The Perspective of Political and Administrative Concerns in the Budget Process.

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

2. 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

3. 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)

4. 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

5. Theory • Terry Cooper - The Responsible Administrator • Ethics in public adminstration.

6. The City as a Bus

7. 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

8. Citizens

9. 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.

10. Other buses share the road and other resources

11. 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.

13. Department/Administrative Perspective

14. Adminstrative Perspective • Professional • Consistant • Nonpolitical • Practical

15. Planning

16. City Departments • Generally have a myopic view of the budget: • Focused on their part of the mission.

17. Human Services

18. 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.

19. Public Works

20. 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.

21. Police

22. Police

23. 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.

24. Finance

25. 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.

26. City Manager

27. 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.)

28. City Council View

29. 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.

30. 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.

31. 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)

32. City Council • Not all city councilmembers agree on the vision of the bus.

33. I thought we were going to name the bus after me!

34. 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.)

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

36. …and it can avoid catastrophies.

37. 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.