Assessing the Efficacy of Rational Budgeting Approaches: Financial Recovery Planning and Municipal Budgetary Solvency

Jimenez, Benedict S. (2019) Assessing the Efficacy of Rational Budgeting Approaches: Budget Diagnosis, Financial Planning, and the Fiscal Performance of Municipal Governments. Public Management Review. 21(3): 400-22.

Andrew Young School of Policy Studies Research Paper Series No. 19-21

38 Pages Posted: 30 Jul 2019 Last revised: 5 Nov 2019

See all articles by Benedict S. Jimenez

Benedict S. Jimenez

Georgia State University - Andrew Young School of Policy Studies

Date Written: 2019

Abstract

This study assesses the effects of financial recovery planning on the budgetary solvency of US cities. Budgetary solvency is the ability of governments to meet their service responsibilities and other financial obligations in a fiscal year. Financial recovery planning, which is based on rational decision-making theory, is designed to help cities recover from fiscal stress by facilitating diagnosis of fiscal problems, and the implementation of short- and long-term fiscal recovery strategies. Using data from a national survey of cities and multi-year audited financial reports, the results of the regression analyses show that planning is associated with stronger budgetary solvency, but its effectiveness varies across cities. Specifically, planning helps majority of fiscally struggling cities, but not those facing extreme fiscal decline.

Keywords: Rational Budgeting, Financial Planning, City Budgetary Solvency, Great Recession

JEL Classification: h70

Suggested Citation

Jimenez, Benedict Salazar, Assessing the Efficacy of Rational Budgeting Approaches: Financial Recovery Planning and Municipal Budgetary Solvency (2019). Jimenez, Benedict S. (2019) Assessing the Efficacy of Rational Budgeting Approaches: Budget Diagnosis, Financial Planning, and the Fiscal Performance of Municipal Governments. Public Management Review. 21(3): 400-22.; Andrew Young School of Policy Studies Research Paper Series No. 19-21. Available at SSRN: https://ssrn.com/abstract=3427457 or http://dx.doi.org/10.2139/ssrn.3427457

Benedict Salazar Jimenez (Contact Author)

Georgia State University - Andrew Young School of Policy Studies ( email )

Atlanta, GA
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
8
Abstract Views
139
PlumX Metrics