Study Suggestions for Midterm Examination

PADM 5301

Dr. Neubauer

These are suggestions and are not intended to be a comprehensive list of what may appear on the midterm examination. Please refer to our textbook, your class notes and the "speaking notes" posted on the web as you prepare. The test will be a combination of types of questions including essay.

1) Why is it often impossible to make objective/quantitative judgments regarding spending decisions involving different kinds of public needs?

2) Why is the rational comprehensive model of decision making not rational? What is instrumentalism, as applied to public budgeting? What are the benefits of instrumentalism?

3) What is a sunk cost? Why do elected leaders often have difficulty accepting sunk costs and moving on?

4) What is a sunset provision written into a law creating a new program and/or agency? What is the intent/purpose of a sunset provision?

5) Which branch of government (legislative, executive or judicial) usually prepares the initial budget proposal?

6) What is the usual consequence of major wars and other serious events regarding the size of government and the amounts of budgets over time?

7) Which of the three "levels" of federalism is best able to raise large amounts of revenue? What is the working relationship among the levels of government in terms of raising money and in terms of spending money and managing local programs?

8) What is the major source of government revenue at the national level? What are the major sources of government revenue at the state and local levels? Why are "real" property taxes "a pain" to administer?

9) Identify and briefly describe each of the four phases of the budget cycle.

10) Why is it essential that the executive branch of government (an any level) have people permanently employed with expertise in public budgeting?

11) If not technical expertise, what is it that elected leaders contribute to the preparation of new budget proposals?

12) If you were mayor of a city and your desire was to really take change of things and push though your policy priorities, why would you want the government to be a "strong mayor" form rather than a "weak mayor" form. (It must be evident in your answer you know the difference between the forms.)

13) What is "pork" or "pork barrel spending?" Why does it continue to exist?

14) Why is it necessary to estimate the economic future before preparing a new budget for an entire government?

15) What is the difference between entitlements (and mandates) and discretionary spending?

16) How do agency representative usually "behave" in the phase of the budgetary process in which the new proposal is being developed?

17) Do budget staff professionals tend to be "cheerleaders" or "cutters" in the phase of the budgetary process in which the new proposal is being developed?

18) In terms of budget execution, what is apportionment, and what are allotments?

19) Why does intergovernmental relations have serious implications for public budgeting?

20) What does it mean that a tax is progressive? Please give an example of a progressive tax.

21) How does modern information technology facilitate the collection of sales taxes?

22) What are homestead exemptions and circuit breakers (regarding real property taxes)? What is the purpose of them?

23) If the intent of a sales tax is to raise large amounts of revenues for government, is it better that the demand for the thing taxed by inelastic or elastic? Why? (Explain the key concepts.)

24) If the intent of a sales tax is to influence the behaviors of citizens, is it better that the demand for the thing taxed by inelastic or elastic? Why? (Explain the key concepts.)

25) PLEASE ALSO REFER TO THE LIST OF 26 QUESTIONS on the speaking notes from February 9, 2010.