Poly Sci Final!!!

  1. Revenue
    • Most common source in taxes
    • budget shortfall
  2. Taxes
    • "taxes are the price we pay for civilization" Justice Oliver Wendell Holmes
    • Half of the money raised by state and local governments come from 6 taxes: Sales, property, income, moter vehicle, estate, and gift taxes
  3. 3 different types of taxes
    • progressive- the more you make the more you pay
    • proportional- (property tax)
    • regressive- less you make the more you pay
  4. sales taxes
    • 36% of state and local tax revenues come from sales taxes
    • 81% of sales tax revenue raised go to state governments; 17% of local gov revenues
    • advantages: less visible, voters are less likely to get upset
    • disadvantages: tend to be regressive, internet/ online shopping (35 billion $ lost in revenue b/c of internet), and can be volital
  5. property taxes
    • second largest source of revenue (31%) for state and local governments (with local gov. being the biggest benificient
    • 43% of all property tax go to schools
    • 73% of local gove revenue comes from property tax (2% for states)
    • worth 279 billion
    • andvantage: never change, everyone pays
    • disadvantage: alot more visible, bery difficult to increase, battles tend to pick old people v young ppl
  6. income taxes
    • account for 22% of state and local revenues (3rd most significant source)
    • Americans pay on average $747 a year on state income taxes
    • Several states have no income taxes – AK, FL, NE, SD, TX, WA, WY
    • Average 2.6% - $694 a year to state income taxes
  7. other taxes
    • cars ($18 billion)
    • oil (severance taxes and mineral rights)
    • death ($7.5 billion)
    • user fees ($419 billion)
    • lottery and gaming (35% goes to edu)
    • insurance trust funds
    • intergovernmental transfers ($426 billion- most tied to specific areas 44% alone goes to medicade)
    • bonds ($356 bill-pay for capital projects)
    • rainy-day fund (rules: only allowed certain amount 250 million; if we take it out we ahve to pay it back within given time period)
  8. Louisiana tax
    • 25th amont states in tax revenue (la- $4,020 per capita, ak- 1st $7,268, al- 5th 2,909 per capita
    • tax capacity( ability) vs tax effort
  9. factors explaining tax variations
    • geography
    • geology
    • demographics
    • economics
  10. where does it go? Schools?
    • in fiscal year 2004 state and local gov spent $7712 per person
    • wages- 19.6 millions of ppl (state 5.2, local 14.4) $611 billion
    • education- $645 billion (73% public schools & 27% higher edu
    • states spend approx. 22% on K-12; 11% on higher education; Tuition only covers about a third of the costs)
  11. where does it go? Healthcare? welfare?
    • $358 billion (in 1970's states spent 2 billion)
    • medicade, schip (59 million ppl and 23% of state budget)
    • misconception

    24.7 billion on TANF (2%)
  12. where does it go? Fire, Police, Prisons?
    $90 billion; 55 billion
  13. highways and unfunded mandates?
    • $106 billion
    • La spend 15% on highways 2nd most in nation
    • mandates (rules states must follow that cost money; ex americans with disabilities act)
  14. Budget process
    Fiscal year july 1st-june 30th

    –The state budget is the method for financing state services and the primary indicator of the state’s real priorities.
  15. Proformance based budgeting
    Executive branch agencies are told to draw up request(Division of Administration)

    -Budget office and chief executive consider requests and create an executive budget

    • -Executive budget given to legislature
    • (engrossed bill)

    • -Legislature reviews, appropriates, allocates
    • -Appropriations – refers to giving agencies legal authority to draw money from the treasury
    • –Allocation – amount of the treasury reserved for agencies
    • –House Appropriations Committee & Senate Finance Committee & Conference Committee

    • -Sends to executive to sign into law
    • –Enrolled bill
    • –Monitored by Louisiana Legislative Auditor
  16. spending comparisons
    • 2008-2009 FY, La spent $25.9 billion
    • 2009-2010 FY, La spent $29.7 billion
    • -federal stimulus dollars created increase in spending not revenues
    • 2010-2011 FY, La projected to spend $25.5 billion
    • -47% of revenues come from federal government
  17. Three parts of budget
    • Statutory dedications (special funds)
    • -non-discrestionary; constitutional
    • -increased from 65% of the budget from 55%
    • Federal funds
    • -stimulus funds, medicade, medicare, and other social services
    • General Fund (discretionary)
  18. discretionary
    • 45% goest to education
    • 41% goes to human resources
  19. Budget Cuts
    • $340 million midyear cut in dec. 08
    • $700 million cut in june 09
    • $285 million midyear cut in dec 09
    • $319 million midyear cut in april 10
    • $1.6 billion cut in june 10 ($5 billion overall)
    • $105 million midyear cut in oct 10
  20. Higher Education cuts
    • $243 million since 2008
    • told to prepare for $290 million in june 11
  21. LA major expenditures
    • $8mill health and hospitals
    • $5mill public education
    • $4.4mill executive dept
    • $3mill higher edu
    • $1.2mill socal and youth services
    • $1.2mill corrections and public safty
    • $154mill judicial branch
    • $89mill legislative branch
  22. LA major revenues
    $11.5 billion (down from %15.2 billion in 09/10)
  23. Why do we have a budget crises?
    • declining stimulus dollars("the cliff")
    • recession (4.7% to 7.6% unemployment in 2 years)
    • loss of tax revenues via tax expinditures (Stelly repeal costs the state $358 mill; $7.1 billion in tax expenditures (441)
    • negative employment growth (6,000 fewer workers since 2000; 37,000 fewer since aug of 08)
    • Increased medical costs
    • poverty and Education
    • Scholarships (tops)
  24. Conflict in Policy Direction
    48/54 million kids attend public schools (89%)
  25. Conservative Thought
    • tie personal development to an emphasis upon individual initiative and responisbility; thus explaining inequalities
    • rewards are acquired through competition
    • oppose federal expantioin for family involvment, state involvement, local school board involvement, and private institiutions
  26. Liberal thought
    • government has an obligation to compensate for deprivation that result from inequalities
    • create an educational system that promotes equality of opportunity
    • favor federal expantion because of ineffectiveness in the past by school boards and state governments
  27. Restult from conflict in policy directon
    • public school policy has two trends:
    • free and universal education
    • local control of education
  28. Structure
    • state legislature
    • department of education
    • local education agencies or school districts
    • principals
  29. actors
    • parents (PTA)
    • teachers' unions (NEA)
    • political parties
    • buisness groups
    • professional groups
    • taxpayers
    • racial and religious groups
  30. Jonathon Kozol's "Savage Inequalities"
    • landmark study illustrating the disparity between schools that are often no more than two miles apart in St. Louis, Chicago, and New Jersey
    • "complsory inequity": education is compulsory until the age of 16, so students are being forced into sociallization experience funded by inequitable tax system
    • Blame? traditional source of funding: local property taxes
  31. Why not raise tax and get more money
    many districts have constitutional limits that cap the tax rate, so taxes can only go so high
  32. San Antonio V Rodriguez (1973)
    • the SC declared equal education, as defined by monetary amounts, and education in general is a privilege and not a right automatically guarenteed by the 14th amend
    • state issue and not a federal one
    • question: if everyone is required to attend school until age of 16, how can this be considered a privilege
  33. Serrano V Priest (1971)
    • california SC determined that unequal funding violated the California state constitution "education is fundamental right that cannnot be a conditon of a childs parent or neighbors"
    • CA created charitable tax shelters and redesigned the funding equations to avoid constitutinal crisis
  34. State violations
    • 1990: MT, KY, TN fount violations
    • 2000: KS fount violations
    • New Hampshire
    • -Same thing happened in NH, so they dodged the bullet by amending the Constitution to avoid the problem
  35. Why are courts ordered reductions in equality in per-pupil spending so politically controversial?
    • Poor Districts Have:
    • higher student-teacher ratios
    • spend more on instructional rather than preparatory courses
    • spend less on capital projects
    • lower teacher salaries
    • *per pupil spending has not been found to predict educational achievement (Coleman Report 1966)
  36. Reform Suggestions
    • different tax
    • federal intervention
    • school choice "vouchers"
    • charter schools
    • home schooling
    • standards
  37. Standards movement ?'s
    outcome-based education: what should students know and what is the ultimate purpose of education?
  38. Kentucky Education Reform Act
    • passed in response to a ruling the previous year by the Kentucky SC that the commonwealths edu system was unconstitutional
    • had most broad sweeping changes of any reform bill in us his.
    • resulted in complete reconstruction of how kenntucy schools worked including revampted state testing
  39. No child left behind-Bush
    based on the belief that setting high standards and establishing measurable goals can improve individual outcomes in education
  40. pro's and cons of no child left behind
    • pros: improved test scores, improvement over local standards, increased accountability, attintion to minority pop, quality of education, school choice, funding
    • cons: unrealistic goals, gaming the system, problems with standardized tests, insintives agains low proforming students, states refusal to produce non english assesments
  41. no child left behind: vermont & conneticut
    were against this bill-- considered making state bills to prohibit state funds to be used towards this
  42. How state gov define public health
    • has alot to do with the culture
    • is gun violence a public health issue?
    • aids, hepatitis C, and abstinence or cotraception?
    • obesity and physical education classes, soft drink machines?
    • oregon and physician assisted suicide
  43. who should pay for public health issues
    • in colonial am. communities created almshouses for poor and sick
    • cities began to create hospitals
    • churches and social reformers
    • demand began to exceed the capacity
  44. myth #1 about welfare
    • welfare costs are out of control:
    • in reality, welfare costs have reamined at roughly 25% over the past 30 years which is lower than most countries who spend 35-55%
    • this comment truley refers to social security, medicaid, and medicare (68 cents of the dollar goes to medicaid; however this increase is not due to increased poor ppl but to increased cost in healthcare)
    • $529 billion social security (increases by $25 B a year)
    • $163 B on Medicare and Medicaid
    • $36 B on food, $34 B on housing, $28 B on edu, $6.8 B on job training
    • $210 B on cash aid, food, housing, edu, job training, services, and energy
    • $4.7 million on TANF
  45. myth #2 about welfare
    • many women have children to get welfare benefits:
    • you would have to intentionally drop below the poverty line to qualify for benefits varying form $123 in ms to $743 in AL
    • from 1970-1990 the avg number of children in welfare households dropped from 3 to 2
    • birth rate for welfare was 4.58 per 1000--non welfare BR was 7.11 per 1000 in 1990's
  46. myth # 3 about welfare
    • welfare families are large:
    • 43.8% of thoes on welfare are single individuals
    • 47.6% of thoes on welfare are 2-3 ppl
  47. Myth #4 about welfare
    • msot ppl on welfare are on it for life:
    • 33% are on welfare less than 1 yr
    • 66% 3 years or less
    • while less than 19% are on welfare for more than 5 years
  48. Myth # 5 about welfare
    • many ppl on welfare cheat:
    • only 1-3% of all welfare cases are found to be fraudulent
  49. Myth #6 about welfare
    • Most ppl on welfare are black:
    • admittedly 25% of all Af. Am. live below the poverty line; however 28.7% of all single mothers live below the poverty line
    • "feminization of poverty"
  50. what is social welfare?
    • group of means-tested
    • entitlement programs
    • social security & emdicare, welfare
    • medicaid
  51. Poverty?
    • incomes: median HH income for fam of 4 whites is $50,700; M HH in for fam of 4 blacks is 30,800; M HH in for fam of 4 his is 35,900
    • a families monetary income based upon a formula in 1955 that showed ppl spend 1/3 of their income on basic necessities such as food
    • Problems: the guidlines have never been updated to account for changing HH consumption patterns. Fam no longer spend 1/3 of their inc on food and 2/3 on other basic needs
    • today am spend only 1/6 of their income on food
    • housing, transportation and utilities are much larger components of fam spending
    • dependents: clothing and childcare
    • rising costs of medical treatment and drugs
    • the guidlines do not recognize geogreaphic diff
  52. Statistics
    • pverty line: 10,400 for a single individual; 21,200 for a family of four
    • poverty percentage: 13%- 40 million ppl; 25% for blacks; 22% for hispanics; 17% for under 18; 10% for elderly; 28.7% for single mother HH
  53. Social Security Act of 1935
    • pres roosevelt-part of New Deal
    • attempt to limit what were seen as dangers in the modern American life, including old age, poverty, unemployment, and the burdens of widows and fatherless children
  54. Great Society: medicade and medicare
    • LBJ's reform program
    • two main goals to elimanate poverty and racial injustice
    • medicare: social security act of 1965- authorized Medicare and provided federal funding for many of the medical costs of older Americans
    • medicade: welfare recipients of all ages received medical care through the Medicaid program
  55. Medicaid
    • states set their own criteria: AL earnings less than 21% below poverty level; 3,000 a year--MN 275% above the poverty level; 3,300 a month
    • median 66% or 9,672
    • LA- 13% & 20%; 2,200 & 3,300
    • $4.8 B-$303 B
  56. Earned Income Tax Credit (EITC)
    • $36 B program serving 21 million fam
    • avg to about $1800 per fam
    • sadly, 15-25% qualified individuals do not even file (3.5-7 mill ppl)
  57. Devolution
    • reagan
    • gradual return of power to states
    • introduced block grants
  58. 1996 personal responsibility and work reconciliation act
    • 5 major parts:
    • ended AFDC, replaced with TANF
    • ended federal cash assistance in favor of block grants for states (state determines eligibilty and criteria; front heavy)
    • Mandatory welfare-to-work programs: must place 50% of thoes on welfare by teh end of 2002
    • 5 yr limit
    • legal immigrants cannot receive for 5 yrs
  59. Results of 1996 welfare reform act
    • positive: there has been an 53% reduction in the welfare rolls, fewer ppl are on welfare now than ever before
    • 12.2 mill to 5.3 mill
    • 28% of thoes on the rolls found some work realated activity
    • negitive:
    • median income for thoes finding work is $6.61 an hour (below living wage estimates)
    • number of uninsured increased
  60. healthcare state-managed care
    managed care: an arrangement provision of healthcare whereby an agency acts as an intermediary between consumers and healthcare providers (heath maintenance org HMO's)
  61. tenncare
    for the first five years the state saved money however, in the late 90's enrollment peaked at 1.5 mill, costs drifted to 5 bill (1/3 fo the state budget), MCO's dropped out, state refused new participants, and had to revise the program
  62. 1997 congress created SCHIP
    • congress would pay 80%; states would be allowed to design and admister
    • LA has LACHIP-covers 250% above poverty line
    • state spends $32 mill (feds $119 mill)
    • 107,828 (up to 30,000 over the last 5 yrs)
    • many eligible kids are still unsigned
  63. return of rising costs
    • prescription drugs
    • decline of managed care
    • long-term care
  64. big issues today
    • HIV/AIDS/ hepatitis c (needle-exchanges, contraception, abstinence)
    • Obesity-diabetes, heart ddisease, arthritis (costs states $117 billion)
    • Privatization
Card Set
Poly Sci Final!!!