Using Local Government Corporate Plans in Victoria

The Victorian state government has required local governments to publish their corporate plans and this paper explores the information provided by their corporate plans. These plans demonstrate diversity in the form and content, but several themes emerge. First, despite the purpose of corporate plans being to demonstrate accountability to the local community, the lack of performance targets reduces the usefulness of these plans for accountability purposes. It also explores objectives which are of major importance to the sector, such as local economic development, which is an issue difficult to control in the local area, being largely determined by federal and state policy. Other important objectives include financial and asset management together with emphases on the local community and accountability, issues which were the drivers of the state government's reform agenda. This article assists those who want to enhance the practice of corporate (strategic) planning in local government.     

Prudent Public Sector Investing and Modern Portfolio Theory: An Examination of Public Sector Defined Benefit Pension Plans

This research examines the extent to which public pension programs allocate assets in a manner that is consistent with an optimal portfolio, as defined by Modern Portfolio Theory (MPT). The examination is pursued by way of a statistical analysis, using a portfolio optimization model and data on some of the nation's largest public DB plans. The analysis illustrates that the majority of the plans in the sample are incurring far more risk in their portfolios than is optimal given their target rates of return and that this risk level is a result of nonprudent allocation across asset classes. The findings suggest that there might be opportunities to improve the long‐term performance of defined benefit plans by adjusting asset allocation targets and legal lists in a manner that is more consistent with MPT.     

Funding Levels and Gender in Public Pension Plans

Using a comprehensive sample of 2002 and 2005 U.S. public retirement systems, we found that public pension plan underfunding grew dramatically in these years despite a good economy, increasing state tax revenues, and strong stock market returns on average, plans were only 83% funded. Teacher plans and plans with the most retirees were more underfunded. We found no significant differences related to asset allocations or actuarial assumptions about inflation and rate of return. A primary factor associated with significantly lower underfunding was more female active participants in the plan, suggesting another risk to women's retirement income.     

A Longitudinal and Comparative Analysis of the Funded Status of State and Local Public Pension Plans

Although state and local public pension plans hold approximately one-third of the $3 trillion asset total of U.S. pension funds and represent sixteen million workers, relatively little research has been done on their funded status. This article presents the results of a longitudinal and comparative analysis of the funding condition of state and local public pension plans. The study includes 205 plans representing 91 percent of the total assets and approximately 94 percent of the members of state and local public pension plans. By examining the period from 1988 through 1992, the article provides a general 'assessment of the funded status of state and local public pension plans and concludes that, as a whole, the plans are adequately funded and have improved in their funded condition over time.     

新公共管理范式下的地方政府改革--论"政务超市"的兴起与发展

"政务超市"在政府活动中引入了商业的模式,是政府原有体制设计和制度实施在社会转轨时期具体操作中遇到了多重困境而探讨出的一套理性制度模式,是以市场化为导向、以顾客(公民)服务为核心理念的新公共管理范式下重塑地方政府的一个典范.它无论在价值取向上,还是在制度设计上都有自己独特的特点.对政务超市的组织结构和运行模式进行分析,可以看出政务超市是重塑公共组织的一个范例,是改变传统官僚制的DNA.然而,在缺乏系统性制度变革的背景下,政务超市同样面临困境,这就需要在推广政务超市的过程中必须注意其实现限度和所需要的配套措施.     

The Role of Philanthropy in Local Government Finance

Nonprofit organizations thrive on the altruism of citizens, and actively court donors for major gifts. Yet individual gifts to government agencies are often unexpected, sporadic, and initiated by the donor. This article introduces the phenomenon of private giving to local governments and tests hypotheses regarding the expected forms of giving to public agencies. Results indicate that philanthropy is and will likely remain a minor and highly variable source of revenue, making it an ill‐suited replacement for broad‐based tax revenue. However, deliberate government efforts to provide a suitable environment for private donations appear to succeed in attracting more gifts per capita.     

The Role of Slack in Local Government Finances

The research presented here adopts an organizational approach to develop three regression models that examine why local governments accumulate slack in the form of unreserved fund balances, and what is the impact of slack resources on local governments' short‐term fiscal conditions and decisions about spending and revenues. Using data on Chicago suburban municipalities and their governments, the first model estimates the effects of long‐term and short‐term conditions (fiscal and governing) on unreserved fund balances. The second and third models examine the impact of slack resources and other factors on year‐end deficits or surpluses and changes in spending and own‐source revenues. The results show that ending balances, expenditures (size), and long‐term fiscal conditions have the greatest effect on fund balances, and that slack and current fiscal conditions have the greatest effect on ending balances and changes in revenues and spending.     

Strategy in Local Government

One aspect of the study of local government organization is the role of consultants and the models they have introduced in order to help the local government reorganize. One of these models is "strategy", and this article sets out to consider the implication for these organizations if "the logic of strategy" were to be implemented. A common denominator of all the local governments studied is that "strategy" does not function, and the question is why this is so. Two distinctly different explanations can be considered. One states that "strategy" is difficult and that the politicians and administrators will need time to adjust to new ways of working. The other explanation, which is applied here, focuses on whether local government as an institution can be reconciled with the demands and premises inherent in "strategic thinking". My conclusions arc negative. "Strategy" is a model from the private sector and more specifically from the competitive sector of society and it is not appropriate for wider use. In this article the arguments are restricted to local government, and do not necessarily apply to other types of public organization.     

The Politics of Local Government Stabilization Funds

The adoption, maintenance, and prudent use of budgetary stabilization funds are fundamental financial management precepts, yet the variables that influence the size of these funds are poorly understood. This article contributes to the stabilization fund literature by examining the extent to which variation in stabilization fund balances across municipalities and over time can be explained by a community's political culture and financial management capacity. The balanced panel research design includes archival data for 239 Massachusetts municipalities for each of 18 fiscal years. Stabilization fund balances are lower in communities with either an anti‐tax or a pro‐spending political culture. Stabilization fund balances are higher in communities that have the financial management capacity to accumulate budget surpluses that can be made available for appropriation to stabilization funds. Communities with the open town meeting form of government also have higher stabilization fund balances.     

Assessing and Managing Environmental Risk: Connecting Local Government Management with Emergency Management

Ensuring that a community is prepared to deal with a disaster is among the many tasks public managers are charged with addressing. Disaster preparedness and response requires adherence to standard planning practices, yet disasters are typically unpredictable. Dealing with disasters, therefore, requires a blend of traditional management skills and improvisation. Furthermore, like other aspects of administrative leadership, the top administrator must blend initiation and responsiveness in interactions with elected officials and a careful delineation of responsibility in handling actual emergencies. This article discusses how local administrators assess risk and balance preparedness needs within a universe of daily operational needs. Managing environmental risk is also explored from a political and legal context.