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In all cases we have filmed the best available copy. Universify Micrc5rilms International 300 N. ZEEB RD., ANN ARBOR, Ml 48106 8129010 H a h n , G l e n E l l e n PUBLIC MANAGEMENT OF SELECTED MUNICIPALITIES SUFFERING LOSS OR DECLINE OF MAJOR TAXPAYING INDUSTRIES: THREE ESSAYS IN CUTBACK MANAGEMENT The Ohio State University Ph.D. 1981 University Microfilms I nterneti0 n&l 300 N. Zeeb Road, Ann Arbor, M I 48106 Copyright 1981 by Hahn, Glen Ellen All Rights Reserved PUBLIC MANAGEMENT OF SELECTED MUNICIPALITIES SUFFERING LOSS OR DECLINE OF MAJOR TAXPAYING INDUSTRIES: THREE ESSAYS IN CUTBACK MANAGEMENT DISSERTATION Presented in P artial Fulfillm ent of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By: Glen Ellen Hahn, B.A., M.P.A. * * * * The Ohio State University 1981 Reading Committee: Approved by: Arthur D. Lynn, Jr. Frederick D. Stocker Clinton V. Oster \d viser School of Public Admij For my parents, with love and thanks for their support, and fo r Dave, who got me into budgeting and chose to live with the consequences. n ACKNOWLEDGEMENTS As must be true of most doctoral dissertations, this project was guided and influenced by many people. While taking full responsibili­ ty for the results, I would like to take this opportunity to thank some of those contributors. My largest intellectual debt is to Professor Arthur D. Lynn, Jr., who guided me through the trials and tribulations of an interdisci­ plinary doctoral program into a dissertation which departs (happily) from, in his words, "the staid, old Heidelberg Model." His lyrical prose, quick wit, and general perspicacity, combined with a superb knowledge of public law and public finance, have been an inspiration and will be, I suspect, a lasting influence. Professor Frederick D. Stocker and Dean Clinton V. Oster, both as dissertation readers and in earlier stages of my doctoral studies, have given valuable advice and support. Professor Charles F. Adams, Jr., with whom I also worked on field network evaluation projects, helped immensely in this research from the in itia l proposals to the organization of the final draft, and much substantive work in between. His friendship as a colleague as well as the academic standards on which he insists are highly valued. Thanks are also owed to Profes­ sors Robert W. Backoff and Raymond J. Krasniewski for th e ir help in developing earlier versions of this research, and for the many les­ sons learned about academe at the Friday "planning sessions" we i i i occasionally enjoyed; to Professors H. Randolph Bobbitt, Jr. and J. Stephen Henderson who contributed in d irectly through courses that significantly influenced my work; and to Professor James E. Storbeck, who taught me goal programming and guided me through the research fo r the th ird essay with w it, wisdom, and just a little craziness. The Mayors and other public o ffic ia ls who consented to be interviewed and provided me with the data for the five case stu­ dies of the second essay cannot be named, but I owe them tremen­ dous thanks. Without th eir willingness to share with me th eir ideas and experiences in cutback budgeting, the case studies could not have been done. Mary J. Leggett typed the dissertation and kept me writing by constantly asking "Don't you have any more?" My fellow doc­ toral students, Vivian W. Davis, Ronald W. Season, and William L. Kump commented on ideas, proposals, and drafts, and generally maintained the camaraderie necessary to get one through a 200+ page ordeal. Last, but not least, Carol Myer deserves thanks for sharing her knowledge of University procedures with me, so I did not lose the battle for want of a properly-filled-in-form. I re a lly cannot thank them — those mentioned and the numerous others who were not - - enough. iv VITA November 14, 1949 .............................Born, Ann Arbor, Michigan 197 1 ..........................................................B.A., University of Michigan, Ann Arbor, Michigan 197 2 ......................................................M.P.A., Syracuse University, Syra­ cuse, New York 1972-74. ........................................Human Resources Specialist, V irginia Division of State Planning and Com­ munity A ffa irs , Richmond, V irginia 1974-7 5 ................................................Program Analyst, Michigan Department of Management and Budget, Lansing, Michigan 1975-7 8 ................................................Budget Analyst, Michigan Department of Social Services, Lansing, Michi­ gan 1978 ......................................................Acting Budget Director, Michigan Department of Social Services, Lansing, Michigan 1978-1981 ............................................Graduate Research Associate, The Ohio State University, Columbus, Ohio PUBLICATIONS '"Budget Reform' as a Technique of Managerial Assertiveness," with Jeffrey D. Straussman, Public Administration Review, (November- December, 1978): 584-588. "The Adoption of Budget Reform: How One Agency Drifted Toward ZBB," with Jeffrey D. Straussman, in Zero Base Budgeting in State and Local Government, John A. Worthley and William G. Ludwin, Eds., (New York: Praeger Publishers, 1979); 67-79. FIELDS OF STUDY Major Field: Public Administration Studies in Public Finance. Professors Arthur D. Lynn, Jr., Charles F. Adams, Jr., and Frederick D. Stocker. Studies in Public Policy and Management. Professor Robert W. Backoff. VI TABLE OF CONTENTS Page DEDICATION...................................................................................................... ü ACKNOWLEDGEMENTS.......................................................................................... i i i VITA.......................................................................................................................................................................... V LIST OF TABLES.............................................................................................. xi LIST OF FIGURES............................................................................................ x ii INTRODUCTION.................................................................................................. 1 Essay I . Budgeting fo r Resource Decline: U tiliza tio n and Management of A1 locational C o n flict ........................ 8 Budgeting fo r Cutbacks ................................................ 10 Organization of Essay.................................................. 11 Conflict in Budgeting .................................................. 11 Classical Model of Economic R ationality .............. 12 Economic Rationality Applied to Budgeting 15 Incremental ism ................................................................ 18 P lu ra lis tic Decision Making ...................................... 18 Limitations to Comprehensive Analysis .................. 19 Budgeting Incrementally .............................................. 22 Performance Budgeting .................................................. 23 Empirical Examples of Incremental Budgeting 24 P o litics of Budgetary Processes .............................. 25 Comprehensive Planning ................................................ 28 Planning, Programming, Budgeting ............................ 29 Shortcomings of PPB in Budgeting fo r D ecline... 32 Mixed Decision Processes ............................................ 33 Mixed Scanning ................................................................ 36 Typology of Decision Strategies .............................. 38 Uses of Alternative Strategies ................................ 41 Conflict
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