PPB: Its relevance to financially constrained municipalities

Abstract. This paper assumes that Planning-Programming-Budgeting (ppb ) is preferable to the current historical budgeting procedure of municipalities. This is in part because ppb necessitates policy-making (defined as the setting of goals). The paper argues that the ability of municipalities to adopt ppb and policy-making is severely constrained by fiscal imbalance. The reliance of Canadian municipalities on conditional transfers and on the property tax has negated ppb procedures by distorting priorities and narrowing decision-making. The paper further argues that inflation will accentuate the financial problems of municipalities because of different revenue and tax elasticities. The point of departure is a brief examination of the logic behind urban government and the division of responsibilities. The second section looks at municipal fiscal imbalance, and the third analyses how fiscal imbalance negates policy-making and ppb . A final section suggests three remedies that might induce adoption of ppb . One would reduce the distortions of transfers and the other two would ease fiscal imbalance. Sommaire. Cet article suggère que le processus de Planification-Programmation et Budgétisation (ppb ) est préférable au processus de budgétisation couramment en usage dans les municipalités, en partie parce que le ppb implique la détermination d'objectifs politiques. L'article soutient que la possibilité d'adoption du ppb et d'une politique précise par les municipalités est très limitée à cause du déséquilibre fiscal. La subordination des municipalités canadiennes aux subventions conditionnelles et a Fimpôt fonder, en changeant les priorités et en limitant le pouvoir de décision, a rendu impossible le ppb. L'article soutient de plus que l'inflation accentuera les problèmes financiers des municipalités à cause des différentes élasticités des taxes et des revenus. L'étude commence par un bref examen des principes qui régissent l'administration urbaine et 3a division des responsabilités. La deuxième partie traite du déséquilibre fiscal des municipalités, et la troisième indique pour quelle raison le déséquilibre fiscal rend impossible une politique suivie et l'application du processus du ppb . Une dernière partie suggère trois solutions qui pourraient faciliter l'adoption du ppb. L'une réduirait les distortions dues aux subventions conditionnelles et les deux autres permettraient d'alléger le déséquilibre fiscal.     

Need-efficiency trade-offs in the allocation of resources: Ideological and attributional differences in public aid decision making

We examined whether ideological differences influenced perceptions of the underlying causes of public aid applicants’ predicaments, and whether in turn ideology-patterned attributions accounted for how resource allocators prioritized need- and efficiency-related goals in allocating aid. To examine the need-efficiency trade-off, participants (N=112) divided a hypothetical pool of aid applicants for subsidized health insurance into two “incorrect” allocation outcomes: false alarms (allocate aid to unneedy applicants) and misses (deny aid to needy applicants). Moreover, to examine beliefs about the absolute percentage of aid applicants who are truly in need of societal assistance, participants divided the remaining aid applicants into two “correct” allocation outcomes: hits (allocate aid to needy applicants) and correct rejections (deny aid to unneedy applicants). Results of a series of structural equation models indicated that conservatism was linked to the causal belief that aid applicants’ predicaments arise from dispositional rather than situational factors, which in turn predicted a preference for making efficiency-related over need-related resource allocation judgments (e.g., preferring misses to false alarms) and the belief that a relatively small number of aid applicants are truly in need of societal assistance (e.g., preferring correct rejections to hits). Results are discussed in terms of how ideologically driven attributions influence the manner in which people resolve need-efficiency trade-offs inherent in the context of public aid decision making.