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38 Cards in this Set

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What is a Budget? Explain.
A collection of documents or single documents that refer to the financial condition and future plans of an organization.
What are the general types of a budget?
-Statements/preferences or values.
What is the purpose of budgeting?
-Setting goals/objectives
-Allocating the resources necessary to achieve goals
-Measuring progress towards objectives.
-Identifying weaknesses or inadequacies in organization
-Controlling/integrating the diverse activities carried out by numerous subunits within large bureaucracies.
What are externalities?
Another class of government goods/services where individuals can be excluded by which cost or benefits extend beyond the individuals who are the immediate targets of the service.
What is homestead exemption?
is a legal regime designed to protect the value of the homes of residents from property taxes, creditors, and circumstances
What is Performance Management?
Emphasizes setting objectives and when motivating matters to be entrepreneurial.
What are Performance Measure associated with?
Activities with long time results.
What is a Line Item Budget?
Is an object of expenditure and are used extensively at all levels of government.
What is the line-item budget approached utilized for?
To control and account for expenditures of public monies.
What are some of the strengths of the Line-Item Budgets?
-High degree of control over expenditures
-Provides information on inputs to Produce gov't services
-Easily understood by lay person
-Easy comparison between Previous yr & current year expenditures
What are some of the limitations in the Line-Item Budget?
-Provides little in the way of long term planning
-Does not address the rationale for allocation of resources to any specific program.
-Provides little narrative tying expenditures to performance criteria.
What is a Program?
A Program classifies all activities by their major purpose and contribution to overall jurisdiction or organization.
What is a Program Structure?
The way for you to organize all activity into a hierarchy of functional categories.
What are some strengths of Line-Item Budget?
-Long range planning
-Program Identification
-Emphasis on attainment of long-term goals.
-More goal setting
What are some weaknesses of Line-Item Budgets?
-Goals are difficult to formulate
-Goals are subject to change
-Sometimes difficult to obtain objective measures of benefits.
What form of tax are the most important sources of revenue for state governments?
Sales tax
What are the 2 types of tax? Explain.
Ad valorem and Unit taxes.
Ad valorem taxes are according to worth. They are taxes levied as a percentage of the Purchase price of an item. ex. General sales/property taxes.
Unit taxes are levied er unit of the item sold, without regard to price .
What does Sales Tax Revenue come from? Explain.
Base tax and rates.
The base a function of which products and services are included and excluded.
Notable exemptions include services professional services of doctors & lawyers, barbers or accountants.
What is the biggest issue regarding sales tax?
Mail order & internet sales.
True/False Sales tax are regarded as progressive and are based on ability to pay.
What is a type of consumption tax that is placed on a product whenever value is added at a stage of production and at a final sale?
Value added Tax
What are the 3 general categories of Excise Tax?
Luxury, sumptuary, benefit based.
What are luxury taxes?
Luxury taxes are taxes levied on items that are predominately consumed by the rich (yachts, jewelry, etc).
What are sumptuary taxes & what are some issues with sumptuary taxes?
Taxes that are regulatory in nature. For example alcohol and cigarettes.
Sumputary taxes are regressive also effective tax rates are higher for lower priced brands.
Taxes should be levied on individuals who cause particular services to be provided, and that the proceeds from the tax should go to finance that particular service is?
Benefit Received Excise
What is a Pork Project and some examples?
It involves funding for gov't programs whose economic or service benefits are concentrated in a articular area but whose costs are spreading among all tax payers.
Some examples are the The Big Di & the Bridge to Nowhere.
What is Pork-Barrel?
Pork-Barrel is government projects that are aimed at helping home districts and states.
What is casework
Refers to the response or services that members of congress provide to constituents who request assistance.
True/False. The Item veto helps reduce the wastefulness of pork spending.
True/False. Family or corporate budgeting does not have a relatively fixed set of available resources.
True/False. In the private sector, profit serves as a ready standard for evaluating decisions.
Zero-Based Budgeting (ZBB) was designed as a...?
Total management package.
True/False. Total management package.Existing programs were not normally funded at the previous year's base level with an incremental or decremental adjustment in funding.
False. They were funding at the previous yrs level base.
What are the 5 fundamental steps in ZBB that are normally followed within an organization?
1. Prepare "decision units."
2. Analyze each decision unit within a decision packages.
3. Rank Decision packages.
4. Develop operating budgets based upon approved decision packages.
What is the Big Dig?
A project to take an existing 3.5-mile interstate highway and relocate it underground. It ended up costing US $14.6 billion.
What is the Bridge to Nowhere?
A bridge that connected the town of Ketchikan with its airport on the island of Gravina at a cost of 320 million.
Citizens Against Government waste outlines 7 criteria, what are they?
-Requested by only one chamber Congress
-Not specifically authorized
-Not competitively awarded
-Not requested by the president
-Greatly exceeds the Presidents budget request or the previous yrs funding
-Not the subject of congressional hearing
-Serves only a local or special interest.
What are Pork Barrel Projects?
Pork Barrel Projects are involved in government funding for programs where the economic or service benefits are used for a particular area but whose cost are spread among all tax payers.