Course Overview and Objectives

This course is a graduate level introduction to public finance and budgeting. Specific objectives are:

• to help you gain a better understanding of the framework of public finance;
• to discern and appreciate the political dimensions of fiscal policy and budgetary processes;
• to introduce and utilize specific tools central to public finance that serve public managers in decision making and the maintenance of contemporary budgetary systems;
• to relate and apply public finance to your own life, to issues facing our communities, state and country;
• and to help you further develop skills in critical thinking (i.e. analytic development, utilizing information sources purposefully, and discussing thoughtfully).

The course is not designed to produce budget specialists. Instead, PA587 provides a background for interested individuals to move on to advanced public finance courses and specialized position development.

Course Format

Students will acquire an understanding of public finance and budgeting through weekly seminars, assigned readings, exercises and handouts. The majority of our time will be spent in seminar format, which necessitates active participation on the part of the student.

Course Requirements

There is only one required text for the course: Fiscal Administration: Analysis and Applications for the Public Sector , Seventh Edition, by John Mikesell.

On a few occasions I will provide you with handouts to supplement our study of particular concepts and issues. You are, of course, responsible for these materials.

And there are, additionally, a number of books that I recommend to you because they are truly good resources for the interrelated subject matters we are surveying here:

Rhoads, Steven. 1985. The Economist's View of the World . Cambridge University Press.

Rosen, Harvey. 2002. Public Finance . Sixth Edition. New York : McGraw-Hill.

Stiglitz, Joseph. 2000. Economics of the Public Sector . Third Edition. New York : Norton.

Weimer, David and Aidan Vining. 2003. Policy Analysis: Concepts and Practice . Fourth Edition. New York : Prentice-Hall.

Wildavsky, Aaron and Naomi Caiden. 1997. The New Politics of the Budgetary Process . Third Edition. New York : Longman.

Your grade (the standard SHSU grading scale is in effect: 90-100 A, 80-90 B, and so on) will be determined by your performance on the following:

Midterm examination:     25%

Final examination:     20

Term Paper:       25

Paper Presentation:     10

Discussant       10

Participation       10

Attendance . Enrollment in the course will be taken as prima facie evidence of your commitment to complete the assigned work and make a significant contribution to this collective effort. Consequently, you are expected to attend each class, and missing three or more classes will result in a failing grade in the course. Obviously, in the event of extenuating circumstances or emergencies, you need to inform me in advance or with haste thereafter.

Class Participation . Week-in, week-out engagement and contribution is expected. This means preparing thoroughly for our meetings and being active in class discussions. There are distinct advantages in a seminar environment but remember, successful learning in a seminar format depends on everyone actively participating. At times, participation will include working on in-class exercises based on the day's assigned readings.

Examinations . PA587 includes two exams. The midterm examination will cover the introductory framework of public finance and public budgeting. The second and final examination focuses primarily on concepts and issues related to tax administration. Both exams will have a multifaceted structure, including exercises, multiple-choice, true-false, short-answer, identification, and longer essay questions.

Term Paper and Presentation . There is research-oriented paper (12-15 pages) required for the course. You will frame and analyze a mutually agreed on topic. You will also make a relatively brief presentation of your paper to the class.

Discussant . Once you will be required to play a leading role in the weekly discussion on the assigned readings, exercises and/or cases. This responsibility also requires the preparation of a short written piece (approximately two pages, and depending on what material you are synthesizing and leading us through, the memo format may be most appropriate).

Course Schedule

Part I: The Framework of Public Finance

Week 1 -- August 22

Course Introduction and Overview of Public Finance

No assigned readings

Week 2 -- August 29

Fundamental Principles of Public Finance

Readings : Mikesell , Ch. 1

Questions and Exercises: 1 and 2

Case: 1-1

Week 3 -- September 5

Intergovernmental Fiscal Relations

Readings : Mikesell , Ch. 14

Questions and Exercises: 1, 3

Case: 14-2

Part II: Public Budgeting

Week 4 -- September 12

The Logic and the Process of Budgets

Readings : Mikesell , Ch. 2

Questions and Exercises: 1-4

Cases: 2-1 and 2-3

Week 5 -- September 19

Budget Structures and Institutions

Readings : Mikesell , Ch. 3, Ch. 15 (pp. 575-579)

Questions and Exercises: 2-3

Case: 3-1; Appendix: 3-1

Week 6 -- September 26

Budget Methods and Practices

Readings : Mikesell , Ch. 4

Questions and Exercises: 1-3, 6-7, 9-10, 12

Cases: 4-1 and 4-2; Appendix 4-1 (read)

Week 7 -- October 3

Contemporary Budgetary Issues and Capital Budgeting

Readings : Mikesell , Ch. 5 and Ch. 6 (pp. 258-265)

Questions and Exercises: 2, 4; 2-4

Cases: 5-2; Appendix: 5-1 (read)

Week 8 October 10

Midterm Examination

Part III: Tax Administration and Economic Impacts

Week 9 -- October 17

Paper Round Table

Week 10 -- October 24

Evaluating Taxation and Income Taxes

Readings : Mikesell , Ch. 7 and Ch. 8

Questions and Exercises: 1-2; 1-7

Cases: 7-1; 8-1

Week 11 -- October 31

Taxes on Goods or Services

Readings : Mikesell , Ch. 9

Questions and Exercises: 1, 3-8

Case: 9-2

Week 12 -- November 7

Property Taxes

Readings : Mikesell , Ch. 10

Questions and Exercises: 2-5, 8

Cases: 10-1 and 10-2

Week 13 -- November 14

Collecting Taxes and Other Revenue Sources for Today's Public Sector

Readings : Mikesell , Ch. 11 and Ch. 12

Questions and Exercises: 1, 3-5; 3

Cases: 11-1; 12-1

Week 14 -- November 21

Revenue Forecasting and Estimating

Readings : Mikesell , Ch. 13

Questions and Exercises: 1, 3-5

Appendix: 13-1

Week 15 -- November 28

Presentations

Week 16 -- December 5

Presentations

Paper Due

Week 17 -- December 12

Final Examination