Case
Studies
in
Public Budgeting
and
Financial
Management
Second Edition, Revised
and
Expanded
edited
by
Aman
Khan
Texas Tech
University
Lubbock,
Texas, U.S.A.
W.
Bartley
Hildreth
Wichita State University
Wichita,
Kansas,
U.S.A.
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class="bi x0 y8a w2 hf"
Foreword
Working with friends
is
always
a

and
found
a
great deal
of joy in
contributing with them
to an
improving literature
of
public budgeting
and
financial
management.
In the
case
of
Professor Khan,
I
also
was his
colleague
for
several years
and
enjoyed
his
always positive approach
to
life's challenges.
For

pleased
to see
this book
in
print.
For
over
a
decade,
I
have
had a
textbook
on
public budgeting
and
financial management
in
print.
My
book
is in its
fourth
edition.
A
textbook must provide
an
overview
of its
subject

local government,
the
local politics
of
pension invest-
ment,
and
financing
a
recycling facility through
a
public-private
enterprise. Budgeting
is
the
nexus
of
politics
and
public management. These case studies illustrate that important
and
often
under-appreciated
fact
with
a richness of
information.
For the
inquiry
of

build more
useful
theories
we
must have
a
keen appreciation
of the
practice
of
budgeting
and
financial management. Case studies
and
comparative empirical
research
are the
means
to
enhance
our
empirical understanding
of
practice. This work
by
Professors Khan
and
Hildreth
is a
major step forward

in
1994,
we
felt
that
it was
time
to
make some additional changes
in the
book—add
a few new
chapters
to
reflect some
of
the
recent developments
in the
field
and
revise some that
we
felt
could provide
new
insights
to old
problems.
The new

for our
students.
We are
certain that
we
could have added many more chapters
and
introduced many
more topics,
but it
would still
not
have covered everything there
is to be
included.
No
amount
of
space
can
cover every single topic that
one
needs
to
learn.
It is
simply
not
feasible,
but

but
all try to
capture,
to the
extent possible,
the
essence
of the
discipline without losing
sight
of the
objectives
set out in the
first
place.
The
primary objective
of
this book
is to
help
the
students
of
public budgeting
and
financial management have
a
better grasp
of the

studying
a
handful,
but
this book should give
our
readers
a
glimpse
of
what they
are
likely
to
experience.
To the
extent that
it
helps even
a
single student
understand
that,
we
should consider
our
effort
worthwhile.
Aman
Khan

at
Texas
Tech,
in
particular Clarke Cochran, Charles Fox,
and
Murray Havens
for
their
generous support
and
encouragement
for the
project.
A
study
of
this nature would have
never been completed without
the
support
of
numerous individuals
from
various public
organizations,
who
contributed immensely
by
giving their time

or
recommendations. They deserve
our
heartfelt
appreciation.
We
would also like
to
take this opportunity
to
thank Russell
Dekker,
Paige Force,
and
Jennifer Paizzi
of
Marcel Dekker, Inc.
for
their
wonderful
support
and
cooperation throughout
the
production
process
and
beyond.
It was a
pleasure working

Foreword Thomas
D.
Lynch
v
About
the New
Edition
vii
Contributors xvii
Introduction
xxi
PARTI
PUBLIC BUDGETING
A.
Political Economy
of
Budgeting
1.
The
Political Economy
of
City
Life
Cycles:
A
Comparative Analysis
of
Services, Expenditures,
and
Revenues

Jersey
33
William
A.
Firestone
and
Margaret
E.
Goertz
4.
Confidence, Competence,
and
Clientele: Norm Maintenance
in
Budget
Preparation
49
Jerry
McCaffery
5. The
Political Economy
of
Outsourcing
65
Arie
Halachmi
and
Robert
Boydston
B.

in
Florida:
To
Muddle
or Not to
Muddle, That
is
the
Question
115
C.
Nelson Easterling
9.
Implementing
and
Managing Zero-Base Budgeting
127
Jerome
B.
McKinney
10.
Target-Based Budgeting
in
Lincoln County
145
Frank
U.
Koehler
and
B.J. Reed

of
Revenue
and
Milwaukee, Wisconsin
173
John
P.
Forrester
and
Rebecca
Hendrick
13.
Forecasting
the
General Fund Budget
of a
Local
Government:
The
City
of
Pleasantville
195
Aman
Khan
14.
Revenue Forecasting
209
Howard Fleeter
and L. Lee

Procedures
for
Programming
and
Financing Capital Improvements
255
Alan
Walter Steiss
18.
Can the
Riverside Community
Afford
a
Massive Debt-Financed Capital
Improvements Program?
273
W.
Bartley
Hildreth
and
Gerald
J.
Miller
19.
Budget Analysis:
A
Study
in the
Budgetary
Practices

Columbia:
An
Analysis
of
Municipal Financial Conditions
321
Craig
L.
Johnson
and
John
L.
Mikesell
Contents
xiii
22.
City-County
Consolidation:
The
Case
of the
Illusive Cost Savings
349
Suzanne
Leland
and
Kurt Thurmaier
23.
Innovations
in

for
Better Budgets:
The
Curious Case
of the
Legislative
Conference System
in New
York State
393
Robert
W.
Smith
PART
II
FINANCIAL MANAGEMENT
A.
Accounting, Auditing,
and
Financial Reporting
26.
Cash Basis Financial Reporting
for
Local Government:
A
Comparison
with
GAAP
407
Patti

Patton
and
Aman
Khan
29.
Governmental Audit Recommendation Follow-up Systems: Implementing
Recommendations
Effectively
469
David
B.
Pariser
and
Richard
C.
Brooks
30.
Benchmarking
and
Cost Accounting:
The
North Carolina Approach
485
William
C.
Rivenbark
and K. Lee
Carter
B.
Financial Management

B.
Pariser
and
Richard
C.
Brooks
xiv
Contents
34.
Reengineering Financial Management: Pittsburgh's Unisource
2000
Project
543
Rowan Miranda
and
Natalee
Hillman
35.
Learning
from
Experience: Cash Management Practices
of a
Local
Government
553
Aman
Khan
36. The
Evolution
of a

of a
Project Revenue Bond Default
597
W.
Hartley
Hildreth
39.
Obtaining
a
Better Bond Rating:
A
Case Study
613
Charles
Coe
40.
Procurement Dilemmas: Social Policies Versus Pure
Competition—The
Case
of
Vendor Preferences
629
Susan
A.
MacManus
41.
Risk Management:
A
Case Study
651

Case
677
Sandra
M.
Emerson
44.
Enterprise Fund Operation
in a
West Texas City
693
Aman
Khan
and
Theodore
J.
Stumm
45.
Ethical Issues Facing Private,
Not-for-Profit
Hospitals
in the
United
States:
The
Case
of the
Methodist Hospital System
709
Alan Blankley
and

A
Case
Study
of San
Marcos, Texas
747
Kay
Hofer
Contents
xv
49.
Financing
a
Recycling
Facility
Through
a
Public-Private
Partnership
763
Patrick
W.
Manion
50. The
Chickens Come Home
to
Roost:
The
Publicization
of

Accounting, College
of
Business
and
Economics,
West Virginia University, Morgantown, West Virginia, U.S.A.
Richard
W.
Campbell University
of
Georgia, Athens, Georgia, U.S.A.
Michael Campenni Public Administration Program, Department
of
Political
Science,
Texas Tech University, Lubbock, Texas, U.S.A.
K.
Lee
Carter University
of
North Carolina, Chapel Hill, North Carolina, U.S.A.
Edward
J.
Clynch Department
of
Public Administration, Mississippi State University,
Mississippi State, Mississippi, U.S.A.
Charles
Coe MPA
program, Department

Howard Fleeter School
of
Public Administration, Ohio State University, Columbus,
Ohio, U.S.A.
Dana
Forgione
University
of
Baltimore, Baltimore, Maryland, U.S.A.
John
P.
Forrester
U. S.
General Accounting
Office,
Washington,
D.
C.,
U.S.A.
xvii
xviii Contributors
Robert
J.
Freeman
Department
of
Accounting, College
of
Business Administration,
Texas Tech University, Lubbock, Texas, U.S.A.

Wichita State
University
Wichita, Kansas, U.S.A.
Natalee Hillman University
of
Pittsburgh, Pittsburgh, Pennsylvania, U.S.A.
Kay
Hofer
MPA
Program, Department
of
Political Science, Southwest Texas State Uni-
versity,
San
Marcos, Texas, U.S.A.
Jesse
W.
Hughes Department
of
Accounting, College
of
Business Administration,
Old
Dominion University, Norfolk, Virginia, U.S.A.
Craig
L.
Johnson
School
of
Public

University
of
Georgia,
Athens,
Georgia, U.S.A.
Suzanne
Leland Department
of
Political Science, University
of
North Carolina, Char-
lotte, North Carolina, U.S.A.
Thomas
D.
Lynch Public Administration Institute, Louisiana State University, Baton
Rouge, Louisiana, U.S.A.
Susan
A.
MacManus University
of
South Florida, Tampa, Florida, U.S.A.
Patrick
W.
Maniont
Deputy City Manager, City
of
Phoenix, Arizona, U.S.A.
Herbert
A.
Marlowe,

of
Pittsburgh, Pittsburgh, Pennsylvania, U.S.A.
f
Deceased.
Contributors
xix
John
L.
Mikesell
School
of
Public
and
Environmental
Affairs,
Indiana University,
Bloomington, Indiana, U.S.A.
Gerald
J.
Miller Graduate program
in
Public Administration, Rutgers University, New-
ark,
New
Jersey, U.S.A.
Patti
A.
Mills College
of
Business Administration, Department

Public Policy, Naval Postgraduate School, Mon-
terey,
California, U.S.A.
Ronald
C.
Nyhan
Florida
Atlantic University, Boca Raton, Florida, U.S.A.
David
B.
Pariser
Department
of
Accounting,
College
of
Business
and
Economics, West
Virginia
University, Morgantown, West Virginia, U.S.A.
Terry
K.
Patton
University
of
Wisconsin, Oshkosh, Wisconsin, U.S.A.
James
R.
Ramseyt

David
H.
Rosenbloom Department
of
Public Administration, American University,
Washington,
D.C., U.S.A.
Bernard
H.
Ross Department
of
Public Administration, American University, Washing-
ton,
D.C., U.S.A.
Michael
W.
Shelton
Office
of
Budget
and
Evaluation, City
of
Myrtle Beach, South
Carolina, U.S.A.
Robert
W.
Smith
Department
of

Government,
New
Mexico State University,
Las
Cruse,
New
Mexico, U.S.A.
xx
Contributors
Jeffrey
M.
Stonecash
Department
of
Political Science, Syracuse University, Syracuse,
New
York, U.S.A.
Theodore
J.
Stumm
Texas Tech University, Lubbock, Texas, U.S.A.
Kurt Thurmaier Department
of
Political Science, Public Policy
and
Administration
Program, Iowa State University, Ames, Iowa, U.S.A.
Joseph
P.
Viteritti

Durham, North Carolina, U.S.A.
Katherine
G.
Willoughby Andrew Young School
of
Policy Studies, Georgia State Uni-
versity, Atlanta, Georgia, U.S.A.
C.
Kurt Zorn School
of
Public
and
Environmental
Affairs,
Indiana University,
Bloom-
ington,
Indiana, U.S.A.