Case Study: Organizational Structure & Culture Assignment Instructions Overview In this Case Study, you will apply the Statesmanship model discussed in Module 1: Week 1 to a real, specific publi

Federalism Research Paper

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PADM600: Politics & Policy of Public Sector Budgeting

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Federalism Research Paper

The national, state and local levels are all responsible for developing their respective budgets. As you have seen, a significant portion of the arguments surrounding public budgets is founded on fundamental presumptions concerning the function of government and the boundaries of its authority. Similarly, many debates are sparked by assumptions regarding which level of government—local, state, or federal—has been adequately authorized to act on behalf of the people and is in the most advantageous position to do so in each domain. These debates very quickly become public budgeting issues, given that budgets are ultimately the means by which governments act. Because budgeting takes place at all levels of government, from the federal government to state governments and local governments, it is crucial to understand the concept of federalism to understand the politics and policy underlying public finance management. Each tier of government is in charge of its own budget and is responsible for a distinct collection of powers and responsibilities. These tiers of government are also required to adhere to their own spending caps. Because each level of government may have its own priorities and may not always be able to reach a consensus on how to make the most effective use of limited resources, this can sometimes lead to conflict between the various levels of government.

Federalism and Limited Federal Government

Federalism is a system of government that involves the distribution of power between a central government and subnational entities. This system is one of the types of government structures. The concept of federalism in the United States refers to a political structure in which the federal and state governments work together to accomplish specific goals while maintaining their individual authority. The Constitution gives the federal government authority over some issues, such as taxes and regulating businesses that operate across state lines, while reserving control over other matters to the states individually. This separation of powers ensures that the federal government has only a limited amount of authority and that the individual states are free to experiment with their own forms of democratic rule (Williams, 2014). Both of these benefits come directly from the separation of powers.

Federalism is a political theory that helps ensure that the legislative and executive branches of government maintain their political autonomy from one another. The Constitution grants the president the power to veto legislation, and the Supreme Court has the authority to strike down laws because they violate the Constitution. Because of these safeguards, the government agency cannot gain undue influence over others. A further benefit of federalism is that it helps maintain parity between the central government and the various state governments. The Constitution grants the power to regulate commerce within each state's borders to both the federal government and the individual states. The states can experiment with new legal and policy frameworks while remaining subordinate to the federal government's authority, thanks to the separation of powers (Minat & Mostaev, 2020).

The politics and policies surrounding the public budget have been significantly influenced by federalism in various ways. One institution that would not exist without federalism is the non-partisan Congressional Budget Office (CBO), which is responsible for analyzing the federal budget. As a direct consequence of federalism, an office known as the Office of Management and Budget (OMB) was established, and its primary responsibility was to draft the president's proposed budget.

Federalism Impact on Federal Level Public Budgeting

It is possible that the federalist system will double impact the national government's spending. The first way federalism affects the process of creating a budget is by adding complexity and fragmentation, both of which can make it more challenging to create and adhere to a reasonable budget. The second way federalism can impact the budget is that it promotes competition between governments, which can lead to an increase in wasteful spending and the duplication of services. Federalism can potentially affect the process of developing and implementing a budget by adding complexity and fragmentation, both of which can make it more challenging to develop and implement a reasonable budget. Introducing yet another level of complication into the process of developing the budget can be an extremely challenging endeavor. This is because the methods of budgeting that are used by the various branches and levels of government are not the same. This may make it more challenging to coordinate and manage the budget and develop and implement an adequate budget (Sloan & Grizzle, 2014).

Federalism can have a negative effect on public expenditures by encouraging wasteful spending and the provision of unnecessary services. This is because increased competition between state and local governments can have a negative effect on public expenditures. This is the case due to the cutthroat competition between the various levels of government to obtain the most outstanding possible share of the funding provided by the federal government. Attempts by different levels of government to one-up one another can result in spending money that is not necessary. When at least two distinct levels of government are involved, the same services can be provided twice.

Federal Agency Impacts Spending on Public Budgeting

The spending of the various federal agencies tasked with implementing and maintaining public-facing programs and services has a significant impact on the federal government's budget. The amount of money that the federal government spends on its various agencies has a significant impact on the finances of local governments. In the year 2000, the federal government spent a total of $2.3 trillion on its various agencies. This was approximately twenty percent of the total budget for the federal government. This funding takes care of the salaries, benefits, and other expenses that are associated with the operation of federal agencies. In addition, it contributes financially to the provision of public services and programs by the respective organizations.

The federal government's spending on various agencies has a number of different effects on the public finances. To begin with, it has an impact on the total size of the budget for the federal government as a whole. In the year 2000, the proportion of the total federal budget that was allocated to spending on agencies was approximately twenty percent. These expenditures can be linked to either the deficit or the surplus in the federal budget. The surplus may increase if spending reductions are implemented across government agencies (Phaup, 2018). Increasing expenditures at the agency level will result in a more significant deficit.

Second, allocating funds to agencies can influence the budgetary priorities of other government departments. The programs and services that federal agencies provide are the ones that do the best job of catering to the needs of the general public. For these initiatives to succeed, sufficient personnel, infrastructure, and other types of materials are essential. The government considers its priorities before deciding how to allot the available funds to the various departments and agencies of the federal government. In order to bring the deficit under control, funding for federal agencies that contribute to it will be reduced. If increasing the surplus is one of the top priorities, then federal agencies that contribute to the surplus will be given more funding.

Third, the spending that agencies do affects the distribution of federal funds. Federal agencies oversee and manage programs and services that benefit the public. These services and programs need to have a financial investment, as well as time and effort put into them. The federal government's priorities decide how its resources are dispersed throughout the government. Cut spending on federal programs that add to the deficit by reducing the amount of money allocated to those programs. If increasing the surplus is a top priority, then those federal departments and agencies that are already contributing to it will receive a more significant portion of the surplus than they are currently receiving (JOYCE, 2012).

Fourth, the amount of money that the government spends on its many agencies impacts the amount of money it brings in through taxation. The federal government's spending on its departments and agencies is financed by tax revenue. The amount of money that the government brings in through taxes is directly proportional to the amount that it spends on its various departments. Tax rates will inevitably rise if the government spends more money on its agencies. Reducing the budgets of federal agencies would have a multiplicative effect on tax rates, which would decrease those rates.

Judeo-Christian and Federalism in Public Budgeting

The term "federalism" refers to the cooperative relationship between the United States central government and the various state governments. To explain federalism in the simplest terms possible, it is a political structure in which two or more levels of government share authority over the same geographic region. According to the Constitution of the United States of America, the federal government and the state governments both share specific responsibilities. The legislation that is enacted by the federal government of the United States of America has the authority to be enforced everywhere in the country. The government of a given state is responsible for enforcing the laws that affect its citizens and residents (MASSIANI & PICCO, 2013).

The concept of federalism refers to a political structure in which separate but equal levels of government (the federal and state levels) work together to accomplish shared goals while remaining separate from one another. In a federal system, power is shared between the national government and the state and local governments at the subnational level.

Conclusion

In conclusion, appropriations from the federal budget to various departments and agencies affect the economy as a whole. The federal government's expenditures on various agencies contribute to an increase in the demand for goods and services. If federal spending on agencies is reduced, it is anticipated that consumer demand for goods and services will decrease. It is only logical to assume that an increase in the amount of money the federal government spends on its agencies will be followed by an increase in the amount consumers are willing to spend.

References

JOYCE, P. (2012). Introduction to Symposium: The Crisis in Federal Budgeting. Public Budgeting &Amp; Finance, 32(3), 1-3. https://doi.org/10.1111/j.1540-5850.2012.01019.x

MASSIANI, J., & PICCO, G. (2013). The Opportunity Cost of Public Funds: Concepts and Issues. Public Budgeting &Amp; Finance, 33(3), 96-114. https://doi.org/10.1111/j.1540-5850.2013.12016.x

Minat, V., & Mostaev, Y. (2020). Regional Policy of the Federal Government USA in the 50s–60s of the XX Century. Federalism, (1), 161-174. https://doi.org/10.21686/2073-1051-2020-1-161-174

Phaup, M. (2018). Budgeting for Mandatory Spending: Prologue to Reform. Public Budgeting &Amp; Finance, 39(1), 24-44. https://doi.org/10.1111/pbaf.12210

Sloan, M., & Grizzle, C. (2014). Assessing the Impact of Federal Funding on Faith-Based and Community Organization Program Spending. Public Budgeting &Amp; Finance, 34(2), 44-62. https://doi.org/10.1111/pbaf.12036

Williams, E. (2014). Federalism, the Federal Tort Claims Act, and Statutes of Repose: Maintaining the Balance. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2523636