Instructor:
W. Bartley Hildreth

Prerequisites:
Public Administration 765:  Public Sector Economics

Course Objectives:

• Learn that fiscal policies guide financial practice;
• Recognize the institutions and roles involved in taxing and spending;
• Understand the environment and processes of public allocation systems and taxation;
• Identify budget theory and budget reforms;
• Learn the basic features of major tax structures;
• Appreciate the fiscal linkages between federal, state, and local governments;
• Apply basic budget analysis skills; and
• Learn that financial documents have to be clear, concise, correct and conform to fiscal policy.

Course Description:
Analyzes state and local government expenditure and revenue system; introduces state and local financial administration.

Major Topics Covered:
Students use the textbook and classroom discussion to isolate concepts that could lead to fiscal policy guidelines, and then apply these to a local government budget.  A series of assignments allow each student to analyze the revenues, expenditures and fiscal policies of a particular local government. 

Course material focuses on:
Fiscal Transparency
Public Finance: allocation, distribution and stabilization
Budget Basics
   What is a budget?
   Budget cycle and process
   Budget elements
   Calculating budget metrics: shares, percentage change, compound annual growth, inflation
Budget Institutions and Roles
    Institutional analysis
    Theories of budget actors
Budget Design and Analysis
    Budget formats and reform
    Performance based budgeting
    Cost analysis
    Doing break-even analysis
Capital Budgeting and the Time Value of Money
    Capital budgeting
    Cost benefit analysis
    Calculating time value of money
Tax Criteria
    Tax Principles
    Applications
Income Taxation
    Personal income tax structure and behavior
    Local income tax structure and behavior
    Corporate income tax structure and behavior
Consumption Taxation
    General sales tax structure and behavior
    Excise taxes
Property Taxation
    Concepts and types
    Calculations
    Appraisal and assessment
    Deviations from uniform assessment
    Limits and controls
    Special issues: school finance and taxpayer resistance
Collecting and Forecasting Revenues
    Collections
    Forecasting issues
    Applying forecasting methods
    Assessing forecast accuracy
Public Pricing
    Enterprise operations
    Gaming activity
    User fees and service charges
Intergovernmental Fiscal Relations
    Diversity in governments
    Coordination needs
    Transfer of spending power - trends and developments
    Mandates
Cash Management
    Purpose
    Cash flows
    Investments
Debt Management
    Purpose
    Issuance
    Management
Financial Statements
    Overview financial statements for government and nonprofit organizations
    Basic applications and analysis
Government contracting with nonprofits
    Procurement issues
     Applications

A major part of the course is a budget project that is designed to advance each student’s ability to analyze a budget and to present findings in a concise, factual report.  Students use a local government budget to find answers to several questions as a way to gain some familiarity with the document, and then they have to review the budget according to the Government Finance Officers Association’s (GFOA) budget review criteria.  In major spreadsheet assignments, students prepare a budget analysis that focuses on budget process and budgetary outcomes. 

Typical Textbooks and Readings:
John L. Mikesell, Fiscal Administration (most recent edition)