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Accounting, Finance, SPSS
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Topic:

The Government Roles and the Four Elements that Support Grant Policy

Essay Instructions:

Answer ten questions. Each question is about 200 words. The links included in the questions are intended to be a guide. Feel free to find other sources to support the answer.

(2) Richard Musgrave’s 3-part definition of the “role” of government provides us with the rationalization for many of the policies enacted by Federal, State, and Local governments.  Please describe each and provide an example of how a government program (or policy) enacted to date to address the COVID crisis help accomplish each of the three roles.   You should have a recent example for each role.

https://www.usa.gov/coronavirus

(3)  The United States recently participated in the democratic tradition that stretches back to the founding of the republic: the once-a-decade census of its population.  From 1790 (U.S. population: 3.9 million) to 2010 (U.S. population: 309 million), the decennial census has changed alongside the nation itself. From the territory it covers, to the questions it asks, to how it collects the information, the census has reflected evolution in technology, the role of the federal government, and the size of the country itself.    The stakes are high for States, local governments, and regions across the country, which depend on a full and accurate count of their populations to ensure their fiscal health and political strength.   How has the current crisis impact this vital account of the US population?  What are areas of fiscal health that the States and local governments should be concerned about?   What will be some of the challenges? 

https://2020census.gov/content/dam/2020census/materials/partners/2020-01/Uses-of-Census-Bureau-Data-in-Federal-Funds-Distribution.pdf

(4) As we discussed in class, grants from the Federal government are generally provided through three different types.  Please describe the four elements that support grant policy and the three types of grants that the Federal government utilizes.  The article below discusses some of the outstanding issues relating to the need for additional funds from the Federal governments for the states and localities.  Based on your knowledge of why grants exist, and how they are calculated, how would you alter some of the formulas being used to distribute aid?  What recommendations should policy makers consider ensuring that the States that have been hardest hit by the crisis are compensated?  Alternatively, if you believe it is not up to the Federal government to support these states with additional relief, defend your position and offer alternatives for revenues that the State should consider.

https://www.cbpp.org/research/state-budget-and-tax/states-need-significantly-more-fiscal-relief-to-slow-the-emerging-deep

(5)  Fiscal choices determine the mix of revenues that a State relies on to fund their budget on an annual basis.  The following article discusses the current estimate of the shortfalls that States are anticipating.  Describe the primary sources of revenues that the States rely on, noting if they are progressive, regressive or proportional (explaining each).  How has each source been impacted by the current crisis, and what should policy makers do to address the shortfall in receipts that is likely to occur in the upcoming fiscal years? 

https://www.cbpp.org/research/state-budget-and-tax/states-start-grappling-with-hit-to-tax-collections

(6) When looking at the amount and proportion of state/local dollars that are spent annually on education, it is easy to see why there is a concern regarding the question of declining performance – that is, why, despite the investment by States/localities, scores for exams such as the SAT’s have remained constant over the last several years.  Describe the relationship between inputs and outputs or outcomes in the production of education.  What are at least two things that you believe are measured currently in your local district.  In thinking about the impact of the corona virus on lower education across the country, how do you think these validation measures could/should change.   Your answer should address some of the inherent challenges many districts have been facing as they have moved to on-line platforms. 

http://blogs.edweek.org/edweek/campaign-k-12/2020/04/schools-spending-cuts-coronavirus-affect-your-state-chart.html

https://ny.chalkbeat.org/2020/5/4/21247282/who-got-hit-hardest-by-new-yorks-budget-crisis-its-highest-poverty-school-districts

(7)  New York State recently enacted its State fiscal year budget for 2020-21.  It was based on several assumptions and included several provisions relating to borrowing by the State to provide a source of funds for in the upcoming fiscal year.  The article below describes most of the debt related provisions included in the budget.  What are the three primary reasons that State and local governments borrow?  What are the two types of debt which is utilized?  What is the difference in growth rate between the two?  Using the article below give me an example of each type of debt, and what reason they support.  Do you agree with further increasing our debt burden?  Support your position.   Alternatively, if you do not agree with these choices, defend your position, and offer alternatives for revenues that the State should consider. 

https://www.empirecenter.org/publications/amid-covid-a-shaky-state-budget/

(9) Economic Development is a significant programmatic area in the States, as they (i.e. the States) compete against each other to attract new businesses and the accompanying jobs in a specific state.  In addition to comparison of tax rates, there are essentially two types of incentives offered by the states – please define and explain the primary differences between the two approaches.  Your answer should include two examples of each.  Which approach do you believe is most effective why?  In light of the current crisis, what would you change or recommend as an alternative economic development program?

https://www.newsweek.com/why-us-economy-may-never-same-again-after-coronavirusanalysis-1501830

(14)  We are currently experiencing unemployment claims at unprecedented levels, with many states potentially facing a shortfall in funds to pay claims in the near future.  In addition to expansion of the eligibility for unemployment, the Federal government also enacted the payroll protection program which was intended to provide funds for employers to continue to meet their payroll obligations.  The program is already coming under criticism.  If Congress enacts another relief package, how would you recommend these funds be distributed.  Please support your position using the fundamentals of R. Musgrave.

https://usafacts.org/visualizations/weekly-unemployment-claims/

https://usafacts.org/articles/these-are-states-receiving-most-350-billion-small-business-loans/

(16)  We know that voter participation in 2020 was well above the rates which were seen in the 2016 presidential elections.  Yet, history tells us that next year these rates will likely drop dramatically in what are equally important elections (mayor, local government representative).    The Teibout hypothesis helps explain local taxpayer fiscal decisions.  Explain the theory and describe how it could help us understand the lack of interest in local issues by taxpayers. 

(17) This November, several states included on their respective ballots fiscal policy issues that would impact their State’s fiscal plan and taxpayers.  Pick two from this list, describing the proposal.  Is it progressive, regressive or proportional?  Your answer should indicate your understanding of these terms.   https://taxfoundation.org/2020-ballot-measure-election-results/

Essay Sample Content Preview:

State and Local Finance Assignment
Name
Institutional Affiliation
Date
State and Local Finance Assignment
Question 2
The Families First Coronavirus Response Act (H.R. 6201) was passed in March 2020 by Congress as a legislative response to Covid-29. The Act addresses key economic and financial issues presented by the pandemic including the allocation of resources, distribution of goods and services, and economic stabilization, based on the three branches of Musgrave’s theory of public finance.
* The allocation of resources- This part addresses the government’s devotion and determination to achieve full employment (Case, 2008). To address the Covid-19 crisis, the government uses social insurance policies to financially help people who have contracted or are exposed to the disease, or negatively affected in other ways including loss of jobs and wages. The H.R. 6201 Act addresses allocation of resources via the emergency-based expansion of Family and Medical Leave Act benefits, paid sick leave for Covid-19 cases, special short-term tax benefits, and stabilizing unemployment benefits programs, among others.
* The distribution of goods and services- In this part, the theory focuses on economic efficiency. They are strategies meant to ensure the continued functioning of the financial and economic system, especially where the pandemic has disrupted supply chains and the stock market. In response to Covid-19, President Trump initiated a business and employee relief program in the form of a payroll tax cut, reducing the payroll tax to 0% as from March 2020 (Hafiz, Oei, Ring, & Shnitser, 2020). The proposal was meant to stimulate markets, relief business, and assist workers during the pandemic.
* The stabilization of the broader economy- The area focuses on the issues of redistribution to achieve a politically acceptable distribution of income. During a crisis (pandemic), the government must tailor existing policy tools or develop new mechanisms that ensure that people abide by behaviors that are socially beneficial and economically productive (Case, 2008). They include the directive from public health to maintain social distancing to avoid infecting others, flatten the infection curve, and minimize the spread of Covid-19. As a result, the government closed schools, universities, restaurants, and other social amenities and events.
Question 3
The U.S. Census Bureau made several adjustments to the 2020 Census activities in response to the Covid-19 outbreak. The adjustments were considered to protect the health and safety of the citizens and workers from the Census Bureau. It is also a way of conforming to the guiding principles from Federal, State, and local authorities concerning the control of the coronavirus (Khan, 2020). Above all, the Bureau seeks to carry out the exercise in conditions that allow a complete and accurate count of all communities. The changes resulted in the cut-off date being postponed repeatedly for the once-every-decade count of people in the country. Before the pandemic crisis, the census was set to end by July 31, but it was pushed back to Sept. 31, then to Oct. 31. A U.S. Supreme Court order later pushed the dates to Oct. 15. Owing to the changes, the Census Bureaus has u...
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