4/2/12 version

Public Budgeting
PPHA 36011
Thursdays 6:00 8:50
Syllabus
Instructor
Ginger Ostro
ginger.ostro@gmail.com (best way to reach me)
Cell phone 312-543-0498 (between 7 am and 10 pm, please)
TA
Bob Greenlee
Bobgreenlee@gmail.com
Course Overview
The best public sector budgeting is driven by dispassionate analysis and passionate
commitment to good public policy. This course seeks to build on students analytic skills
developed in the Public Policy program and to ignite students passions for achieving
policy goals within budget constraints.
We will be hands-on, with much of the learning coming from practical, real-world
exercises that draw on examples of what is required in a budget office and that--by
design--focus on multiple skills at once. Each assignment will build on the previous
assignments so that the student develops a complete, complex budget using his/her
own expertise and that of their colleagues, as would be done in the real world.
The course will provide an introduction to the major spending areas of state budgets,
including Education, Medicaid/Human Services, Pensions, along with revenue
projecting, debt issuance, and budget balancing. We will also focus on the intersection
of state and local budgets, adding local revenues to the mix. We will follow what is
happening in current budget processes, with a particular emphasis on the State of
Illinois.
Course Competencies
At the conclusion of the course, students should be able to:
1. Describe how budgeting impacts the making and implementation of public policy.
2. Demonstrate budget specific skills, including the ability to:
a) Identify and present relevant information on a state budget
b) Review substantive legislation and make recommendations incorporating
fiscal grounds
c) Prepare and analyze a budget for a new program

d) Recommend to a Governor or high level public official a comprehensive

budget package, including revenue assumptions, spending choices in the
context of economy, financial circumstances, policy preferences, political
dynamics, etc .
e) Publicly present and defend budget analysis and recommendations
3. Understand the constraints under which public budgets are developed and
implemented including fiscal limitations, balanced budget requirements, short
timeframes, and enormous amounts of data in conjunction with lack of
information
4. Understand how public participation, especially the legislature, media, and
unions (but also courts, advocates, others) influences the budget
5. Understand the major sources of revenue and major spending areas for state
governments
6. Understand the role of the financial markets and municipal bonds in public
budgets
7. Read and analyze budget materials and prepare information and presentations
that balance the technical and user friendly, writing and numbers, charts/graphs,
data, etc.
8. Analyze, prioritize, and summarize large of amounts of information in a short time
to incorporate into budget recommendations
9. Work effectively in groups, relying on colleagues and determining how to deal
with real life intervening in getting a job done (just like in the real world)

Format of the Class

Each class will typically have multiple components:
Presentation by Instructor or Class Members on topic area (see Assignments)
Speaker (typically an outside speaker currently working in the budget/policy
arena) to address the topic.
Class discussion of topic and/or readings in relation to speaker's presentation
Practice or analysis in preparation for assignments.

Grading
2

This course is about questioning, critical thinking, rigorous analysis and importantly,
learning by doing. How well you do this individually and within teams will determine
your grades.
The points associated with each assignment reflect its complexity and relative
importance. The total is 90 points.
Some assignments are submitted as group projects and some are submitted as
individual assignments; the specifics are on the assignment list.
For group projects, you will submit one deliverable per team.
For individual assignments, you will submit one deliverable per person.
You may work together on individual assignments, discussing and debating
issues, reviewing format and content, etc., but the final product must be yours
and you should be prepared to explain and/or defend the choices you made and
the document you present.
Specific grading guidelines are included in the Assigments Document.
Readings
The readings identified in the syllabus are the most current, but as we will be following
the budget process as it unfolds during the spring, new documents may become
relevant, which I will add.
You should be able to access all readings on the course Chalk site,
http://chalk.uchicago.edu and links from this syllabus.
Optional Sources
Prior students have encouraged me to find texts that would help with some of the basic
topics covered in the course. While there isnt one book that covers everything, below,
Ive listed some of the books that I have found helpful:
R. Mark Musell, Understanding Government Budgets: A Practical Guide, Routledge,
2009.
Chen, Forsythe, Wiekart, Williams, Budget Tools: Financial Methods in the Public
Sector, CQ Press, 2009.
Securities Industries and Financial Markets Association (SIFMA), The Fundamentals of
Municipal Bonds, 6th Edition, Wiley Finance, 2011.

Course Outline
Class 1: March 29, 2012
Introduction, Course Overview, Public Sector Budget Terms/Structure
Objectives:
Introduction to class
Approach and organization
Introduction to public sector budgets: terms and structures
Understand budget plans
Identify major similarities and differences in state budgets
Determine policy area teams
IL Governor Pat Quinns FY 13 Budget Address
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?
SubjectID=2&RecNum=10036
Illinois State Budget Fiscal Year 2013, Governor Pat Quinn
http://www2.illinois.gov/budget/Documents/Budget%20Book/FY%202013/Illinois
%20FY%202013%20Operating%20Budget%20Book.pdf, page 2-18
Class 2: April 5, 2012
Key Actors: Legislature
Presenting and Analyzing a New Program Request
Assignment 1 Due: State Update Memo (See Assignment document for details)
Guest Speaker: Illinois State Senator Heather Steans, Chair of the Illinois
Senate Appropriations I Committee
Objectives:
Understand the legislative role in budgeting
Understand the legislators perspective
Be able to take into account the legislative perspective when developing
or analyzing a budget
Be able to present a new program request
Be able to analyze a new program request presented to you

Readings:
Discuss in Class
Quinns budget address lacks details on pensions, Medicaid fixes, Doug Finke,
State Journal Register, February 23, 2012 http://www.sj-r.com/topstories/x565041335/Live-Follow-Gov-Quinns-budget-address
Governor Quinn on pension mess: Everything is on the table, Dave Mckinney
and Andrew Maloney, Chicago Sun-Times, February 22, 2012.
http://www.suntimes.com/news/metro/10805777-418/gov-pat-quinn-on-pensionmess-everything-is-on-the-table.html
Quinn asks lawmakers to put some skin in the game on pensions, health care
cuts, Monique Garcia, Ray Long, and Alissa Groeninger, Chicago Tribune,
February 22, 2012, http://articles.chicagotribune.com/2012-02-22/news/ct-metillinois-state-budget-quinn-0223-20120223_1_illinois-lawmakers-pensionsystems-pat-quinn
Quinns prison plan causes stir, Steve Mills, Chicago Tribune, February 23,
2012, http://articles.chicagotribune.com/2012-02-23/news/ct-met-illinois-statebudget-prisons-20120223_1_super-max-maximum-security-prison-maximumsecurity-inmates
Come off the sidelines, Editorial, Chicago Tribune, April 2, 2012
http://www.chicagotribune.com/news/opinion/editorials/ct-edit-pension20120402,0,4670440.story
Questions to consider as you review the press clips:
If you were a legislator, how would you respond to the speech? How did
legislators respond? Do you think the Governor provided enough specifics? Or
should he have provided more specifics?
Also Review:
Budget Tools, Chapter 3 Preparing the Budget: The Operating Side. (Optional
Sources, above)
Class 3: April 12, 2012
Budget Big Picture and Budget Analysis
Analyzing a Bill
Assignment 2 Due: Program Request (See Assignment document for details)
Objectives:
Respond to a budget critique
5

How to read and review a bill

Assignment of bills for review
Setting the context for next week
Presentation of Program Request (Optional Assignment)

Readings:
Background Information/Context:
David Wessel, What Sent States Fiscal Picture into a Tailspin, Wall Street
Journal, January 27, 2011
http://online.wsj.com/article/SB1000142405274870406260457610591287603029
4-search.html
Josh Goodman, Budget Gimmicks Explained: Five Ways States Hide Deficits,
Stateline.org, June 23, 2011.
http://www.stateline.org/live/details/story?contentId=583189
Josh Goodman, Why State Budget Deficits Dont Always Add Up, Stateline.org,
April 5, 2011.
http://www.stateline.org/live/details/story?contentId=564696
Scott Pattison, Unending tough budget choices: what to do with the small
things, National Association of State Budget Officers blog, February 13, 2012.
http://www.nasbo.org/budget-blog/unending-tough-budget-choices-what-do%E2%80%9Csmall-things%E2%80%9D
Discuss in Class:
Part 1: Budget Critique
State of Illinois FY 2013 Budget Roadmap: State of Illinois Budget Overview,
Projections, and Recommendations for the Governor and the Illinois General
Assembly, January 30, 2012
http://www.civicfed.org/sites/default/files/FY2013%20Illinois%20State%20Budget
%20Roadmap.pdf
FY 2013 Fiscal Overview and Budget Summary, page 2-13 to 2-14,
http://www2.illinois.gov/budget/Documents/FY
%202012/FY12_Operating_Budget.pdf
Questions to consider as you review the above documents:
Suppose you worked in the budget office for Governor Quinn. The Civic
Federation, a well-respected fiscal watchdog is expected TOMORROW to
release the report above. They gave you a courtesy copy today. You need to
help prepare a briefing and response for the Budget Director. How do you attack
this project? What do you look at in the document? What is important? What
analysis would you do? What are a few key points you would make to defend
the Governors budget?

Part 2: How to Read and Review a Bill

State records: Davis awards scholarships outside her district, BY ALDEN
LOURY The Better Government Association February 28, 2012 12:02AM
http://www.suntimes.com/news/metro/10853659-418/whos-getting-herlegislative-scholarships.html
Feds investigating scholarships awarded by former Rep. Molaro, By DAVE
McKINNEY Springfield Bureau Chief dmckinney@suntimes.com, August 8, 2011
2:20AM http://www.suntimes.com/news/politics/6903776-418/feds-investigatingscholarships-awarded-by-former-rep.-molaro
Illinois house moves to abolish much abused scholarships again, Dave
Mckinney and Andrew Maloney, Chicago Sun-Times, March 22, 2012.
http://www.suntimes.com/news/politics/11445329-418/illinois-house-moves-toabolish-much-abused-scholarships-again.html
All bills for the Illinois General Assembly are available at www.ilga.gov
Illinois Appropriation bill.
http://www.ilga.gov/legislation/97/SB/PDF/09700SB3840lv.pdf
Illinois Substantive bill. SB 2914
Access at www.ilga.gov
Questions to consider as you review the legislation above:
What do the two bills do? How do you know? What is the same and what is
different between the appropriations bill and the substantive bill? How is the
appropriations bill structured? What information does it give you about the
budget? For both bills: what information that you would want to know that is not
there? How would you analyze each bill for someone who hasnt read it? What
is the important information? Is all the important information in the bill itself?
How does the press appear to influence legislation?

Class 4: April 19, 2012

External Actors: Press and Unions
Assignment 3 Due for All but Pension Policy Team: Bill Review (See
Assignment document for details)
Pension Policy Area Team Assignment 4 Due (See Assignment document for
details)
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Guest Speaker: Becky Carroll, Chief Communications Officer, Chicago

Public Schools.
Objectives:
Understand who might influence budget decisions and how
Understand role of editorial board
Briefing on Pensions by Pension Team
Readings:
Dismantling Illinois, Chicago Tribune, editorial, February 23, 2012.

http://articles.chicagotribune.com/2012-02-23/news/ct-edit-state-022320120223_1_quinn-aides-pension-and-medicaid-costs-pat-quinn
Quinns right: Its time to tackle Medicaid, pensions, Chicago Sun-Times,
editorial, February 23, 2012 http://www.suntimes.com/opinions/10808597474/editorial-quinns-right-its-time-to-tackle-medicaid-pensions.html
Impossible to avoid the pain from fiscal mess, State Journal-Register, editorial,
February 26, 2012. http://www.sj-r.com/thedome_editorials/x1771580045/OurOpinion-Impossible-to-avoid-pain-from-fiscal-mess?zc_p=1
Springfields sleepwalkers: wheres the sense of urgency? Chicago Tribune,
editorial, March 28, 2012.
http://www.chicagotribune.com/news/opinion/editorials/ct-edit-agency20120328,0,963603.story
James Q. Wilson, Muffingate and the Medias Big Fat Mistake, Opinion, WSJ,
December 8, 2011.
http://online.wsj.com/article/SB1000142405297020341330457708411409790248
8.html
Questions to consider as you review the editorials above:
Review the press clips from Class 2 and the editorials above. If you were in the
budget office and prepared the budget for Governor Quinn, would you be happy
with the coverage the press gave the speech? Did they focus on what you
thought were the most important elements of the speech? If you knew how the
paper was going to respond to the Governors budget, would you have changed
anything in the budget? How could you best prepare the Governor for what
might appear in the paper? How do the editorials impact what the Governor is
trying to accomplish? How might they impact the outcome of the budget
process?

Class 5: April 26, 2012

Pensions
Assignment 3 Due for Pension Policy Team: Bill Review (See Assignment
document for details)
Debt Policy Area Team Assignment 4 Due (See Assignment document for
details)

Guest Speaker: Lance Weiss, Senior Actuarial Consultant, Gabriel, Roder,

Smith, and Company, formerly Deloitte pension advisor to the Illinois Governors
Office of Management and Budget
Objectives:
Understand financial obligations of pensions
Understand how pension assets and liabilities are determined, what funded
ratios are, and other key financial aspects
Understand how external actors impact pension discussions
Briefing by Debt Team
Readings:
For Background and Context:
Pew Center on the States, The Trillion Dollar Gap: Underfunded State
Retirement Systems and the Road to Reform, February, 2010
http://downloads.pewcenteronthestates.org/The_Trillion_Dollar_Gap_final.pdf
Pew Center on the States, The Widening Gap: The Great Recessions Impact on
Pensions and Retiree Health Care Costs, April, 2011.
http://www.pewcenteronthestates.org/uploadedFiles/Pew_pensions_retiree_bene
fits.pdf
National Association of State Budget Officers, A state budgeting perspective on
pubic pensions, January 20, 2012.
http://www.nasbo.org/sites/default/files/A%20State%20Budgeting
%20Perspective%20on%20Public%20Pensions_0.pdf
The Utah Pension Model: The State Adopts 401(k)s for New State Employees,
Wall Street Journal, Editorial, January 19, 2011
http://online.wsj.com/article/SB1000142405274870358340457608026000138647
4.html
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Executive Summary, Rhode Island Retirement Security Act, signed November

18, 2011.
http://www.pensionreformri.com/resources/ReportwithGRSAppendix.pdf
Allysia Finley, The Democrat who took on the unions, Opinion, Wall Street
Journal, March 24 25, 2012.
http://online.wsj.com/article/SB1000142405297020413640457720743321537406
6.html
E.S. Browning, Retiring Boomers Find 401(k) Plans Fall Short, Wall Street
Journal, February, 19 20, 2011
http://online.wsj.com/article/SB1000142405274870395960457615279274870735
6.html
Wall Street Journal Editorial, The Union Zee Bridge, November 30, 2011.
http://online.wsj.com/article/SB1000142405297020380220457706618246560544
6.html
Robert Reed, Illinois may be prepared to act on pension crisis, opinion, Chicago
Sun-Times, February 3, 2012.
http://southtownstar.suntimes.com/opinions/guestcommentary/10622395474/reed-is-illinois-finally-ready-to-act-on-pension-crisis.html
Monique Garcia, Election year for entire Legislature makes vast agenda more
daunting, Chicago Tribune, February 6, 2012.
http://articles.chicagotribune.com/2012-02-06/news/ct-met-illinois-legislaturesession-20120206_1_pension-payment-public-employee-pension-systemelection
Showdown in Motown, Editorial, Wall Street Journal, April 2, 2012
http://online.wsj.com/article/SB1000142405270230381650457731209401427901
0.html
Questions to consider in reviewing the readings: What pensions do states pay
for? Why? How do they impact the budget? What has caused the current
pension crisis? Is it a crisis? What are potential solutions? What are the
budget consequences of the solutions discussed? How do the media and unions
impact the policy and budget discussions around pensions? How are the politics
of pensions manifested?

Class 6: May 3, 2012

Debt Financing

10

Revenue Policy Area Team Assignment 4 Due (See Assignment document for
details)
Guest Speaker: Melanie Shaker, Treasurer and Deputy CFO, Chicago Public
Schools
Objectives:
Understand how municipalities/states use debt and the role of municipal
bonds (short-term borrowing, capital financing, public private partnerships,
other financing)
Understand the key components of a bond issue: official statement, roles of
financial advisors, underwriters, bond counsel and rating agencies, definitions
and terms
Understanding how budget decisions impact state ratings and how state
ratings can impact the budget
Briefing by Revenue Team
Readings:
Official Statement, State of Illinois, General Obligation Bonds Series of March
2012, pages 1 46 only (See questions below for what to focus on in your
reading)
http://www.state.il.us/budget/26.%20March%202012%20GO
%20$575%20million.pdf
Fitch Ratings, US State Government Tax-Supported Rating Criteria,
State of Illinois General Obligation Bonds, December 28, 2009. Available on
Chalk site in pdf.
http://www2.illinois.gov/gov/capitalmarkets/Documents/Rating%20Agency
%20Reports/Fitch%20Rating%20Release%201-5-12.pdf
Fitch Ratings, Fitch Affirms Illinois Bonds at A; Outlook Stable.
Standard and Poors, Summary, Illinois General Obligation, January 6, 2012
http://www2.illinois.gov/gov/capitalmarkets/Documents/Rating%20Agency
%20Reports/S%20and%20P%20Final%20short%20form%20release.pdf
Kelly Nolan, Muni Market Sounds Alert: Alabama Countys Bankruptcy Filing
May Imperil Payments to Some Bond Holders, WSJ, November 29, 2011.
http://online.wsj.com/article/SB1000142405297020475340457706663116234585
6.html
Kelly Nolan, Muni Bonds: A Disaster that Wasnt, WSJ, December 23, 2011,
http://online.wsj.com/article/SB1000142405297020368620457711480365153502
4.html
11

Wall Street Journal Editorial, The Greece Next Door, January 20,2012
http://online.wsj.com/article/SB1000142405297020455590457716494427970259
0.html
Kris Maher, Pennsylvania Plan Sees A Slimmer Capital City, WSJ, February 7,
2012.
http://online.wsj.com/article/SB1000142405297020331580457720725000620583
4.html
National Association of State Budget Officers, Municipal bonds in 2011: An
update on state and local borrowing, November 23, 2011.
http://www.nasbo.org/sites/default/files/Municipal%20Bonds%20-%20An
%20Update%20on%20State%20and%20Local%20Borrowing_0.pdf
Timothy W. Martin, Reed Albergotti, and Matthew Futterman, SEC Examines
Marlins Stadium Deal, WSJ, December 5, 2011.
http://online.wsj.com/article/SB1000142405297020482670457707723034236943
6.html
Bob Sechler, Colleges Shedding Non-Core Operations, Wall Street Journal,
April 2, 2012
http://online.wsj.com/article/SB1000142405270230381650457731209401427901
0.html
Steven Malanga, How Stockton, California went broke in plain sight, Wall Street
Journal, March 30, 2012.
http://online.wsj.com/article/SB1000142405270230340470457730923174749790
6.html
Questions to consider as you review the readings: Why do
municipalities/states issue debt? How does debt relate to the budget? What is
the purpose of an Official Statement? What types of information is included in
the Official Statement?
What is the purpose of getting a rating? What is the role of a rating agency?
What information do rating agencies think is important? Why? How does it relate
to budget decisions? What are the implications of a rating on the cost of the
bonds? Why is this a concern?
How can debt lead to financial trouble for municipalities/states?
Class 7: May 10, 2012
Revenue
Medicaid / Human Services Policy Area Team Assignment 4 Due (See
Assignment document for details)
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Guest Speaker: Hans Zigmund, Illinois Governors Office of Management

and Budget
Objectives:
Understand how national and state economic factors impact revenues
Review selected methods for estimating revenues
Develop sensitivity to politics of revenues
Understand tax expenditures (tax credits)
Establish revenue estimate for State for Assignment 5, Final Presentation
Briefing by Medicaid/Human Services Team
Readings
States Revenue Estimating: Cracks in the Crystal Ball, The Pew Center on the
States and the The Nelson A. Rockefeller Institute of Government, March, 2011.
http://www.pewcenteronthestates.org/uploadedFiles/States_Revenue_Estimating
_final.pdf
Minnesota's revenue forecasting process.
Stinson, Thomas F. "Government Finance Review", State revenue forecasting:
An institutional framework, Saturday, June 1 2002
http://www.allbusiness.com/accounting-reporting/revenue/209240-1.html
Illinois FY 2013 Operating Budget Book, Chapter 3, Economic Outlook and
Revenue Forecast, pages 3-1 to 3-13 (through sales tax section) :
http://www2.illinois.gov/budget/Documents/Budget%20Book/FY%202013/Illinois
%20FY%202013%20Operating%20Budget%20Book.pdf
Legislative Reference Unit, The Illinois Tax Handbook for Legislators, 27 th Edition,
March 2011, pages 55 63 (corporate and individual income tax sections) and
pages 110 126 (sales and use tax sections).
http://www.ilga.gov/commission/lru/2011TaxHandbook.pdf
Illinois House Resolution 707: FY 13 Revenue Estimates
http://www.ilga.gov/legislation/fulltext.asp?
DocName=&SessionId=84&GA=97&DocTypeId=HR&DocNum=707&GAID=11&L
egID=63225&SpecSess=&Session=
Illinois proposal for entry fees at state parks is seen as a sign of the times,
Robert McCoppin, Dawn Rhodes, and Ashley Rueff, Chicago Tribune, March 28,
2012. http://www.chicagotribune.com/news/local/ct-met-state-park-fee-plan20120328,0,3274512.story
Quinn wants to eliminate tax loophole that helps oil companies, Ameet Sachdev
and Alejandra Cancino, Chicago Tribune, February 23, 2012.
13

http://www.chicagotribune.com/news/local/ct-met-0223-illinois-state-budgetbusiness-20120223,0,2299433.story
Vauhini Vara, California democrats duel over taxes, budget, Wall Street Journal,
April 2, 2012.
http://online.wsj.com/article/SB1000142405270230381290457728955165882768
4.html
Questions to consider in reviewing the readings: What are the major economic
factors that impact the individual income tax, corporate income tax, and sales tax
in Illinois? How precise can revenue estimates be if they are based on economic
forecasts? What influences the decisions about the revenue estimates that are
presented in the budget? Are revenues political?
Class 8: May 17, 2012
Medicaid/Human Services: The Federal-State Connection
Education Policy Area Team Assignment 4 Due (See Assignment document for
details)
Guest Speaker: Mike Moss, Illinois Governors Office of Management and
Budget
Objectives:
Understand state/federal funding partnership
Understand what health care is funded through Medicaid
Understand health care pressures
Understand factors that drive health care and human services costs:
caseload, eligibility, rate, court orders, etc.
Briefing by Education Team
Readings:
For Background--Scope and Issues in Human Services/Medicaid:
Illinois Human Services Commission, First Report,
http://www2.illinois.gov/hsc/Documents/HSC%20First%20Report%206-30-10.pdf
Pages 11 -23 only
Civic Federation, Institute for Illinois Fiscal Sustainability, The Illinois Medicaid
Programs: A Policy Brief, May 22, 2009.
http://civicfed.org/sites/default/files/civicfed_295.pdf
Human Service Agency Budget Materials and Implications

14

Illinois Department of Healthcare and Family Services, Menu of possible options

for liability and spending reductions, February 22, 2012.
http://www2.illinois.gov/hfs/agency/Documents/022212_presentation.pdf
Illinois Department of Healthcare and Family Services, Appropriation Status
Report, FY 2013
http://www2.illinois.gov/hfs/SiteCollectionDocuments/021212datareport.pdf
Illinois Department of Human Services, FY 13 Budget Briefing.
http://www.dhs.state.il.us/page.aspx?item=59235
Illinois Department on Aging, FY 13 Budget Briefing
http://www.state.il.us/aging/1aboutidoa/budget_fy13introduced.pdf
Clare Ansberry, Disabled Face Hard Choices as States Slash Medicaid, Wall
Street Journal, May 20, 2010
http://online.wsj.com/article/SB1000142405274870429200457523067348397390
4.html
Questions to consider as you review the readings: Do the Department budget
briefings tell you the important information you need to know? What do they tell
you about the budget? About the programs? What message is conveyed in their
presentations? Is there important information that is not clear, not included, or
hard to find in their presentations? What are the major spending areas in each of
these agencies? What areas were increased? What areas were reduced? What
is the impact on the individuals and families that rely on state services? Is there
an impact elsewhere in the budget?
What role do the Departments of Healthcare and Family Services, Aging, and
Human Services play in serving people with disabilities? How are these services
related? What role does Medicaid play in supporting these services? How do the
budgets for people with disabilities interact with one anotherdo the cuts
reinforce the goals the state is trying to achieve? What is a Medicaid waiver?
What is the idea behind Money Follows the Person?

Class 9: May 24, 2012

The State-Local Connection: Municipal Budgeting,
Education

15

Guest Speaker: Alex Holt, Director, City of Chicago Office of Budget and
Management.
Objectives:

Understand how local budgets are different from state budgets

Understand federal, state, and local roles in financing K-12 education
Understand spending components
Understand politics of education

Readings:
Part 1: City Funding
The Local Crunch: How States are Passing Fiscal Pain onto Cities and Counties,
Stateline.org.
http://cms1.stateline.org/cms/digitalAssets/41260_LocalCrunch_all.pdf
City of Chicago Budget 2012 Budget, pages 1 - 25
http://www.cityofchicago.org/content/dam/city/depts/obm/supp_info/2012%20Budget/
2012BudgetOverviewRev11-8.pdf
Questions to consider as you review the Part 1 readings: How are the City and
State budgets similar? What differences do you notice? How do the City and State
budgets interact? What funding flows from the state to the City? Did the Governor
propose any changes in his FY 13 budget that would impact the Citys revenues?
What revenues does the City rely on that are different from the revenues the state
relies on?
Part 2: Education Funding
Illinois State Board of Education Fiscal Year 2013 Proposed Budget, March 2012,
pages 1 - 21 (Executive Summary)
http://www.isbe.net/budget/FY13_budget_book.pdf
Table Comparing Illinois State Board of Education FY 13 Proposed Budget to
Governors Proposed Budget
http://www.isbe.net/budget/FY13_budget_compare_gov.pdf
Chicago Public Schools Budget Overview, March 28, 2012
http://www.cps.edu/About_CPS/The_Board_of_Education/Documents/FY13_Budget
_BoardBrief.pdf
Monique Garcia, Quinn vows to fight deep education cuts, Chicago Tribune, March
31, 2012. http://articles.chicagotribune.com/2012-03-31/news/ct-met-quinn-budget0330-20120331_1_education-cuts-gambling-bill-pension-and-medicaid-costs

16

Questions to consider as you review the Part 2 readings: How does the state
allocate education funding? What are the major programs? What are the major
challenges facing education funding from a state perspective? What funding does
the Chicago Public School district receive from the state? How do the decisions
made by the Governor, ISBE, and the Legislature impact CPS? What are the major
budget pressures facing CPS? Are they addressed by what either ISBE or the
Governor proposed?
Class 10: May 31, 2012
Final Presentations
Assignment 5 Due: Final Budget Recommendations and Presentation (See
Assignment document for details)
Objectives:
Make overall budget recommendations
Summarize information in a presentation
Receive feedback from work
Discuss conclusions from Course
Complete evaluations on objectives and speakers

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