1. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Chapter 10: Staffing and Financing State and Local Governments Staffing State and Local Governments Paying for State and Local Government State and Local Government Spending Assessing State and Local Performance

2. Staffing State and Local Governments LO 10.1 Describe the hiring process for public employees, and assess attempts at reform and privatization. Staffing 19.7 million state and local government workers in 89,000 state/local govts Public employees—how hired Merit system—spread after 1900 Spoils system—1800s, fades after 1900 LO 10.1 Back to learning objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

3. Changes to Governing in recent times Reforming Personnel Systems gave managers more control to increase accountability less civil service protections Privatization of Public Services Also called “outsourcing” or “contracting out” Staffing State and Local Governments LO 10.1 Back to learning objectives

4. Paying for State and Local Government LO 10.2 Outline sources of revenue for state and local governments and associated issues and constraints. Pressures: (3 R’s) 1) revolt by taxpayers 2) recessions 3) reduction in fed grants Sources of revenue: federal grants—”block and cut” since Reagan user fees—growth, but issues of access Income tax—often based on federal income tax Sales tax—fluctuates wildly with economy property tax—difficulties with assessment excise taxes—small Severance taxes—depends on state resources LO 10.2 Back to learning objectives

5. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Other Sources of Revenue Legalized Gambling—growing (14 states with casinos; 28 with tribes running them; 45 with race track betting) Lotteries—growing (42 states) Borrowing—taxpayer resistance but makes sense in terms of who benefits Revenue and General Obligation bonds Paying for State and Local Government LO 10.2 Back to learning objectives

6. LO 10.2 Back to learning objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

7. LO 10.2 Back to learning objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

8. State and Local Government Spending LO 10.3 Identify the major expenditures of state and local governments. State and Local Government Spending $2.26 trillion spent in 2007 Education—little change over last decade Health—great increase in last decade LO 10.3 Back to learning objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

9. LO 10.3 Back to learning objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

10. Assessing State and Local Performance LO 10.4 Assess the challenges facing state revenue and management systems. States have trouble collecting taxes as technology changes—internet sales. States vary greatly in the economic and natural resources they may tax. States vary greatly in their administrative capabilities, but improving in financial and personnel management. LO 10.4 Back to learning objectives Copyright © 2011 Pearson Education, Inc. Publishing as Longman

11. A ___ system means people are hired through patronage. A.Merit B.Spoils C.Flexible D.Deregulated LO 10.1 Back to learning objectives

12. Copyright © 2011 Pearson Education, Inc. Publishing as Longman A ___ system means people are hired through patronage. A.Merit B.Spoils C.Flexible D.Deregulated LO 10.1 Back to learning objectives

13. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The biggest revenue source for state and local governments is ___ tax. A.Sales B.Corporate income C.Income D.Property LO 10.2 Back to learning objectives

14. Copyright © 2011 Pearson Education, Inc. Publishing as Longman The biggest revenue source for state and local governments is ___ tax. A.Sales B.Corporate income C.Income D.Property LO 10.2 Back to learning objectives

15. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Currently, the biggest category for spending is ____. A.Education B.Health C.Social services D.Environment LO 10.3 Back to learning objectives

16. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Currently, the biggest category for spending is ____. A.Education B.Health C.Social services D.Environment LO 10.3 Back to learning objectives

17. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Fiscal capacity is defined as ____. A.Collecting taxes on online purchases B.The economic resources a state may tax C.Financial management D.Employee management LO 10.4 Back to learning objectives

18. Copyright © 2011 Pearson Education, Inc. Publishing as Longman Fiscal capacity is defined as ____. A.Collecting taxes on online purchases B.The economic resources a state may tax C.Financial management D.Employee management LO 10.4 Back to learning objectives