Targeting in Economic Development: Comparative State Perspectives

This article examines recent efforts to target state industrialpolicy along three dimensions: sectoral aid to specific businessesor economic activities, geographic aid to growing or decliningregions, and direct assistance to the unemployed. While thestates have done better with sec-toral targeting than opponentsof a federal industrial policy have feared, industrial policymust compete with many other state programs, including moretraditional economic development efforts based on advertisingand tax expenditures. Only a few states have managed to channelmuch state aid to displaced workers or distressed communities.Despite some evidence as to the success of industrial policyfocused on limited areas or activities, dilution of policy focusand underinvestment of resources characterize state industrialpolicy efforts to date.     

General-Purpose Aid in New York State: Targeting Issues and Measures

This article explores key questions about targeted versus distributiveaid policies within the context of New York's general-purposestate aid program. Development of that program over the pastforty years shows ebbs and flows of support for both targetedand distributive approaches. Intense policy debates concerninglocal fiscal policies occur as part of annual state budget negotiations,although recently, New York policymakers have favored targetedapproaches. Yet the traditional measures of targeting governmentalneeds, such as differences in fiscal capacity and effort, havebeen expanded to emphasize differences in service responsibilities.Strong, and perhaps ironic, parallels are also evident betweenNew York's program and the now defunct federal revenue sharingprogram.     

Education Aid in New York State: Targeting Issues and Measures

The distribution of state aid for public education in New Yorkis the result of a combination of political and educationalconcerns. They influence the amount of school aid distributed,the pattern of aid distribution among school districts, thetypes of programs funded, and the accountability required forthese funds. This article focuses on the forces that influencethe split between general state aid and targeted state aid.General aid refers to aid that districts may use for any purposeconsistent with local priorities or needs. Targeted aid is moneyprovided by the state to a district for a particular purpose.When a district accepts targeted aid, it must agree to spendthe funds in accord with specific statutes or regulations. Considerationsof equity, mechanics of state aid distribution, and the historyof the development of school aid legislation are also discussedin this article.     

再论构建新国家与良政政府

现世中国之崛起,决定了构建现代化的“新国家”,已然成为新时期中国政府的历史使命。为此,必须构建良政政府。新时期良政政府的基本的公共管理选择,除“构建新国家与良政政府”所述有限政府、开明政府外,还包括有效政府、法制(法治)政府、理性政府。     

Targeting Federal Grants: The Community Development Experience, 1950-1986

This article examines the degree to which federal communityand economic development programs target federal assistanceto the nation's neediest communities. Grant allocations to citieswith populations of 50,000 or more were examined for six majorfederal urban programs during 1950–1986. Federal programsthat include both needs-based eligibility and allocational featureswere found to achieve the highest levels of targeting. The analysisfurther shows that while urban conditions in the nation's mostdistressed cities continued to deteriorate during the 1980sin both relative and absolute terms, grant allocations underthe major federal urban program, Community Development BlockGrants, have not responded to the changing incidence of urbanhardship.     

The Development of Competitive Industries: The Role of State Government Actors

Despite widespread adoption of Porter's Industrial Cluster Theory as a policy development framework by federal and state governments over the past decade, Australia remains significantly below the OECD average in terms of its industries' economic contributions to real wealth creation ( Brown 2000 ; OECD 1998 ). The major cause cited for this relatively poor performance has been inability of key government officials to implement effective industry policy that simultaneously avoids de facto protectionism and distortion of competition. This article provides an insight into the key policy decisions undertaken by the Tasmanian state government that coincided with development of an internationally successful shipbuilding industry in that state. As such, this article provides a reflection on policy initiatives that may be valuable for government officials elsewhere.     

The Impact of Proportional Representation on Government Effectiveness: The New Zealand Experience

It is often claimed that proportional representation (PR) undermines government effectiveness, including decisional efficacy, fiscal prudence, electoral responsiveness and accountability. Drawing on New Zealand's experience since the introduction of a mixed-member proportional (MMP) electoral system in 1996, this article examines the impact of the new voting system on government effectiveness. Although government durability has been substantially reduced and the policy-making process has become more complex, governments under MMP appear to be no less able to address major policy problems or respond to changing economic circumstances. Moreover, New Zealand has maintained continuous fiscal surpluses under MMP — a radical departure from the protracted, and often large, deficits that characterised the previous two decades under a majoritarian electoral system.     

Fiscal Reaction to State Aid Uncertainties: Evidence from New York State

Late budgets have become increasingly present across the states and especially persistent in states such as New York and California. The combination of delayed states budgets and institutional constraints may trigger specific budgetary strategies. Uncertainty over state aid may lead school districts to over‐ or underestimate school budgets, which ultimately may have an effect on real property taxes and the amount of education consumed. Evidence from New York State school districts suggests that school districts react to uncertainty in the state budget through a combination of revenue, expenditure, and fund balance changes. The findings suggest that districts engage in “gaming” the institutional constraints, and tend to build up large fund balances as a response to perceived uncertainty.     

Potential Challenges to Targeting Low- and Moderate-Income Communities in a Time of Urgent Need: The Case of CDBG-DR in New York State after Superstorm Sandy

New York State received $4.5 billion in Community Development Block Grant-Disaster Recovery (CDBG-DR) funds after Superstorm Sandy. A major CDBG-DR requirement is to prioritize assistance to low- and moderate-income (LMI) populations. The state is spending two fifths of funds on community-wide (e.g., infrastructure) recovery activities. For these activities to be documented as LMI, a specified percentage of residents benefiting from them must be LMI. We explore the potential tension between addressing community recovery needs and prioritizing LMI assistance. Specifically, we develop a series of scenarios to estimate the likelihood that any community-wide activities will be documented as LMI in New York State. We find that documenting these activities as LMI is largely dependent on the underlying demographics of disaster-impacted areas. Additionally, as recovery activities increase in size, thereby impacting larger populations, they are less likely to be documented as LMI, potentially disincentivizing larger, more impactful investments. We recommend empirically based LMI targets for CDBG-DR grantees.     

The Development of Local Discretionary Authority in New York

Central control of cities was established policy during thecolonial period. The policy was continued after independence.By 1839, all cities were allowed to elect their mayors, anda movement commenced to limit the powers of the legislatureover local governments. An 1874 constitutional amendment forbadethe legislature to enact a special or local bill in seven areas,and the 1894 constitution allowed a city to veto a special cityact, subject to repassage by the legislature. Although constitutionalamendments in 1923, 1935, 1938, and 1963 broadened local powers,the Court of Appeals in the 1920s and 1930s tended to restrictthe powers of local governments. The most important changesin the powers of local governments have occurred since 1980as the result of advisory opinions, issued by the attorney generaland state comptroller, broadening the powers of local governments.Nevertheless, the legislature retains the authority to enactgeneral laws imposing mandates and restraints upon local governments.Such mandates and restraints are responsible for New York beingranked thirty-fifth in terms of discretionary authority grantedto local governments.     

Closing institutions in New York State: implementation and management lessons.

This article examines the lessons learned about implementation and management from the closing of six large institutions for people with mental retardation in New York State. Unanticipated problems occurred, despite special attention to implementation issues in policy design and demonstrated management capacity in similar circumstances. A study of the closure experience showed that subtle but important changes in policy as well as changes in the context of implementation confounded the reasonable expectations of success that policymakers, managers, and analysts would normally have under these circumstances. A closer look, however, suggests that this experience should not be surprising. A more appropriate understanding of the role of policy, policymakers, and managers in implementation suggests that the burden falls heavily on middle managers, and that policy management capacity and an intergovernmental management perspective are crucial to implementation success. Moreover, this experience suggests that a broader definition of success that encompasses this normal turbulence of implementation provides a better appreciation of the requirements of implementation.     

Economic Development Planning as a Relay: Dayton's Experience

This article examines the impact land effectiveness of a shift from traditional public sector-led and old-style business-led approaches to local development to a more integrative and innovative planning process of broad-based community involvement. Through a careful analysis of Dayton's economic transformation, this article explores the importance of combining public sector, university, business and grass root community interests to arrive at a region-wide planning process in which all these disparate elements share responsibility and identify their goals for local development.     

The Failure of Success in Natural Resource Policy: Pacific Salmon Harvest Policy in New York State

Natural resource management policies like the Pacific salmon harvest policy developed by New York State often did not anticipate the extent of social, economic, and ethical concerns that would be generated, largely because the agency concentrated on biological considerations. The number of concerned stakeholders grew in proportion to both the success and failure of the initial policy. Had all participants been equally willing to recognize both the successes and the failures, development of a revised policy through group negotiations may have been possible, resulting in a cooperative mode of decision making. Instead, institutional mechanisms based on legislated process were ultimately the approach chosen for policy revision.     

Informing State Economic Development Policy in the New Economy: A Theoretical Foundation and Empirical Examination of State Innovation in the United States

This study considers recent evidence of state innovation capacity in order to better understand where new economy–type economic development is likely to occur and, by extrapolation, where strategies geared toward such growth are more likely to succeed. The research focuses on data from the National Science Foundation's State Science and Engineering Profiles, supplemented by data from other sources. Factor analysis was performed on this data set to observe underlying common factors that explain the variability of the original data in fewer dimensions. The resulting factor scores—human capacity and financial capacity—were used to classify states into four categories of new economy resource density: lagging, low, developing, and progressive. The scores for the two resulting factors were then used as independent variables in subsequent regression analyses, demonstrating positive correlations among innovation capacity resources, actual innovations, and overall state economic performance.     

Political Cultural Variations in State Economic Development Policy

The impact of political culture on state politics has been investigatedwidely, but little is known about the relationship between politicalculture and economic development policy, even though such policiesplay a prominent role in contemporary state politics. DrawingonDanielJ. Elazar's analysis of American political subcultures,I suggest that moralistic, individualistic, and traditionalisticvalues imply quite different strategies for promoting economicgrowth Empirical evidence shows that moralistic states pursuestrategies that emphasize solidarity, while individualisticstates employ policies that confer particularistic benefitson investors. For their part, policymakers in traditionalisticstates prefer exclusionary incentives that tend to reinforceexisting patterns of domination. Whether any of these strategiessucceed in realizing their cultural objectives remains to beseen; however, actions that positively affect economic performancemay lead to the erosion of cultural values by triggering migrationsthat bring new values into play.     

State Financial Management Systems: The Connecticut Experience

Budgeting has gone from being a cyclical event to an ongoing process with continuous data needs. This transformation has increased the need for states to have an information system to keep track of the data bases that support the budgetary process. This article discusses the creation of such a system in Connecticut.     

State Environmental Regulation and Economic Development: Are They Compatible?

An underlyingussumption of the partial preemption apprmh is the belief that minimum federal standmds contribute to the prospective decentralization of environmental protection programs by removing or reducing industry incentives to shop aroundfor states with a more lenient regulatory stance. This assumption was examined through a survey of chief executive oficers of pollution-generating firms. Tlze data suggest that corporate officials see regulatory climate m an important component of overhead ctxits. The author concludes that the desire to retain industries within state boundaries does inhibit the promulgation of strict environmental regulat ions by public officials.     

新时期政府经济职能探讨

我国正处于经济体制转轨和工业化进程的中期阶段,又面临着入世后的种种机遇与挑战,此时的政府应履行怎样的经济职能呢?通过对政府经济职能的纵向历史发展和横向现实比较可以得出现阶段我国政府应具有的主要经济职能。