Predatory fines and fees: Revenue,fiscal contrition,and policy change

Fiscal contrition refers to the phenomenon of policy-makers becoming aware of the social costs of fines and fees, recognizing a need to reduce those costs, and taking action to do so. In order to reveal the occurrence of fiscal contrition, this analysis examines detailed budget data from three U.S. counties. Findings indicate a dominance of predatory over punitive monetary sanctions in county budgets. That is, fines and fees that extract revenue from a justice-involved population are more common than those with social control objectives. The analysis also reveals patterns and nuances in fine and fee usage and the revenue they produce, which illuminates pathways for reducing reliance on fine and fee revenue. This approach provides useful context for the burgeoning scholarship focused on the role of monetary sanctions in fueling social inequities.     

Independent auditors as fiscal gatekeepers

This paper develops a framework for the analysis of gatekeeping in tax enforcement, whereby independent auditors are assigned the duty of attesting taxpayers’ returns. The equilibrium of the market for gatekeepers’ services is characterized, as well as taxpayers’ and auditors’ optimal behavior. The paper identifies the conditions under which the introduction of a mandatory attestation system is likely to be desirable.The results of the paper suggest that: (1) collusion may disrupt the gatekeeping system if the compounded liability of the auditor and the taxpayer is not sufficiently high; (2) a more extended delegation of the enforcement power to private auditors is generally desirable; (3) the cartelization of the gatekeepers’ market has definitely detrimental effects; and (4) when the probability that erroneous attestations are detected and sanctioned depends on the effort exerted by a public enforcer, multiple equilibria may arise, due to the substitutability of public and private monitoring.     

Medicare program: data, standards, and methodology used to establish fiscal year 1994 budgets for fiscal intermediaries and carriers--HCFA. Final notice

This notice is published in accordance with sections 1816(c)(1) and 1842(c)(1) of the Social Security Act which require us to publish the final data, standards, and methodology used to establish budgets for Medicare intermediaries and carriers. In this notice, we respond to the comments received in response to our notice of October 5, 1993 and we announce the adoption of the proposed data, standards, and methodology that we used to establish the Medicare fiscal intermediary and carrier budgets for fiscal year (FY) 1994, beginning October 1, 1993, as final and without revision.     

Medicare program; data, standards and methodology used to establish fiscal year 1992 budgets for fiscal intermediaries and carriers--HCFA. Final notice

This notice is published in accordance with sections 1816(c)(1) and 1842(c)(1) of the Social Security Act which require us to publish the final data, standards and methodology used to establish budgets for Medicare intermediaries and carriers. It announces that we are adopting as final without revision proposed data, standards, and methodology used to establish Medicare fiscal intermediary and carrier budgets for the fiscal year (FY) 1992, beginning October 1, 1991. It also contains our response to public comments on the proposal.     

Medicare program: data, standards and methodology used to establish fiscal year 1993 budgets for fiscal intermediaries and carriers--HCFA. Final notice

This notice is published in accordance with sections 1816(c)(1) and 1842(c)(1) of the Social Security Act which requires us to publish the final data, standards and methodology used to establish budgets for Medicare intermediaries and carriers. It announces that we are adopting as final, and responds to comments about, the data, standards, and methodology we proposed to use to establish Medicare fiscal intermediary and carrier budgets for the fiscal year (FY) 1993, beginning October 1, 1992.     

Medicare's fiscal problems: an imperative for reform

Many observers have noted that Medicare expenditures will significantly outstrip projected revenues over the course of the next 25 years. This paper examines the economic and demographic assumptions behind forecasts of Medicare hospital insurance and supplementary medical insurance expenditures and revenues and analyzes various strategies for closing the impending gap. It is argued that the present forecasts already assume considerable success in controlling hospital costs and physician payments, making substantial further savings unlikely. Shifting more of the burden onto the elderly through increased cost sharing or higher premiums also will not solve the program's fiscal problems over the long term. The remaining alternative--imposing higher income or payroll taxes on the under-65 population--is also unlikely to be a welcome solution. The authors argue that, eventually, the nation must choose between some form of a two-tier system of benefits or a Canadian-style national health insurance system.     

Medical and dental services fiscal year 1998--DoD. Notice

Notice is hereby given that the Deputy Chief Financial Officer in a memorandum dated September 26, 1997 established the following reimbursement rates for inpatient and outpatient medical care to be provided in FY 1998. These rates are effective October 1, 1997.     

Trustees versus fiscal agents and default risk in international sovereign bonds

Over the last 10?years, organisations such as the IMF have launched several initiatives to change market practice with respect to sovereign bond contract drafting to ease restructuring after defaults. The first of these, the universal adoption of collective action clauses, was embraced by the market after some hesitation. Another proposal??the more widespread appointment of trustees to represent bondholders in times of crisis, to centralise enforcement action against the debtor and thus to facilitate debt relief??has so far failed to have the desired impact. Amongst other potential reasons for this failure, the argument has been made that to vest enforcement rights in the trustee, as opposed to individual bondholder rights, would be to reduce the deterrence against opportunistic defaults and thus to exacerbate moral hazard. Using a sample of secondary market bond spreads and information on default status, this paper assesses empirically whether sovereign bonds issued under a trust structure indeed carry a higher default risk. It finds no systematic evidence of either a spread premium or higher actual default rates for bonds with collective enforcement rights.     

Sustainable fiscal policies and budgetary risk under alternative monetary policy arrangements

Early work on the theory of economic policy stressed the importance of the interactions between fiscal and monetary policy. Tinbergen, and Cooper, showed us that there would be costs in instability and protracted imbalances, in particular fiscal imbalances, if this was not recognised. Yet most models we use today treat fiscal or monetary policies as if they operated alone. This paper reviews the advantages of recognising those interactions. We consider three possibilities: fiscal leadership (in the sense of acting first), monetary leadership, and simultaneous decision making, each underpinned by independence at the central bank. This temporal separation is important because it creates an opportunity for punishment by the follower (a result from asynchronous games). Making fiscal policy lead, and monetary follow, provides fiscal precommitment and the best results for output, inflation and fiscal balances. In particular, it ensures sustainable public finances without the need for arbitrary (and easily evaded) external restrictions. We show these results are proof against override by rational governments; and robust to changes in structure caused by flattening of the Phillips curve, globalisation, market reforms, and changes in savings.

Medicare program; Medicare Integrity Program, fiscal intermediary and carrier functions, and conflict of interest requirements. Final rule

This final rule establishes the Medicare Integrity Program (MIP) and implements program integrity activities that are funded from the Federal Hospital Insurance Trust Fund. This final rule sets forth the definitions related to eligible entities; services to be procured; competitive requirements based on Federal acquisition regulations and exceptions (guidelines for automatic renewal); procedures for identification, evaluation, and resolution of conflicts of interest; and limitations on contractor liability. This final rule brings certain sections of the Medicare regulations concerning fiscal intermediaries (FIs) and carriers into conformity with the Social Security Act (the Act). The rule distinguishes between those functions that the statute requires to be included in agreements with FIs and those that may be included in the agreements. It also provides that some or all of the functions may be included in carrier contracts.     

Funding reductions in fiscal year 1982. Health Services Administration. Notice

This notice announces: (1) Factors that the Health Services Administration (HSA) will use in determining which Community Health Center (CHC) projects to fund, and (2) restrictions on the type of project activities that will be eligible for Federal support under the CHC program. a reduced level of authorization of appropriations for section 30 of the Public Health Service (PHS) Act in the recently enacted Omnibus Budget Reconciliation Act of 1981 (Pub. L 97-35) is the reason for the announcement of these factors and restrictions.     

Medicare program; hospice wage index for fiscal year 2012. Final rule

This final rule will set forth the hospice wage index for fiscal year (FY) 2012 and continue the phase-out of the wage index budget neutrality adjustment factor (BNAF), with an additional 15 percent BNAF reduction, for a total BNAF reduction in FY 2012 of 40 percent. The BNAF phase-out will continue with successive 15 percent reductions from FY 2013 through FY 2016. This final rule will change the hospice aggregate cap calculation methodology. This final rule will also revise the hospice requirement for a face-to-face encounter for recertification of a patient's terminal illness. Finally, this final rule will begin implementation of a hospice quality reporting program.