Diversity of budget process at the state level

Diversity of budget process at the state level Name: Course: Instructor: Date:  1) According to Table 1, how many states require more than a simple majority to pass the state’s budget [identify the number of states and name the states]? Which state requires the highest percentage of votes in the legislature to pass its budget? Explain what implications this might have for operations in that state [Hint: use ideas from the readings in this module to enhance your explanation]. A simple majority represents more than 50 % of votes, and this typically means 51 % or more to pass the state budgets by the legislators. At the time of preparing the document on budget process in the summer of 2008 there were four states that required more than a simple majority: Arkansas, California, Mississippi, and Rhode Island. However, nowadays California has approved a vote requiring a simple majority through Proposition 25. Arkansas has the highest percentage required to pass state budget at three fourths which is 75% of votes. The three- fourths rule in Arkansas would facilitate compromise between the majority and minority members of the legislature. Unless the state has special sessions it is difficult to approve state budgets with three fourths majority because of increased partisan vote, although Republicans outnumber Democrats they are almost equally divided among the state legislators 2) Based on Table 2, in which five states does the state’s budget agency have the highest level of responsibilities [note: Table 2 contains 14 columns and is listed on two pages in the report]? Explain what this might imply for the operations (e.g. budget preparation and delivery of state services in general) in those states [Hint: use ideas from the readings in this module to enhance your explanation]. The five states with most responsibilities for state budget agencies are: California, Indiana, New York, Wisconsin and Washington (NASBO, 2008). When tasked with many roles, state budget agencies have the responsibility to accomplish more than other states. Thus, it may take longer time to get budget estimates approved in these states. Furthermore, the budget proposals can be larger than in other states because it is expected that there will be more provision of public goods and services. Equally, such states require more time for analysis of their budget estimates, and delivery of services may take long, as there is more scrutiny on public expenditure throughout the budget making process. At the same time, the public service sector in these states is likely to be larger to scope with more responsibilities of public service provision. 3) A new state has been incorporated into the United States; you have been asked to provide advice on the number of years that the Governor’s budget should project revenues. You consult Table 7 in the NASBO report in order to determine what other states are doing. What recommendation would you make, and WHY?[Hint: the 'average' projection for existing states or the idea that a majority of states use a particular revenue projection are not acceptable recommendations; use ideas from the readings in this module to enhance your explanation] In the budget process, all the estimates of revenue and expenditure are noted down for each fiscal year. However, projecting estimates is an essential step in the budgeting process. Even though, there is no agreeable criteria for time duration, 5 years is adequate for a new state with estimation being updates twice in a fiscal year in the month of October and March. This is because after each election cycle there are new legislators who may improve on budgets through focusing on projected revenue. Similarly, after five years projection of business cycles is more certain. Furthermore, a five year cycle allows the governor to asses the impact of macroeconomic forces on the state economy. However, the revenu...