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| Preface | |
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| Why a New Edition? | |
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| A Different Take on the Subject | |
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| Organization and Learning Style | |
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| Acknowledgments | |
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| About the Authors | |
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| Introduction to Budgeting in a Democracy | |
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| Democracy | |
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| Markets | |
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| Politics | |
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| Theoretically Speaking | |
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| Web Site Resources | |
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| Follow the Money | |
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| What Is the Public Sector? | |
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| Why Do We Need to Make Political Choices? | |
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| Not a Brawl | |
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| Political Process | |
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| Do the Choices Matter? | |
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| Guarantee | |
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| Limits to Budgeting | |
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| How Does Democracy Affect Budgeting? | |
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| Accountability | |
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| Transparency | |
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| Responsiveness | |
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| Stewardship and Efficiency | |
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| What Is a Good Budget? | |
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| Thumbnail | |
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| Case: A Lesson in Political Muscle | |
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| Web Site Resources | |
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| Review Questions | |
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| We the People: Power and Participation | |
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| Do We Vote Our Budget Choices? | |
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| Voting Bundles, Not Budgets | |
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| Voting Political Parties | |
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| Voting Core Political Beliefs | |
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| What Does Governing Mean? | |
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| Can Citizens Speak to Political Leaders? | |
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| Transparency and Meaningful Participation | |
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| Voting Directly on Budget Choices | |
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| Are Citizens Self-Interested Rational Actors? | |
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| Emotional Language of Budgetary Politics | |
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| How Political Ideology Affects Budgeting | |
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| Is Lobbying Legitimate in Budgetary Politics? | |
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| How and Why We Lobby | |
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| Issue Networks | |
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| Does Public Opinion Influence Budgetary Politics? | |
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| Do Leaders Listen? | |
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| Interpreting Public Opinion | |
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| Thumbnail | |
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| Case: Where the Rubber Hits the Road | |
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| Web Site Resources | |
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| Review Questions | |
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| Fairness and Trust in Budgetary Politics | |
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| What's Fair? | |
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| Are Taxes Fair? | |
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| The Public's Perspective | |
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| Notions of Tax Fairness | |
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| Tax Burden | |
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| Taxes and Income Inequality | |
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| Fiscal Federalism and Tax Fairness | |
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| Is Spending Fair? | |
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| The Politics of Redistribution | |
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| Generational Politics | |
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| Spending across the States | |
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| Political and Budgetary IOUs | |
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| Are Citizens Satisfied with Performance? | |
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| Does Citizen Trust or Distrust Matter? | |
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| Thumbnail | |
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| Case: What's the Point? | |
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| Web Site Resources | |
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| Review Questions | |
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| Process Matters | |
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| How is the Budget "Game" Played? | |
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| How Did We Get Here? | |
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| What Is Executive Budgeting? | |
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| How Does Executive Budgeting Work? | |
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| Executive Formulation and Submission | |
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| Bouncing Off the Base | |
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| Changes in the Base | |
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| The New Normal | |
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| Budget Requests | |
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| Legislative Call | |
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| Appeals and Issue Networks | |
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| Budget Strategies | |
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| Significance of Stage One | |
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| Legislative Review and Appropriation | |
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| Review of the Executive Budget Request | |
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| Limits on Legislative Powers | |
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| Line-Item Appropriations and Veto Power | |
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| Budget Blackout | |
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| Implementation and Audit | |
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| Allotments and Rescissions | |
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| Supplemental Appropriations | |
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| After the Books Are Closed | |
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| Summary of the Executive Budget Process | |
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| Why Take a Political Perspective? | |
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| How Does the Federal Entitlement Process Work? | |
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| The Art of the Budget Process | |
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| Thumbnail | |
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| Case: A Package Deal | |
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| Web Site Resources | |
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| Review Questions | |
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| Putting the Puzzle Together | |
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| What Rules Guide Putting the Budget Pieces Together? | |
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| Fiscal Rules for the Federal Government | |
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| Fiscal Rules for State and Local Governments | |
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| Fiscal Rules Are Norms | |
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| What Is a Balanced Budget? | |
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| Revision of the Budget during the Year | |
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| The "Is" of a Balanced Budget | |
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| What Happens When There Is No Budget or the Budget Is Not in Balance? | |
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| Financing the Federal Government's Annual Deficit by Issuing Debt | |
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| State and Local Government Debt | |
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| Budget Cutbacks | |
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| Is the Budget Sustainable over Time? | |
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| Rainy-Day Budgeting | |
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| Public Sector Employee Benefits | |
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| Budget Sustainability | |
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| Thumbnail | |
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| Case: When Persuasion Is Broke | |
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| Web Site Resources | |
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| Review Questions | |
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| Spending Public Resources | |
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| How Much Are We Spending? | |
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| Measuring Spending | |
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| Internal Dynamics: Percent Change and Rate of Growth | |
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| External Developments | |
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| Changing Prices | |
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| Economic Change | |
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| Social Change | |
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| A Slice of the Pie | |
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| Cost Structure Makes a Difference | |
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| Workforce and Payroll | |
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| Employee Benefits and Unpaid Bills | |
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| Why Is Some Federal Spending Kept Secret? | |
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| What Does Counterterrorism Cost? | |
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| What Are We Getting for the Money? | |
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| Why Do Budgets Grow? | |
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| Thumbnail | |
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| Case: Do-It-Yourself Government | |
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| Web Site Resources | |
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| Review Questions | |
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| A Taxing Subject: Raising Public Resources | |
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| Why Do We Pay for Public Services? | |
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| Willingness to Pay | |
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| Revenue Systems Serve Different Functions | |
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| Revenue and Civic Engagement | |
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| Strategies for Public Support | |
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| Who Makes Revenue Policy? | |
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| Political Pressure on Technical Experts | |
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| Revenue Power outside the Beltway | |
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| Political Pressure on Decision Makers | |
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| What Types of Revenue Does the Public Sector Use? | |
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| The Property Tax | |
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| The Income Tax | |
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| The Sales and Use Tax | |
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| Revenue Diversity | |
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| How Do Taxes Work? | |
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| The Sticky Problems of Tax Administration | |
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| Rules That Limit Tax Uses and Tax Increases | |
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| Nominal versus Effective Tax Rate | |
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| What Are the Five Principles of Taxation and How Are They Applied? | |
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| How Does Tax Policy Affect Economic Growth | |
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| What Is Efficient Taxation? | |
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| How Can Tax Policy Be Economical? | |
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| Forecasting Revenue | |
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| Price of Government | |
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| Tax Elasticity | |
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| Revenue Yield over Time | |
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| Other Concerns | |
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| How Does Transparency Make Taxation Responsive? | |
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| What Is a Fair Tax? | |
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| Benefits-Received Principle | |
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| Ability-to-Pay Principle | |
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| Tax Incidence | |
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| Taxes in the Global Economy | |
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| Can Governments Raise Revenue without Having Taxes? | |
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| Thumbnail | |
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| Case: A License to Prey? | |
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| Web Site Resources | |
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| Review Questions | |
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| Politics and Capital Budgeting | |
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| What Is Capital Budgeting and Why Is It Important? | |
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| Infrastructure as Durable Goods and Capital Assets | |
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| Doing Public Megaprojects | |
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| Should Governments Plan and If So, How? | |
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| Identifying Capital Projects | |
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| Capital Programs and Budgets | |
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| Project Costs and Benefits | |
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| If Not Pay Cash, Then Why and When Borrow Money? | |
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| Debt Is Not Always Bad | |
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| Bond Ratings and Credit Quality | |
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| Debt Rules | |
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| State and Local Government Securities | |
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| Is There Such a Thing as Free Money? | |
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| State and Local Officials Look to the Federal Government | |
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| Local Officials Look to the States | |
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| Thumbnail | |
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| Case: Budget Busters! | |
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| Web Site Resources | |
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| Review Questions | |
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| How to Read a Local Budget | |
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| A Budget's Four Main Parts | |
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| Budget Message | |
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| Budget Summary | |
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| Detailed Schedules | |
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| Supporting Documentation | |
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| Eight Focal Points | |
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| Who/What? | |
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| Fiscal Year? | |
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| Operating or Capital Budget? | |
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| Legal Status of the Document? | |
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| Is the Budget Balanced? | |
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| What Fund Applies? | |
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| What Are the Budget Drivers? | |
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| Who/What Gets the Spotlight? | |
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| Proceed with Caution! | |
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| Go beyond the Budget | |
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| Applications | |
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| Questions to Ask When Reading a Budget | |
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| Would You Vote for This Budget? | |
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| Web Site Resources | |
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| Review Questions | |
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| The Bottom Line | |
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| Why Does Budgeting Change and Yet So Much Stays the Same? | |
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| Sources of Change | |
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| Putting On the Squeeze | |
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| Budgetary and Political Time Bombs | |
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| How Do Today's Budget Decisions Affect Tomorrow's Democracy? | |
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| Long-Term Budget Commitments Undermine Democracy? Agree | |
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| Long-Term Budget Commitments Undermine Democracy? Disagree | |
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| How Are We Doing? | |
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| Transparency and Complexity | |
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| Financing Public Higher Education | |
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| Following the Money through a Maze | |
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| Accountability, Stewardship, and the Artful Dodge | |
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| Budget Gimmicks | |
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| Dodging Tough Choices | |
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| Efficiency, Effectiveness, and Performance | |
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| Responsiveness and the Role and Size of Government | |
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| Where Are We Headed? | |
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| Reforming the Federal Appropriations Process | |
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| Entitlement Reform | |
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| Closure Commissions | |
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| Reforming Earmarks | |
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| Other Reforms | |
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| What Can We Do about It? | |
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| Trust and the Political Deficit | |
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| Participation and a Challenge to Take Two Steps | |