Fiscal Administration

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Fiscal Administration

• MPA 530 Dr. Inscho

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What We Will Do This Evening

• Housekeeping stuff
• Discuss syllabus
• Brief intro to subject matter

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Housekeeping

• Roll
• Handouts
• Information
• Severe weather
• UD seldom closes, but
• Even the unlikely occurs occasionally, so
• Listen to the radio, watch the local television
  channels, or check your e-mail
• Do not assume that information for daytime
  classes applies to evening classes

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The Course

• MPA 530, Fiscal Administration
• 600 - 830 P.M. Thursdays
• SJ 231 (here!)

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My Office Info

• SJ 217 (in the alcove across the hall from the
  rest rooms)
• Hours are
• 200 - 400 P.M. Wednesdays
• After class, and
• By appointment

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Contacting Me

• Phone
• 229-3924 (rings in my office)
• 229-3626 (Political Science Department - during
  normal business hours someone will answer take
  a message)
• E-mail
• Frederick.Inscho_at_notes.udayton.edu

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Other Information

• Text
• John Mikesell, Fiscal Administration Analysis
  and Applications for the Public Sector. 7th.
  ed.
• Course Web site
• http//academic.udayton.edu/frederickinscho/mpa530

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Grading
Item
Percentage
Mid term
25
25
Final
30
Exercises
20
Participation
100
Total
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Academic Dishonesty

• An unpleasant topic
• I dont catch everyone, but I do catch some, and
• I apply the penalty, so
• If you are feeling panicky, please contact me

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Some Substance

• (Public) Fiscal Administration

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Why Require It?

• It is a fundamental topic in any political system
• Sufficient revenues
• Careful decisions on expenditures
• Controls to ensure honesty, etc.
• It is an especially touchy topic in democracies
• It is even more difficult to do well in the U.S.

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Public Finance In Democracies

• Governments are, by their very natures, powerful
  coercive institutions
• We seem to need them, but
• History
• Geography
• So, why do we have them?
• Answers from political theory (ideology)
• Answers from economics

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Political Theory

• Absolutism divine right
• Letat, cest moi (Louis XIV of France)
• God wants it this way
• Modern democracy

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Modern Democracy

• Ideology
• Utilitarianism
• Social Contract
• Revolution transformation
• U.S. first, then
• France, then
• Western Europe, then
• ?

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Modern Democracy, cont.

• Questions of public money drove much (not all!)
  of the 18th 19th century revolutionary fervor
• How much to tax?
• From whom?
• Who collects?
• Spent for what purpose?
• Who decides, how?

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The U.S.

• Success in revolution
• Trade issues
• Expansion
• Cultural differences
• Long experience with self rule

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The U.S., cont.

• Initial failure at democratic self rule
• Articles of Confederation made an overly weak
  national government
• Uncontested foreign threats
• Domestic economic collapse

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Constitutional Convention

• A successful second chance
• First written constitution
• First planned system of government
• System created at the convention
• Has endured over time
• Has outlasted most of its major contemporaries
• Has evolved significantly

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Basic Features of U.S. Constitution

• Divided, limited government
• Separated powers with checks balances
  (executive, legislative, judicial branches)
• Federalism (strong national government, strong
  states)
• Civil rights, civil liberties
• Things citizens can do
• Things government cannot do

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Implications for American Public Finance

• All the European, etc., issues with regards to
  public monies apply here also, plus
• Decision making is very difficult
• No one is in charge!
• Even if someone is in charge, they dont have
  much power
• Everyone can raise revenues (levy taxes)
• Everyone can spend

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Besides The Constitution

• Unique features of U.S. history
• Post Civil War era Corruption!!!
• Graft
• 1890's early 20th century Reform
• Pendleton Act the Civil Service
• Financial reform
• Executive budget process
• Improved budgeting techniques (methods)

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Thus

• Fiscal administration is intimately tied up with
  the emergence of the modern theory practice of
  American public administration, and
• It still deals with some of the most fundamental
  issues involving the governance of the modern
  democratic state

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The Course

• Will start with a brief overview of the
  governments role in the economy
• Will then focus on two of the three key aspects
  of public fiscal administration

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Three Key Aspects

• Raising revenues
• Taxes
• Borrowing
• Transfers
• User charges
• Spending decisions (allocation, budgeting)
• Accounting auditing (we will largely slough
  this off)

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