intergovernmental dependency and transparency n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Intergovernmental Dependency and Transparency PowerPoint Presentation
Download Presentation
Intergovernmental Dependency and Transparency

Loading in 2 Seconds...

play fullscreen
1 / 27

Intergovernmental Dependency and Transparency - PowerPoint PPT Presentation


  • 80 Views
  • Uploaded on

Intergovernmental Dependency and Transparency. Joe Kull PwC January, 2012. We have been doing so much for so long with so little, that soon we’ll be able to do everything with nothing forever. Budget Formulation, Budget Execution, and Financial Management—Per the Constitution (1787)

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Intergovernmental Dependency and Transparency' - lamond


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide2

We have been doing so much

  • for so long with so little, that soon we’ll be able to do everything
  • with nothing forever.
slide3

Budget Formulation, Budget Execution, and Financial Management—Per the Constitution (1787)

  • “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law;”
  • —Budget Formulation and Execution
  • “and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.”
  • —Financial Management
  • (Article I, Section 9)
slide5

Analysis of Federal Liabilities, Intragovernmental Debt, and

Social Insurance Obligations

Source of Data: 2010 Financial Report of U.S. Government

$ Billions

2010 2009

Federal Liabilities:

Publicly-held Debt $9,060* $7,583**

Federal Employee & VA Benefits 5,720 5,284

Other 1,576 1,257

Intragovernmental Debt—Owed to Social Security,

Medicare/Other Trust Funds

Federal Social Insurance Obligations

Social Security 7,947 7,677

Medicare—Parts A, B & D 22,813 38,107

Other 97 94

Total Liabilities, Intragovernmental Debt & SI Obligations $51,790 $64,393

Current-dollar GDP 3rd qtr 2010, 4th qtr 2009(Source: BEA) $14,750 $14,119

Liabilities and Obligations as % GDP 351% 456%

* 62% of 2010 GDP **53% of 2009 GDP

4,577 4,391

slide7

1940 1971 2007

Current $ $9.5B $210.2B $2,770B

slide11

President proposes;

  • Congress disposes.
  • Both sign on.
state fiscal situation
State Fiscal Situation
  • Largest revenue collapse on record
    • ARRA replaced about $140B
  • Recovery slow and lag times growing
    • Shortfalls continue
    • Using reserves, taxes hikes, federal funds
    • Pressure from education, healthcare, OPEB
  • States tend to lag national recovery
  • Housing is key
the cliff temporary federal aid to states fy 11 totals include both arra education jobs funds
The Cliff: Temporary Federal Aid to States (FY ’11 totals include both ARRA & Education Jobs Funds)

In Billions

Fiscal Year

Source: Recovery Act data come from GAO Report to Congress, September 2010

housing leverage
Housing leverage
    • Link between housing, values, consumption and taxes
  • Turnover

‘05: 1.3M new @ $290K = $370B

7.0M exisiting @ $269K = $1.9T

‘08: .3M new @ $244 = $70B

existing = $890B

    • Jobs: 2M on site lost since ‘06; 2:1 off/on site

Translates to ~ $2T and 6M jobs

    • Unemployment/economic uncertainty, diminished wealth, fallen values depress consumption, taxes
      • Property taxes 4% below prior year
spending pressure
Spending Pressure
  • Medicaid and Health Care
  • K-12 and Higher Education
  • Demographic Changes
  • Corrections
  • Transportation
  • Infrastructure
  • Pensions
what are the risks associated with intergovernmental financial dependency
What are the Risks Associated with Intergovernmental Financial Dependency
  • Disruptions to current direct and indirect intergovernmental revenue flows
  • Impact on investment income, asset values
  • Build-up of unfunded pensions, post employment benefits
  • Deferred infrastructure
  • Volatility
  • shifting role of federal gov’t
  • estimated that 1/3 of $1T in cuts would hit states
what can we do
What can we do?
    • Evaluate sustainability and dependency risks in your environment
      • States refusing federal funds, cutting services
      • Watch the world, and the world economy
  • Awareness that something has to give
      • Don’t raise taxes, don’t cut benefits
      • Infrastructure does not last forever
      • Catastrophes, conflicts happen
      • Spend your way out of debt -
      • Compromise by everybody winning
    • Show up
    • Provide simple, clear information-No MEGO stuff
slide22

“You can always count on Americans to do the right thing-after they’ve tried everything else.”

PM Winston Churchill

appendix
Appendix

Report of the U.S. Government

http://www.fms.treas.gov/fr/index.html

  • The Federal Government's Long-Term FiscalOutlookwww.gao.gov
  • Intergovernmental Financial Dependency and Related Risks—Proposed Reporting By State and Local Governments
  • Available at no cost at—www.cbh.com/intergovernmentalreport