Finance Committee Research Articles

Bicameral Lawmaking: Analysing the Choices of Revising Chambers

Abstract This article examines the choices made by revising chambers in bicameral congresses. It analyses how bill characteristics, chamber congruence, impatience and institutional context influence the decisions made by revising chambers regarding executive bills sent by the chamber of origin. The analysis focuses on the case of Chile, a presidential country in which the executive has substantial proposal power. The findings show that the probability of a bill passing with amendments is higher when it receives a presidential urgency and when the revising chamber is the Senate. Executive bills coming out of the Finance Committee are more likely than others to pass unamended. However, those bills are more likely to die in committee when the revising chamber is the Senate (i.e. the chamber whose membership has a longer time horizon).

The functionality of finance committees in no-fee schools of Limpopo province, South Africa

<abstract> This article used qualitative research method to arrive at an in-depth understanding of the functionality of financial committees in schools as required by the Department of Education. Data was collected through semi-structured interviews and document analysis with principals, finance officers, chairpersons, and treasures. Content analysis was used to analyse the data. The findings revealed that there are no finance committees and financial policies in schools. In case where there is financial committee it was not operating as expected as members were working individually and not collectively. This was attributed to a lack of knowledge on policy and legislation for financial management. The study recommends that the school which does not have the finance committee should establish such a committee as matter of urgency because it is mandated by the policy. Circuit officials charged with school governance must enforce the policy and legislative mandates relating to financial management by helping the schools in the formulation of such committee. Members of finance committee must be thoroughly trained to execute their functions as it is evident that they are not performing their functions accordingly. The study further recommends that parent members serving on the finance committees must be paid a stipend as it was evident that some of them value their livelihood more than participating in the committee. </abstract>

Small-Scale Business Leadership in Ethiopia: An Assessment of Financial Bureau Opportunities in Yayu Woreda

The present research paper highlights small-scale business leadership in Ethiopia to assess the financial bureau in Yayu Woreda of Ilu Abba Bora Zone of Oromia regional state of Ethiopia. The other allied purpose relates to evaluating the budgetary performance of the Yayo Woreda finance office in the Ilu Abba Bora Zone. The sampling technique is based on simple random sampling, and scientifically there were 100 samples of respondents taken from approximately one thousand and three hundred and seventy-three employees in the woreda. The representative samples were included one head office person, the council head of the budget and finance committee, plus the committee members from the Audit Office, Auditor general, deputy auditor general, Audit manager, and the audit team of consolidated financial statements. Additionally, three employees were also included from each sector, such as planners, accountants, and internal auditors, to control appropriate utilization of limited resources and auditing performance for the allocated budget at the woreda finance office. The descriptive survey design was employed in this study, and appropriate data collection methods were used through questionnaires and interviews. However, the secondary data is extracted from the final report and oversight of the written books and brochures. The data were analyzed and interpreted while using an appropriate methodology of concurrent concern. The study established that the budget implementation and its performance have a negative relationship to some extent. It is recommended that the woreda must have to enhance its manpower, particularly in the budget process, to improve budgetary performance, particularly in the aspect of small-scale business leadership.

Tribune of the People: Henry Reuss and the Quest for the American Ombudsman

Henry Reuss served as a member of the United States House of Representatives (D-WI) for 28 years. During his time in the House, Reuss chaired various banking and finance committees. While in the House, Reuss also sponsored numerous bills which proposed a US Congressional Ombudsman. While none of these bills made it out of committee, they helped to shape national discourse regarding American ombudsmen during the decade of the 1960’s and led scholars and policymakers to consider the relationship between the individual and government. Ultimately national ombudsmen have evolved globally, while the ombudsman idea has taken a different trajectory in the United States. This article will focus on Reuss’ ombudsman proposals, his motivations for proposing congressional ombudsman schemes, as well as the impacts these proposals have had on governmental grievance and conflict resolution mechanisms.

Inquiry into the Data Availability and Transparency Bill 2020 and the Data Availability and Transparency (Consequential Amendments) Bill 2020

The Hub has made a submission to the Senate Finance and Public Administration Legislation Committee Inquiry regarding the Data Availability and Transparency Bill 2020 and the Data Availability and Transparency (Consequential Amendments) Bill 2020. This is a joint submission by the Allens Hub for Technology, Law and Innovation, the Australian Society for Computers & Laws and the UNSW Institute for Cyber Security.

Letter to Senate Finance Committee: H.R. 5376 - Conservation Easement Deduction Change Would Promote Abuse (Oct. 11, 2021)

Letter to Senate Finance Committee: H.R. 5376 - Conservation Easement Deduction Change Would Promote Abuse (Oct. 11, 2021)

Mega-IRAs, Mega-401(k)s, and Other Mega-Retirement Accounts: Statement for the Record

The Senate Finance Committee’s hearing on July 28, 2021 -- Building on Bipartisan Retirement Legislation: How Can Congress Help? -- spotlighted “mega-IRAs”: individual retirement accounts with balances of $5 million or more. An analysis by the Joint Committee on Taxation in advance of the July 28 hearing found that the number of taxpayers with mega-IRAs now exceeds 28,000. The hearing followed a June 2021 report by the nonprofit investigative journalism organization ProPublica, which revealed—based on leaked IRS files—that a handful of high-net-worth individuals had accumulated massive IRA balances. The Senate Finance Committee hearing and the ProPublica report emphasized one way that taxpayers amass mega-IRAs: by “stuffing” an account with undervalued assets such as pre-IPO stock and investment-fund carried interests. “Stuffing” no doubt occurs in some instances, and Congress could take steps to stop it (e.g., by prohibiting IRAs from holding non-publicly traded assets). However, it is unlikely that most mega-IRAs result from abusive stuffing tactics. Individuals engaged in stuffing would generally want to convert their IRAs from traditional to Roth accounts quickly. Yet JCT’s analysis found that 85 percent of mega-IRA owners hold only traditional accounts. How, then, have tens of thousands of high-income individuals created mega-IRAs? As our submission shows, existing rules allow high-income taxpayers to amass mega-IRAs straightforwardly—and legally—by “maxing out” 401(k) defined contribution plans, potentially combining defined contribution plans with defined benefit plans, and investing in S&P 500 index funds or other publicly traded assets. Mega-IRAs are indeed a problem, but they are a problem primarily caused by laws that lavish excessive tax benefits on high-income individuals. This statement for the record begins by illustrating how high-income individuals can create mega-IRAs through entirely legal means. Next, we review the choices that Congress has made over the last quarter-century that opened a wide door to mega-IRAs. We then explain why the JCT data and other sources strongly suggest that most mega-IRAs do not reflect stuffing. We conclude with concrete policy recommendations to stem the tide of mega-IRAs and other mega-retirement arrangements, which undermine the progressivity and revenue-raising potential of the federal income tax system.

Influential Factors to Financial Management in Chegutu District Secondary Schools of Mashonaland West Province, Zimbabwe

The study explored factors that influence financial management in Chegutu District Secondary Schools of Mashonaland West Province, Zimbabwe. The study was stimulated by the serious financial challenges in secondary schools as characterised by failure to follow laid down procedures, disagreements, inadequate training and lack of knowledge by both school heads and SDC members in managing finances. The interpretive paradigm and qualitative approach guided the study. A case study design was adopted and purposively sampled participants constituted five school heads, five School Development Committee chairpersons, five School Development Committee treasurers and five school bursars. Thematically analysed data was collected through semi-structured interviews and document analysis. The findings revealed that manuals and policy circulars influence the way schools formulate their budgets as they give clear steps that should be followed. It also emerged from the study that the school finance committee is responsible for drawing the school budget after consultation with other stakeholders. It was found that training of school heads, School Development Committee members and bursars influence financial management to a larger extent and there is a very strong relationship between financial management training and effectiveness of financial management in secondary schools. The study concluded that good working relationship among stakeholders and lack of knowledge by both school heads and School Development Committee members in managing school finances greatly influence the way they execute their duty of managing school finances. The study recommends further research that explores strategies that can be established for improving the way schools manage finances.

By-Laws of the Bibliographical Society of America

By-Laws of the Bibliographical Society of America

Minutes of the Annual Meeting: Friday, 24 January 2020,Convene, 237 Park Avenue, New York, NY

Minutes of the Annual Meeting: Friday, 24 January 2020,Convene, 237 Park Avenue, New York, NY

Independent Auditor’s Report

Independent Auditor’s Report

Partisan Voting in the German Bundesrat. The Case of its Finance Committee

The role of partisanship in the Bundesrat, Germany’s second chamber designed to represent the territorial interest of the 16 Länder, has been at the centre of debates for decades. In this contribution, we revisit the topic from a novel perspective, focusing on the Bundesrat’s Finance Committee, a central, but so far overlooked actor in the realm of fiscal and financial policies in the Federal Republic. Based on around 1,300 roll call votes, we are able to analyse the voting behaviour of the committee members, the 16 Länder finance ministers and senators, on a large empirical basis. We find, first, that unanimity is an important feature of decision-making, reflecting the existence of joint policy perspectives among the finance ministers and senators. Nevertheless, there is, second, no ‘consensus by default’ as around 40 percent of the roll call votes are contested. The W-Nominate ideal point estimation thereby provides strong evidence that partisanship instead of territorial interests accounts for the conflict.

Syndicated Conservation Easements Update

By letters dated September 17, the IRS commissioner provided updated statistics on the syndicated conservation easement listed transaction to the leadership of the Senate Finance Committee. Much of this data is derived from filed reportable transaction disclosure statements (Form 8886). Here are some of these statistics.

Senate Finance Committee Issues Report on Syndicated Conservation Easements

A bipartisan investigation report, titled “Syndicated Conservation‐Easement Transactions,” was issued by the Senate Finance Committee on August 25 (S. Prt. 116‐44). This 183‐page document discusses the committee's findings derived from its investigation launched in early 2019 (see the June 2019 issue). The report states that the documents gathered by the committee “confirm that syndicated conservation‐easement transactions appear to be highly abusive tax shelters.”

The 2019–2020 bushfires and COVID‐19: The ongoing impact on the mental health of people living in rural and farming communities

It is well established that bushfires and other natural disasters have long term‐effects on the mental health of affected individuals and communities (Black Dog Institute, 2020). These effects can last for years as demonstrated following the 2009 Black Saturday fires in Victoria, Australia: one fifth (21.9%) of the highest impacted communities reported mental health symptoms at the five year follow up (Gibbs et al. 2013).

Bill Aimed at Replicating Oregon Mobile Crisis Program

Bill Aimed at Replicating Oregon Mobile Crisis Program

Banking Regulation: A Systemic View on Capital Adequacy, Financial Systems and the Regulatory Process

In a comment for the Finance Committee of the Deutscher Bundestag on the finalization of Basel III, I scrutinize the debate on the costs of bank equity, look at the incentive effects and potential distortions provoked by the actual regulatory regimes, and finally describe banks’ regulation as a hysteretic process that creates detrimental phases of under- und overregulation. With regard to the first topic, I find strong arguments in the theory of financial intermediation that, in contradiction to the reasoning in the influential paper of Admati et al. (2010), bank equity is indeed costly and excessive capital requirements would hamper the efficiency of the banking system. Furthermore, I identify several incentive effects of today’s regulatory setting that lead to a more homogenous banking system with larger banks. This development could have negative effect on efficiency, in particular with regard to special needs of the German economy. And although the indivi­dual banks might be safer under the new regime, the evolving structure will probably contain a higher systemic risk.

Editorial introductions

Editorial introductions

Empirical Evidence of Local Government Finance on Regional Building in Southwestern Nigeria

The relationship between state and local governments in Nigeria as established by the 1999 Constitution of the Federal Republic of Nigeria (as amended) makes both governments as tool for urban and rural development in Nigeria. However, it appears to be one of the challenging aspects of fiscal arrangement in providing social services to the citizenry within their jurisdiction. This study therefore analysed current trend of principles in local governments fiscal relations in the delivery of social service in Southwestern Nigeria. Data were obtained from both primary and secondary sources. This study concluded that financial relationship between the state and local governments enhances the smooth running of local governments in Nigeria has identified as a cardinal component of current trends in local government finance and Joint Allocation Account Committee (JAAC) also assists in equitable distribution of revenue to local governments without prejudice in Southwestern Nigeria. Keywords: Finance; Fiscal Relationship; Good Governance; Local Government; State Government; Intergovernmental Relations DOI: 10.7176/PPAR/10-8-06 Publication date: August 31 st 2020

Adapting a Complex, Integrated Health and Social Services Intervention in Two Communities

Research ObjectivePoor population health is not randomly distributed but follows a social gradient with adversity clustering in specific communities. Under the Alliance for Determinants of Health program, Intermountain Healthcare is leading a three‐year demonstration project designed to improve population health outcomes through integrating health care and social services. Recent federal policy efforts are testing interventions to address health inequities, yet little is known about how to effectively adapt these complex, highly contextual interventions to local settings.Study DesignA mixed methods analysis was used to adapt and deploy an integrated health and social services solution in two diverse communities using an intervention mapping approach. Specific steps taken to effectively adapt the intervention included the following: a needs assessment using local health needs and actuarial claims data, ethnographic field results, and key informant interviews; definition of change and performance objectives; theory and methods selection; program plan and production; and implementation and evaluation planning.Population StudiedKey national, state, and local government and community leaders, health departments, social service providers, health care providers, police/justice departments, education systems, advocacy organizations, and community members in two regionally and ethnically diverse communities in Utah.Principal FindingsThe needs assessment identified meaningful variation in local needs and available infrastructure across zip‐code‐based areas that guided selection of two communities. Program change objectives were defined, including improved local health and social services integration across sectors involving more than 50 service partners. Given the need for strong local program engagement, a multi‐ecological approach using theory‐informed methods was selected to guide local intervention development. An adapted Accountable Health Communities Model was developed including local community‐led steering committees to provide strategic oversight to local needs. Intermountain provided $6 million in funding to each community distributed by local community‐led finance committees to address local social service gaps. Weekly program huddles with Alliance partners are used to report results and to continuously improve and resolve local barriers. An external team was hired to conduct the evaluation. During the first year, 1321 eligible members underwent initial screening at an Alliance provider location; 139 members were navigated to one or more service partners demonstrating local integration feasibility. The most frequent navigation requests were for transportation (16%), dental care (15%), food (15%), clothing (9%), rent (9%), and mental health care (8%).ConclusionsLocal communities vary considerably in social service needs, capacity, and existing health care infrastructure. Intervention mapping provides a robust methodology for adapting complex integrated health and social services interventions that are responsive to the needs of diverse communities.Implications for Policy or PracticeImplementing programs that integrate health and social services is complex and multifaceted and should be designed with the local implementation in mind. Rigorous implementation science methods may reduce the risk of implementation failure and strengthen the potential generalizability of results.