Case Studies in Public Budgeting and Financial Management Second Edition, Revised and Expanded edited by Aman Khan Texas Tech University Lubbock, Texas, U.S.A W Bartley Hildreth Wichita State University Wichita, Kansas, U.S.A j » D E K K E R MARCEL DEKKER, INC NEW YORK • BASEL The first edition was published by Kendall/Hunt Publishing Company (Dubuque, Iowa), 1997 Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress ISBN: 0-8247-0888-1 This book is printed on acid-free paper Headquarters Marcel Dekker, Inc 270 Madison Avenue, New York, NY 10016 tel: 212-696-9000; fax: 212-685-4540 Eastern Hemisphere Distribution Marcel Dekker AG Hutgasse 4, Postfach 812, CH-4001 Basel, Switzerland tel: 41-61-260-6300; fax: 41-61-260-6333 World Wide Web http://www.dekker.com The publisher offers discounts on this book when ordered in bulk quantities For more information, write to Special Sales/Professional Marketing at the headquarters address above Copyright © 2003 by Marcel Dekker, Inc All Rights Reserved Neither this book nor any part may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, microfilming, and recording, or by any information storage and retrieval system, without permission in writing from the publisher Current printing (last digit): 10 PRINTED IN THE UNITED STATES OF AMERICA PUBLIC ADMINISTRATION AND PUBLIC POLICY A Comprehensive Publication Program Executive Editor JACK RABIN Professor of Public Administration and Public Policy School of Public Affairs The Capital College The Pennsylvania State University—Harrisburg Middletown, Pennsylvania Public Administration as a Developing Discipline (in two parts), Robert T Golembiewski Comparative National Policies on Health Care, Milton I Roemer, M.D Exclusionary Injustice: The Problem of Illegally Obtained Evidence, Steven R Schlesinger Personnel Management in Government: Politics and Process, Jay M Shafritz, Walter L Balk, Albert C Hyde, and David H Rosenbloom Organization Development in Public Administration (in two parts), edited by Robert T Golembiewski and William B Eddy Public Administration: A Comparative Perspective, Second Edition, Revised and Expanded, Ferrel Heady Approaches to Planned Change (in two parts), Robert T Golembiewski Program Evaluation at HEW (in three parts), edited by James G Abert The States and the Metropolis, Patricia S Florestano and Vincent L Marando 10 Personnel Management in Government: Politics and Process, Second Edition, Revised and Expanded, Jay M Shafritz, Albert C Hyde, and David H Rosenbloom 11 Changing Bureaucracies: Understanding the Organization Before Selecting the Approach, William A Medina 12 Handbook on Public Budgeting and Financial Management, edited by Jack Rabin and Thomas D Lynch 13 Encyclopedia of Policy Studies, edited by Stuart S Nagel 14 Public Administration and Law: Bench v Bureau in the United States, David H Rosenbloom 15 Handbook on Public Personnel Administration and Labor Relations, edited by Jack Rabin, Thomas Vocino, W Bartley Hildreth, and Gerald J Miller 16 Public Budgeting and Finance: Behavioral, Theoretical, and Technical Perspectives, Third Edition, edited by Robert T Golembiewski and Jack Rabin 17 Organizational Behavior and Public Management, Debra W Stewart and G David Garson 18 The Politics of Terrorism: Second Edition, Revised and Expanded, edited by Michael Stohl 19 Handbook of Organization Management, edited by William B Eddy 20 Organization Theory and Management, edited by Thomas D Lynch 21 Labor Relations in the Public Sector, Richard C Kearney 22 Politics and Administration: Woodrow Wilson and American Public Administration, edited by Jack Rabin and James S Bowman 23 Making and Managing Policy: Formulation, Analysis, Evaluation, edited by G Ronald Gilbert 24 Public Administration: A Comparative Perspective, Third Edition, Revised, Ferrel Heady 25 Decision Making in the Public Sector, edited by Lloyd G Nigro 26 Managing Administration, edited by Jack Rabin, Samuel Humes, and Brian S Morgan 27 Public Personnel Update, edited by Michael Cohen and Robert T Golembiewski 28 State and Local Government Administration, edited by Jack Rabin and Don Dodd 29 Public Administration: A Bibliographic Guide to the Literature, Howard E McCurdy 30 Personnel Management in Government: Politics and Process, Third Edition, Revised and Expanded, Jay M Shafritz, Albert C Hyde, and David H Rosenbloom 31 Handbook of Information Resource Management, edited by Jack Rabin and Edward M Jackowski 32 Public Administration in Developed Democracies: A Comparative Study, edited by Donald C Rowat 33 The Politics of Terrorism: Third Edition, Revised and Expanded, edited by Michael Stohl 34 Handbook on Human Services Administration, edited by Jack Rabin and Marcia B Steinhauer 35 Handbook of Public Administration, edited by Jack Rabin, W Bartley Hildreth, and Gerald J Miller 36 Ethics for Bureaucrats: An Essay on Law and Values, Second Edition, Revised and Expanded, John A Rohr 37 The Guide to the Foundations of Public Administration, Daniel W Martin 38 Handbook of Strategic Management, edited by Jack Rabin, Gerald J Miller, and W Bartley Hildreth 39 Terrorism and Emergency Management: Policy and Administration, William L Waugh, Jr 40 Organizational Behavior and Public Management: Second Edition, Revised and Expanded, Michael L Vasu, Debra W Stewart, and G David Garson 41 Handbook of Comparative and Development Public Administration, edited by Ali Farazmand 42 Public Administration: A Comparative Perspective, Fourth Edition, Ferrel Heady 43 Government Financial Management Theory, Gerald J Miller 44 Personnel Management in Government: Politics and Process, Fourth Edition, Revised and Expanded, Jay M Shafritz, Norma M Riccucci, David H Rosenbloom, and Albert C Hyde 45 Public Productivity Handbook, edited by Marc Holzer 46 Handbook of Public Budgeting, edited by Jack Rabin 47 Labor Relations in the Public Sector: Second Edition, Revised and Expanded, Richard C Kearney 48 Handbook of Organizational Consultation, edited by Robert T Golembiewski 49 Handbook of Court Administration and Management, edited by Steven W Hays and Cole Blease Graham, Jr 50 Handbook of Comparative Public Budgeting and Financial Management, edited by Thomas D Lynch and Lawrence L Martin 51 Handbook of Organizational Behavior, edited by Robert T Golembiewski 52 Handbook of Administrative Ethics, edited by Terry L Cooper 53 Encyclopedia of Policy Studies: Second Edition, Revised and Expanded, edited by Stuart S Nagel 54 Handbook of Regulation and Administrative Law, edited by David H Rosenbloom and Richard D Schwartz 55 Handbook of Bureaucracy, edited by Ali Farazmand 56 Handbook of Public Sector Labor Relations, edited by Jack Rabin, Thomas Vocino, W Bartley Hildreth, and Gerald J Miller 57 Practical Public Management, Robert T Golembiewski 58 Handbook of Public Personnel Administration, edited by Jack Rabin, Thomas Vocino, W Bartley Hildreth, and Gerald J Miller 59 Public Administration: A Comparative Perspective, Fifth Edition, Ferrel Heady 60 Handbook of Debt Management, edited by Gerald J Miller 61 Public Administration and Law: Second Edition, David H Rosenbloom and Rosemary O'Leary 62 Handbook of Local Government Administration, edited by John J Gargan 63 Handbook of Administrative Communication, edited by James L Garnett and Alexander Kouzmin 64 Public Budgeting and Finance: Fourth Edition, Revised and Expanded, edited by Robert T Golembiewski and Jack Rabin 65 Handbook of Public Administration: Second Edition, edited by Jack Rabin, W Bartley Hildreth, and Gerald J Miller 66 Handbook of Organization Theory and Management: The Philosophical Approach, edited by Thomas D Lynch and Todd J Dicker 67 Handbook of Public Finance, edited by Fred Thompson and Mark T Green 68 Organizational Behavior and Public Management: Third Edition, Revised and Expanded, Michael L Vasu, Debra W Stewart, and G David Garson 69 Handbook of Economic Development, edited by Kuotsai Tom Liou 70 Handbook of Health Administration and Policy, edited by Anne Osborne Kilpatrick and James A Johnson 71 Handbook of Research Methods in Public Administration, edited by Gerald J Miller and Marcia L Whicker 72 Handbook on Taxation, edited by W Bartley Hildreth and James A Richardson 73 Handbook of Comparative Public Administration in the Asia-Pacific Basin, edited by Hoi-kwok Wong and Hon S Chan 74 Handbook of Global Environmental Policy and Administration, edited by Dennis L Soden and Brent S Steel 75 Handbook of State Government Administration, edited by John J Gargan 76 Handbook of Global Legal Policy, edited by Stuart S Nagel 77 Handbook of Public Information Systems, edited by G David Garson 78 Handbook of Global Economic Policy, edited by Stuart S Nagel 79 Handbook of Strategic Management: Second Edition, Revised and Expanded, edited by Jack Rabin, Gerald J Miller, and W Bartley Hildreth 80 Handbook of Global International Policy, edited by Stuart S Nagel 81 Handbook of Organizational Consultation: Second Edition, Revised and Expanded, edited by Robert T Golembiewski 82 Handbook of Global Political Policy, edited by Stuart S Nagel 83 Handbook of Global Technology Policy, edited by Stuart S Nagel 84 Handbook of Criminal Justice Administration, edited by M A DuPont-Morales, Michael K Hooper, and Judy H Schmidt 85 Labor Relations in the Public Sector: Third Edition, edited by Richard C Kearney 86 Handbook of Administrative Ethics: Second Edition, Revised and Expanded, edited by Terry L Cooper 87 Handbook of Organizational Behavior: Second Edition, Revised and Expanded, edited by Robert T Golembiewski 88 Handbook of Global Social Policy, edited by Stuart S Nagel and Amy Robb 89 Public Administration: A Comparative Perspective, Sixth Edition, Ferrel Heady 90 Handbook of Public Quality Management, edited by Ronald J Stupak and Peter M Leitner 91 Handbook of Public Management Practice and Reform, edited by Kuotsai Tom Liou 92 Personnel Management in Government: Politics and Process, Fifth Edition, Jay M Shafritz, Norma M Riccucci, David H Rosenbloom, Katherine C Naff, and Albert C Hyde 93 Handbook of Crisis and Emergency Management, edited by Ali Farazmand 94 Handbook of Comparative and Development Public Administration: Second Edition, Revised and Expanded, edited by Ali Farazmand 95 Financial Planning and Management in Public Organizations, Alan Walter Steiss and 'Emeka O Cyprian Nwagwu 96 Handbook of International Health Care Systems, edited by Khi V Thai, Edward T Wimberley, and Sharon M McManus 97 Handbook of Monetary Policy, edited by Jack Rabin and Glenn L Stevens 98 Handbook of Fiscal Policy, edited by Jack Rabin and Glenn L Stevens 99 Public Administration: An Interdisciplinary Critical Analysis, edited by Eran Vigoda 100 Ironies in Organizational Development: Second Edition, Revised and Expanded, edited by Robert T Golembiewski 101 Science and Technology of Terrorism and Counterterrorism, edited by Tushar K Ghosh, Mark A Prelas, Dabir S Viswanath, and Sudarshan K Loyalka 102 Strategic Management for Public and Nonprofit Organizations, Alan Walter Steiss 103 Case Studies in Public Budgeting and Financial Management: Second Edition, Revised and Expanded, edited by Aman Khan and W Bartley Hildreth Additional Volumes in Preparation Principles and Practices of Public Administration, edited by Jack Rabin, Robert F Munzenrider, and Sherrie M Bartell Handbook of Developmental Policy Studies, edited by Stuart S Nagel Handbook of Conflict Management, edited by William J Rammer, Jr., and Jerri Killian ANNALS OF PUBLIC ADMINISTRATION Public Administration: History and Theory in Contemporary Perspective, edited by Joseph A Uveges, Jr Public Administration Education in Transition, edited by Thomas Vocino and Richard Heimovics Centenary Issues of the Pendleton Act of 1883, edited by David H Rosenbloom with the assistance of Mark A Emmert Intergovernmental Relations in the 1980s, edited by Richard H Leach Criminal Justice Administration: Linking Practice and Research, edited by William A Jones, Jr To Terri Khan and Rhonda Hildreth Foreword Working with friends is always a pleasure, but commenting on an outstanding product of friends is a greater pleasure I have known Professors Aman Khan and W Bartley Hildreth for many years I now even occupy the same position at LSU that Professor Hildreth previously occupied Over those years, I worked with them on several projects and found a great deal of joy in contributing with them to an improving literature of public budgeting and financial management In the case of Professor Khan, I also was his colleague for several years and enjoyed his always positive approach to life's challenges For both Professors Khan and Hildreth, we have shared experiences with the American Society for Public Administration We contributed to that organization in various ways including organizing panels and doing the many tasks necessary in making a living organization significant to our profession I was pleased to see this book in print For over a decade, I have had a textbook on public budgeting and financial management in print My book is in its fourth edition A textbook must provide an overview of its subject and thus it must omit much of the richness of the subject to achieve clarity In contrast, a book of case studies provides a very good sample of the richness of detail associated with this complex and exciting subject For example, this book covers case studies on a county using target-based budgeting, cash management practices of a local government, the local politics of pension investment, and financing a recycling facility through a public-private enterprise Budgeting is the nexus of politics and public management These case studies illustrate that important and often under-appreciated fact with a richness of information For the inquiry of public budgeting and financial management to continue to advance and be useful to the professional community of which it is a part, empirical studies are essential We are awash in prescriptive theories on how to better budgeting and financial management To build more useful theories we must have a keen appreciation of the practice of budgeting and financial management Case studies and comparative empirical research are the means to enhance our empirical understanding of practice This work by Professors Khan and Hildreth is a major step forward in improving both our teaching materials and our empirical information on this subject We owe these editors and all the contributors a very large thank you Thomas D Lynch Baton Rouge, Louisiana, U.S.A 786 Analysis cash management program, 554-563 downsizing strategy, 373 enterprise fund operations, 695-701 financial statements, 443 funds, 292-295 ratios for Mesquite Falls enterprise funds, 456 revenue, expenditure, 291-297 specific capital budgeting practices, 246-249 Animal control, Annualized cost of trucks/equipment/ buildings, 538 Annuity serial, 265 Application of factors to San Marcos's abatement policies, 753-760 Arbitrage notes, 590-591 Arizona, 636 Arkansas, 636 Army, budget execution, 77-92 Air Force, Army, Navy, 81 discretionary dollars, 86 flexibility, 87-88 management information systems, 88 monthly obligations, 81 patterns, 81-88 problems in, 84-85 restrictions on use of dollars, 86 political, 87 taxes, 85 timeliness issues, 85-86 Art centers, Art teachers, 43 Arterial repair, Asheville, North Corolina, 621-622 Assess political, economic value, contract requirements, 689 Assessed taxable values, 22 Assets in excess of pension benefit, 665 Assignment of financial information rights, 544-545 Assignment of follow-up responsibilities, 475 Atlanta density, budget, expenditures, revenues, Audits, 5, 379 Austin density, budget, expenditures, revenues, Index Auto sales, 218 Automobiles, light equipment, 489 Baltimore density, budget, expenditures, revenues, Bank relations, 559-561 Banking, finance, 379 Bankruptcy, Richmond, 736-744 Bankruptcy petition, State Control, default, 740-741 Baytown Health Services, Inc real estate transaction, 717 BCC budget retreat, 373 Board of corrections, Board of regents, 379 Bond rating case study, 613-628 improvement strategies, 619 Borrowing, 256 Boston density, budget, expenditures, revenues, Botanical gardens, Bridge repair, Broadly based revenue policies, 280-281 Budget analysis, with equity as criterion, 23-31, 25 distribution method, 24-26 equity, different measures of, 26 fairness, measures of, 26-28 policy makers, informing, 23-30 property tax rollback, with present LOST revenue distribution, 25 solving sales tax dispute, 30-31 structuring issue, 23-30 Budget as communications device, 300-301 Budget as financial plan, 298-299 Budget as operations guide, 299-300 Budget as policy document, 298 Budget consolidation for Wyandotte County, Kansas City Kansas, 354-360 Budget document, evaluation, 297-301 Budget downsizing process, 369 Budget execution, 77-92 Department of Defense Air Force, Army, Navy, 81 budget execution patterns, 81-88 discretionary dollars, 86 flexibility, 87-88 Index [Budget execution] management information systems, 88 monthly obligations, 81 problems in, 84-85 restrictions on use of dollars, 86 political, 87 taxes, 85 timeliness issues, 85-86 Budget management systems, 289-290 Budget process, City of Sampleville, 289 Budget share method, 525-526 Budget strategy matrix summary, 371 Budget transfers, 549 Budget trends, 616 Budget variance, 296-297 for major fund types, 296 Budgetary stress, financial management, 723-731 Budgeting for unincorporated area services, 305-320 Buffalo density, budget, expenditures, revenues, Building, permitting, 308 Building maintenance, Building rental charges, 489 Buildings, 489 Buildings acquired in past years, 538 Buildings used in landfill operations, 538 Buildings used in recycling operations, 538 Buildings used in solid waste collection, 538 Business, excise tax, 197, 201 Business classification preferences, 642-643 Business concerns, 682-683 Business development, Business licenses, 510 permits, 197, 202-203 Business location preferences, 643 Business teachers, 43 Buyer beware, 689-691 California, 636 Capital budget, 549 Capital costs, 488-489, 489 Capital expenditures, 36 Capital improvement plan, 248 Capital needs, 309 Capital outlay, 36, 433 trucks, 534 Capital projects fund, 335, 451-452 Capital reserve funds, 257-258 787 Cash, 443-444 investments, 417 Cash basis financial statements, 416-418 Cash budgeting, 555-558 Cash inflows to OCIP, fund management, 588-592 Cash investment decisions, 549 Cash management, 500-501 Certificate Issue 1988, 736-739 Challenges in implementing full cost accounting, 528 Challenging schemata of continued growth, 372-373 Change in revenue mix, general, debt service funds, 510 Charge, countercharge political impact of loss, 671-672 Charges for services, 334, 417, 433, 434, 468, 510 Charges to appropriation, 434 Charlotte density, budget, expenditures, revenues, Check sorting, 560 Checks, debits, 560 Chicago density, budget, expenditures, revenues, Child welfare, Cincinnati density, budget, expenditures, revenues, CINCPACFLT, expenditures, 58-60 Citibus fund, 697 City, county, combined budgets, 358 City capital expenses, 205 City clerk, elections, 434 City of River Falls government-wide statement of activities, 432 City operating expenses, 204 City Personnel Services, 204 City/county consolidation, 634 City/municipality, 634 Citywide team, 546 Civic Lubbock, Inc., 697 Classroom, teachers in, 43 Cleveland density, budget, expenditures, revenues, 788 Coconut Creek, 314 Colorado, 636 Combine biminate library projects, 371 Combined spending plan, revenue policies, 279-280 Commitment to implement recommendations, 473-475 Common business classification definitions, 633 Community affairs, 379 Community communications, 434 Comparative, consolidated views, 358-360 Comparative investment returns, with portfolio size indicators, 669 Comparing current, future financial process maps, 549 Comparing finalists, 765-766 Comparing illustrative statements, 432-437 Comparing performance of two Virginia cities, 494-501 Components of model, 487-489 Composition of portfolio, 667-670 Computer services, Conference committee that wasn't?, 400-401 Congressional receivership who does what to whom?, 342-343 Connecticut, 636 "Cons" of vendor preferences, 643-646 Consideration of risk, uncertainty, 248 Consolidate activities, services, programs, 381 Construction, manufacturing, 326 Consultants, 545 Consumer affairs, Contingency, 434 Contract award process preference granting techniques, 640-642 Contributors to collapse debt management, pensions, 336-341 Convention center fund, 335 Cooper City, 314 Coral Springs, 314 Core project team, 546 Corporate franchise, 218 Cost allocation methods, 525-528 Cost control, containment, 686-687 Cost estimates for classroom facilities, 263 Cost of banking services, 560 Cost shifting, 687 County provision/private production, 776 County staff goal, 371 Index County/region, 634 Crime prevention, Criticism concerning contracting for public services, 682-683 Cross-pressures on public purchasing professional, 632-633 Culture, recreation, 417, 432, 433, 434 Current issues, policy options, 310-311 Current process map, 547 Current school facilities, 262 Current state of tax abatement in San Marcos, Texas, 750-760 Cutback strategies Georgia state agencies, 381 Cutback strategy, 381 Daily balance recap, 560 Dania, 314 Data processing equipment, 489 Debt certificates of participation, 735-736 default, 597-599 Debt burden, 616 Debt capacity, 579 Debt factors, 616 Debt financing, administration, 257-258 Debt history, 616 Debt management, 501 Debt policy, 616 Debt review process, 578-579 Debt service, 334, 417, 433 Debt service charges on $1 Million for Ten Years, 259 Debt service charges on $1 Million for TenYear Term Bonds, 258 Debt service funds, 451 Deerfield Beach, 314 Default, Richmond Unified School District, 733-746 Default workout, 605-608 Defaulted waste-to-energy system, 599-610 Defense, 379 Defensiveness, protectiveness, 382-383 Deferred principal, 265 Definition of cost, cost center budgeting, 520 Delaware, 636 Demise of private partner, 777 Denver density, budget, expenditures, revenues, Index Department of Defense, budget execution, 77-92 Air Force, Army, Navy, 81 discretionary dollars, 86 flexibility, 87-88 management information systems, 88 monthly obligations, 81 patterns, 81-88 problems in, 84-85 restrictions on use of dollars, 86 political, 87 taxes, 85 timeliness issues, 85-86 Departmental program evaluation, 180 Departmental strategic planning, 177-179 Deposit slip order, 560 Deposits, debits, 560 Detroit density, budget, expenditures, revenues, Developing centralized debt management program, 572-573 Development, implementation of model, 486-487 Development of schema for differential program reductions, 372 Different view, 701-703 Differential costing applications to RSWS, 528-530 Direct costs, 487, 521 Direct method, 527-528 Disclosure on taxable notes, due diligence, 592-594 District government, 326 District of Columbia changes to major tax rates, 332 debt per capita, 340 debt to assessed property value, 339 distribution of individual income taxes, 333 employment by industry, 326 federal revenues in real dollars, 331 operating deficit, 336 operating transfers out, 337 short-term borrowings, 338 total revenue per capita, 329 District of Columbia per capita income, 323 District of Columbia total construction, 325 Drug/alcohol treatment, 789 Economic assumptions, 223 Economic development, regulation, 334 Economic indicators, forecasting outcomes, 219-222 Economic issues, 686-689 Economic performance, prospect, 615 Economic structure, 615 Economics teachers, 43 Education, 5, 244, 379, 496 Education expenditures, changes in, 36 Education teachers, 43 Educational expenditures, 36 Educational staff, impact of funding changes on, 37-44 continuing disparities, 44-45 personnel changes, 39-44 administrators, 42-44 teachers, 42 salary changes, 38-39 salary increases, vs new staff, 37-38 Effective tax rates motor vehicles, 499 Effectiveness, 351 Efficiency, 351-352 Efficiency measures, 371 Electric fund, 697 Elementary/secondary education, Eliminate activities, services, programs, 381 Embracing social equity costs, 687-688 Emergency 911 system, Emergency loan, state trustee 1990, 739-740 Emergency medical services, Employee health service, 525 Employee relations, 434 Employment benefits, 334 Encumbrances/expenditures, 549 Engineering, 371 Engineering administration, 434 Engineering service, 434 Engineering services, 432, 433 Enterprise fund activities in Lubbock, Texas, 694-695 Enterprise fund operation, 693-708 Enterprise fund total, 697 Enterprise funds, 295, 455-456, 531 Environmental management, Environmental/organizational factors, 473-475 Equipment acquired in past years, 538 Equipment rental charges, 489 Equipment used for solid waste collection, 538 790 Equipment used in landfill operations, 538 Equipment used in recycling operations, 538 Equity, 352-353, 682 budget analysis with, 23-31 distribution method, 24-26 equity, different measures of, 26 fairness, measures of, 26-28 property tax rollback, with present LOST revenue distribution, 25 solving sales tax dispute, 30-31 structuring issue, 23-30 budgetary analysis with local government finances in, 21-22 state legislation, 19 Essential facts District of Columbia government, 321-322 Establishing basic terms of Agreement, 766-767 Establishing enterprise fund, 531 Estimating techniques, 223 Evaluating proposals, 764-766 Evaluation of study, 249-251 Evaluation/selection techniques for capital projects, 249 Example from City Budget reorganization worksheet, 357 Example from County Budget reorganization worksheet, 356 Excess of revenues over expenditures, 433 Exhibit A Moody's Municipal Credit Report, 623-627 Expected life of landfill, 538 Expected useful life of buildings, 538 Expenditure forecasts, 204-205 Expenditures, 292, 334, 449-450 revenues, forecasting, 200-205 Facilities costs, 489 Factors relevant to tax abatement, 752-753 Failure to follow GAAP, 715-716 Family services, Federal government, 326 Federal reform plan too much or not enough?, 343-344 Fees, fines, 433 Fiduciary, fiscal instruments, 260-262 Final review, approval, 374 Finance accounting, 434 real estate, insurance, 326 Finance services, 27 Index Financial, budgetary management structure, 442-443 Financial factors, 616 Financial management plan, 728-729 Financial management plans, 727 Financial plan goal 1, revenue mix, 509-510 Financial practices, 616 Financial process reengineering, 546-550 Financial reorganization, 608-610 Financial reporting pyramid, 429 Financial reporting requirements, 430-432 Financial statements, 411-418 Financial statements prior to GASB statement No 34, 428-429 Financial statements required by statement No 34, 431 Financing costs, 489 Financing of capital assets for solid waste services, 533-534 Fines, 468 forfeits, 203, 417, 434, 510 Fire department, 434 Fire division, 468 Fire prevention/supp., Fire rescue staffing, 371 Fire-rescue, 371 South County Rescue, 371 Fiscal charges, 334 Fiscal stress in Georgia, 378 Fixed asset management, 549 Fleet management, Florida, 636 budget reform in, 115-120 Fordice era, Mississippi budget process, 103-107 Forecasting practices, 199-200 Foreign language teachers, 43 Forestry commission, 379 Framework for audit recommendation follow-up system, 471 Franchise fee, 371 Franchise taxes, 434 Frequency of preference policies, 633-635 Ft Worth density, budget, expenditures, revenues, Full cost accounting, 521 Fund accounting, uses in costing public services, 530-532 Fund balances, 447-449 Fund balances, ending, 433 Index Fund statements, 436-437 Fund structure, 409-411 Funding changes, impact on educational staff, 37-44 personnel changes, 39-44 teachers, 42 salary changes, 38-39 salary increases, vs new staff, 37-38 Furniture, office equipment, 489 Future process maps, 548 Garbage collection, 308 Garbage pickup, 434 Gas collection, 534 General capital, 371 General cash management, 549 General characteristics, 494-496 General fund, 292-295, 443-450, 530-531 General fund revenue, 724 General fund revenues, City of Sampleville, 293 General fund surpluses, deficits, 205-207 General government, 417, 432, 433, 434 General hospital fund, 335 General obligation bonds, 312 Geographical information system, 434 Georgia, 636 Georgia Bureau of Investigation, 379 Give up vacant positions, 381 Golf fund, 697, 706 "Good" condition rating of infrastructure facilities, 248 Good news, 460-461 Government Accountability and Performance Act of 1994, 120-121 Government agency, 634 Government direction, support, 334 Government finance officers association criteria, 297-298 Governmental factors, 616 Governor, 379 Governor's budget proposals, by party, 232 Grants, 434 Growing fiscal problem, 724 Guaranteed revenue debt fund, 379 Hallandale, 314 Health human services, sanitation, 432, 433, 434 welfare, 497 Health division, 468 791 Health-related, 634 Highway patrol, Highways, streets, roadways, 417 Hillsboro Beach, 314 Hiring freeze, 371 Historical perspectives, 677-681 Historical society, History, 570-579 Hollywood, 314 Home economics teachers, 43 Homeless services, Honolulu density, budget, expenditures, revenues, Horizon Plan, 276-278 Hospitals, Housing finance fund, 335 Houston density, budget, expenditures, revenues, How capital expenditures are handled, 245 Human resources, 379 Human support services, 334 Idaho, 636 Illinois, 636 Illustration, landfill closure, postclosure care costs, 524 Implementation, 122-124, 550 Income, franchise, 334 Income before operating transfers, 695 Indiana, 636 Indianapolis density, budget, expenditures, revenues, Indirect costs, 487-488, 521 Industry, trade, 379 Influences on preparation of capital budgets, 246 Information required by bond rating analysts, 616 Infrastructure, private, publicization of, 773-783 In-house portfolio composition (July 1991-May 1993), 668 Initial development of overall strategies, 370 Inspection/code enforcement, Inspections, 434 In-state preference practives, 636-639 792 Institute hiring freeze, 381 Insurance, 379, 534 Integration of financial, operational planning, 514-515 Interest, 334, 433 agent fees, 417 charges, 433 Interest on long-term debt, 432 Interest rates on various types of school bond issues, 265 Interest received, 434 Intergovernmental, 334, 417, 433, 510, 616 Intergovernmental revenue, 201-202, 468 Intergovernmental revenues, 197 Internal or external management of funds, 672-673 Internal service funds, 454-455 International trade, Introduction, 485-486, 505-506, 677, 709-711 Inventory control, 549 Investment gone sour, 666-667 Investment of idle cash, 561-563 Investment transactions, 560 Iowa, 637 Jacksonville density, budget, expenditures, revenues, Jails, Judicial, 379 Juvenile detention facility, 371 Juvenile justice, Kansas, 637 Kentucky, 637 Key criteria for awarding contract, 631-632 Key ethical aspects of case, 715 Labor, 379, 684-685 Labor concerns, 682 Labor relations, 5, 545 Land titles, transfers, fees, 538 Land use planning, 538 Landfill construction costs, 538 Landfill inert material, 534 Language teachers, 43 Lauderdale, 314 Lauderdale by Sea, 314 Lauderdale Lakes, 314 Lauderhill, 314 Index Law, 379 Lazy Lakes, 314 Leadership council, 545-546 Legal, 434 Legal factors, 210-211 Legal issues clarification, 311-313 Legal liability enter courts, 656-658 Legal services, 5, 538 Legislative, 379 Legislative conference systems in context, 394-395 Legislative parties, reactions, 232-234 Level of service, 371 Liabilities, 445-446 Librarians, 43 Libraries, 5, 434 Licenses, permits, 334, 417, 433, 434, 468, 510 Life cycles, political economy of city airplanes, 55-58 CINCPACFLT, 58-60 data sources, 34 educational staff, impact of funding changes on, 37-44 continuing disparities, 44-45 personnel changes, 39-44 administrators, 42-44 teachers, 42 salary changes, 38-39 salary increases, vs new staff, 37-38 expenditures, 11-12 local government finances in, 21-22 revenues, 12-13 services, 10-11 state legislation, 19 submarines, 52-54 Life-cycle costing, 521-525 Lighthouse Point, 314 Light/miscellaneous equipment, 489 Lincoln County, target-based budgeting, 145-154, 150-151 budgeting practices, 148 demographics, 146-147 economic environment, 147 historic budgeting practices, 148 history, 146-147 political background, 147 target budgeting, 148-151 Literature review, 378-380 Local fiscal conditions, key assumptions, 275-276 793 Index Local government finance in California, 734-735 Local provision/private production, 775-776 Local provision/public production, 775 Local-option sales tax, 23-31 distribution method, 24-26 equity, different measures of, 26 fairness, measures of, 26-28 Local-option sales tax revenue, 23-31, 25 distribution method, 24-26 equity, different measures of, 26 fairness, measures of, 26-28 policy makers, informing, 23-30 property tax rollback, with present LOST revenue distribution, 25 solving sales tax dispute, 30-31 structuring issue, 23-30 Long-term debt, 446-447 Long-term strategies, 207 Los Angeles World Airports case study, 683-689 LOST See Local-option sales tax revenue Lottery, games fund, 335 Louisiana, 244, 637 Lubbock, Texas combined enterprise funds operation, 695 Mabus era, Mississippi budget process, 102-103 Maine, 637 Maintenance, 534 repairs, 525 Maintenance/construction equipment, 489 Management, budgeting model, 181 Management of cash flows, 558-559 Management philosophy, 573-578 Management staff downsizing revisions, 373-374 Management staff review of department budgets, 373 Mandatory requirements, 308-309 Margate, 314 Maryland, 637 Massachusetts, 637 Mayor, legislative, fiduciary, audit, 434 Measuring financial performance, 508-514 Mechanical maintenance, 434 Median beautification, 371 Medical assistance, 379 Medium/heavy motor equipment, 489 Mental health, Methodist hospital system case, 714-718 Methodology, financing capital projects, facilities, 248 Metropolitan consolidation success = E3 + A, 361-362 Miami density, budget, expenditures, revenues, Michigan, 637 Milwaukee, Wisconsin, outcome-based budgeting, 175-182 Milwaukee performance information pyramid, 180 Mining, 326 Minneapolis density, budget, expenditures, revenues, Minnesota, 637 Miramar, 314 Mississippi, 637 Mississippi budget process, 96-107 Agency Budget requests, 98 Allain era, 101-102 budget request form, 97 changes in, assessment, 107-111 Fordice era, 103-107 funding changes, 106 Mabus era, 102-103 performance indicators, 110 program budgeting, prospects for, 111-112 Missouri, 637 Missouri Department of Revenue, 182-185 Mobile home, taxes, 22 Monitoring, evaluation, revision, 223 Monitoring contracts balancing need against costs, 688-689 Monopoly bureaus, 544 Montana, 637 Motor vehicle, taxes, 22 Mt Lebanon Day of Caring, 132 Municipal supplies, Municipalities, 314 Museums, Music, foreign language teachers, 43 Narrowing field, 764-765 Nashville density, budget, expenditures, revenues, 794 Natural resources, 379, 615 Nebraska, 638 Need for audit recommendation follow-up systems, 470 Negotiating final contract, 766-767 Nevada, 638 New Hampshire, 638 New Jersey, 638 New Mexico, 638 New state funding, use of, 34-37 New York, 638 density, budget, expenditures, revenues, New York budget passage days budget early or late, 235 New York budget process in brief, 395-396 New York legislative budget, 236 New York situation, 229-231 New York State budget conference committee, 399-400 Newark density, budget, expenditures, revenues, Next steps for budget?, 401-402 Nonauto sales, 218 Nonoperating revenues, 695 North Carolina, 244, 638 North Dakota, 638 North Lauderdale, 314 Notes to financial statements, 418-420 Number of employees, 534 Oakland density, budget, expenditures, revenues, Oakland Park, 314 Obligations for educational facilities, 271 Obstacles to reengineering, 544-545 Occupancy costs, 525 Official involvement, 248 Official position of study's respondent, 248 Ohio, 638 Ohio's forecast outcomes (1987-1993), 216-218 Ohio's forecasting process, 212-216 Ohio's revenue forecasting process, 210-216 Oklahoma, 638 Index Oklahoma City density, budget, expenditures, revenues, Omaha density, budget, expenditures, revenues, One agency's approach, 727-730 Operating budget, 549 Operating disbursements, 417 Operating expenses, 695 Operating income, 695 Operating receipts, 417 Operating revenues, 695 Operating transfers, 335 Operating transfers in, 695 Operations/maintenance, 36 Orange County investment pool participants, 589 local government finances in, 21-22 Oregon, 638 Organization, 616 Organization of debt function, 573 Organizing reengineering effort, 545-546 Outcome-based budgeting, 17 -194 accountability, 182-183 case studies, 175-185 city wide planning, fiscal reform, 176-177 departmental program evaluation, 180 departmental strategic planning, 177-179 impacts, 179-182 initial phase, 176 management, budgeting model, 181 Milwaukee, Wisconsin, 175-182 Milwaukee performance information pyramid, 180 Missouri Department of Revenue, 182-185 program decision item analysis, 187-190 programs, activities worksheet, 178 revenue core personal service reallocation review, 191 self-analysis, 183-184 statewide strategy, 183 Outsourcing, 65-76 in county government, case study, 68-74 issues in, 65-68 warrant division, 71 budget summary, 71 Warrantee, Inc., 72-73 Overmatch of grant programs, 371 Index Palm Bay partnership, 774-778 Palm Bay's infrastructure legacy, 777 Parkland, 314 Parks, 4, 371 recreation, 4, 307-308, 371, 434, 468 Parties, 230 Partnership legacy, 778 Party budget debates, 227-228 political context, 228-231 spending proposals, 231-232 Pay-as-you-go financing, 255-256 Payment in lieu of taxes, 334 Payroll, Payroll processing, 549 Pembroke Park, 314 Pembroke Pines, 314 Pennsylvania, 638 Pension fund, 335 Pension fund trends, 616 Pension investment returns, 663-676 Permits, 4, 538 Personal income, 218 Personal property, taxes, 22 Personnel, Personnel changes administrators, 42-44 educational staff, 39-44 administrators, 42-44 teachers, 42 Personnel department, 525 Personnel share method, 526-527 Philadelphia density, budget, expenditures, revenues, Pines, forfeits, 334 Pitfall of peddling political influence, 678 of promising too much, 680 of sacrificing equity for efficiency, 679-680 Pittsburgh density, budget, expenditures, revenues, Planning, economic development, 434 Planning division, 468 Planning for adaptation, 507-508 Plantation, 314 Police, 434 fire protection, 307 795 Police division, 468 Policy options, 313-317 Political, practical limits of revenue forecasting, 218-222 Political climate, economic change, 231 Political economy of city life cycles airplanes, 55-58 CINCPACFLT, 58-60 data sources, 34 educational staff, impact of funding changes on, 37-44 continuing disparities, 44-45 personnel changes, 39-44 administrators, 42-44 teachers, 42 salary changes, 38-39 salary increases, vs new staff, 37-38 expenditures, 11-12 revenues, 12-13 services, 10-11 submarines, 52-54 Political factors, 211 Political issues, 684-686 Pompano Beach, 314 Population, wealth, labor factors, 615 Portfolio investment, efficiency measure, 562 Portland density, budget, expenditures, revenues, Ports, trade, Postscript return to relative normalcy, 388 Potters field, Power, fuel, 534 Predesign studies, 538 Predicted, actual economic indicators, 222 Preparation, distribution, periodic status reports, 476 Preparation of corrective action plans, 476 Preparation of separate capital budget, 245 Presentation, 223 Presumption of public neutrality, 682-683 Price percentage preference policies, 640 Principal, 334, 417, 433 Principles of cash management, 586-588 Principles of debt management, 588 Principles of public purchasing, 630-631 Prison/correctional, 634 Private infrastructure, publicization of, 773-783 796 Privatization custodial, 371 body shop, 371 motor pool towing, 371 Probation, Problems, pitfalls, and, 396-397 Proceeds from sale of park land, 433 Proceeds of bond refunding escrow agent, 433 Proceeds of general fund recovery bonds, 335 Proceeds of refunding bonds, 433 Productivity monitoring, 139 Profile of local governments, 243-246 Program decision item analysis, 187-190 Program prioritization activity, 373 Programs, activities worksheet, 178 Project financing framework, technical default, 600-601 Project revenue bond default, 597-612 Projected combined effects of utility, property tax, 315 Promise of accountability, 678 Promise of effortlessness, 677-678 Promise of employee competence, 679 Promise of new deal, 678-679 Promise of tailor-made solution, 680-681 Property, 334 Property tax, 197 utility tax, 313-315 Property tax relief, 27 Property tax revenue, 200-201 Property taxes, 433, 434, 444-445, 510 Property value, taxable, 22 Proprietary funds, 295, 454-459 "Pros" of vendor preference policies, 642-643 Prospective borrowing, 616 Public education system, 334 Public health programs, Public housing, Public relations/information, Public safety, 4, 371, 379, 417, 432, 433, 434, 497 justice, 334 Public school employee retirement, 379 Public service commission, 379 Public service taxes, 434 Public utility, 218 Public utility assessment, taxes, 22 Public works, 4, 334, 432, 433, 434, 497 Public works administration, 434 Public works division, 468 Index Publicization of private infrastructure, 778-781 Purchasing explanatory items, 549 Purchasing function, 525 Questionable transactions, 716-718 Rating improvement model, 617-621 case study, 621-622 Ratios for enterprise activities, Lubbock, Texas, 697 Real property, locally assessed, 22 Reassigning costs, 371 county home, 371 medicaid, 371 Receipt of intergovernmental grant, 245 Receivables, asset accounts, 445 Recommendations, 301-302 Recycling, 4, 534 Rediscovering citizens, 779-781 Redistribute revenues, 27 Reduce activities, services, programs, 381 Reduction travel, 371 Reform initiatives, 341-342 Refunded debt, 335 Refunding bonds, 335 Refunding charges, 335 Regulatory compliance costs, 534 Related-party transactions, 716 Relation to budget, 421-422 Relationships between branches of government, 544 Renewed promise of consolidation, 350 Reorganization, 371 Reporting entity, 408-409 Reporting model prior to GASB statement No 34, 426-428 Reports to city council, 538 Reproduction center, Request purchase freeze and/or cuts, 381 Request travel freeze and/or cuts, 381 Research, development, 525 Residential refuse collection efficiency measure, 490 Residential solid waste budget planning, 533 Residential solid waste collection, Residential solid waste services municipal case, 532-539 Resource management, 499-500 Resources, 434 Restricted competition yields higher costs, 644 Index Results, 317-318 Results of following plan, 514 Results of improved financial management, 729-730 Retirement system, Return items, 560 Revenue, 379 expenditure trends, 616 Revenue core personal service reallocation review, 191 Revenue enhancements, 371 Revenue forecasting, 209-226, 215 Revenue forecasting relationships, 213 Revenue forecasts, 200-204 Revenue sources, existing tax structure, 309-310 Revenues, 291-292, 334, 449 percentage distribution of, 197 Reviewing residential fee, 769 Revised supplemental, 371 Rex Hospital Model, 140-141 Rhode Island, 639 Richmond, bankruptcy, 736-744 Richmond Unified School district, 733-734 default, 733-746 Rigidity of SOPs, 544 Risk, return, 670-671 Risk management, case study, 651-662 Road program, 371 Role of budget reform in increasing accountability, 361 Safekeeping securities, 560 Salary freeze, 371 Sale of land, 434 Sale of landfill gas, 534 Sale of recyclables, 534 Sales, use, 334 Sampleville budget, 288-289 Sampleville city, budget background, 285-290 San Diego density, budget, expenditures, revenues, San Francisco density, budget, expenditures, revenues, Sanitary inspection, Sanitation, 456 Sanitation fund, 458 797 Sanitation revenue, City of Sampleville, 295 School board plans, 278-279 School district capital improvements plan debt service, 278 School system, 634 Scrutiny, by political appointees, elected officials, 685-686 Sea Ranch Lakes, 314 Searching for cost savings, 355-358 Secondary education, Secretary of state, 379 Select financial software, 548-549 Selection, investment, monitoring of funds, 673-675 Self-analysis, 183-184 SERS investment income, 671 Service fees, 534 Services, 326, 616 Set-asides, 640-641 Sewer fund, 697 Short-term strategies, 206-207 Site engineering, 538 Size of capital budgets, 245 Size of IGR grants, 245 Small business, 685 Snow plowing, Soil, water conservation, 379 Solid waste collection, Solid waste disposal, Solid wastefund, 697 Solutions demonstration labs, 549-550 South Carolina, 639 South Dakota, 639 Special authority, 634 Special education teachers, 43 Special item, 433 Special programs, accounts, 205 Special revenue funds, 451 Spending policies, 496-499 Sports commission, S&Ps bond rating process, 615 St Louis density, budget, expenditures, revenues, Stages of conversation, 370-374 State, local cash and debt management, 586-588 State employees retirement system membership, 664 State expenditures, 724 State provision/private production, 776-777 798 Statement of activities, 435-436 State/province, 634 State/provincial agency, 634 Statewide strategy, 183 Status of state's pension systems, 663-666 Stepped coupon, 265 Stop payments, 560 Stormwater management projects, 308 Straight serial, 265 Straplax, 335 Strategic planning, Texas government agency goals, 159 agency mission, 159 agency philosophy, 159 budget reform, strategic planning, linking, 160-162 budget reform plan, 157 development of strategic budgeting system, 156-160 evaluation, 164-169 evaluation results, 164 external/internal assessment, 159 governor, strategic planning initiative from, 157-158 House Appropriations Committee, 156-157 House Bill 2009, implementing, 158 methodology, 164 mission of Texas, 169 overview, 155-156 performance measures, 155-156 philosophy, 159 role of performance measures in, 160 statewide functional goals, 159 strategies, 159 strategy request form, 170 Texas state government Texas template, 158-160 to write state budget, 162-164 Street lighting, 434 Street maintenance, 434 Street repair, Student finance commission, 379 Study background, 242-243 Submarines, expenditures, 52-54 Sunrise, 314 Supplies, 534 Support functions, Synopsis of agency theory, 712-714 System procedures, 475-476 System uses, 476 Index Tamarac, 314 Target-based budgeting, Lincoln County, 145-154 budgeting practices, 148 County sheriffs budget, 150-151 demographics, 146-147 economic environment, 147 historic budgeting practices, 148 history, 146-147 political background, 147 sheriff s budget, 148-150 target budgeting, 148-151 Tax abatement, 748-750, 749-750 Tax appeals, Tax collection, 549 Tax collections, Taxes, 334, 417, 468 Taxing policies, 499 Teachers, categories of, change in, 43 Teachers' retirement system, 379 Technology as enabler, 547 Tennessee, 639 Ten-point test of financial condition, 452-454 Ten-year stepped coupon bond issue, 260 Term bone, 265 Texas government, strategic planning agency goals, 159 agency mission, 159 agency philosophy, 159 budget reform, strategic planning, linking, 160-162 budget reform plan, 157 development of strategic budgeting system, 156-160 evaluation, 164-169 evaluation results, 164 external/internal assessment, 159 governor, strategic planning initiative from, 157-158 House Appropriations Committee, 156-157 House Bill 2009, implementing, 158 methodology, 164 mission of Texas, 169 overview, 155-156 performance measures, 155-156 philosophy, 159 role of performance measures in, 160 statewide functional goals, 159 strategies, 159 strategy request form, 170 799 Index [Texas government] Texas state government Texas template, 158-160 to write state budget, 162-164 Timing of library projects, 371 Toledo density, budget, expenditures, revenues, Trade licenses, Traffic, transportation, 468 Traffic control/park enforcement, Traffic engineering, Traffic operations, 434 Transfer in, 433 out, 433 from other funds, 434 to other funds, 434 Transit enterprise fund, 704-705 Transportation, 36, 379 communication, 326 Travel advances, 549 Truck acquired in current fiscal year, 538 acquired in past years, 538 used for recycling operations, 538 used for solid waste collection, 538 used in landfill operations, 538 used in recycling operations, 538 used in solid waste collection, 538 Tucson density, budget, expenditures, revenues, Tuition, 36 Tulsa density, budget, expenditures, revenues, TV/radio stations, Type, maturity, interest rate, 265 Types of bonds, 258-260 Typical debt burden indicators, 273-275 Underpinnings of public-private infrastructure partnerships, 774 Unincorporated area needs, 307-309 University, University fund, 335 University/college, 634 Useful life of trucks, 538 User charge option for solid waste services, 534-539 Utah, 639 Utility tax, 312-313 Vehicle towing/storage, Vendor preference policies by type of government agency, 634 Vermont, 639 Veterans' services, 379 Virginia, 639 Virginia Beach density, budget, expenditures, revenues, Wages, benefits, 534 Warehouse, 525 Warrantee, Inc., outsourcing, 72-73 Washington, 639 Wastewater treatment, Water, sewer, 335, 456, 458-459 Water fund, 697 Water supply, West Texas City, enterprise fund operation, 693-708 West Virginia, 639 Wholesale/retail, 326 Wilton Manors, 314 Wire transfer-incoming, 560 Wire transfer-outgoing, 560 Wisconsin, 639 Workers' compensation board, 379 Wyoming, 639 Youth services, Zero-base budgeting, 127-144 city department of housing, 130 civic activities, 131, 132 communication, 140 community activities, 132 decision making, 139 decision packages, 135-136 ranking, 136-137 decision unit-increment matrix, 131 decision units, 135 Fourth of July, 132 golf courses, 131 holiday celebrations, 132 mechanics, 128-138 Mt Lebanon, 134 Index 800 [Zero-base budgeting] Mt Lebanon Day of Caring, 132 objectives, 134-135 operating premises, 140 planning, 139 process, 128-134 productivity monitoring, 139 [Zero-base budgeting] Rex Hospital Model, 140-141 sanitary sewers, 131 traditional implementation model, 137-138 Zoos, ... Ali Farazmand 94 Handbook of Comparative and Development Public Administration: Second Edition, Revised and Expanded, edited by Ali Farazmand 95 Financial Planning and Management in Public Organizations,... budgeting under financial stress Part II focuses on financial management with an emphasis on accounting, auditing, and financial reporting; financial management practices; and financial management. .. Viswanath, and Sudarshan K Loyalka 102 Strategic Management for Public and Nonprofit Organizations, Alan Walter Steiss 103 Case Studies in Public Budgeting and Financial Management: Second Edition, Revised