1 Nature of Public Budgeting 1 --
What Is Public Budgeting? 2 --
What Are Budgets Expected to Do? 3 --
Setting Goals and Priorities 3 --
Linking Goals to Actions 4 --
Managing the Economy 4 --
Promoting Accountability 4 --
Controlling the Use of Public Resources 5 --
Promoting Efficiency and Effectiveness 5 --
Social Planning and Reform 5 --
Keeping the Process Manageable 6 --
Theories of Public Budgeting 6 --
Incrementalism 6 --
Rational Decision Making 8 --
Political Influence 8 --
Economics Shapes Budgets 9 --
Procedures Shape Budgets 9 --
Budget Strategies 10 --
Cultivating Clientele Support 10 --
Gaining the Trust of Others 10 --
Documenting a Need 11 --
Looking for Sympathetic Decision Makers 11 --
Coping with Painful Actions 11 --
"Camel's Nose" 11 --
Making the Program Appear Self-Supporting 12 --
Capitalizing on Temporary Circumstances 12 --
Deception and Confusion 12 --
Minimizing the Risk of Future Cuts 13 --
Coping with Complexity and Conflict 13 --
Incrementalism 14 --
Fair Shares 14 --
Separate Pools 14 --
Division of Labor 15 --
Avoiding Programmatic Decisions 16 --
Postponement 16 --
Assumptions behind Coping Mechanisms 16 --
2 Government Revenues, Spending, and Borrowing: A Brief Overview 19 --
Growing Revenues and Expenditures 21 --
Accounting for Growth 22 --
Where the Money Comes from and Where It Goes 24 --
National Level 24 --
State Level 26 --
Local Level 28 --
Intergovernmental Grants 28 --
Growth of Government Debt 29 --
Consequences of More Spending 31 --
3 Budget Cycle: A Brief Introduction 35 --
Preparing a Budget Proposal 36 --
Enacting the Budget 38 --
Budget Execution 39 --
Review and Audit 39 --
Linkages across Budget Cycles 41 --
Within a Government 41 --
Across Different Governments 43 --
4 Budget Preparation 47 --
Format of the Budget Proposal 49 --
Lump Sum Budgeting 49 --
Object-of-Expenditure Budgeting 50 --
Performance Budgeting 51 --
Program Budgeting 52 --
Zero-Based Budgeting 53 --
Some Lessons from Experimenting with Different Budget Formats 54 --
Formulating the Proposal: Bottom-Up versus Top-Down Processes 55 --
Bottom-Up Processes 56 --
Top-Down Processes 56 --
Choosing a Process 57 --
Administrative Agencies in the Formulation Process 58 --
President and Budget Proposals 59 --
Changing Presidential Role 59 --
Bureau of the Budget 60 --
Office of Management and Budget (OMB) 61 --
Congress and Budget Formulation 63 --
Formulating Budget Proposals at the State and Local Levels 64 --
State Formulation 65 --
Local Formulation 65 --
5 Techniques of Budgetary Analysis 69 --
Forecasting: A Vital Task 70 --
Methods of Forecasting 72 --
Naive Projection 72 --
Simple Extrapolation 72 --
Time-Series Techniques 73 --
Multivariate Time-Series Analysis 73 --
Delphi Technique 75 --
Types of Policy Analysis 77 --
Needs Assessment 78 --
Specifying Goals and Values 79 --
Program Evaluation 80 --
6 Budget Adoption 87 --
Some Important Aspects of Budget Adoption 88 --
Budget Adoption in the National Government 89 --
Early Developments 89 --
Middle Phase 91 --
Recent Experience 91 --
Budget Adoption in the States 95 --
Major Developments 96 --
Complications in State Budgeting 96 --
Budget Adoption at the Local Level 98 --
Accounting for Adoption Decisions in Budgeting 100 --
7 Budget Execution 103 --
Modifying the Budget after It Is Adopted 104 --
Increasing Funding 106 --
Cutting the Budget 108 --
Reallocating Funds 111 --
Implementing the Budget: Some Nuts and Bolts 112 --
Apportionment and Allotment 113 --
Preaudits 114 --
Prior Approvals 114 --
Monitoring and Updating 115 --
An Anticipated Control: The Postaudit 115 --
Government-Sponsored Enterprises and Budgetary Implementation 116 --
8 Financial Management 119 --
Capital Budgeting 120 --
Techniques of Capital Budgeting 123 --
Capital Improvement Plan 123 --
Financial Analysis 124 --
Reconciliation 125 --
Problematic Aspects of Capital Budgeting 126 --
Auditing and Accounting 127 --
Uses of Auditing and Accounting 127 --
Potential Problems 128 --
Some Changing Emphases 129 --
Debt Administration 130 --
National Government 130 --
State and Local Government Debt 130 --
Cash Management 132 --
Some General Guidelines for Money Management 134 --
9 Economy and the Budget 137 --
How the Economy Affects Government Budgets 138 --
Short-Term Economic Forces 138 --
Long-Term Economic Forces 142 --
Public Budgeting's Impact on the Economy 144 --
Allocation Function 145 --
Distribution Function 146 --
Stabilization Function 146 --
Perspectives on the Role of Government in Shaping the Economy 147 --
Laissez-Faire 147 --
Mercantilism 149 --
Keynesian Economics 150 --
Supply-Side Economics 151 --
Tools for Stabilizing the Economy 152 --
Monetary Policy 152 --
Fiscal Policy 153 --
Promoting Economic Growth 155 --
Public Relations 156 --
Credit Assistance 156 --
Tax Reductions 156 --
Infrastructure Improvements 156 --
Foreign Trade Missions 157 --
10 Intergovernmental Aspects of Public Budgeting 159 --
Why Have Multiple Governments? 160 --
Problems with Budgeting with Multiple Governments 162 --
Intergovernmental Grants 163 --
Types of Intergovernmental Grants 165 --
Impact of Grants 168 --
Other Financial Relationships among Levels of Government 171 --
Horizontal Dynamics in Fiscal Federalism 174 --
Mandates 175 --
11 Frustration of Budget Reform 179 --
Budget Reform Cycle 181 --
Item Veto 183 --
Balanced Budget Laws 185 --
Gramm-Rudman-Hollings 186 --
Appropriations Committees as a Budget Reform 186 --
Budget Reforms and Budget Reality: A Mismatch 187 --
Budget Reform as a Case of Institutional Nonlearning 189 --
Wright Brothers Phenomenon 189 --
Reform as a Delaying Tactic 189 --
Reform as a Symbolic "Remedy" 190.