Revenue Portfolio and Expenditures: An Examination of the Volatility of Tax Revenue and Expenditure Patterns during the Great Recession

ABSTRACT

Local governments in the United States are diversifying their revenue streams and becoming less reliant on the inelastic revenue from property taxes. This article examines both how this affects local governments’ revenue stability in economic downturns as well as their levels of expenditures in key functions: capital and social services. Using data from North Carolina counties from both before the Great Recession and after, this article examines reliance on local sales taxes and stability of revenue. The findings suggest that dependence on local sales taxes do increase volatility and reduce expenditures on social services, all else being equal.     

Institutional Arrangements and State and Local Financial Forecasting

Abstract

The articles in this symposium present various consequences that effectively result in changes from adopted budgets during the implementation phase, which derive from institutional structure. The institutional structures referred to include such attributes as internal policy, procedural methodology, longevity in office, and reward and incentive systems related to performance outcomes

For local governments, structural influences studied include changes in leadership in the executive and legislative branches, longevity in office of budget administrators, and differences related to mayor-council vs. council-manager forms of government. Internal policies reported on cover methodology used to forecast revenues such as quantitative methods versus informed judgment, budgetary controls and spending policy related to mandated spending beyond local government control, and procedures for benchmarking within the agency as well as with peer groups and professional standards.

Consortia of governments are referenced regarding performance evaluation as is the process for gaining consensus between the executive and legislative branches, including expert outside opinion. Other influences on performance outcomes reported on are those tied to the risk-reward system built in to the institutional structure, which includes risk tolerance of the individuals who make pension fund investments.     

The Relationship Between State Government Performance and State Quality of Life

Abstract

This article examines the relationship between government performance and quality of life in the American states. We contend that the management capacity of state governments should have direct, tangible impacts on the overall social and economic well‐being of state citizenry. In order to test this idea, we examine the influence of state management capacity (using the 1999 Government Performance Project grades), alongside other economic and political variables, on two prominent measures of state quality of life—The Morgan Quitno “Most Livable State” Index and State Policy Reports' (SPP) “Camelot Index.” We find that both state economic conditions and governmental policy priorities have significant impacts on state performance levels. But, our results clearly indicate that the management capacity of state governments also contributes directly to improving the overall quality of life for state citizens.     

Institutional and Economic Factors Affecting the Adoption of International Public Sector Accounting Standards

This article investigates the environmental factors associated with countries’ decision to adopt International Public Sector Accounting Standards (IPSAS). Based on a sample of 110 countries, the results reveal a positive influence of external public funding (coercive isomorphic pressure), the degree of external openness (mimetic isomorphic pressure), and public sector organizations’ importance on IPSAS adoption. They show a negative effect of the availability of local GAAP on this decision, whereas education level (normative isomorphic pressure) is a nonsignificant factor.

This research contributes to the international accounting literature in the public sector. The results are relevant to standard-setters, regulators, researchers, international financial organizations, and non-adopting countries.     

The States' Role in U.S. Local Government Fiscal Crises: A Theoretical Model and Results of a National Survey

Abstract

This article hypothesizes four potential roles that states may play in dealing with local government fiscal crises: predict, avert, mitigate and prevent the recurrence of local fiscal crises. Based on a 50‐state telephone survey administered by the author to members of the National Association of State Auditors, Comptrollers and Treasurers in 2002, this article presents detailed information on states' roles in dealing with actual local government fiscal crises. The research found that ten states had formal definitions of local government fiscal crises while the remainder varied between having a working definition, having no definition, or leaving it to local authorities to define a fiscal crisis for themselves. Although the majority of states lacked a rigourous, legal definition of what constitutes a local government fiscal crisis, 36 states reported that they had had such crisis in recent history in their states. Seven overlapping categories of state approaches emerged: the directive approach, the proactive approach, the ad hoc approach, the special legislation approach, the reform approach, the takeover approach, and the responsive approach. States reported a wide range of activities under each of the hypothesized roles. In general, states tended to get involved after a crisis rather than before one occured.     

Social Norms Theory,Enforcement, and Management Concepts: An Analysis of Local Smoking Ban Ordinances

Although there is substantial research on the consequences of smoking and the economic loss resulting from tobacco use, there is a scarcity of work on the enforcement of smoking ordinances at the local level. As municipalities around the country pass ordinances restricting smoking in public places, research should be conducted to understand enforcement outcomes. This article examines the management concepts being employed by managers in the enforcement of smoking ordinances. This article shows that management concepts are salient in policy enforcement and are employed to manage smoking enforcement ordinances. The theory of social norms is used to explain this phenomenon.     

Citizen and Open Government: An Empirical Analysis of Antecedents of Open Government Data

Given the lack of empirical research investigating citizens’ use of open government, this study examines the antecedents of citizens’ use of open government data. Based on technology acceptance and motivation theory, this article proposes and empirically tests a research model, applying structural equation modeling to survey data collected from 210 citizens. The findings show that ease of use, usefulness, intrinsic motivation, and Internet competence significantly determine citizens’ intention to use open government data. Overall, this study contributes to the understanding of citizens’ attitudes and behavior in the context of open government and offers implications for research and practice.     

Contracting Out Local Government Services to Private Agents: An Analysis of Contract Design and Service Delivery Performance in Ghana

Contracting out is generally justified on the principle that as governments contract out part of their responsibilities in service provision to private agents, they harness the power of market competition which leads to efficiency in service provision. In working with private contractors, local governments (LGs) face problems related to agent opportunism, while agents also face risks such as dereliction of payment responsibility by LGs for services delivered. The literature shows that these problems are addressed through a web of contractual arrangements. Using agency theory, this study investigates the relationship between contract design and quality of services delivery in three Ghanaian cities (Accra, Kumasi and Tema). The study found a surprising negative correlation between contract document and agents' performance. The paper concludes that effectiveness of contracting out documents depends on contract management capacity of government administrators. In its absence, LGs that contract out are exposed to risks. The paper uses the findings to reflect on the inherent deficiencies in agency theory and Africanist literature on patronage.