CHAPTER ONE: DEFINING PUBLIC ADMINISTRATION

CHAPTER ONE: DEFINING PUBLIC ADMINISTRATION LEARNING OBJECTIVES After reading Chapter in the textbook, the student should be able to: Define public administration within the context of its four frames: a Political b Legal c Managerial d Occupational Locate public administration within its interdisciplinary context Define the subject matter that forms the core of public administration Provide a brief background of the study of administration and its key early players Explain the real meaning of the politics-administration dichotomy Understand the cycles of reform in public administration Define key terms at the bottom of the pages and at the end of the chapter Write short critical essays on major issues covered in the chapter SUGGESTED LECTURE LECTURE ONE I Defining Public Administration: The term “public administration” encompasses a complex set of interrelated concepts, thus a simple definition will not suffice It draws from many different academic disciplines, includes a variety of agencies, and is linked closely to several distinct professions The text has accordingly provided 18 definitions to capture the intrinsic richness and subtlety of the broad phrase “public administration.” These are clustered into four main categories: 1) political, 2) legal, 3) managerial, and 4) occupational II Analyzing the Definitions of Public Administration: Political—Public administration is what government does It exists within a political environment, and it is this political context that makes it “public.” Public administration is about implementation of the public interest It is also about doing collectively what cannot be done as well individually Legal—The foundations of public administration in the United States are legal ones and are bound by instruments of law Public administration is law in action in the form of statutes, regulations, ordinances, codes, etc Managerial—The executive nature of public administration enables the public will to be translated into action by the people responsible for running the public bureaucracy Occupational—Public administration includes many occupational fields—medicine, engineering, social welfare, economics, etc It is within the framework of each of these fields that the political, legal, and managerial aspects of public administration are transformed by public administrators into the work of government III Public Administration is an Academic Field: Public administration within an academic interdisciplinary context draws primarily from political science, law, and management It also incorporates other fields in the social, behavioral, and natural sciences, including economics, sociology, anthropology, criminology, psychology, engineering, medicine, and social work At the heart of public administration lies its core content: administrative theory, bureaucratic behavior, public finance and budgeting, policy analysis, program evaluation, and administrative ethics Public administration is also a crossgovernmental field: it deals with what the federal, state, and local governments do, such as the federal government providing national defense and local governments maintaining city and county roads IV Public Administration is Both an Old and a Young Discipline: The practice of public administration has been with us from the earliest civilizations The Egyptians, Babylonians, Chinese, Greeks, and Romans provided guidance on the art and science of management Our focus in this textbook, however, is on the occupational specialty and academic discipline of American public administration in recent times As a scholarly discipline, public administration is relatively young We chart its beginning with the seminal article “The Study of Administration” by Woodrow Wilson in 1887 His famous politicsadministration dichotomy which lay at the core of this study was misunderstood It was taken to mean that politics and administration should be separate However, in reality, Wilson meant “partisan” politics must be kept separate from public administration This is not easy, for public administration is closely tied to its political environment V Public Administration and the Cycles of Reform: Public administration is continuously reforming itself depending on the prevailing political climate and theories within the academic disciplines that bear upon it Some presidents have seen government as the problem in society and not as the solution to public problems In the 1990s, and specifically linked under the Clinton administration, reform of government has come to be known as the “reinventing government” movement In recent times the public and the media have become increasingly focused on a broad form of governmental reform—the issue of ethics in government Its proponents believe this will go far in helping to restore the diminished public faith in public administration Class Exercise THE REINVENTING GOVERNMENT EXERCISE Team A: Team B: Bureaucrats and Citizens (Con: Keep status quo) Bureaucrats and Big Business (Pro: Make change) Issue: Privatization of the Department of Public Services of the city of White Bluff, Oregon Organizational chart for areas of service attached Moderators: Moderators: Toss coin to see which team begins Each team presents for 5–8 minutes Another minutes for rebuttals of additional arguments Keep order Keep proceedings civil Teams: Choose a recorder to keep notes of your meeting and a spokesperson to present the arguments Everyone else on the team, be alert to assist the spokesperson as needed Use the board as needed Important concepts from Shafritz and Russell, Public Administration Some suggestions to get you started DEPARTMENT OF PUBLIC SERVICES (White Bluff, Oregon) DIRECTOR BUREAU OF PUBLIC WORKS OPERATIONS ADMINISTRATION ENVIRONMENTAL SERVICES OPERATIONS MAINTENANCE OPERATIONS ACCOUNTING COLLECTION DIVISION ASPHALT OPERATIONS ANIMAL CONTROL INFORMATION SYSTEMS HEAVY EQUIPMENT/REPAIR RODENT CONTROL PLANNING FORESTRY RECYCLING OPERATIONS PAINTING DIVISION CONSTRUCTION DIVISION/ FACILITIES MANAGEMENT LAND & RECORDS/PERMITS ARGUE FOR PRO AND CON Politics-Administration Dichotomy—Can politics and administration really remain separate in public bureaucracies? (Pro and Con) Power Issues in the Bureaucracy—Special interest power versus public interest power issues (Pro and Con) Ethics Issues—Is it ever acceptable for public administrators to “dirty their hands” for the public good? (Pro and Con) Arguments: Speak to the benefits of your position; costs of the opposing position CHAPTER TWO: THE POLITICAL AND CULTURAL ENVIRONMENT OF PUBLIC POLICY AND ITS ADMINISTRATION LEARNING OBJECTIVES After reading Chapter in the textbook, the student should be able to: Identify the concept of public policy Distinguish public policy from public administration and link the two constructs together Explain how public policy is made in a democratic republic like the United States Identify and explain the five key stages of the policymaking process: a Agenda setting b Decision making c Implementation d Evaluation e Feedback Explain the characteristics of power as a structural concept in the policymaking cycle Explain how power invariably enters the policymaking process through external and internal “force fields” that affect the public organization: a The impacts of external power resulting from pluralism and social group power in the United States b The impacts of internal power resulting from relationships, coalitions, negotiations, and bargaining within American public organizations Understand the meaning of “organizational culture” as it relates to public administration Explain how the following impact the cultures of public organizations: a External societal cultures b Internal cultures and subcultures of organizations c Professional socialization d Symbols, dramas, gestures, values, etc Define key terms at the bottom of the pages and at the end of the chapter 10 Write short critical essays on the major topics covered in the chapter SUGGESTED LECTURE LECTURE TWO I Public Policymaking: Public policymaking is hierarchical in nature The broadest policy is made at the top, but officials at lower levels, also known as street-level bureaucrats, have discretion in interpreting and even making policy In the United States the people are considered sovereign; they (through their elected representatives) make public policy, and this concept is known as democracy The legislative branch of government has the greatest number of enumerated powers and makes the law The executive branch administers and enforces these laws, and the judicial branch interprets and enforces them Each level of government— federal, state, and local—involves these three distinct entities, or branches, of government II The Role of Executive Power in a Republic: The authors provide us with three views of executive power The conservative view maintains that the president, governor, or mayor is an agent of the legislature Thus, his/her powers are restricted by it A more liberal view is the one of executive prerogative, which holds that under certain circumstances the chief executive possesses and can use extraordinary powers to safeguard the nation The stewardship theory of executive power is based on the belief that the president is a trustee of the people and can take any actions not specifically forbidden by the Constitution on their behalf All presidents assume one of these three executive models III The Policymaking Process: The policymaking process is a complex group of activities In our textbook these are explained as: 1) Agenda setting or identification of the policy issue, where the citizens produce ideas for change or improvement These bubble up through the various political channels for consideration by the legislature or the courts 2) Decisionmaking: Here a decision is made, either rationally (based on complete information) or, more often, incrementally (bit-by-bit at the margins of problems) 3) Implementation involves putting a government policy into effect Implementation is an inherently political process Frequently the agendas of those implementing the program seep into the implementation process itself 4) Evaluation is the appraisal process of policymaking to determine the effectiveness and the efficiency of a given program Generally, the executive branch of government undertakes the evaluation, but courts also so in their analysis and judgment of cases 5) Feedback: This stage of the policy process completes the cycle, and new agenda items evolving from the completed process start the policymaking cycle all over again IV The Role of Power in the Policymaking Process: The theory of force fields helps explain the role of external and internal power that is brought to bear on an agency and its key players from many directions a External Power Forces: Pluralism is a concept that begins in the government itself The three branches of government—legislative, executive, and judicial—exert power over each other Additionally, American society is made up of competitive groups, and power shifts from one to the other in time Some hold the view that groups of interested individuals with shared attitudes and special interests, not government, are the mechanism by which social policies are formulated Elite theory states that key members of the group have the lion’s share of power in policymaking The metaphor of the salad bowl explains that each socio-political group is a distinct power entity Others believe that government itself is a group that competes with other groups b Internal Power: Within organizations, coalitions jockey for power to secure scarce resources Dependency power explains that individuals or groups who have control of key products and services make others dependent upon them Those from the rational-structural school believe that power resides in legitimate authority, while others suggest that even those in authority are relatively powerless because their actions are invariably limited by others V The Role of Culture in Public Policymaking: Organizational cultures are about the norms, values, symbolic behaviors, artifacts, and other tangible and intangible things that exert influence upon a group and link it to its environment a Impacts of the External Environment: In a diverse land like America, local and regional cultures impact in different ways on the culture of public organizations In this way, organizational culture reflects the overall values of society b Impacts of the Internal Environment: The internal culture of an organization is transmitted by socialization or enculturation processes The professional socialization of organizational membership helps maintain and enforce the organizational culture The conscious use of symbolic management, through dramaturgy, rituals, and emblems, preserves or develops the kind of culture that organizational leaders find desirable Individual Exercise Think Piece “The American Democratic Republic” Explain the meaning of the “democratic republic” as we know it in the United States of America Go to the library and search out why the Founding Fathers chose this form of government How does the constitution guarantee checks and balances between the branches of government—executive, legislative, and judiciary? Do you agree with Thomas Jefferson that given the nature of judicial review, the Constitution is ultimately what the judges of the Supreme Court say it is, and thus is “a mere thing of wax in the hands of the judiciary, which they may twist and shape into any form they please.” AFFIRMATIVE ACTION IN EMPLOYMENT To remind students of issues covered so far in the textbook Public Administration, by Shafritz and Russell, use a current example from world affairs to discuss the pertinent issues We suggest using the issue of California’s Proposition 209 as a springboard for discussion of a public policy Californians passed Proposition 209 to end affirmative action in 1997 Subsequently, in fall 1997, the Supreme Court upheld the legality of Proposition 209 These actions have potential ramifications for other states that struggle with affirmative action statutes, case laws, regulations, and other public policies Discussion Issues Pluralism and multiculturalism in our society and increasing diversity due to globalization of work Voices of special interests in America Expressions of dissent from those who have suffered “reverse discrimination.” Elite interests versus minority interests Compensatory justice for underprivileged groups The meaning of a “color-blind” society FORCE FIELD EXERCISES—POWER AND CULTURAL FORCES (Designed for Individual Players) POWER INFLUENCES ON PUBLIC ADMINISTRATION: Draw a circle representing a public organization—for example, the Environmental Protection Agency (EPA), federal government level; or the State Department of Transportation, state government level; or the County Jail, local government level [Class or Instructor chooses one.] Draw power forces from fields that impact on this agency as follows: a Straight line arrows for negative power influences b Dotted line arrows for positive power influences c Explain your model CULTURAL INFLUENCES ON PUBLIC ADMINISTRATION: Draw a circle representing a military organization such as the army, navy, air force, marines; or a paramilitary organization such as the police, jail security guards, or coast guard [Class or Instructor chooses one.] a What sort of organizational culture is your chosen organization likely to have? b Describe what symbols, artifacts, and emblems reinforce the culture of this organization c What, if any, is the local, state, or regional impact on this organization’s culture? CHAPTER THREE: THE CONTINUOUS REINVENTING OF THE MACHINERY OF GOVERNMENT LEARNING OBJECTIVES After reading Chapter in the textbook, the student should be able to: l Understand the concept of reinventing the machinery of government Understand the administrative structure of the federal government, in particular the executive branch machinery a Executive Office Agencies b Executive Departments c Independent Public Bodies Understand the administrative structure of state and local government, in particular: a State Government b County Government c Municipal Government d Towns and Special Districts Understand the major government reform movements in this century, in particular the implications of: a The Brownlow Committee b The Hoover Commissions c The Ash Council d The Grace Commission e The Reinventing Government Movement f The Gore Report g Reinventors versus Micromanagers Define key items listed at the bottom of the pages and at the end of the chapter Write critical essays on topics covered in the chapter SUGGESTED LECTURE LECTURE THREE viability of the enterprise Thus we see unions and management in an unlikely marriage of convenience because of their mutual interests Group Exercise Think Piece Stress Levels in the Air Traffic Controllers’ Workplaces The air traffic controllers at American airports reportedly have very stressful jobs An additional element of stress was added by the events of September 11, 2001 What additional kinds of stress-relief measures should be considered by leadership to help air traffic controllers their jobs safely and securely? Class Exercises PERSONNEL MANAGEMENT EXERCISES ON THE CIVIL RIGHTS ACT OF 1964, Title VII Scenario A: Mary Louise Davies interviews applicants for professional and management positions at MAXCom, Inc., a computer company in the Silicon Valley She has been asked by the director of human resources to attend a one-day conference on Title VII, affirmative action, and EEO, in San Francisco Mary Louise has a very hectic schedule, as her company is rapidly expanding, and she asks to be excused After all, she explains, all she does is conduct the interviews The final decisions are made higher up in the human resources department a Is Mary Louise’s excuse justification for not going? b If you were the human resources director, what would you do? Scenario B: Pete Chavez graduated with high honors from the Columbia University School of Journalism in the area of sports journalism He then applied for the position of assistant sports writer with a local paper to cover basketball and football Pete’s credentials were verified and he was made an immediate offer over the telephone When he arrived for the interview, however, he sensed that something was amiss He was told that the position had been withdrawn Later Pete learned from a valid source that it was his height, 5'3”, and slender build, 120 lbs., that disqualified him The editor had judged that a taller sports writer would have a better rapport with tall players than a short one Pete plans on filing a “disparate impact” claim a Does he have a case? b On what basis? Scenario C: Tim Fujie, a Japanese-American, and David Dougherty, an Irish-American (white), are both applicants for promotion for the same job as detective sergeants in the Miniqua Police force Tim has a bachelor’s degree in physics and three years on the police force David has a bachelor's degree in criminal justice, a certificate in conflict resolution, and three years in the police force David Dougherty is hired Tim Fujie sues on the grounds of color and race discrimination Does Tim have a case? CHAPTER ELEVEN: SOCIAL EQUITY LEARNING OBJECTIVES After reading Chapter 11 in the textbook, the student should be able to: Understand the concept of social equity in America Comprehend the major points in the challenge for equality: a Racism in America b The Bitter Heritage of Slavery c Second-Class Citizenship in America d Legislative and Administrative Remedies Appreciate the notion of equal employment opportunity: a The Origins of Affirmative Action b The Case for and against Affirmative Action Grasp the key areas of nonracial discrimination: a Sex Discrimination b Pregnancy Discrimination c Age Discrimination d Disabilities Discrimination Understand the importance of public administrators being cognizant of the letter and the spirit of social equity laws Define key terms at the bottom of the pages and at the end of the chapter Write short critical essays on major issues covered in the chapter SUGGESTED LECTURE LECTURE ELEVEN I Social Equity: Although the United States aspires to social equity in principle, it has not always been able to achieve it in practice In the nineteenth century social Darwinism inhibited the growth of social equity through its principles of survival of the fittest and natural selection American social Darwinism thus justified child labor and many other abuses of U.S citizens, which reformers tried to rectify Reinforced by civil rights laws, social equity is one of the foremost concerns in public administration today II The Challenge of Equality: The 1776 Declaration of Independence proclaimed that “all men are created equal.” Yet both the Declaration of Independence and the Constitution denied this right to African-American residents and women a Racism: Our textbook defines the term “racist” as a person who overtly or covertly practices racial discrimination on the basis of color and ethnic origin and supports the supremacy of one race over another b The Bitter Heritage of Slavery: The importing of people from Africa to provide slave labor on American plantations began in colonial times It was supported by the Constitution in Article I, Section The Supreme Court upheld slavery in many decisions, the most famous of which was Dred Scott v Sanford It took a civil war, the Emancipation Proclamation, several amendments to the Constitution, and a vast change in social attitudes to bring us to the point at which we are today Yet, even today, all people are not equal in our society c Second-Class Citizenship in America: After the Civil War the racial question was still not settled, and many states enacted Jim Crow segregation laws Again the Supreme Court upheld the so-called separate but equal philosophy in its Plessy v Ferguson decision of 1896 More than half a century later the Plessy decision was overturned in Brown v Board of Education (1954) The Court declared that separate but equal was actually unequal This was the beginning of the civil rights movement c Legislative and Administrative Fixes for Racism: With the passing of the Civil Rights Act, the Equal Employment Opportunity Commission (EEOC) came into being in 1964 to combat discrimination in the private sector The coordination of all equal employment activity was assigned to the Civil Service Commission until its retirement by the CSRA in 1978—at which time these duties were transferred to the Office of Personnel Management The passage of the Equal Employment Opportunity Act in 1972 brought state and local governments under the EEO umbrella III Equal Employment Opportunity (EEO): EEO applies to employment procedures and practices that are intentionally or unintentionally discriminatory in the areas of race, color, gender, religion, and national origin It now also includes age, pregnancy, and disabilities a Origins of Affirmative Action: President Kennedy’s Executive Order 10925 in 1961 first used the term “affirmative action.” It meant the removal of “artificial barriers” to employment of women and minority groups in the federal service President Nixon issued an executive order on affirmative action in his administration During the 1970s, federal courts issued specific goals and timetables for minority hiring and compensatory opportunities for disadvantaged groups By the 1990s, support for affirmative action dwindled A poll taken by Newsweek in 1995 showed that 75 percent of whites feel that the current system of affirmative action and righting wrongs in society is not being served well by EEO b The Case for and Against Affirmative Action: Proponents argue that affirmative action, by bringing all segments of society into the mainstream, elevates the moral and social consciousness of the whole society They claim that affirmative action is not about hiring the unqualified, or about quotas, preferences, or denying the rights of white males “Reverse discrimination” is a term that has developed over the years through a series of Supreme Court rulings Well-disposed as well as bigoted opponents of affirmative action argue that merit and fitness get pushed to the side when affirmative action programs come into play Some argue that compensatory benefits should be given to members of society based on class, not race Today many states are considering reversal of their affirmative action policies following California’s Proposition 209 of 1997 IV Nonracial Discrimination: a Sex Discrimination The Civil Rights Act, as amended by the Equal Employment Opportunity Act of 1972, declared sex discrimination illegal, and today sexual harassment is included in the sex discrimination provision The Equal Employment Commission in 1980 set forth guidelines on what constitutes workplace sexual harassment In 1986 the landmark Supreme Court ruling in Meritor Savings Bank v Vinson set forth case law on this issue b Pregnancy Discrimination: Employment practices that exclude pregnant women (or women contemplating having children) were classified as discrimination in a 1978 statutory amendment to Title VII of the Civil Rights Act The Family and Medical Leave Act of 1993 was the latest companion statute c Age Discrimination: The Age Discrimination in Employment Act (ADEA) was first passed in 1967 and often amended thereafter It covers all employees in the public and private sectors d Disabilities Discrimination: In 1990 Congress passed the Americans with Disabilities Act (ADA) to ban discrimination against physically and mentally handicapped individuals in employment and to require reasonable accommodation for these individuals V Public Administration and Social Equity: Public administrators must be cognizant not only of the details of public law, because they must administer its provisions in a fair and equitable manner, but they also need to be aware of its spirit, so as to proactively support it Class Exercise THINK PIECES ON SOCIAL EQUITY You are the Director of an organization called Pennsylvania Diversity, a non-profit organization in Harrisburg, Pennsylvania You have a B.P.A (bachelor's degree in public administration) You have been asked by the Governor of your state to present arguments for diversity in its broadest context for a policy report he is making to the Vice President In order to respond, you are planning a strategic retreat for your senior management on November 24 You wish to present them with two issues: 1) Diversity and multicultural issues concerning the workplace context and 2) Diversity of natural systems, dealing with the environmental context You expect to hear arguments pro and (the thesis and antithesis) and a vigorous debate among your staff during the brainstorming process and the policy development process You would like to have some thoughts about these issues to bring to the table yourself The four issues noted below are provided as guidelines to begin thinking, but they are only guidelines Think broadly about the issues for the next two weeks I SOCIAL DIVERSITY IN THE WORKPLACE CONTEXT a Balancing the rights of individuals versus the rights of the group b Balancing the rights of a white minority versus a collectively larger multicultural majority II DIVERSITY OF LIFE IN THE ENVIRONMENTAL CONTEXT a Balancing the rights of human beings versus the rights of other living things to exist b Balancing the rights of presently living people in your state against the rights of future generations CHAPTER TWELVE: PUBLIC FINANCIAL MANAGEMENT LEARNING OBJECTIVES After reading Chapter 12 in the textbook, the student should be able to: Understand the importance of public financial management and the duties of the public administrators involved Know the rules and understand the politics of the “budget game.” Understand the theories behind the budgeting process and their applications Comprehend the new innovations impacting the budgeting process Identify the various methods of financing public expenditures Understand the role that debt plays in the budgeting process Comprehend the role that monetary and fiscal policy have in public administration Define key terms at the bottom of the pages and at the end of the chapter Write short critical essays on major issues covered in the chapter SUGGESTED LECTURE LECTURE TWELVE I Public Financial Principles: No public policy or function can survive unless it is associated with the flow of funds that make it possible Public financial management is a dynamic system with which citizens interact every day At the heart of the design of the American system of public financial management are six principles Democratic consent: Taxation and spending should not be done without consent of the governed Equity: Governments should be equitable in raising and spending capital Transparency: What governments in raising and spending funds should be open to public knowledge and scrutiny Probity: There must be scrupulous honesty in dealing with public funds, of which the legislators and administrators are the stewards, not the owners Prudence: Stewards should not take undue risks with public funds Accountability: Those who deal with public funds can and should be regularly called to account for their stewardship through legislative review and audit processes II Balanced Budgets: The balanced budget, where receipts are equal to or greater than the government outlays, is the sign of a financially healthy government There are also advantages, however, to “unbalanced” budgets where extra spending can stimulate a slow economy Such actions may adversely impact the value of currencies as well as having a crowding-out effect on capital markets All budgets function within a designated twelve-month fiscal calendar As the budget process is often slow, funding can be extended into a new fiscal year through the use of continuing resolutions III The Budget Game: The budgeting process is highly political There are winners and losers in the process The main currents in the politics of budgeting in the past 30 years seem to suggest a decidedly individualistic, multicentered decision-making milieu Budget makers, both conservative and liberal, are impacted by lobbyists and special interest groups Congress relies on the Congressional Budget Office to provide data , while the Office of Management and Budget provides data to the president IV Budget Theory and Practice: A public budget has four dimensions First, it is a political instrument that allocates scarce public resources Second, it is a managerial and administrative tool that specifies the “ways and means” of providing public programs and services Third, it is an economic instrument that can drive an area’s growth Fourth, it is an accounting instrument that holds government workers accountable for the expenditure of funds with which they have been entrusted V Historical Highlights of Budgetary Reform: The Taft Commission (1912) recommended a national budgeting system William Willoughby wrote The Movement Towards Budgetary Reform in the States (1918), which suggested additional reforms on the state and local levels The General Accounting Office (GAO) was established in 1921 with the passage of the Budget and Accounting Act V O Key, Jr., wrote in 1940 bemoaning the lack of budgetary theory among budget writers John Keynes influenced the administration of Franklin D Roosevelt and all succeeding administrations with a theory that called for using fiscal and monetary policy to positively influence a capitalistic economy Aaron Wildavsky wrote in The Politics of the Budgetary Process in 1964 that budgeting is a political and economic process rather than simply a mechanical series of steps VI Objectives of Budgeting: Budgeting has four objectives: allocation, distribution, stabilization, and growth Within these objectives, two types of budgets exist: operating and capital VII Waves of Innovation: The structure and format of budgets have been subject to waves of innovation which have led to the evolution of different types of budgeting These include: Executive Budgeting: submitted by the chief executive to the legislature for action Line-Item Budgeting: classification of accounts according to detailed objects of expenditure Performance Budgeting: performance requirements to be stated alongside line items Incremental Budgeting: focuses on incremental increases and decreases in a budget PPBS: planning programming budgeting systems detailing objectives and measures Zero-Based Budgeting: calls for rejustification of the entire budget Unified Budgeting: consolidation of receipts and outlays in one budget Multiyear Budgeting: covering a time span of numerous fiscal years VIII Financing Public Expenditure: Governments may raise monies in the following ways: Imposing a direct tax paid by the taxpayer directly to the government Imposing an indirect tax paid to a third party who then pays the government Imposing user charges for government customers Attaining grants from other levels of government Generating profits from activities of public enterprises Borrowing from the public through bonds or from private lenders through loans Using innovative finance techniques such as public-private partnerships Generating earnings from savings or investments IX The Problem of Debt: The national debt is the total outstanding debt of the national government The level of debt must be viewed in historical and comparative perspective The historical perspective looks at the particular debt position today compared with its long-term trend Is the level of debt today in accord with a normal position or is it extraordinary? The comparative perspective looks at the debt level of one nation in comparison to others Both the Republicans and the Democrats seek to show the American public that their way of solving the debt crisis is the best way to lower the level of debt The government can borrow money when a clear purpose exists for doing so This tool, however, is subject to abuse, especially when politicians find the borrowing of money preferable to raising taxes A second method of raising money is the sale of municipal bonds These bonds, which are rated and graded by rating agencies, are sold to raise funds for everything from sewer systems to ball parks, with interest paid by the issuing municipality X Financial Management in Local Government: There are 80,000 local governments, school districts, and other small bodies The small units have very simple budgets, while the larger municipalities may have extremely complex budgets The three major methods for raising revenue for local governments are the property tax, the school tax, and the local sales tax XI Economic Policy: Economic policy is the process by which a nation manages its trade, business, and finances It traditionally consists of three dimensions: fiscal policy, monetary policy, and those facets of public policy with economic implications such as farm, energy, and labor policy Monetary policy basically exercises control over the quality and cost (interest rates) of money and credit in the economy Fiscal policy deals with the size of the budget, deficits, and taxes Group Exercise Think Piece “To Tax or Not to Tax? That is the Question.” The city fathers of Bridgepoint suffered a budget shortfall last year In their planning for the new fiscal year, they feel they can raise the needed revenue by imposing a sales tax on the consumption of the citizens of the community They are particularly entranced with the possible tax revenue that can be gained from a redeveloped mall in the center of the city The mall, a joint project between the city and a developer, was rebuilt from the ruins of an abandoned shopping center that had been an eyesore for many years The new mall serves many of the inner city residents who rely on public transportation and live either below or at the poverty line The mall has been a huge success and has been hailed as the vanguard of a new revived downtown shopping area A sales tax, however, would impact to a greater extent the many low and middle income shoppers who shop downtown for they would pay a greater percentage of their income to this tax than wealthier shoppers Is a sales tax a “good move” for the city of Bridgepoint? Class Exercise THE SCHOOL TAX CRISIS OF MEADOWBROOK Meadowbrook is a municipality with a population of 112,000 On Tuesday, June 20, the Meadowbrook School Board informed the City Council Budget Committee that extensive renovations would be required in the high school gymnasium The high school had recently hired new basketball coaches for both the girls’ and boys’ basketball teams Both teams had winning seasons last year, and the girls' team played in the state championships They lost in the third round, but it was still a very impressive performance for a team's first trip to the playoffs Two of the games were played at Meadowbrook and resulted in an increase in business for motels, restaurants, and retail establishments The Chamber of Commerce teamed up with the Basketball Boosters Club to have a parade on Main Street and a pep rally in the park This resulted in a lot of interest in the team Unfortunately, the small gym could not accommodate all those who wished to attend, and an opportunity for increased revenue for the school system through ticket sales and concessions was lost The renovations would include : the construction of new locker rooms : the building of a training facility, including a weight room : the replacement of the gym floor : the expansion of the grandstands to allow for increased seating Total estimated cost: $1.2 million School Property Tax Demographics: 36% Business and manufacturing (represented by the Chamber of Commerce) 10% Singles and couples with no children 31% Couples with children under the age of nineteen 23% Retired singles and couples on fixed incomes A town meeting has been scheduled to discuss a possible increase in the school tax to cover the cost of the renovations School Tax: A school tax is a local property tax imposed by a school district to cover the cost of providing education and related activities CHAPTER THIRTEEN: AUDITING, ACCOUNTING, AND EVALUATING LEARNING OBJECTIVES After reading Chapter 13 in the textbook, the student should be able to: Define an audit and understand the role auditing plays in any organization Understand the role of the General Accounting Office Identify the different types of audits and how they are executed Define and understand accounting and its function in an organization Discern the differences between policy analysis and policy evaluation Understand the reasons for policy analysis and evaluation Discuss the standards under which evaluation takes place Define key terms at the bottom of the pages and at the end of the chapter Write short critical essays on major issues covered in the chapter SUGGESTED LECTURE LECTURE THIRTEEN I The Audit: An audit is any independent examination or objective assessment of an organization In public administration, the audit refers to two very common activities It is an official examination of a financial report submitted by an individual or an organization to determine whether it accurately represents expenditures, deductions, and other allowances determined by laws or regulations The audit is the final phase of a government budgetary process It reviews the operations of an agency, especially its financial transactions, to determine whether the agency has spent its money in accordance with the law, in the most efficient manner, with the desired results Auditing has become a major branch of the accounting profession Accounting in public administration is similar to its function in the private sector It remains the process of classifying, measuring, and interpreting financial transactions to provide management with information upon which to base economic decisions Auditing continues to evolve with multiple applications that now include independent assessments of such things as environmental, social, and infra-structural issues Auditing in the federal sector is the responsibility of the General Accounting Office (GAO) Established in 1921, the office serves as a support agency to audit federal government expenditures and assist the Congress in its legislative oversight responsibilities A comprehensive audit program under GAO should include the following three types of audits: Financial and compliance, which determines whether funds are properly spent and the spending is in compliance with the law Economy and efficiency, which determines whether resources have been used appropriately Program results, which determines whether the desired results have been achieved Criteria have been developed to ensure that the auditors stand independent of the organizations they are auditing These criteria for auditors include a location in the bureaucracy outside of management, a high reporting line for the audit results, and a reasonable latitude for the auditors in selecting the assignments for the audits II Accounting: The traditional method of accounting in the public sector was cash accounting, which simply sought to control and track the flow of funds allocated to and spent by the agencies This system proved to be too simple and was gradually replaced by the accrual system, which allowed for the recording of debt owed to and by the organization when the debt became a legal obligation This in turn has been replaced in the United States by modified accrual accounting, which seeks to achieve a matching between revenues raised and costs incurred III Program Evaluation and Policy Analysis: The two are often confused A policy analysis is a set of techniques that seeks to answer the question of what the probable effects of a policy will be once they actually occur An analysis undertaken on a program already in effect is more properly called a program evaluation Evaluations refer to the standards against which a program can be evaluated These standards include compliance, efficiency, and effectiveness/relevance Zealous evaluators believe that everything is subject to evaluation Evaluations will take place within the discipline or paradigm in which they are conducted, and these may vary widely The standards noted above, however, indicate the fundamental questions that must be answered of any program Class Exercise Think Piece “Rabbits and the Taxpayer” You are the manager of a pre-school/daycare center partially funded with tax dollars In an effort to assist former welfare recipients in getting back into the workplace, the city set up the center Parents pay based on their income level with tax dollars making up the difference As part of the program you provide lunch to the children Last week an audit team from the city came in to audit your operation The auditor informed you that it was noticed by the audit team that one of your employees, Myrna, was seen taking a bag of lettuce leaves home at the close of shift You informed the auditor that Myrna raised rabbits and that you have previously given her permission to take home the leaves from the outside of the lettuce that would be thrown away and feed them to her rabbits The auditor then informed you that a member of the audit team had watched Myrna “take off more lettuce leaves than were normally removed by the average person” and that this was not a sound practice when dealing with the taxpayers’ money How you feel about the audit team’s observations? CHAPTER FOURTEEN: HONOR AND ETHICS LEARNING OBJECTIVES After reading Chapter 14 in the textbook, the student should be able to: Understand the meaning of honor and distinguish it from ethics Be able to identify and discuss corruption in government Comprehend ethical issues as they relate to public administration in such situations as the “dirty hands dilemma.” Understand the meaning of conflict of responsibilities in public administration as it relates to impacted stakeholders Distinguish between the different levels of ethics in public administration Understand the concept of whistleblowing and the protections for whistleblowers Understand how codes of honor, conduct, and ethics relate to public administration through understanding standards of conduct Define key terms at the bottom of the pages and at the end of the chapter Write short critical essays on the major issues covered in the chapter SUGGESTED LECTURE LECTURE FOURTEEN I Honor: Western thinking about honor dates back to ancient Greece and Rome Codes of honor evolved in the military Honor was, and is, something that a soldier was supposed to uphold and even die for Today it remains one of the core influences on human behavior Honor comes before ethics because a person without honor has no moral compass about what is good and bad Honor is a particularly apt choice for emphasis in a text of public administration because, from ancient times, to be trusted with the public’s business required honorable administrators II Corruption in Government: Bribery—he pervasiveness of bribery in public administration is something that cannot be contested It comes as a result of individual greed When the ethical base of an agency is low, bribery is much more rampant The Watergate scandal that drove Richard Nixon out of the office of president exemplified a violation of public trust It has become an enduring example of corruption at the highest levels of government in America and resulted in calls for reform III Ethical Issues in Public Administration: “Lies Big and Little”—Adolph Hitler and Joseph McCarthy are two of the most prominent examples of big liars who have hurt society as a whole, but on a smaller scale lying is common in government It takes many forms, from outright lies to innuendo, omissions, etc It can be argued that public administrators in a democracy can be excused for lying when there are dire national priorities to consider The quandary of lying for the public good has been a topic of debate from the time of Plato, who spoke about the “noble lie.” The “dirty hands dilemma,” like the noble lie, is another famous quandary encountered in ethics Public officials dirty their hands when they commit an act generally considered wrong to further the public good Machiavelli upheld this dilemma in his famous statement: “when the act accuses, the result excuses.” IV Conflicts of Responsibilities: The public is composed of diverse stakeholders each with conflicting, but often deserving, interests This presents the quandary of viable alternatives because the public administrator cannot satisfy the ideal of universal happiness Thus it becomes important to keep the concepts of justice, equality, and the inviolability of individual rights in mind when choosing the best course of action for the majority Dennis Thompson argued that there can be no administrative ethics because of an inherent conflict in the nature of the duties of a public administrator and the administrative structures of the position These people must be morally “neutral” and yet follow the structural dictates of policy; hence, he argues, they cannot be held accountable Yet the “I was just following orders” defense conflicts with the personal moral obligation to the right thing V Hierarchy of Ethics: The four levels of ethics are personal morality, professional ethics, organizational ethics, and social ethics VI Whistleblowing: Whistleblowing takes place when an employee decides that obligations to society come before obligations to the organization When Daniel Ellsberg leaked the Pentagon Papers, which documented the step-by-step judgments that brought America into the Vietnam War, he was charged with espionage While the charges were later dismissed, Ellsberg’s actions suggested that he believed that his obligation to society outweighed the proscriptions of law Even in lesser cases, whistleblowing can have serious consequences, and for this reason the government, beginning with the Civil Service Reform Act in 1978, has issued a variety of whistleblowing protection policies Even with these in place, whistleblowing often has damaging consequences for the whistleblower VII Codes of Honor, Conduct, and Ethics: Codes of honor have their origins in ancient precepts about how individuals should behave when faced with danger or difficult choices Many of the important precepts on how to behave are embodied in religious teachings such as the Ten Commandments Many civilian government agencies set up codes of conduct and formal guidelines for ethical behavior Professional codes of ethics exist as well, such as the physician’s Hippocratic Oath Most of these codes are not binding, but dishonor falls upon those who openly violate them Group Exercise Think Piece “Blowing the Whistle at Micro Systems Inc.” James Allen, a purchasing agent with Micro Systems Inc., discovers that his boss is getting kickbacks from one of the major suppliers of the firm He blows the whistle on his boss and is subsequently fired for incompetence Allen has received satisfactory ratings on his performance so far, hence he assumes that it was due to the whistleblowing that he was terminated Does he have recourse under statutory law for wrongful discharge? Class Exercise MR ARJMENIAN BLOWS HIS WHISTLE Proposition: A democratic society benefits from moral dissent Mr Arjmenian, an Armenian-American, is the deputy finance director in the city of Pine Falls, California Pine Falls is situated on the Sacramento River in California, where an annual event known as the Pine Falls Regatta is held The regatta receives state, county, and local funding Recently, in a 100-page letter to the regatta board of directors, Mr Arjmenian accused Dr Lawrence Pierpont Foster, the chairman of the regatta, of misusing nearly $200,000 of the regatta’s funds for personal purposes A week after this disclosure, Mr Arjmenian was fired as the deputy finance director by the mayor of Pine Falls, the Honorable Willy Boyle, who is a close personal friend of regatta chairman Foster The charges are incompetence and hostility, but the evidence produced is vague Mr Foster has denied all charges but has been unable to explain satisfactorily the large sums of money deposited into his personal bank accounts following the annual regatta events Based on your readings and prior knowledge of ethics, pick out from the list below the relevant ethical issues involved: noble lie conflict of interest theft conscientious objection Machiavelli burglary bribery graft dirty hands dilemma embezzlement corruption whistleblowing honorific deception lying Explain the concepts you have chosen as they relate to ethics in the case of Pine Falls ... 3) Implementation involves putting a government policy into effect Implementation is an inherently political process Frequently the agendas of those implementing the program seep into the implementation... motivation have developed over time: a The Hawthorne Experiments: These were experiments at the Hawthorne Works of Western Electric Company, Chicago The results of the experiments revealed that work... expenses in the areas of animal diets, horticulture, and grounds management - a seasonal employment workforce made up of part-timers who are difficult to manage - animal health problems - interference