Rational decremental budgeting: Elements of an expenditure policy for the 1980s

Tarschys, Daniel

doi:10.1007/bf00137506

Cited by 10 publications

(3 citation statements)

References 1 publication

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“…Based on the cutback management literature in the 1970s and 1980s, it is possible to point to four theoretical lines of reasoning, each making somewhat different predictions about the choice by the budget actors between across-the-board and targeted strategies. Theories proceeding from the assumption of rational choice by the budget actors predict the making of targeted cuts on the basis of strategic priorities and the performance of the various organizations (in the case of macro-level cuts) and on the basis of the performance of organizational subunits and the programmes they deliver (in the case of cuts within organizations) (Jick and Murray, 1982; Lewis, 1984; Straussman, 1979; Tarschys, 1981). Theories focusing on political behaviour and party politics – dealing with the macro-level cutbacks – predict that cuts would be selective since decision-makers would want to minimize the opposition of the public and interest groups to the cuts and hence focus the cuts on those expenditure areas that hurt them the least (and hence ‘cost’ the least amount of votes) (Downs and Rocke, 1984; Hood et al., 1988; Jick and Murray, 1982; Lewis, 1984; Pammer, 1990; Rubin, 1985; Wolman and Davis, 1980).…”

Section: Cutback Strategiesmentioning

confidence: 99%

“…Capital expenditure can take drastic forms like elimination of capital spending from the budget, but also softer measures like a spending freeze on new projects, ‘postponing’ nonessential capital projects and cutting or deferring maintenance (Lewis and Logalbo, 1980). In normative discussions, several authors warn against cutting and postponing maintenance as the related future costs might be far in excess of today’s savings and may lead to subsequent and more costly capital acquisition in the long term (Lewis and Logalbo, 1980; McTighe, 1979; Tarschys, 1981).…”

Section: Contents Of Cutbacksmentioning

confidence: 99%

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Cutback management literature in the 1970s and 1980s: taking stock

Raudla

Savi

Randma‐Liiv

2015

International Review of Administrative Sciences

100

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The main purpose of this article is to take stock of the literature on public sector cutback management in the 1970s and the 1980s, with a specific focus on cutback strategies and the contents of cutbacks. Both theoretical and empirical studies, focusing either on the central or local government level or different policy fields, have been reviewed. The study shows that when governments face cutbacks, they need to address the fundamental choice between across-the-board and targeted cutback strategies. Cutbacks do not occur as one-off single actions but are usually carried out in a number of cutback rounds. The longer-lasting and the more severe is fiscal stress, the more likely it is that the governments will start imposing targeted cuts rather than implementing across-the-board strategies. Looking at the patterns of cutback management in the past is expected to provide useful insights for systematizing the approaches to cutback management and for researching the current crisis. Points for practitioners This article provides an overview of cutback management practices in the 1970s and the 1980s with the expectation that it will contribute to addressing the current fiscal crisis. The pros and cons of targeted versus across-the-board cutback strategies are discussed. The article also looks at various cutback measures including operational cuts (hiring freeze, pay freeze, lay-offs), programme and capital cuts. The study shows that the longer-lasting and the more severe the fiscal stress, the more likely it is that the governments will begin to impose targeted rather than across-the-board cuts. It is found that personnel costs are cut rather reluctantly, and hiring freeze is a dominant measure compared to salary cuts or lay-offs.

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Section: Cutback Strategiesmentioning

confidence: 99%

Section: Contents Of Cutbacksmentioning

confidence: 99%

Cutback management literature in the 1970s and 1980s: taking stock

Raudla

Savi

Randma‐Liiv

2015

International Review of Administrative Sciences

100

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“…Overload is the extent that an excess of growth occurs, however conceptualized and measured. To the extent that it is different from overload, financial scarcity for governments can also be expected to have significant structural effects (Rockman, 1984;Levine, 1978;Tarschys, 1981). Likewise, technological change has been found to be important for explaining the existence of certain types of organizations (Grafton, 1984).…”

Section: Growth Of Governmentmentioning

confidence: 99%

The Structure and Organization of Government: Concepts and Issues

Peters

1985

J. Pub. Pol.

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The most basic question about the structure and organization of government is Why we should be concerned about this question at all?' Many of us trained in political science programs during the behavioral revolution were taught to believe that the structures of government were insignificant as a focus for research. The structures ofgovernment became encapsulated in an opaque black box; that part of the political system where decisions were made. Fortunately, this view no longer prevails and there is increasing interest in structural questions, in part generated by the increasing interest in the state as a focus for political inquiry (Dyson, 1980; Benjamin and Elkin, 1985). Much of the work on the state as yet, however, leaves that concept largely undifferentiated and has not dealt systematically with the structure of the state apparatus. Thus, concern for the development of state theory, as well as the concerns of those interested in public policy, has returned structural questions to a more central position in political science.

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1983

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Rational decremental budgeting: Elements of an expenditure policy for the 1980s

Cited by 10 publications

References 1 publication

Cutback management literature in the 1970s and 1980s: taking stock

Cutback management literature in the 1970s and 1980s: taking stock

The Structure and Organization of Government: Concepts and Issues

Abstracts of Documents in this Supplement

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