1. Lesson 4: Budget Processes and Institutions
Justin Marlowe
PBAF 522 – Public Financial Management and Budgeting
Autumn 2015

2. Key Takeaways
Budget balance means different things in many different (political) contexts
The three "A"s of budgeting: authority, allocation, and allotment
Real-life government budget processes are quite different from the legal or statutorily-defined processes
Ballot initiatives are a core part of West Coast public finance, even though they fall outside the formal budget process

3. November Ballot Initiatives
Initiative 1366 (statewide) – decrease the sales tax rate from 6.5% to 5.5% unless the legislature refers to voters a constitutional amendment requiring two-thirds legislative approval or voter approval to raise taxes, and legislative approval for fee increases.”
Initiate 1401 (statewide) – outlaws trading in endangered species
Four statewide “advisory votes” on marijuana excise taxes, motor fuels taxes, others
King County charter amendment on law enforcement oversight
King County Prop. 1 – Children and families levy; $400 million1.4 “mils” for investments in pre-natal support, child development, etc.

4. November Ballot Initiatives
Initiative 122 (City of Seattle) – Publicly funded elections; $300 million; less than one-tenth of one mill
Proposition 1 (City of Seattle) – “Move Seattle” transportation levy; renews and increases our existing transportation levy; Six mills for $930 million over 9 years
Depending on where you live, dozens of other levies for general levy lid lifts, fire protection districts, water districts, marijuana legalization, etc.

5. Strategies for the “Budget Game”
Strategies that always apply:
Cultivate a clientele
Propose a study
Make friends with legislators
"Round it up“
"We have a crisis"
Strategies to fight cutbacks:
"Cut the main artery“
"Just take the whole thing“
"It's essential for public safety“
“It’s for the children”
“You Pick”

6. Strategies for the “Budget Game”
Strategies to expand a budget:
"It pays for itself“
Spend to save“
"Foot in the Door“
"It's just temporary“
"Finish what we started"

7. Strategies for the “Budget Game”
How to “balance” the budget
Rosy revenue estimates
One-shots
Inter-budget manipulation
Bubbles and timing (accelerated collections, usually)
Ducking the decision (supplemental appropriation next year)
Intergovernmental games - shift to another level
Magic asterisk – savings “to be identified”