Constraints on Public Budgeting

Dr. David Thomason

Unit 8- Budgeting

Kaplan University

Budgeting

Budgeting is an art and a science. It is an art in the sense that you must

recognize the material you have to work can be altered.

It is a science because there are rules to budgeting and public budgeting that will not stray, regardless of someone’s ability.

Fiscal Analysts Run Policy

In simple terms, the fiscal divisions of most operations run the policy.

Legislative bodies have fiscal policy offices. Agencies have fiscal policy offices. City council members, county offices, all

levels of government rely on their fiscal office for policy decisions.

The Public Involvement

America Speaks Project Let’s discuss this organization and their

Budgeting project:

http://www.americaspeaks.org/?gclid=CJmb_66_y6ICFdj75wodq1nVyg

What do you think?

Social Policy Classroom Experiment

I want you to imagine a hypothetical thought experiment. Imagine you can distance yourself from your own political position, demographic, ethnicity, gender, and basic distinguishing characteristics (I know, it’s not easy! Just bear with me!)

Now, assuming that you are removed from your basic social, political, and economic characteristics, rank each below your preferences of 1 being the highest priority and 10, being the lowest priority. You are asked to rank your top 10 social public policies from the list below.

Policy List and Priorities

1. ______ 2. ______ 3. ______ 4. ______ 5. ______ 6. ______ 7. ______ 8. ______ 9. ______ 10. ______

A. Gulf Coast Cleanup Fund B. Funding for Interstate Highways C. Border Patrol D. Medicaid E. Veteran’s Home Loan Benefits F. Child Nutrition Programs G. Medicare H. Day Care for Children I. Homeland Security J. Funding for Higher Education

Student Loans and Grants K. September 11 Assistance Fund

Explaining Your Choices

Why did you choose certain preferences over another?

Why are there 10 spaces and 11 choices?

Public policy is a finite process. There are limits.

A Real Life Example: Senate Appropriations Committee

Committee Jurisdiction The Senate Appropriations Committee is the largest committee

in the U.S. Senate, It has twelve subcommittees that are involved in drafting

legislation to allocate funds to government agencies within their jurisdictions. These subcommittees are responsible for reviewing the President's budget request, hearing testimony from government officials, and drafting the spending plans for the coming fiscal year. Their work is passed on to the full Senate Appropriations Committee, which may review and modify the bills and forward them to the full Senate for consideration.

Limits and Constraints on Domestic and Social Policy: TIME

Time is finite. There’s only so much of it to spend on a single issue.

It takes time to pass legislation. For example: How long did it take to pass

the the healthcare legislation? Approximately 1 year. Time is a significant obstacle to domestic

policy

Limits and Constraints on Domestic and Social Policy: INFORMATION

Information is finite. Legislators must rely on their staff, committee

staff, lobbyists, and interest groups. They also rely on other legislators as a short

cut or cue for how they vote. Specialize on issues in order to move

legislation. Consider the number of issues Congress or

state legislatures must contend with and then consider the amount of information of each.

Budgetary Constraints on Policy

What if you knew the costs of each program?

Would that be a constraint on policy?

Cost of the Programs in the Example

A. Gulf Coast Cleanup Fund- $10 billion B. Funding for Interstate Highways- $40 billion C. Border Patrol Officers- $4 billion D. Medicaid Payments- $215 billion E. Veteran’s Home Loan Benefits- $3 billion F. Child Nutrition Programs- $4 billion G. Medicare- $400 billion H. Day Care for Children- $5 billion I . Homeland Security- $55 billion J. Funding for Higher Education Student Loans and Grants- $600 million K. September 11 Assistance Fund- $250 million

Some Thoughts About Budget

To understand politics is to understand the constraints of the budget.

Budgetary politics is a key ingredient to the implementation of a policy.

No money! No program!

Budgetary Issues to Consider

What if you do not have enough to fund every program?

What if there is a 10% shortfall in the budget?

What do you do? Cut entire programs? Raise Taxes? Reduce all programs by the same amount?

The Constraints of Political Parties

Political Constraints: What if you are a Republican?

Would the priorities change?

What if you are a Democrat?

Would the priorities change?

Constituent and District Constraints/Limits

What if cutting a program directly affected your district?

You have to take into account the first rule in politics: GETTING REELECTED!

Donor and Interest Group Constraints

Where are the key donors on the issues?The big players?The small fish in the pond?

Who is expendable?

What are the strengths and weaknesses of the groups surrounding the issues?

Summing it Up

So, what does this tell us.

That domestic policy is difficult and contentious.

That the budget plays the crucial role in implementing public policy.

That public policy and agenda setting are not in a vacuum and face a number of constraints or limits.