1. Introduction to State and Local Government PP105-01 Sheila Toppin, DPA (abd), MPA

2. Welcome to Unit 2 Seminar Ice Breaker Availability – Office hours: Monday & Wednesdays 6:00 to 8:00 pm EST (AIM ID: Sheila Toppin, by telephone) – Appointments: call or send an email message Unit 1 Review – DB feedback – Quiz Questions???

3. Unit 2 To-Do List Readings: eBook Ch 10 - 12 Discussion (1 Topic) Seminar Quiz – (See the To-Do Checklist PDF that is available in the classroom to keep track each Unit)

4. Questions or Concerns? Questions… – about the syllabus? – about Unit 2 requirements? – about rubrics or feedback?

5. Unit 2 Seminar Topics Consider the Public Administrator’s Role – Public management at the local level Examine Local Government Functions – Facts, Expenditures, Revenue, Budget Discuss Challenges for Local Governments – Limits of power, Intergovernmental relationship, public misunderstanding, political ideologies Case Study

6. Local Government Facts – 87,000 local governments in U.S. (1 local government for every 3,450 people). – The form, responsibilities and powers they exercise varies from state to state. – Geographical territory varies from villages covering less than a square mile to counties covering 125,000 square miles. – Political environment, cultural traditions, and citizen loyalty varies from government to government. – Counties cover the largest geographical territory, thus they bear most of the burden of providing local services.

7. Local Governments

8. Local Government Public Administrator’s Role (Mayor, Council members, Commission) – Elected Officials (non-partisan elections) & Administrators – Fiscal Policy (budget, revenue, expenses) – Human Resources (recruitment, retention, payroll, benefits – local gov’t employees) – Community Relations (customer service) – Community Development (stakeholders) – Economic Development (revenue) Questions???

9. Local Government Services & Expenses (Expenditures) – Wages – Education – Parks and recreation services – Public Safety (police and fire departments) – Housing services – Emergency services (911, medical, EBS) – Municipal courts – Public transportation services – Public works (streets, sewers, snow removal, signage)

10. Local Government Income (Revenue) – Tax Systems Progressive – tax rate paid reflects the ability to pay. Regressive – tax rate paid by all taxpayers, regardless of income or ability to pay. – Types of Taxes Sales – 38 % of revenue raised, but 80% goes to state government. Property – 31% of revenue raised, but 98% remains with local government. Majority of local government revenue (73%) and main source of revenue for school systems.

11. Local Government – Types of Taxes con’t. Personal Income – 22% of all state and local tax revenues. Local Option Sales Tax – Referendum (entire electorate, or even state or country is asked to vote on whether to accept or reject a particular proposal). – Total Income: In 2006, U.S. residents paid approximately $12,122 in local, state, and federal taxes per person ($1.45 trillion) Questions???

12. Local Government Other Forms of Revenue – Tuition – Sewage and water treatment – Utilities – Highway tolls – Excise (Sin) Taxes on alcohol, tobacco, etc. – Severance taxes on natural resources – User fees – Bonds (promise to pay back borrowed money at a fixed rate of interest on a specific date. loans on their maturity.

13. Local Government Credit Rating – The ratings are issued by three private companies— Moody’s, Standard and Poor’s, and Fitch—based on the governments’ fiscal health; – Many states’ bond ratings fell during the recent budget crisis. – AAA is the best, anything lower than BBB is considered “junk bond status” – Municipal bonds, or “munis” to bond traders, are generally safe and attractive investments, particularly for the rich. Questions???

14. Local Government Budget Process – The procedure by which state and local governments assess revenues and set budgets. – Most state and local governments budget for one fiscal year (The accounting period used by a government.) – Fiscal Accountability = Balanced Budget (expenditures are equal to or less than income) Questions???

15. Local Government Challenges – Limits of Power: Local governments deliver a broad range of public services and they have broad authority (levy taxes, pass regulations and ordinances), but have no sovereignty (derive their power not from the citizens they serve, but from the government immediately above them). – Intergovernmental Relationships: The U.S. is a federation (state governments and the federal government are co- equals), however, states are not federations (state and local governments are not equal partners) so state governments are free to intervene in local arrangements as they please. State funding is discretionary.

16. Local Government Challenges Con’t. – Public Misunderstanding: Public has limited understanding of how state and local governments raise money because the taxes that state and local governments impose are less visible. – Political Ideologies: Budgets are the subject of some of the most intense political struggles in state and local politics (and federal). Questions???

17. Local Government Case Study: Johnson City, TN City Manager http://icma.org/en/Article/100445/Johnson_City_TN_P ete_Peterson_receives_Manager_of_the_Year_Awa rd 1.Identify one of Peterson’s accomplishments? 2.Why do you think Peterson has been successful?

18. Unit 2 Seminar Summary Considered the Public Administrator’s Role – Public management at the local level Examined Local Government Functions – Facts, Expenditures, Revenue, Budget Discussed Challenges for Local Governments – Limits of power, Intergovernmental relationship, public misunderstanding, political ideologies Case Study – Johnson City, TN Manager Final Questions??? Dismissal