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Toward a budget theory for local government: Reconciling incremental and determinants approaches

The objectives of this study are to initiate the sorting out of the many and varied effects of environmental and internal factors on local government budgetary decision making and to consider the outcomes of local government budgeting in light of these influences. The ultimate purpose of this study is to build a new budgetary model for local governments which better reflects the reality of budget practice. Combining incremental and expenditure determinants approaches provides a useful framework to this problem. Merging these approaches builds upon the strengths of each while offsetting their respective weaknesses. / Dade County, Florida, is selected as a case study and the data on total appropriation and ten functional areas over a twenty-six year time period have been collected. Initially, twenty-three explanatory variables deemed to be important in explaining local government budget making were gathered, and were reduced to eight factors by using principal component analysis. The Hatanaka two stage least squares technique was used for the analysis. / The economic base and intergovernmental aid are the two most important factors associated with the level of local government spending. It was found that, however, incrementalism is not as powerful as found by other studies in explaining local government budget decisions. The several programs in which incremental decision making prevail are allocational in nature. / Executive leadership appears to have significant impacts on several programs. Although no systematic pattern of influence was revealed, it is likely that executive leadership plays a major role in determining the goals and policies of the government during times of retrenchment by controlling and adjusting department budget requests to the fiscal capacity that the government can encompass. / A "Capacity-Process" budget model was developed based on the findings of this study. This budget model is descriptive in nature and contains major variables found important in this study. / Source: Dissertation Abstracts International, Volume: 50-12, Section: A, page: 4096. / Major Professor: Gloria A. Grizzle. / Thesis (Ph.D.)--The Florida State University, 1989.

Identiferoai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_78122
ContributorsPark, Chong Goo., Florida State University
Source SetsFlorida State University
LanguageEnglish
Detected LanguageEnglish
TypeText
Format223 p.
RightsOn campus use only.
RelationDissertation Abstracts International

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