Rodney E. Stanley, Ph.D.Rodney E. Stanley, Ph.D.

Associate Professor & ChairAssociate Professor & Chair

Department of Public AdministrationDepartment of Public Administration

College of Public Service & College of Public Service &

Urban AffairsUrban Affairs

Tennessee State UniversityTennessee State University

The Role of AGA in the Public The Role of AGA in the Public Policy & Budgeting Process in Policy & Budgeting Process in

TennesseeTennessee

IntroductionIntroduction

Public Policy DefinedPublic Policy Defined Public Budgeting DefinedPublic Budgeting Defined Tennessee LotteryTennessee Lottery ““On what basis shall it be determined to On what basis shall it be determined to

allocate X dollars to activity A instead of allocate X dollars to activity A instead of activity B (V.O. Key, 1940)?activity B (V.O. Key, 1940)?

The Perennial Budgeting Question is in The Perennial Budgeting Question is in essence a Public Policy Question.essence a Public Policy Question.

The Role of AGA in the Public Policy ProcessThe Role of AGA in the Public Policy Process

What is Public Policy?What is Public Policy?

““Public Policy is the sum of government activities, Public Policy is the sum of government activities, whether acting directly or through agents, as whether acting directly or through agents, as those actions have an influence on the lives of those actions have an influence on the lives of citizens.”citizens.”

Three Levels of Public PolicyThree Levels of Public Policy Policy ChoicesPolicy Choices

Policy FormulationPolicy Formulation Policy OutputsPolicy Outputs

Policy ImplementationPolicy Implementation Policy ImpactsPolicy Impacts

Policy EvaluationPolicy Evaluation

Public Policy Outputs (choices Public Policy Outputs (choices put into action)put into action)

Inputs -Parochial interests of the stakeholders Inputs -Parochial interests of the stakeholders involved in the process.involved in the process.

Black Box – Political negotiation that is not Black Box – Political negotiation that is not considered systematic.considered systematic.

Outputs – Budget document outlining Outputs – Budget document outlining purposes and goals.purposes and goals.

Evaluation – Results are merged into inputs Evaluation – Results are merged into inputs for future budgetary decisions.for future budgetary decisions.

Environment – the political culture of a nation, Environment – the political culture of a nation, state or locality making budgetary decisions.state or locality making budgetary decisions.

Policy Preferences: Where Do Policy Preferences: Where Do They Come From?They Come From?

Public Policy & Budget TheoryPublic Policy & Budget Theory Partisan PoliticsPartisan Politics Conservative/Liberal value Conservative/Liberal value

judgmentsjudgments Professional HunchProfessional Hunch

Public Policy Impacts Public Policy Impacts

Defined as, “The effect that both Defined as, “The effect that both policy choices & outputs have on policy choices & outputs have on citizens.citizens.

Tennessee LotteryTennessee Lottery What citizen groups were effected by What citizen groups were effected by

the adoption of the state lottery?the adoption of the state lottery?

Tennessee Lottery ExampleTennessee Lottery Example

Policy Choices & FormulationPolicy Choices & Formulation Who were the stakeholders & Why this Who were the stakeholders & Why this

particular policy?particular policy? Policy Outputs & ImplementationPolicy Outputs & Implementation

What results in Higher Education have What results in Higher Education have we witnessed?we witnessed?

Policy Impacts & EvaluationPolicy Impacts & Evaluation Is the Hope Scholarship working?Is the Hope Scholarship working?

Public Policy & Public Public Policy & Public BudgetingBudgeting

How important are fiscal resources in How important are fiscal resources in all three stages of policy formulation, all three stages of policy formulation, implementation and evaluation?implementation and evaluation?

““On what basis shall it be determined On what basis shall it be determined to allocate X dollars to activity A to allocate X dollars to activity A instead of activity B (V.O. Key, instead of activity B (V.O. Key, 1940)?1940)?

What is Public Budgeting?What is Public Budgeting?

““A collection of documents that refer A collection of documents that refer to the financial conditions and the to the financial conditions and the future plans of an organization (Lee future plans of an organization (Lee and Johnson, 2004: 16).”and Johnson, 2004: 16).”

The documents include revenue The documents include revenue information, expenditures, activities information, expenditures, activities and purposes or goals.and purposes or goals.

Purposes and GoalsPurposes and Goals

What are they?What are they? What function do purposes and goals What function do purposes and goals

serve in public policy & budgeting?serve in public policy & budgeting? State Policy & financial Preferences State Policy & financial Preferences

by those in power.by those in power.

Dimensions of the Public Dimensions of the Public BudgetBudget

Political Instrument for Distributing Political Instrument for Distributing and Redistributing Scarce Resourcesand Redistributing Scarce Resources

A Managerial Tool For Describing The A Managerial Tool For Describing The Ways and Means of Program FundingWays and Means of Program Funding

Economic InstrumentEconomic Instrument Accounting and Auditing InstrumentAccounting and Auditing Instrument

Services ProvidedServices Provided

PublicPublic Public GoodPublic Good Privatization/Contracting OutPrivatization/Contracting Out ExternalitiesExternalities Responsibility and Accountability to Responsibility and Accountability to

ConstituentsConstituents

Values in Public Budgeting & Values in Public Budgeting & Public PolicyPublic Policy

EfficiencyEfficiency EffectivenessEffectiveness EquityEquity AccountabilityAccountability

Accountability: The Role of AGAAccountability: The Role of AGA

What is it and why is it important?What is it and why is it important? How is accountability of budgetary How is accountability of budgetary

decision-making exercised in decision-making exercised in America?America? Through DemocracyThrough Democracy

Where Does Their Budget Where Does Their Budget Authority Come From?Authority Come From?

ConstitutionConstitution Explicit or Implied?Explicit or Implied?

1921 Budget Reform Act1921 Budget Reform Act Does the Bureaucracy have a Does the Bureaucracy have a

constitutional legitimacy in the constitutional legitimacy in the budget process?budget process?

State LevelState Level

GovernorGovernor LegislatureLegislature CourtsCourts BureaucracyBureaucracy

How Are Budgetary Decisions How Are Budgetary Decisions Made?Made?

Mixed-Scanning Mixed-Scanning RationalismRationalism Process OrientedProcess Oriented SystematicallySystematically

Mixed-ScanningMixed-Scanning

Incrementalism and Rationalism Incrementalism and Rationalism combinedcombined

Small Marginal changes are made at Small Marginal changes are made at the request of political players, as a the request of political players, as a result of the political process.result of the political process.

Based on previous years figuresBased on previous years figures Comprehensive analysis utilizes data Comprehensive analysis utilizes data

sources and statistical techniquessources and statistical techniques

Problems With Mixed-ScanningProblems With Mixed-Scanning

Assumes that the correct mix of Assumes that the correct mix of incrementalism and comprehensive incrementalism and comprehensive modeling can be determined to make modeling can be determined to make budgetary decisions.budgetary decisions.

RationalismRationalism

Cost/Benefit AnalysisCost/Benefit Analysis Define a problemDefine a problem SolutionSolution Alternative SolutionsAlternative Solutions AnalysisAnalysis Select the program or service that offers Select the program or service that offers

the greatest good for the greatest the greatest good for the greatest number (Utilitarianism)number (Utilitarianism)

Problems With RationalismProblems With Rationalism

Assumes that enough time and data Assumes that enough time and data exists to make every budgetary exists to make every budgetary decision.decision.

UnrealisticUnrealistic Complicated Complicated No specifications for evaluationNo specifications for evaluation

Systems Approach To Systems Approach To BudgetingBudgeting

Inputs -Parochial interests of the Inputs -Parochial interests of the stakeholders involved in the process.stakeholders involved in the process.

Black Box – Political negotiation that is not Black Box – Political negotiation that is not considered systematic.considered systematic.

Outputs – Budget document outlining Outputs – Budget document outlining purposes and goals.purposes and goals.

Evaluation – Results are merged into Evaluation – Results are merged into inputs for future budgetary decisions.inputs for future budgetary decisions.

Environment – the political culture of a Environment – the political culture of a nation, state or locality making budgetary nation, state or locality making budgetary decisions.decisions.

Problems With The Systems Problems With The Systems ApproachApproach

No one has been successful in No one has been successful in identifying what takes place in the identifying what takes place in the “Black Box.”“Black Box.”

Assumes that all inputs are Assumes that all inputs are knowledgeable and correct about the knowledgeable and correct about the budgetary decisions at hand.budgetary decisions at hand.

Assumes all outputs can be Assumes all outputs can be evaluated.evaluated.

Summary of Public Policy & Summary of Public Policy & Budgetary Decision-MakingBudgetary Decision-Making

The consensus suggests that all four The consensus suggests that all four types of decision-making are utilized types of decision-making are utilized in budgeting.in budgeting.

Conclusion Conclusion

““On what basis shall it be determined On what basis shall it be determined to allocate X dollars to activity A to allocate X dollars to activity A instead of activity B (V.O. Key, instead of activity B (V.O. Key, 1940)?1940)?

IncrementalismIncrementalism The Perennial Budgeting Question is The Perennial Budgeting Question is

in essence a Public Policy Question.in essence a Public Policy Question.