Department of Urban and Regional Planning

Public Finance Management

The Course:

This course provides students with an overview of the issues that planners face in the public finance arena. Public finance tools and techniques relevant to planning in urban communities will be introduced and discussed during the semester. The semester is divided into three segments. During the first part of the semester, the readings and lectures will focus on core aspects of public budgeting and municipal finance that are of interest to planners in governmental settings. During the second part of the semester, the readings and lectures will examine techniques that enhance citizen participation in public budgeting and finance. During the last part of the semester, the readings and lectures will emphasize aspects of public finance that are relevant to community and economic development activities.

We will meet once a week for the next fifteen weeks. During each class session we will discuss the assigned readings and the financial analysis projects you will be working on during the semester. Everyone should be prepared to participate on a weekly basis. Regular and punctual attendance is required for full credit.

If you have any questions during the semester, please bring them to my attention. I will be available during my office hours and by appointment. Also, you may contact me using e-mail. The syllabus for this class is subject to change during the semester.

Required Text and Required Reserve Readings: *The required text are available at the UB campus bookstore*

1) White, Sammis B., Richard D.Bingham, and Edward W. Hill. (2003) Financing Economic Development in the 21st century. Armonk, New York: M.E. Sharpe.

2) Gianakis, Gerasimos A. and Clifford P. McCue. 1999. Local Government Budgeting: A Managerial Approach. New York: Praeger Trade.

3) Rubin, Irene S. 1998. Class, Tax, and Power: Municipal Budgeting in the United States. Chatham, NJ: Chatham House Publishing.

4) Simonsen, William and Mark D. Robbins. 2000. Citizen Participation in Resource Allocation. Boulder, CO: Westview Press.

5) Required Reserve Readings are available on electronic reserve in the UB Library

Note: In addition to the required readings it is suggested that students purchase a copy of a style manual (i.e. The Chicago Manual of Style, or a similar manual) to use as a reference when writing papers and other assignments during the semester.

Course Requirements:

Buffalo Budget Analysis: This is a group assignment. In this assignment students will examine the City of Buffalo’s most recent budget materials. This evaluation will include a synopsis of: the budget formulation and approval process, the city’s annual revenues and expenditures, and the role of debt in the budget. From this analysis, the class will propose a plan for expanding the role of community-based organizations and local residents in the city’s budget process. The Buffalo Budget Analysis will be discussed in greater detail during class on September 2. On October 14, students will turn in their plan for expanding community input in the budget process and present it to the class.

Exams: There will be two exams during the semester. Both exams are take-home and essay in nature. Each exam will be based on the course material preceding it in the syllabus. Exam questions will be distributed the week before the respective due dates. Exam 1 focuses on materials covered between August 26 and October 14. Exam 2 focuses on materials covered between October 28 and November 18. Questions for Exam 1 will be distributed at the end of class on October 14 and are due at the beginning of class on October 21. Questions for Exam 2 will be distributed at the end of class on November 11 and are due at the beginning of class on November 18.

Financial Analysis: A 12 - 15 page paper is due at the beginning of class on December 2.The paper should be based on library and applied research. In the paper students will examine the financial structure of a local governmental unit, community-based organization, or a local nonprofit organization, and make inferences about it using existing academic literature focusing on similar organizations. The financial analysis has two foci: to evaluate the financial structure of a selected organization, and to make recommendations for budget reform with a specific focus on enhancing citizen participation in the organization. The financial analysis will be discussed in detail during lecture on September 16.

Presentation: On December 2, each student will present a summary of the findings from his/her financial analysis. The presentation will be discussed in detail during lecture on November 18.

Class Participation: A portion of your overall grade will be determined by your weekly participation in class. Make sure you complete the assigned readings before each class, and be prepared to discuss them. Regular and punctual attendance is required for full credit.

Grading Policy:

There are 100 points possible during the semester. With the exception of extreme emergencies, the grade of ;I will not be given at the end of the semester. Extra credit will not be offered in this course. Your grade will be based on the following assignments and activities:

Grading Scale:

Academic Integrity:

Students are expected to approach the course with seriousness and integrity. It is important to complete assignments on time, attend class regularly, and foster a collegial learning environment. Plagiarism and other instances of academic misconduct will result in a failing grade on a respective assignment, exam, or paper. Students should refer to the University at Buffalo Graduate Catalog for clarification on the University’s policies and procedures.

Accommodations for Disabilities:

If you have a disability (physical, learning, or psychological) that impacts your course work please contact the Office of Disability Services (ODS), 25 Capen Hall, (716) 645-2608. ODS will provide you with information and review appropriate arrangements for reasonable accommodation (such as recruiting note-takers, readers, or extended time on assignments). You must bring requests for accommodations for a disability to my attention within the first two weeks of class.

SYLLABUS

August 26: Introduction to the Course

September 2: Foundations of Municipal Public Finance

Required Readings:

White, Bingham, and Hill: Ch 1, 2

Rubin: Ch 1, 3

Pack, Janet Rothenberg. 1998. ;Poverty and Urban Public Expenditures. Urban Studies, 35.11: 1995-2019. (RESERVE)

Other Activities:

Discuss Buffalo Budget Analysis

September 9: Budget Control and Management

Required Readings:

Gerasimos and McCue: Ch 2, 3, (Skim Ch 4, 5)

Rubin: Ch 4, 5, 6

September 16: Intergovernmental Revenues and Capital Budgeting

Required Readings:

Gerasimos and McCue: Ch 7 (Skim Ch 1)

Rubin: Ch 7, 8

Hawkins, William L. 1999. ;CDBG: A Practitioner Looks Back. Journal of Housing and Community Development, July/August: 26-32. (RESERVE)

Hoffman, Susan, Norman Krumholz, Kevin O’Brien, and Billie Geyer. 2000. ;How Capital Budgeting Helped a Sick City: Thirty Years of Capital Improvement Planning in

Cleveland. Public Budgeting and Finance, Spring 2000: 24-37. (RESERVE)

Other Activities:

Discuss Financial Analysis

September 23: Revenue Sources: The Property Tax

Required Reading

Rubin: Ch 2

Bell Michael E. and John H. Bowman. 1991. ;Chapter 6: Property Tax. In John E. Peterson and Dennis R. Strachota, (Eds.), Local Government Finance: Concepts and Practices (pp. 85- 111). Washington, D.C.: Government Finance Officers Association.(RESERVE)

Lentz, Corliss. 1998. ;Why Some Communities Pay More than Others?: The Example of Illinois Teachers. Public Administration Review, 58.2: 137-144. (RESERVE)

September 30: Revenue Sources: Non-Property Tax, Fees and Charges

Required Readings:

Gerasimos and McCue: Ch 6

White, Bingham, and Hill: Ch 5

Elkins, David R. and Eline B. Sharp. 1991. ;Living With the Tax Revolt: Adaptations to Fiscal Limitations. Public Administration Quarterly, Fall: 272-286. (RESERVE)

Mikesell, John L. 2003. ;Chapter 11: Revenue from User Fees, User Charges,and Sales by Public Monopolies. In John L. Mikesell, Fiscal Administration: Analysis and Application for the Public Sector, Sixth Edition (pp. 430-458). Belmont, CA: Wadsworth Publishers. (RESERVE)

October 7: Citizen Participation in Public Finance

RequiredReadings:

Simonsen and Robbins: All

Callahan, Kathie. 2000. ;Citizen Participation Run Amok. Public Productivity and Management Review, 23.3: 394-398. (RESERVE)

Ebdon, Carol. 2002. ;Beyond the Public Hearing: Citizen Participation in the Local Government Budget Process. Journal of Public Budgeting, Accounting & Financial Management, 14.2: 273-294. (RESERVE)

October 14 : Buffalo Budget Analysis - Presentation

Other Activities:

Distribution of Questions for Exam 1

October 21: Financial Analysis Check-Up

Other Activities:

Exam 1 Due

October 28: Debt Finance and Special Districts

Required Readings:

Gerasimos and McCue: Ch 8

Peterson, John E. and Thomas McLoughlin. 1991. ;Chapter 14: Debt Policies and Procedures. In John E. Peterson and Dennis R. Strachota, Eds., Local Government Finance: Concepts and Practices (pp. 263-292). Washington, D.C.: Government Finance Officers Association.(RESERVE)

Porter, Douglas R. 1990. ;Chapter 9: Financing Infrastructure with Special Districts. In Susan G. Robinson Ed., Financing Growth: Who Benefits? Who Pays? And How Much? (Pp. 149-155). Washington D.C.: Government Finance Officers Association.(RESERVE)

November 4: Tax Increment Financing and Enterprise Zones

Required Readings:

White, Bingham, and Hill: Ch 3, 4, 6, 8

Haulk, Jake and Eric Montari. 2001. ;In Search of a Good TIF: A Case Study of Pittsburgh. Municipal Finance Journal, 22.1: 65-77. (RESERVE)

November 11: Financing Place-Based Community Development

Required Readings:

White, Bingham, and Hill: Ch 11, 12, 13

Baer, Susan E. and Vincent L Marando. 2001. ;The Subdistricting of Cities: Applying the Polycentric Model. Urban Affairs Review, 36.5: 721-733. (RESERVE)

McKenzie, Evan. 1998. ;Homeowner Associations and California Politics: An Exploratory Analysis. Urban Affairs Review, 34.1: 52-75. (RESERVE)

Mitchell, Jerry. 2001. ;Business Improvement Districts and the ‘New’ Revitalization of Downtown. Economic Development Quarterly, 15.2: 115-123. (RESERVE)

Other Activities:

Distribution of Questions for Exam 2

November 18 and 25: Financing Local Entrepreneurs

Required Readings:

White, Bingham, and Hill: Ch 9, 10 (Skim Ch 15, 16, 17)

Ehlers, Tracy Bachrach and Karen Main. 1998. ;Women and the False Promise of Microenterprise. Gender and Society, 12.4: 424-440. (RESERVE)

Servon, Lisa J. 1997. ;Microenterprise Programs in U.S. Inner Cities: Economic Development or Social Welfare? Economic Development Quarterly, 11.2: 166-180. (RESERVE)

Other Activities:

Exam 2 Due - November 18

Discuss Financial Analysis Presentation - November 18

Fall Recess November 26 - 28

December 2: Financial Analysis - Presentation

Other Activities:

Financial Analysis Due