POLS 3251 - Arkansas State and Local Government - Test 3 - Dr. Breezeel

What is the Merit Plan (Missouri Plan) of judicial selection?

Adoption of Nonpartisan Court Plan in Missouri (1940)

Process for filling vacancies

-Judicial nominating commission (Include lawyers, ordinary citizens, judges)

-Governor makes appointment from list

Retention election: Judges name placed on ballot after short time in office

What is the philosophy behind the Merit Plan?

Effort to "Remove the Courts from Politics"

Concerns about corruption and outside influence (Influence of Pendergast Machine (K.C.) in judicial elections)

Judges' time commitments to campaign activities

What are the stages of the process in the Merit Plan?

Judicial nominating commission selects list of name

Commission provides list of acceptable names

Governor makes appointment from list

Retention election

-Judges name placed on ballot after short time in office

-Subsequent terms require new retention votes

What other methods are commonly employed for the selection of Judges?

Partisan elections - 8 states

Nonpartisan Elections - 15 states (including Arkansas)

Gubernatorial appointments - Legislative confirmation

5 states for Supreme Court, 2 states for lower courts

Legislative appointment - 2 States (South Carolina and Virginia)

What are most judicial campaigns like?

Discussion of policy issues historically off-limit

-Ethical codes of legal profession

-Changing norms: Republican Party of Minnesota v White (2002)(lawyers used to not be allowed to speak on issues but now they are allowed, most still do not)

Campaigns typically emphasize vague generalities

Image strategy:

-"Tough on Crime"

-Fairness

-Professional credentials

Incumbents win most elections

How often are judges successful in retention elections?

99% retention rate

Most receive over 80% support

What is the role of the public defender?

provides legal representation to defendants who cannot afford to hire a private attorney

How are the chief prosecutors for communities typically selected?

"through a public election by the voters in most states"

What percentage of crimes are reported to the police?

less than 47% since 2012?

What types of crimes are most/least likely to be reported?

Violent crimes, crimes deemed important, crimes were they perceive the police will be responsive, crimes not involving embarrassing activity, and crimes that do not have fear of reprisal are likely to be reported

What is the broken windows theory/philosophy of law enforcement?

If a window in a building is broken and left unrepaired the rest of the windows will soon be broken

-Visible signs of disorder send signal that no one cares

-Leads to increased fear of social interactions

-Causes withdrawal from public spaces (people do not want to be out as much)

-Leaves area more vulnerable to more serious crime

How does broken windows theory recommend as the best approach to limiting crime and promoting order within society?

Emphasizing maintaining order

Aggressive enforcement of laws involving minor crimes

Prevent citizen withdrawal

Broken windows theory: How does the theory seek to explain rising crime rates?

High levels of police presence

-Increased perception/detection of problems

What is the community policing model?

Emphasis an increased engagement within community

-Officers assigned specific geographic areas ("bear")

-Frequent use of foot or bicycle patrols

-Effort to increase positive or service oriented interactions

How does it seek to reduce the incidence of crime within a community?

High levels of police presence

-Creates deterrent effect on criminal activity

-Increased perception/detection of problems

-Immediate intervention and response to issues

What is the philosophy behind efforts to decriminalize activities such as drug use and minor theft?

"The rationale behind decriminalisation is to treat drug use and dependence as a health and social issue, not a criminal justice or moral issue"

To try to reduce jail time for petty crimes and instead focus on rehabilitation and redirection

What do advocates of decriminalization recommend instead of prosecution for these actions?

Diversion of resources to social programs focused on prevention rather than punishment

Diversion of resources to more serious offenses

What motivates efforts to defund police forces?

Effort to reduce negative interactions between police officers and members of public

Diversion of police resources to social programs

What are the common criticisms for each of the approaches to law enforcement?

Criticism of decriminalization and defunding efforts:

-Reducing barriers to criminal activity

-Increased vulnerability of other residents to crime

Criticism of broken windows/community policing:

-Disproportionate rates of arrests and incarceration

-Civil liberties concerns

-Diversion of resources from social programs and more serious crimes to minor offenses

What actors have the most substantial ability to exercise discretion?

Police and prosecutors

How common are plea bargains used to resolve criminal charges?

Used in about 90% of criminal cases

Why do prosecutors offer plea bargains?

-Certainty of conviction and punishment (if goes to trial then jury might not say they are guilty even with good evidence)

-Time and resources savings (time to work on other cases)

-Clearing other cases (get information on other cases)

What makes plea bargaining appealing to criminal defendants or those accused of crime?

Leniency

Certainty regarding sentencing

Avoidance of publicity and expense of trial

What are the most common criticisms of plea bargaining?

Leniency - family of victim will not be happy

Convictions - some innocent people will be convicted

What is the difference between annual, supplemental, and continuing appropriations?

Annual: Yearly funds allocated to government agencies. Passed through congressional appropriation bills during the fiscal year.

Supplemental: Extra funds Congress allocates on top of the annual budget. Doesn't follow the normal budget cycle. Typically used for emergency relief, such as natural disasters.

Continuing: A temporary extension of the funds used from last year's annual budget. Used when Congress hasn't approved a budget by their deadline. Prevents the government from shutting down due to a lack of a budget.

What are the most common sources of revenue for state government?

Taxes produce largest share of state revenue

51.5% taxes

27.5% federal support

14% charges

7% other

Where does most of the revenue generated by state government come from?

Share of Tax Revenue:

Sales tax - 22.8%

Property - 30%

Individual Income - 25.9%

Other - 11.3%

What are progressive, regressive, and proportional taxes?

Progressive - larger share paid by wealthiest within society

Regressive - larger burden on poorer members of society (poorer people spend a larger percentage of their income of their purchases)

Examples: sales tax, excise tax, lotteries

Proportional - everyone pays same share of income in taxes

What is the largest source of revenue for local governments in the US?

Property taxes

Accounts for 47.9% of local government revenue nationwide

What is a mill (in the context or taxation not industrial production)?

A mill is 1/1000 of a cent (or .1%)

Millage rate - rate at which assessed value is taxed

How are real and personal property defined?

Real property - land and permanent buildings

Personal property - vehicles, equipment, and other property not permanently attached to land

What is the difference between market value and assessed value?

Market value - estimated value of property in open market

Assessed value - value assigned to property for tax calculation purposes

How does the assessed value tend to compare with the market value?

Most states set assessed value at fraction of market value - 20% in Arkansas

How are general sales taxes collected?

Tax applied to value of goods and services at point of purchase

Applies to value of all retail goods

-taken in small amounts spread over time

What types of products are most likely to be exempt from these taxes? Why?

Exceptions frequently made for groceries and prescription drugs because it is a regressive tax

What levels of government typically employ these taxes?

County and city government often allowed to place additional sales taxes on purchases

What are the positive and negative aspects of employing sales taxes as a source of revenue?

Positive:

Simplicity of application and enforcement

Less visible than property or income tax - taken in small amounts spread over time (property tax is one large sum)

Capture revenue from Hidden sources of income

Negative:

Regressive nature of general sales tax

Dependency on reporting and collection by business owners

May discourage purchases

What is a sin tax? What types of products are typically subject to a sin tax?

Tax on specific goods and services

"Sin" taxes - alcohol and tobacco

What other products are commonly subject to excise taxes or selective sales taxes?

Gasolines taxes (AR $0.247 per gallon, Federal $0.184)

Prepared Food Taxes (Searcy 1%)

Hotel/Motel taxes (Searcy: Regular sales tax + 3% + AR 2%)

Why are these taxes commonly employed?

Frequently target potentially harmful products

Tax revenue may be earmarked to fund specific programs

May pass increased tax burden on to non-residents

Potential to avoid taxes by those who don't purchase products

How common are sales taxes among states?

General sales tax fund state government in 45 states (Not: AK, DE, MT, NH, OR)

How common are state income taxes?

State income taxes present in 43 states

What different approaches are taken with state income taxes?

Progressive income taxes present in 34 states

-Rates increased based on ability to pay

Flat income taxes (7 states: CO, IL, IN, MA, MI, PA, UT)

Limited to dividends, capital gains, and interests only (TN and NH) (basically means you only pay it based on your investments)

What are corporate income taxes?

44 states: not NV, SD, TX, WA, OH, WY

Based on net profits of corporations

Range from 1-12%

"is a type of direct tax levied on the income or capital of corporations and other similar legal entities"

What makes them popular?

The taxes seem to be placed on corporation instead of citizens

(Cost generally passed to consumers through higher prices)

What are the negatives associated with corporate income taxes?

Cost generally passed to consumers through higher prices

May create negative business climate within state

How common are lotteries or other forms of gambling?

48 states: not UT, HI

How do these forms of gambling generate revenue for the state?

Lotteries

-Generally operated by state governments

-Revenues frequently earmarked for specific programs and projects

What limits the amount of revenue generated?

About 60% of gross revenue is paid out in prizes

What criticisms are frequently leveled at these forms of revenue?

Regressive nature of the tax

Gambling addictions

Misleading marketing/bad odds

How does the approach to debt within most state governments differ from the federal government?

49 states require operating budgets to balance - VT does not - and the federal government budget is consistently in deficit

How do those differences affect taxing and spending policies within state governments?

State governments have: Lower levels of government spending

Reduced government debt

Lower cost of borrowing

Increased frequency of surplus

Faster spending cuts/tax increases during recessions

What are government bonds used for?

They are the most common method of borrowing for governments

they can be used for a specific project like infrastructure or public services

they can also be used as a way for the government to sell its debt

What makes government bonds most attractive to potential investors?

"They provide a predictable income stream. Typically, bonds pay interest on a regular schedule, such as every six months. If the bonds are held to maturity, bondholders get back the entire principal, so bonds are a way to preserve capital while investing."

What are "GO" bonds?

General Obligation (GO) Bonds are backed by "Full Faith and Credit"

-Security rests on full taxing authority of the government authority

-High security, relatively low interest

How are revenue bonds different from "GO" bonds?

Revenue bonds are tied to specific revenue stream

-Repayment tied to a specific tax, user fee, etc.

-Government has no further obligation if revenue source is insufficient

What is the highest credit rating that a state can have using the S&P Global Credit Rating scale?

a. How are Texas, Florida, and Tennessee rated?

b. What state has the lowest credit rating?

AAA

TX, FL, and TN are rated AAA

Illinois has the lowest rating (BBB-)

How does a state's credit rating affect how it issues bonds?

"A state's credit rating significantly impacts its ability to issue bonds. A higher credit rating generally leads to more favorable terms for the state, including lower interest rates and easier access to the bond market. Conversely, a lower rating can result in higher interest rates and reduced market demand for the bonds, making it more expensive and challenging for the state to borrow money."

What factors limit the ability of state governments to raise revenue?

Tax base (population and level of wealth and income)

Constitutional limits (federal prohibition against poll tax, taxes on interstate or foreign commerce, and interfering in federal regulation of commerce)

State constitutions and statutes (certain types of taxes may not be uses e.g. income tax)

Procedural limits (referendum requirements)

Among state governments, what is the largest category of government spending?

Elementary and secondary education at 33.8%

(all other 31.1%, Medicaid 18%, Higher Ed. 9.2%, Corrections 5.7%, Transportation 1.3%, Public assistance 0.9%)

What is a fiscal year?

12 month period for the government to raise and spend money

When does the fiscal year begin for the federal government?

Federal: Oct 1 - Sept 30

When does the fiscal year begin for most state governments (46 states including Arkansas)?

Most state governments (including Arkansas) begin fiscal on July 1

What are the primary steps in the budget process for state governments?

Governor's instructions

Agencies submit funding requests for upcoming year (Fall)

State budget office receives agency requests and conducts executive review

Governor prepares executive budget proposal (usually Jan-Feb)

Action by full chamber(s) in legislature

Action by government

How many states grant the governor a line-item veto?

44 state grant line-item veto (in some form)

What is a biennial budget?

A two year budget

How many states use a biennial budget?

21 States have biennial budgets (2 year cycle)

-includes AR

What types of expenses would be classified as operating expenditures?

Spending necessary to provide ongoing public services:

Personnel costs (Salaries

and Benefits)

Facility operation and maintenance

Office supplies and expenses

Contracted services

What types of expenses would be classified as non-recurring expenditures?

Spending that is not expected to continue from year to year:

Frequently involve large amounts of money, long term planning, and/or borrowing

Capital outlays

Acquisition of equipment or assets