The Perspective of Political and Administrative Concerns in the Budget Process. Cal Poly Pomona, MPA 500 November 20, 2010 Dr. Larry Schroeder, DPA.

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

Theory• Terry Cooper - The Responsible Administrator

– Ethics in public adminstration.

The City as a Bus

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• 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.

Other buses share the road and other resources

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.

Department/Administrative Perspective

Adminstrative Perspective

• Professional

• Consistant

• Nonpolitical

• Practical

Planning

City Departments• Generally have a myopic view of the

budget:– Focused on their part of the mission.

Human Services

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.

Public Works

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.

Police

Police

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

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

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 View

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• Not all city councilmembers agree on the

vision of the bus.

I thought we weregoing to name thebus after me!

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.)

It helps keep the bus heading the right direction...

…and it can avoid catastrophies.

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.