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The Perspective of Political and
Administrative Concerns
in the Budget Process.
Cal Poly Pomona, MPA 500
November 20, 2010
Dr. Larry Schroeder, DPA
Theory• Woodrow Wilson - politics administration
dichotomy. Staff should offer profession opinions. 1887 “The Study of Adminstration”.
• Herbert Simon – ( mid 1970s) “administrative man”, the most rational behavior is that which moves an organization efficiently toward its objectives
Theory• New Public Administration
– Private sector and business approaches in the public sector
– Osborne & Gaebler – (Late 1980s) Reinventing Government (steering, empowering, competition, mission-driven, results-oriented, customer-driven) (Mega Whitman)
Theory• Denhardt and Denhardt
– The New Public Service (Late 1990s)• Serve citizens, not customers• Seek the public interest• Value citizenship over entrepreneurship• Think strategically, act democratically• Recognize that accountability is not simple• Serve rather than steer• Value people not just productivity
The Budget• Even in running a bus, “budgets reflect
priorities in deciding what to do with available funds.” (p. 373)
• “Budgets should also reflect the mission, or purpose, for a bureaucratic agency’s existence.” (p. 373) (The bus/city.)
• Budgets “... reflect the political priorities of those who formulate them.” (p. 373)
• Milakovich M. &Gordon G. (2009) Public Administrative in America (10th ed.)., Wadsworth Cengage Learning, Boston
Citizens• Citizens are on the bus (live in the city).• They have other things on their mind and are not
focused on how the bus is operating as long as things are running ok.
• Most citizens have little idea where the city receives it revenues and why the city spends its money in the manner it does.
• Unless it directly effects them, citizens see little difference in services if cuts are made or more money is spent.
Staff & City Council
• But staff and city council members are aware of the other buses on the road vying for the same resources and taking up space on the road.
City Departments• Generally have a myopic view of the
budget:– Focused on their part of the mission.
City Departments• Generally have a myopic view of the
budget:– Focused on their part of the mission.– Not generally thinking of interacting with other
departments.
City Departments• Generally have a myopic view of the
budget:– Focused on their part of the mission.– Not generally thinking of interacting with other
departments.– Not concerned about personnel costs but
focused on having enough personnel to accomplish their mission.
City Departments• Generally have a myopic view of the budget:
– Focused on their part of the mission.– Not generally thinking of interacting with other
departments.– Not concerned about personnel costs but
focused on having enough personnel to accomplish their mission.
– Focused on revenue specific to their department.
Finance• Broader view of revenues (sources,
restrictions, reporting).
• Broader view of expenditures (exposure to budgets from every department, and in depth knowledge of personnel costs including benefits).
• Little or no expertise in other department functions.
City Manager
• Concerned with the functions of each department and how they interact.
• Wants to make sure that the needs of the City and the concerns of the City Council are met. (Street paving by need vs fair distribution.)
City Council• Does not have a detailed understanding of
revenues or expenditures.
• Are concerned with policies and exceptions.
• Are responsible for oversight of investments, payables and overall functions but not day-to-day operations.
• Usually directly hire only the CM and City Attorney.
City Council• Representatives of the stakeholders
(citizens).
• Concerned that the bus is headed to the correct destination and is taking the correct route.
• Concerned that the bus is looking good, functioning properly, and passengers are comfortable.
City Council• Therefore:
– May budget items that are not practical but are necessary. (green asphalt)
– May cut items that are important to staff’s mission but cannot be sustained. (City funding of pensions, staffing
for daycare programs feeling the private sector can meet the need)
– May decide a different approach is necessary. (contracting out)
City Council
• It works better if consensus among the city council members can be reached.
• It is not good if the City Council Members agree on everything. (sustainability of retirement sytem.)
Main Mission
• Staff and the City Council both want well served citizens that are happy to be on the bus.
• This can be accomplished by a well planned allocation of resources and a well executed spending plan.