EASTERN MICHIGAN UNIVERSITY
DEPARTMENT OF POLITICAL SCIENCE
INTRODUCTION TO PUBLIC/NONPROFIT BUDGETING
PLS 540, FALL 2013
Dr. Joe Ohren
734-487-1452; 487-3113; Fax 487-3340
Office Hours: M and W 8-9am, 11am-Noon
601K Pray-Harrold, Faculty Office
johren@emich.edu
Wednesday, 5 – 6pm
OBJECTIVES
This is the first of a required two-course sequence in budgeting in the MPA program. It
presumes a familiarity with governmental structures and processes in this country, including the
role of public administration therein, but only a limited background in accounting, economics,
public finance or public budgeting. Students who have had an introductory course in public
administration are no doubt familiar with the topic in a general way, and all students may benefit
from a cursory glance at any introductory public administration text to get a feel for the subject
matter as a whole, especially if it has been some time since you have had an introductory course.
Specific course objectives include:
To understand the concepts of public/nonprofit budgeting;
To explain the background and development of public budgeting in the US;
To understand the impact of the economy on public and nonprofit budgets as well as the impact
of budgets on the economy;
To examine the political context of budgeting, including actors, roles and strategies;
To determine the characteristics of a “good” public revenue system;
To identify different “perspectives” on and describe different approaches to “doing” budgeting;
and
To link theory and practice in public/nonprofit budgeting through the use of exercises and cases.
FORMAT
The class will follow the outline below, recognizing the need for flexibility. Assigned readings
should be completed prior to class since a lecture/discussion format will be used, including
liberal use of discussion questions, in-class exercises and brief papers designed to stimulate
thinking about and understanding of the budget process. Since class is almost three hours in
length, we will break at an appropriate time and arrange for treats (a shared responsibility).
GRADING
Grading will be based on two take-home examinations (40% Midterm and 50% Final) and class
participation and exercises (10%). Exams are intended to measure mastery of terminology and
concepts as well as ability to analyze, integrate, develop and apply ideas drawn from course
materials. Class attendance and active participation in class discussion are expected; note that
there are several exercises in the outline and while not graded they will be collected and counted
toward the participation grade. Exams are due as noted in the outline; late papers will be
accepted only for “cause,” which will be determined by the instructor upon presentation of
adequate documentation or other evidence at the sole discretion of the instructor (does this sound
like administrative due process?).
TEXTBOOK AND READINGS
The text is available at local campus bookstores.
Lee, Johnson and Joyce, Public Budgeting Systems, 9th Edition
This is one of the premier texts on the subject, emphasizing primarily public budgeting; the text
will be used in both 540 and the follow-up, 615, so don’t be put off by the cost. I will provide a
number of handouts throughout the term to take advantage of other specialized literature,
especially that addressing local government and nonprofit applications, and for those interested
in additional readings, I will be happy to suggest some titles and provide materials from my
personal library. There are also several readings, noted in the outline, that I will post on the
course website.
You will also find it valuable to read a daily newspaper to keep abreast of budget issues—many are
covered regularly and address the particular issues facing the state and local governments and
nonprofit organizations around us—and they will be used as a springboard for class discussion.
And, while I am not asking you to do a term paper, it will be useful for you to review the budget
from your own local government or nonprofit (most are easily accessible from websites and offer a
glimpse of the issues facing your unit). Feel free to share your perspectives on those issues during
the term (hint, participation credit).
ACADEMIC INTEGRITY
Academic dishonesty, including all forms of cheating and/or plagiarism, will not be tolerated in
this class. Penalties for an act of academic dishonesty may range from receiving a failing grade
for a particular assignment to receiving a failing grade for the entire course. In addition, you
may be referred to the Office of Student Judicial Services for discipline that can result in either a
suspension or permanent dismissal. The Student Conduct Code contains detailed definitions of
what constitutes academic dishonesty, and it can be accessed online at www.emich.edu/sjs
CLASSROOM MANAGEMENT ISSUES
Students are expected to abide by the Student Conduct Code and assist in creating an
environment that is conductive to learning and protects the rights of all members of the
University community. Incivility and disruptive behavior will not be tolerated and may result in
a request to leave class and referral to the Office of Student Services (SJS) for discipline.
Examples of inappropriate classroom conduct include repeatedly arriving late to class, using a
cellular phone, or talking while others are speaking.
STUDENTS WITH DISABILITIES
If you wish to be accommodated for your disability EMU Board of Regents policy #8.3 requires
that you first register with the Access Services Office (ASO) in room 203 King Hall. You may
contact ASO by telephone at (734) 487-2470. Students with disabilities are encouraged to
register with ASO promptly as you will only be accommodated from the date you register with
them forward. No retroactive accommodations are possible.
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OUTLINE
Date
9/4-11
Topic and Assignment
Public budgeting--concepts, process and products; issues in public budgeting;
differences between public, nonprofit and private sector budgeting; what
constitutes “good” budgeting? The evolution of public budgeting
Lee, Johnson and Joyce, Chapter 1
Handout 1
Ohren’s Rules for Essays
White, “Making Common Sense of Federal Budgeting”
The Costs of Budget Uncertainty
We will devote some time in these first two classes to “Ohren’s” approach to the teaching-learning
process (see Ohren’s Rules for Essays). As you will note in the material below, I have identified
course objectives, expectations and assignments for the term. I have also provided detailed outlines
of and sets of discussion questions on the several major topics to be covered this term. They are
intended to guide your reading and preparation for class and facilitate your note taking in class. We
will not necessarily be following a specific outline in any given class session, although my
“roadmaps” will become familiar to you, but over the term you will see that we have touched on
just about every item. And, the discussion questions preview exam questions—you know what you
have to do, now go ahead and do it.
9/18-25
Overview of governmental revenues, spending, and borrowing; Intergovernmental
aspects of public budgeting: fiscal federalism; budget cycles.
Lee, Johnson and Joyce, Chapter 2, 4
How to Read a Budget
Exercise 1: Go online and find the budget for your local government or for a nonprofit
organization (the latter are less likely to be available but if you work with a nonprofit you might
be able to get access); save it to a flash drive and bring it to class with you on the 18th. I will ask
several of you to share your budgets with the class and we will use those to learn about “reading
and understanding” a budget. You might want to read the article, How to Read a Budget, noted
above and found on the course website in anticipation of the discussion.
10/2-9
Economics and public budgeting—a public finance primer. The role of
government; the interaction between the economy and public budgeting
Lee, Johnson and Joyce, Chapter 3
Handout 2
Exercise 2: Estimating the impact of the economy on governmental budgets and vice-versa;
there are two exercises included on Handout 2 to be completed and submitted on
10/9. We will discuss your responses in class on the 9th.
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10/16
Revenue structure and administration: what are the sources of revenue that are
used to support government activities? How would you evaluate a source of
revenue?
Lee, Johnson and Joyce, Chapter 5-6
Handout 3
What's Wrong with Kansas' Tax Reform?
Revenue Limits in MI
Property Tax, 1-4
The Income Tax Rebellion: Can It Work?
10/23
No class; midterm distributed 10/16, due 10/30, discussed in class 11/6
10/30
Budget decision-making: incrementalism and rationality in budgeting; analysis
and strategies in decision-making.
Chapter 1 in the text includes a brief discussion of the key concepts
Handout 4
Schick, “The Road to PBB” (on the course webpage);
Wildavsky, “The Budgetary Process”; “A Budget for All Seasons.”
Keith and Schick, “Introduction to the Federal Budget Process.”
Exercise 3: Understanding budget roles and strategies, the politics of budgeting (see Handout 4);
Exercise 3, due 11/6, asks you to describe the roles and strategies of various actors in a local
government or a nonprofit organization. We will discuss this in class on the 30th and perhaps
11/6, but please complete the exercise for the 30th.
11/6-20
Budget preparation: budget constraints; formal and informal actors in budget
preparation; alternative budget formats. Budget preparation: roles of
departments, the central budget office, and the chief executive; top-down and
bottom-up budgeting.
Lee, Johnson and Joyce, Chapter 7-8
Handout 5
Washtenaw Budget Message; Washtenaw Board of Commissioners, 2012/13
Strategic Priorities And Budget Decision Principles
City of Baltimore, Maryland, Ten-Year Fiscal Forecast, FY2013-FY2022
Owosso’s Budget Woes
The Human Side Of Budgeting
Exercise 4: Preparing personnel budgets; in Handout 5 I have inserted a brief budget estimating
problem. Complete the assignment, due 11/20, to be discussed in class.
11/27
No class, Thanksgiving Holiday, 11/28
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12/4-11
Legislative review and approval at all levels of government; purposes, processes,
products; recent legislative reforms at the national level.
Lee, Johnson and Joyce, Chapter 9-10
Handout 6
Washtenaw 2012-13 Budget Resolution
The Politics Of Local Government Budgeting
The Perils of Automatic Budgeting
City of Midland Michigan Budget Resolution
12/18
Final Exam, distributed on 12/4 due 12/18
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