Term
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Definition
| a budget for financing capital projects |
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Term
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Definition
| budget for day to day operations |
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Term
| 3 models for deciding what captial projects to fund |
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Definition
1. rational actor
2. organizational process
3. governmental politics |
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Term
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Definition
- rationally come up with a decision package
- based on benefits the projects can create
- cant rely on this because benefits are hard to compare |
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Term
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Definition
1. Is it mandated
2. Will it pay for itself
3. Establishing a process (like a committee)
4. Establishing criteria |
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Term
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Definition
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Term
| funding of captial projects |
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Definition
- long term in nature
- should match strategic plan of city |
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Term
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Definition
- how does this years actions effect multi year planning
- everything is based on current year
- everything in future is a projection |
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Term
| four concepts of budget balance |
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Definition
1. annual balance
2. biennial balance
3. structural balance
4. cyclical balance |
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Term
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Definition
- balacing the budget every year
- required to be balanced on a cash basis
- allows for delayment of payments |
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Term
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Definition
| revenue (recepts) = spending (disburcements) |
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Term
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Definition
- budget is balanced on a two year basis
- more difficult
- can not delay payments |
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Term
| biennial balance equaltion |
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Definition
| Annualized Receipts= Annualized Disbursements |
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Term
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Definition
- looking at if recurring revenue is equal to recurring spending
- two levels: year to year and long term |
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Term
| year to year structural balance |
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Definition
| Take out all one time spendings and revenue and look and see if it is balanced |
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Term
| long term structural balance |
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Definition
- Making long term projections about spending and revenue growth
- If spending is greater than revenue, then you have a long term structural problem |
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Term
| structural balance equation |
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Definition
| Recurring receipts = recurring disbursement |
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Term
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Definition
- In the long run revenue behaves with an up and down movement on a graph
- Spending remains fairly constant upwards
- When revenue is more than spending = cyclical surplus
- When revenue is less than spending = cyclical deficit |
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Term
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Definition
| cyclical surplus = cyclical deficit |
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Term
| what factors can cause a budget shortfall to occur? |
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Definition
1. economy
2. forecasting error
3. governmental tax policy
4. spending
5. courts
6. federal government |
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Term
| two types of budget shortfalls |
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Definition
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Term
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Definition
| You know that you have a deficit after baseline budgeting is done |
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Term
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Definition
| You may have a balanced budget but during the fiscal year you can still incur a deficit |
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Term
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Definition
1. short term solutions to known budget shortfalls
2. solutions to unknown budget shortfalls
3. programatic cuts
4. budget gimimicks |
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Term
| short term solutions to known budget shortfalls |
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Definition
- decrease spending
- increase revenue |
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Term
| decreasing spending in short term |
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Definition
- across the board cuts
- delay maintance
- no new programs
- partical funding |
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Term
| increasing revenue in short run |
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Definition
- raise selective tax (like Tobacco)
- create tax amnesty so people will pay
- increase user fees
- temporary broad base tax increase
- perminent broad base tax increase |
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Term
| solutions to unknown budget shortfalls |
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Definition
- limit appropriations to a percentage of estimated revenues
- budget stablization funds |
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Term
| budget stabilization funds |
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Definition
- Money you can draw from when there is a deficit
- buys you time without having to take action
- replace money later |
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Term
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Definition
- per student
- will never be less than last year |
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Term
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Definition
| - takes big cuts because it is discretionary (no subject to federal guideline and has other sources of revenue) |
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Term
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Definition
| - need to control program growth |
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Term
| ways to control healthcare growth |
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Definition
- sticter eligibility
- controlling drug costs
- increase copayments
- cut abuse out of system |
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Term
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Definition
control cost by
1. Look at the offenses that send people to jail
2. Look at sentencing
3. Private prisons |
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Term
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Definition
1. freeze salaries
2. freeze hiring
3. cut positions |
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Term
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Definition
• Once it gets proposed by the Governor it goes to Budget Analysts to determine if anything is wrong
• Legislature gets it, negotiates, adopts
• Goes back to governor for signature or veto |
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Term
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Definition
• Once it gets proposed by the prez it
• Legislature gets it, sets a budget resolution, negotiates, adopts
• Goes back to prez for signature or veto |
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Term
| leg vs. exec in budgeting |
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Definition
| prez is more nation center, leg is more state centered |
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Term
| variables that affect executive success in budgeting |
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Definition
1. size of budget office
2. veto power
3. where you are in election cycle(easier in first couple years) |
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Term
| test of success for executive in budgeting |
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Definition
- If they get their priorities
- Changes (how different is the final budget from the one they proposed)
- Growth rate of the budget |
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Term
| legislative players in budgeting |
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Definition
1. leaders
2. committee chairs
3. memebers
4. staff |
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Term
| legislative leaders priorities |
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Definition
1. Maintain majority
2. Increase Majority |
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Term
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Definition
- involed in own programs
- favor increased spending |
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Term
| legislative memeber trends and priorities |
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Definition
1. reelection
2. increase party strength
3. have diverse interests |
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Term
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Definition
- keep party in power
- find money for party |
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Term
| interest groups influence on budgeting |
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Definition
1. vote for candidates
2. money
3. initiatives |
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Term
| two goals in budget execution |
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Definition
1) Execute the budget as planned
2) Change the plan if the conditions change |
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Term
| two main functions in budget execution |
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Definition
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Term
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Definition
1. allocation: giving out money
2. witholding: not giving money if u know changes need to me made |
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Term
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Definition
| variance anaylsis: making the needed changes to execute the budget and know why they occur |
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Term
| Why preformance budgeting? |
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Definition
| accountability, evaluation, benchmark |
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Term
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Definition
| Input, Output, Outcomes, Efficiency |
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Term
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Definition
| Organizational, Individual |
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Term
| organizational incentives |
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Definition
| budget increase, gain sharing, carry over, less oversight, recognition |
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Term
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Definition
| promotionl, bonus, raise, recognition |
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