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 were
going to name the
bus 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.