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Public Administration - The Budgets

Hello,

I would appreciate your assistance with the following questions. Please provide any other references used.

Thank you!

1. Based on the e-Activity (http://www.michigan.gov/budget), dissect the Michigan state budget and the other two (2) state budgets you found, and classify each as either a traditional or a program budget. Justify your classification. (Provide a 100 word or more response). Please respond in the following format:

Michigan: Classify as either a traditional or a program budget. Justify your classification.

Other State 1: Classify as either a traditional or a program budget. Justify your classification.

Other State 2: Classify as either a traditional or a program budget. Justify your classification.

2. Identify and explain the use of the selected budget classification system(s) used for each of the three (3) state budgets. (Provide a 100 word or more response).

References:

Visit the following Web site: http://www.michigan.gov/budget. Review Michigan's state budget.

Mikesell, J. L. (2010). Fiscal administration: Analysis and applications for the public
sector (8th ed.: 2010 custom edition). Mason, OH: Cengage Learning.

Solution Preview

Please refer to the attached file for the response.

BUDGETS AND CLASSIFICATIONS

I. BUDGET AND CLASSIFICATION
Budget is defined by Keown et al. (2002) as a forecast of future events. To these authors, a budget performs three functions: 1) to indicate the amount and timing, 2) to provide the basis of taking corrective actions, and 3) to provide the basis of performance evaluation.

Basically budgeting may be classifiied into traditional and program-based. Traditional budgeting focuses more on controlling expenditures than on the outcome that is intended to be achieved. As such, the emphasis is on allocating a certain sum of money for specific expenses. A state that uses a traditional budgeting system focuses more on what would be bought out of the money that would be appropriated than on what services must be provided to the constituents.

A programs-based budgeting is also called an outcome - based. Opposite to traditional, the focus is on programs and results. As such, goals are determined, strategies are designed to attain such pre-determined goals, and measures are identified to determine the ...

Solution Summary

The budgets in public administration are examined. Tradition or program budgets are examined for e-Activity.

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