Chair’s Column: Responding to Challenge

This column is featured in the April 2013 edition of Line Item

By Scott Pattison, ABFM Chair

Scott Pattison 2013 Chair NASBO

Scott Pattison
ABFM Chair

It is a busy time in Washington, especially on the financial front. More so than in the past, the trials and tribulations of budgets and financial conditions of all levels of government across the country and around the globe are front and center in the minds and consciousness of fellow citizens, politicians and policy makers.

Sequestration is a reality here in Washington. In just the past week, Congress already took one step to alleviate its impact, helping eliminate furloughs for air traffic controllers. While we may see noted improvement at our nation’s airports, there is no doubt the move will create greater pressure on Capitol Hill and in the White House to either responsibly address our Federal fiscal woes, or simply return to the status quo of indefinite deficit spending.

In several state capitals, legislatures and Governor’s Offices are stepping to the plate with significant budget and revenue reform proposals. These proposals have stirred up interesting debates about budgets, taxes and financial management. Battles continue, as most state leaders, regardless the chosen strategy, are well aware that changes may be necessary.

At the local level, the options are even more diverse and volatile. While some parts of the country have rebounded from the economic hardships of the 2007-2008 downturn, many other still find themselves with high unemployment, declining property values and tax bases and increased demand for public services.  Additional pressures, such as cuts in state and Federal support and ongoing  non-discretionary funding challenges, create a perfect storm for attempting to facility growth and opportunity while providing the means to provide essential services.

All of this means, of course, is that our role in the evaluation, research and consideration of trends, best practices and lessons of public sector finance and budgeting is of more importance than ever. I am really proud of the work our fellow members undertake to advance the cause of professional public finance management.

I see this everyday through my work with NASBO, my interaction with Federal and state budgeting and finance professionals, and the contributions made to research and practice by our fellow ABFM members. Our last issue of Line Item and its focus on state sales tax reform, along with the great selection of articles found in Public Budgeting & Finance and Public Administration Review remind me of the deep skills, knowledge and experience shared and cultivated within our ranks.

Our last issue of Line Item, featuring a comprehensive look at state-level tax reform initiatives and associated issues, generated significant discussion and exposure for our organization. I greatly appreciate the cooperation of our longtime partner, the American Association for Budget and Program Analysis, for hosting a special webinar this past March, where several of the contributors to this issue and I had a chance to further discuss this important issue.

We are working actively with AABPA to expand our partnership efforts. Look forward to some exciting developments over the next couple months.

More than 80 proposals have been received for our 2013 ABFM Conference in Washington. If you have not already submitted a proposal, I strongly encourage you to do so during these last few days. Click here for more information.

Very soon, we will start sharing information on the next round of nominations and elections for the ABFM Executive Committee and Officer positions.  We are always looking for our fellow members to step up and provide the leadership necessary to continue growing and developing our organization. I sincerely want those of you with a strong interest in building ABFM to consider submitting your nominations, and I look forward to an active election and a strong corps of leadership to guide our future.

Regardless your role, practitioner or academic, researcher and applier, I urge you to continue to build upon the great body of work and progress made by our membership on a continuing basis. As we confront the realities of real-time expectations and digital commerce and management, remember that we are all part of a select group within a broad profession that often finds us in the minority at any one given location.

USDA Expands Open Agricultural Data

Monday, April 29th, the United States Department of Agriculture announced the launch of a new virtual community to provide a broad range of open data on agricultural and other topics.  More than 200 datasets have been made available through the platform, incorporated into the Federal Government’s data.gov program.

The recently announced the VegScape tool provides data and mapping capacity from our satellite-based U.S. crop condition vegetation assessment and monitoring web service. Geospatial metadata are now available directly through the Ag.Data.gov community.

The Genetics and Genomics Databases benefits scientists and plant breeders through the streamlined and searchable catalog, including data published by our Agricultural Research Service, such as Soybase and MaizeGDB.

The Germplasm Resource Information Network  (GRIN) Global is a powerful and easy-to-use, web-based information management system for the world’s plant genebanks, providing access to plant genetic resources in the face of challenges such as crop diseases and pests.

The community also features some new statistical products that support the U.N. Global Strategy for Agriculture and Rural Statistics.

In January, USDA’s Economic Research Service launched an ERS Content API (application programming interface), providing programmatic access to the primary content areas of the ERS public website, including Topics, Publications and the Amber Waves online magazine. The API will allow developers and others to build widgets, applications, and other projects using ERS content.

Finally, USDA is working to build a dynamic API for the National Agricultural Statistics Service (NASS) Quick Stats data. Quick Stats is the best source of agricultural census and survey data published by NASS. This API will be released in 2013.

GASB Accepting Applications for Crain Research Grant

gasb_logoSince its formation in 1984, the Governmental Accounting Standards Board (GASB) has encouraged academics and other researchers to conduct studies that would be relevant to the GASB’s standards-setting activities. Over the past quarter-century, such research efforts have resulted in publishing their research in research briefs, journal articles, and occasionally in GASB research reports.

The GASB technicalstaff is relatively small. Therefore, the GASB seeks to leverage research efforts by encouraging the academic community to conduct applied research that is relevant to the GASB’sstandards-setting activities. Two broad areas ofresearch are particularly important to the GASB: research on existing standards and studies of issues that have not been addressed.

The GASB hopes to encourage more collaborative research efforts with academics by offering one or more $5,000 research grants. Crain Grants are intended to support research that is relevant to the setting of accounting and financial reporting standards for state and local governments. One or more grants of $5,000 are awarded each year.

The deadline for submitting grant proposals is May 24, 2013. An award decision will be made on or around June 24.

Click Here for a Full Description of the Program and Request for Proposals

Recording of State Tax Reform Panel Available

Our research journal partners, the American Association for Budget and Program Analysis, hosted several of the ABFM members involved in our February/March Line Item special issue, “State Tax Reform: Options, Challenges and Creativity” for an engaging webinar panel on the issue’s articles and the current shape of proposed changes to tax policy in several states.

A recording of the session is now available online through AABPA. Click on this link to access the recorded Webinar.

The webinar features the following individuals:

Sandra Beattie, GAO

Philip Christian, Georgia Southern

William Hoyt, University of Kentucky

Kenneth Hunter, ABFM Executive Committee

Jay Kierdrowski, University of Minnesota

Scott Pattison, NASBO Executive Director

Click here to check out this special “State Tax Reform” edition of Line Item

Check out Video from Federal Budgeting 2013: Fundamentally Challenged

budget panelThe current federal budget process has been stymied by political and philosophical priorities.  A panel of experts recently gathered to share their thoughts about the current environment, what should happen next and what is likely to occur.  This video, “Federal Budgeting 2013: Fundamentally Challenged,” contains the one-hour panel discussion, a subsequent half-hour Q&A session, and brief follow-up interviews with the participants.

This discussion is designed to promote discussion in finance, budget and public policy classes and can be viewed or downloaded by clicking here or visiting https://vimeo.com/album/2356555.

Moderator
Dr. Philip Joyce, Editor, Public Budget & Finance and Professor of Management, Finance and Leadership at University of Maryland School of Public Policy

Panelists
Mr. G. William Hoagland, Senior Vice President, Bipartisan Policy Center
Ms. Maya MacGuineas, President, Committee for a Responsible Federal Budget
Dr. Robert Reischauer, Economist & one of the two public trustees of Social Security and Medicare Trust Funds

BPC Logo High ResThis presentation was made possible by Public Financial Publications, The Bipartisan Policy Center and West Virginia University

Video from NC State University’s “Laissez-Faire Capitalism v. The Mixed Economy” Debate

Last month, Dr. Yaron Brook, Executive Director of the Ayn Rand Institute, met up with University of North Carolina School of Government Economist, Dr. Karl Smith, for a debate on competing economic theories.

Their debate focused on the contrasts and competing arguments favoring either the modern “mixed economy” environment, reflecting a convergence of libertarian and progressive economic theories, and the more pure “Laissez-Fair Capitalism” approach championed by Brook at his promotion of Rand’s Objectivism philosophy.

This debate was held March 20th at North Carolina State University in Raleigh and sponsored by Society for Politics, Economics, and the Law. The debate was video recorded by Josh Windham, and is available in consecutive parts below.

“Build America” Rebate Reduced by Sequestration

The “Build America Bonds” program touted during the 2009 American Recovery & Reinvestment Act (ARRA, Stimulus) saw its interest rebate significantly reduced as a result of Federal spending cuts triggered by the implementation of “sequestration” on March 1st.

The IRS, responsible for administration of the program and remittance of rebates to municipal governments that issued debt under the program, released guidance on the impact of this spending reduction March 4th

Pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, certain automatic reductions will take place as of March 1, 2013.  These required reductions include a reduction to refundable credits under section 6431 of the Internal Revenue Code applicable to certain qualified bonds.  The sequester reduction is applied to section 6431 amounts claimed by an issuer on any Form 8038-CP filed with the Service which results in a payment to such issuer on or after March 1, 2013. The sequestration reduction rate will be applied until the end of the fiscal year (September 30, 2013) or intervening Congressional action, at which time the sequestration rate is subject to change.

These reductions apply to Build America Bonds, Qualified School Construction Bonds, Qualified Zone Academy Bonds, New Clean Renewable Energy Bonds, and Qualified Energy Conservation Bonds for which the issuer elected to receive a direct credit subsidy pursuant to section 6431.  As determined by the Office of Management and Budget, payments to issuers from the budget accounts associated to these qualified bonds are subject to a reduction of 8.7% of the amount budgeted for such payments.

According to Reuters, implementation of this change to rebates created its own delay in processing the remaining payments to municipalities:

The so-called “sequester” will cut the subsidy paid on the bonds, used for infrastructure projects, by a total of about $210 million. But to put that cut into effect, the IRS has to take offline the computer systems it uses for the payments to reprogram them, the official said.

The Build America Bond program was part of the 2009 economic stimulus intended to boost state and local government infrastructure spending. It ended in December 2010.

The IRS computer overhaul means no payments will be made for three to six weeks, after which municipal issuers will begin to receive the lower payment, the official said.

The sequestration impact, according to Standard & Poor’s, represents a 5.3% reduction in the interest subsidy to the Build America Bond program. Municipal governments that benefited from the program will see some reduction in their interest revenues for the remainder of the current fiscal year, and likely a significant reduction in their projected revenues from the rebate for future years.

UPDATE: At least one municipality, the small town of Monona, WI, decided to refinance their Build America Bonds, in part because of the curtailing of rebates.

 

 

Reserve Rooms for 2013 ABFM Conference

You can now reserve your rooms online at the special conference rate for the 2013 ABFM Conference at the Washington Marriott in Washington, DC, October 3rd-5th.

Click Here to Reserve Rooms Online

Click Here for the Call for Papers, Panels & Proposals – Deadline for Submissions is May 1st

PDF Version of February/March Line Item Available

You can now download a copy of our February/March 2013 Special Issue of Line Item on State Tax Reform as a PDF for reading and distribution.

Click Here to Download Line Item’s February/March 2013 Issue

ABFM joins with AABPA for State Tax Reform Webinar, March 13th, 1PM Eastern

ABFM and our research journal partner, the American Association for Budget and Program Analysis, will present the webinar, ”State Tax Reform: Options, Challenges and Creativity,” a follow-up to the recent special issue of ABFM’s Line Item newsletter, next Wednesday at 1 p.m. Eastern Time.

Click Here to Register for this Webinar

The webinar will be moderated by Line Item editor Kenneth Hunter and feature some of the ABFM members and public sector finance experts who contributed articles to the special issue.

  • Scott Pattison, ABFM Chair and Executive Director, NASBO
  • Dr. William Hoyt,Chair, Department of Economics, Gatton College of Business and Economics, and Professor, Martin School of Public Policy and Administration, University of Kentucky
  • Jay Kiedrowski, Senior Fellow, Humphrey School of Public Affairs, University of Minnesota
  • Philip C. Christian, Assistant Professor of Political Science, Georgia Southern University

This is a free webinar, but advanced registration is required and space is limited. Please click here to register.

Below is a full description of the webinar:

“State Tax Reform: Options, Challenges and Creativity”

Wednesday, March 13, 2013; 1:00 – 2:00 PM Eastern Time

This year, Governors and Legislatures in several states are looking to dramatically-reform their tax structures. The February/March 2013 issue of “Line Item”, the newsletter of the Association for Budgeting & Financial Management (ABFM) features articles from several of its members providing an in-depth look at state tax reform efforts across the country, evaluating the various proposals under consideration and offering perspective on the challenges states face with the current and potential structures for generating necessary revenues.

AABPA’s special webinar will feature several authors and contributors featured in the “Line Item” special issue, offering them a chance to share some of their perspective on the issue of State Tax Reform. They will also be prepared to answer attendee questions and further discuss this important, time- sensitive topic in public sector finance.

Time Length: 60 Minutes

Moderator

Kenneth Hunter, Editor, Line Item

Panelists

Scott Pattison, ABFM Chair and Executive Director, NASBO
Dr. William Hoyt,Chair, Department of Economics, Gatton College of Business and Economics, and Professor, Martin School of Public Policy and Administration, University of Kentucky
Jay Kiedrowski, Senior Fellow, Humphrey School of Public Affairs, University of Minnesota
Philip C. Christian, Assistant Professor of Political Science, Georgia Southern University

 Click Here to Register