Criteria for evaluating revenue options: a comprehensive view

We identify twenty-nine criteria that are proposed for decision makers to use when they consider revenue measures and classify these criteria into four categories: adequacy, neutrality, consent and fairness. This discussion offers the decision maker help in deciding how to select revenue measures.     

Integrated resorts and hotel (gambling) service enterprises in Singapore,Macau and Australia: the changing policy landscape

In 2006, Singapore passed legislation allowing the establishment of integrated resorts (IRs) with extensive gaming facilities on the island nation. The Singaporean government was motivated to open two massive IRs in 2010 by the twin objectives of achieving a dramatic elevation in the position of the services industry within their national economy, and to increase state income through lucrative gaming taxes. The Singapore government's decision to take this developmental step was directly influenced by the expansion of Macau into the largest global gambling entity in the world, now dwarfing Las Vegas across all key indicators including revenue and visitor numbers. Macau's position at the pinnacle of Asian gambling, attracting the massive Chinese market, is now beyond dispute. Combined, both Macau and Singapore have altered the IRs services landscape of Asia and Australasia. The economic success of the two Asian gambling giants has seen notable policy responses from national and regional governments. In Australia these policy responses have led to decisions to build new IRs and massively redevelop existing facilities up to a new standard of service aimed at competing with the new facilities operating in Singapore and Macau.     

State lotteries: Explaining their popularity

This article provides a detailed explanation for the adoption of state lotteries as revenue measures. It focuses on Texas for examples. Relying on a previously published set of evaluative criteria for revenue sources, the authors explain why, despite generally negative treatment of state lotteries by revenue experts, lotteries are favored by legislatures and publics in thirty-four states and the District of Columbia. As revenue matters rather than general policy matters, lotteries are politically expedient and have sufficiently large yields to overshadow shortcomings noted by experts and critics: regressivity, high administrative costs, instability, lower than anticipated yields, and potential negative social consequences. This look at policy-maker and public evaluation of state lotteries explains their widespread utilitization.     

Leisure Experience, Prison Culture, or Victimization? Sex Offenders Report on Prison Gambling

Opportunities for gambling in mainstream North American society have increased greatly over the past two decades. Despite the popularity of legalized gambling and attention it is receiving among social science researchers and economists, gambling within jails and prisons has been overlooked. This study utilized a semistructured interviewing procedure (Smith, 1995) to gain information about prison gambling from 11 sexual offenders on parole—all had spent significant time incarcerated. Qualitative analyses of responses suggest that offenders may gamble in various forms and for a variety of reasons, including a means of alleviating boredom, providing excitement and risk, and an opportunity to socialize. Prison gambling appears to be a complex phenomenon. A substantial amount of prison gambling seems to be associated with certain psychosocial benefits, while for a minority of cases there may be severe violence and victimization.     

Taxation data as indicators of state-society relations: Possibilities and pitfalls in cross-national research

Cross-national research on taxation is a growth industry in political science. This article discusses key conceptual and measurement issues raised by such studies. First, it highlights the ways in which taxation has been studied as a rich and varied concept, including as a component of the state-building process, as a collective action problem, and/or as a problem of distributive justice. Second, the article identifies the central tradeoffs associated with the construction of taxation indicators used to measure such ideas. It discusses considerations such as which forms of revenue should be included and which should not, whether and how to standardize taxation measures, and how no fine-tune measures through a clear specification of units, universes, and measurement calibration. These choices have important implications for the “scoring” of countries, and for making valid inferences about the relationship between states and societies. Evan S. Lieberman is a Robert Wood Johnson Scholar at Yale University and will begin and appointment as assistant professor in the Department of Politics at Princeton University in September 2002. His interests include comparative politics, research methods, and economic and social policy. I would like to thank Christopher Achen, David Collier, Marc Morjé Howard, Lucan Way, members of the Robert Wood Johnson Policy Scholars Seminar at Yale University, three anonymous reviewers, and the editors atStudies in Comparative International Development for their valuable comments and suggestions.     

Local government revenue policies in new Mexico

This examination of the revenue patterns of local governments in New Mexico finds that communities with the greatest social needs for public services-- small population rural areas, less affluent communities, and rapidly growing districts-- are precisely those that have the weakest revenue bases. Moreover, none of these types of disadvantaged jurisdictions receives above-average redistributive assistance from the federal government.Variations in revenue effort, especially among municipalities, exacerbate this problem because certain communities gain huge revenue windfalls which bear little relationship to either their social needs or taxing efforts but stem, rather, from fortuitous geographic positions. This advantage works its way through the entire revenue system, directly because state transfers are linked to place of collection and indirectly because of the overwhelming effect of revenue effort on revenue sharing allocations in the state. The local revenue system in New Mexico, therefore, works against the communities that have the greatest need for government services. Most of these inequities, however, do not appear to be the explicit goal of economic or political policy. Instead, they are the unintended consequences of a supposedly “neutral” allocation formula. This state of affairs certainly argues for policymakers paying more attention to the actual results of their policies.     

Financial Discrepancies in Political Party Funding by Indonesian Local Government Authorities

Through different forms of decentralization variables, this study investigates Indonesian local government authorities' 2006 financial accountability reports in terms of local government authorities' contributing funds to political parties. Audit results by the Supreme Audit Body reveal that many articles were violated by these authorities in regard to the distributing, administrating, and reporting of assistance funds from them to political parties. Each rupiah committed by the 221 local government authorities involved in this study violated, on average, 1.8 articles, indicating a low level of compliance.

Critically, the study finds that administrative, fiscal, and political decentralization decreases discrepancies. The less administratively decentralized provincial authorities, where decision making is a level of government farther from the people, are more likely than non-provincial local government authorities to make discrepancies with political party legislation and regulations. Fiscally decentralized local government authorities, who earn a higher fraction of their revenue from local sources, also tend to have fewer discrepanciesFinally, politically decentralized authorities with a higher percentage of elected officials from the decentralized supporting ruling coalition, also have fewer discrepancies.     

Public hospitals as competitors for medicaid revenue: the case study of St. Louis regional medical center

Medicaid revenues may determine whether public hospitals will survive. Public hospitals participate aggressively in the public market competition for their states’ Medicaid dollars. States must decide whether the survival of public hospitals, as providers of last resort to both Medicaid and uninsured patients, is of continuing importance to their Medicaid programs. Cities, if the states were willing, alternatively could voucher uninsured patients and direct Medicaid patients to the private hospitals that would outlive closed public hospitals. In fact, Medicaid's managed care programs already have heightened this competition, by organizing sufficiently large populations of prepaid Medicaid patients to attract networks of private providers to offer discounted prices, in competition with public hospitals for this market.

Although Medicaid has been a comparatively poor payer, nationally, almost half of public hospitals⁷ funding comes from this source of revenue. Urban public hospitals can barely live with Medicaid revenues, but the extent to which they can live without Medicaid revenues is being determined by surprising new turns in market competition for the revenue. A period of expansive and expensive new congressional mandates for the joint federal-state program was followed in the early 1990s by the introduction by the states of Medicaid revenue maximization strategies. The states’ funding levels, the bases for matching federal contributions, were artificially elevated by provider taxes, provider donations, and intergovernmental transfers. The revenue from all these sources was returned to these providers through the Disproportionate Share Hospital subsidy program for Medicaid-dependent hospitals, as soon as the federal revenue match was calculated, based upon the inflated figures. These practices currently are being stymied, and states simultaneously have escalated competitive bidding by private market managed care providers for Medicaid patients. Missouri has been in the forefront of states moving to maximize the federal Medicaid revenue match and to return Disproportionate Share Hospital funds to providers. St. Louis's public hospital, Regional Medical Center, has been weaned off its local government subsidies, as the intergovernmental transfer and DSH enticements compromised the stability of that hospital's revenue picture. Now, unprotected by an integrated healthcare system or other major role in a regional hospital network, this urban public hospital must struggle to survive within its Medicaid managed care competitive market. The question for the state of Missouri is whether perpetuating a future for Regional will ensure its Medicaid patients a traditional caring public medicine alternative as a fallback position, if Medicaid's present foray into the private market goes awry. For Regional and the city of St. Louis, the question is whether they can any longer count upon traditional state Medicaid revenue and financial support.     

Local revenue structure under economic hardship: reliance on alternative revenue sources in California counties

This article investigates how a worsening economy affects local revenue structure, and whether the impact is moderated by the fiscal relationship within higher levels of government. The revenue potential of nontax sources – fees/charges and fines/forfeitures – is considerable for local governments under economic hardship. With the panel data from California counties over a period of 11 years (2000–2010), this article shows that reliance on nontax revenue largely depends on the economic and fiscal factors that vary across counties, and the effect of economy is contingent on local dependence on intergovernmental transfers. Counties are likely to raise nontax revenue when the economy worsens and their transfer-dependence increases, while the marginal effect of the economic indicators changes from negative to positive as transfer dependence increases. This article illuminates the characteristics of the two types of nontax sources in terms of the mechanisms of incentivising human behaviour and concludes with policy implications for researchers and practitioners.     

The impact of functional responsibility and state legal constraints on the “revenue-debt” packages of U.S. Central cities

State governments have the power to restrict the revenue and debt sources available to their municipalities. States also have the power to assign functional responsibilities to their municipalities - - some of which can be extremely burdensome financially (educatin; welfare; hospitals). This research examines the effect of these state constraints on: (1) the revenue-debt use patterns; and (2) the fiscal condition of 243 U.S. central cities (FY 1974, FY 1975, 1976).

The results show that the revenue/debt use patterns of cities vary signigficantly according to the restrictions imposed by the state on their taxing, borrowing, and functional responsibility powers. In addition, revenue/debt use patterns differ among ciites experiencing varying levels of distriess. Severely distressed cities are more dependent on external revenue sources (federal, state). They are less capable of generating revenue at the local level and are less flexible in their use of local revenue soruces, depending more hevily on the property tax and less heavily on nonproperty tax and nontax revenue sources than healthier cities. They are also found to be more reliant on full faith and credit (property tax-backed) long-term debt and on short-term debt than the more prosperous cities.

Cities in states imposing heavy restrictions on use of property tax and full faith and credit long-term debt sources but imposing few restrictions on municipa; nonproperty taxing powers are generally the healthiest fiscally. Such state policies have effectively enhanced municipal diversification of both traditional revenue sources and debt sources.

The major significance of this research is the demonstration that state governments have within their policy-making power the ability to affect the fiscal dependency level of their respective municipalities. An activist role is necessary on the part of state governments if they wish to increase their role in municipal fiscal affairs relative to that of the federal government.     

The impact of revenue diversification on municipal debts: comparing short-term and long-term debt levels

The extant literature has offered two competitive implications of revenue diversification: revenue stabilisation and fiscal illusion. Stabilisation helps governments have less revenue volatility, while fiscal illusion expands tax burdens through the increase in expenditure. The competitive views on revenue diversification leave a niche to explore the association between revenue diversification and debt levels in local governments. We estimate the static and dynamic effects of revenue diversification on both short-term and long-term debt levels in 150 fiscally standardised cities. Our findings show that local governments with greater revenue diversification are more likely to reduce short-term debts while expanding long-term debts. The findings imply that a stabilised revenue structure helps local governments better manage operational budgets but also invest in capital projects with greater debt capacity.     

It Comes with the Territory: Why States Negotiate with Ethno-Political Organizations

Given that minority ethno-political organizations are generally weaker than states yet seek to change their policies or remove the ruling regime from power, why would negotiation occur? States prefer to ignore or repress such organizations, which typically have little to offer in return amidst negotiations that can legitimize them while delegitimizing the state. When a challenging organization establishes governing structures and controls movement in part of a state's territory, however, it can easily inflict significant economic and political costs on the state while also possessing a valuable asset to exchange for concessions. An organization with territorial control cannot be ignored, while the state will have a strong incentive to negotiate before the state loses more face, the group gains more legitimacy, neighboring states are more likely to invade, and the international community is more likely to formally recognize any facts on the ground as a new status quo. Our analysis of 118 organizations in the Middle East and North Africa from 1980–2004 reveals that territorial control is the most important determinant of intrastate negotiation. In regards to existing scholarship, this suggests that a certain type of successful violence works—not all violence and not only nonviolence—while certain types of strong organizations—those that control territory—are more likely to reach negotiations with the state than weak ones.     

Meeting the challenge: state revenue raising

Recent trends in state tax revenue reveal that overall reliance of states on taxes have been declining for the last 43 years. Faced with reduction in tax revenues, states have restructured their tax systems to meet public demand for more services. State income taxes are the one type of tax that has risen consistently. What causes state policy makers to rely on this type of tax? This research addresses this question.     

Walking the fiscal tightrope: local government budgeting and fiscal stress

This paper discusses the components of local government budget processes and their relationship to fiscal stress. While many cities and counties are suffering from stressful fiscal situations, leading in some cases to bankruptcy filings or other severe measures, their budgets have to be balanced, unlike the federal government and some state governments. Using survey data from a large number of jurisdictions, this paper shows how local governments have developed budget processes which respond to these changing fiscal situations. Governments use computers, collect and analyze many different types of information, and use budgetary information for other management purposes in order to improve productivity. Budget processes are providing good information to local government decision makers which is helping them respond constructively to the fiscal crises of the 1990s.     

Testing for Fiscal Illusion in Wisconsin Towns

Fiscal illusion, a theory of the impact of government revenue structures on voter decision-making, has been studied extensively by economists and political scientists; however, empirical verification has been limited. This study builds on Lowery's (1987a) work by examining the relationship between suggested illusionary revenues and measures of electoral stress. Here, electoral stress is measured as constituent contacting—one possible measure of voter influence—for local government officials up for re-election. Using a combination of survey data from over 1,000 Wisconsin town board members, audited fiscal data and U.S. Census data, we were able to test for fiscal illusion. Our findings show that when looking at five revenue types (conditional grants, unconditional grants, property taxes, user fees and charges, and debt service) there is some evidence suggesting officials seeking another term in office will tend to support fees and charges as a revenue structure over other structures. Overall, there is little consistent evidence suggesting that elected officials are manipulating revenue structures for electoral gain. Revenue structures are mostly influenced by social and economic factors, such as median household income, population changes, and per capita property valuation.     

Internationalisation,global capitalism and the integration of Iran

Abstract

There is a common tendency to observe a process of homogenisation when the current international structure is analysed. However, the globalisation process embraces heterogeneities and contradictions stemming from the integration of different states into a single global structure. This article explores the role and motivations of domestic social classes in creating variations in the form of integration of their states into the global whole. It takes one of the odd cases at the centre of inquiry and particularly concentrates on the emergence of alternative forms to the neoliberal globalisation in the process of Iran’s integration into the global capitalism. The accumulation strategies adopted by the dominant class factions in Iran are investigated in order to reveal their dialectical relationship with the international capitalist structure. Their role in the international political economy of Iran demonstrates how social agents through their strategic activities create variations in the forms of integration into the global capitalism. The article compares the Iranian case to the varieties of integration of lately capitalised but not peripherised BRICS (Brazil, Russia, India, China and South Africa) states. This aims to reveal that whilst these countries have truly integrated into the global capitalist system, the internationalisation of their states contradicts the accumulation strategies of their dominant classes.     

Why do South-east Asian states choose to suppress opium? A cross-case comparison

Abstract

This paper compares the reasons given by three South-east Asian states (Laos, Thailand and Vietnam) for choosing to suppress opium production. While external pressure, often from the US or United Nations (UN)/League of Nations, is the most commonly identified reason in the literature, and was experienced in each case, it was not by itself sufficient to motivate states into action. All three cases were motivated by religious or ideological opposition to drug consumption or trade, rural development, state extension and concern for increasing domestic drug consumption. Apprehension about rising drug consumption often possessed racial or chauvinistic elements. The development of export commodities, environmental protection and national security were also identified in one or two cases. The paper concludes by hypothesising that economic and/or security considerations underlie all choices to suppress illicit drug crops.     

Challenging the "Received View": De-demonizing Hamas

Abstract

Violence against abortion clinics and other activities directed toward patients and staff of abortion facilities have been termed terrorism by the pro‐choice movement. However, the Federal Bureau of Investigation denies that these actions are terrorism. Instances of abortion clinic violence for 1982–1987 were examined in order to determine whether there is a correspondence between these incidents and definitions or models of terrorism. It appears that these incidents do fit the classification of “limited political” or ‘subrevolutionary” terrorism. Reasons why the FBI has made the decision not to include these acts as forms of terrorism are entertained. One is that current international tensions have resulted in a preoccupation with only certain types of events which for administrative, i.e., juris‐dictional, reasons have come to essentialize terrorism. Another explanation, posited by pro‐choice activists, is that the FBI's decision is a consequence of political influence: the current administration is openly anti‐choice.     

More Is Better: Consensual Forecasting and State Revenue Forecast Error

Abstract

The subject of this research is the question of whether revenue forecasts, which require consensus within the institutional framework of federal system governments, are more accurate than in states where forecast decision-making rests solely in the executive branch or in the legislative branch. Results are reported from a 1999 survey of various revenue forecasters in the 50 states. The methodology includes considerations of the following as independent variables: split-government legislatures; frequency of state's forecasts; whether a separate council of economic advisors was included; budgetary balance requirements; the availability of outside expert advice from universities; and the extent of a period of economic stability in the state. The results indicate some effect, which although not substantial, in terms of state budgets still constitute significant dollar amounts.