projected to be over one billion dollars. In this article the authors describe the efforts of a dedicated group of government employees who created innovative solutions to long‐standing problems. Massachusetts' financial statements could not obtain a “clean” audit opinion because the state's fixed asset records were unauditable. The group developed and implemented an acceptable method for valuation of those assets. This required inventorying all the fixed assets of the state, then valuing each of these items in accordance with either an historical cost or an acceptable surrogate.