Deck 8: Budget Preparation: The Decision Process

Question 1

Which of the following agencies is not involved in revenue forecasting at the federal level?

A) Office of Management and Budget
B) Government Accountability Office
C) Council of Economic Advisers
D) Treasury Department

Answer 1

B

Question 2

The generic term for programs that guarantee benefits to the sick, the needy, and the elderly is:

A) Social Security.
B) welfare.
C) entitlements.
D) Medicare.

Answer 2

C

Question 3

What is a common element of most budget documents, in which the chief executive highlights the major issues, constraints, priorities, initiatives, and recommendations?

A) Combined statement
B) Budget message
C) Appropriation bill
D) Budget circular

Answer 3

B

Question 4

What term is applied to a presentation that shows the future effect of continuing current laws and programs?

A) Current services
B) Contingent liabilities
C) Credit guarantees
D) Program information

Question 5

What is the name of the federal law that governs how loan programs are displayed and costed in the federal budget?

A) Budget and Accounting Act
B) Federal Credit Reform Act
C) Troubled Asset Relief Act
D) Federal Deposit Insurance Act

Question 6

Achieving balance in any public budget is a political process.

Question 7

The unfunded liability in 2018 across all of the states for retiree pensions exceeded $1 trillion.

Question 8

When droughts, floods, or other conditions destroy crops, the federal government usually passes legislation that fully covers farmers against most, if not all, losses.

Question 9

Prescriptions to reform federal government credit programs favor increasing the risk of the public sector and decreasing that of the private sector.

Question 10

Public budgets must show receipts from taxes, fees, and transfers from other governments, but not from revenues raised by user charges.

Question 11

In an executive budget process, what is the most important strategic concern that the chief executive (governor, mayor, city manager) needs to communicate at the outset of the process?

Question 12

What time periods are normally covered by revenue estimates?

Question 13

How is the term "neutral competence" applied to a chief executive's central budget office?

Question 14

During difficult economic times, why are uniform across-the-board budget cuts poor fiscal policy?

Question 15

Why do chief executives include items in their budget that they do not wholeheartedly support?

Question 16

Discuss the public budget decision-making process from the preparation phase and its products to final adoption. What information is contained in the budget? What are the respective roles of line agencies, the central budget office, the chief executive, and the legislative body?