Determinants of local government pension funding: Empirical evidence from Florida

The financial community is well aware that continued underfunding of state and local government pension plans poses many public policy and fiduciary management concerns. However, a well-defined theoretical rationale has not been developed to explain why and how public sector pension plans underfund. This study uses three methods: a survey of national pension experts, an incomplete covariance panel method, and field interviews.^ A survey of national public sector pension experts was conducted to provide a conceptual framework by which underfunding could be evaluated. Experts suggest that plan design, fiscal stress, and political culture factors impact underfunding. However, experts do not agree with previous research findings that unions actively pursue underfunding to secure current wage increases.^ Within the conceptual framework and determinants identified by experts, several empirical regularities are documented for the first time. Analysis of 173 local government pension plans, observed from 1987 to 1992, was conducted. Findings indicate that underfunding occurs in plans that have lower retirement ages, increased costs due to benefit enhancements, when the sponsor faces current year operating deficits, or when a local government relies heavily on inelastic revenue sources. Results also suggest that elected officials artificially inflate interest rate assumptions to reduce current pension costs, consequently shifting these costs to future generations. In concurrence with some experts there is no data to support the assumption that highly unionized employees secure more funding than less unionized employees.^ Empirical results provide satisfactory but not overwhelming statistical power, and only minor predictive capacity. To further explore why underfunding occurs, field interviews were carried out with 62 local government officials. Practitioners indicated that perceived fiscal stress, the willingness of policymakers to advance funding, bargaining strategies used by union officials, apathy by employees and retirees, pension board composition, and the level of influence by internal pension experts has an impact on funding outcomes.^ A pension funding process model was posited by triangulating the expert survey, empirical findings, and field survey results. The funding process model should help shape and refine our theoretical knowledge of state and local government pension underfunding in the future. ^

Alternative service organizations: Funding environment, strategies, and patterns of adaptation

This study explored the strategies that community-based, consumer-focused advocacy, alternative service organizations (ASOs), implemented to adapt to the changes in the nonprofit funding environment (Oliver & McShane, 1979; Perlmutter, 1988a, 1994). It is not clear as to the extent to which current funding trends have influenced ASOs as little empirical research has been conducted in this area (Magnus, 2001; Marquez, 2003; Powell, 1986). ^ This study used a qualitative research design to investigate strategies implemented by these organizations to adapt to changes such as decreasing government, foundation, and corporate funding and an increasing number of nonprofit organizations. More than 20 community informants helped to identify, locate, and provide information about ASOs. Semi-structured interviews were conducted with a sample of 30 ASO executive directors from diverse organizations in Miami-bade and Broward Counties, in South Florida. ^ Data analysis was facilitated by the use of ATLAS.ti, version 5, a qualitative data analysis computer software program designed for grounded theory research. This process generated five major themes: Funding Environment; Internal Structure; Strategies for Survival; Sustainability; and Committing to the Cause, Mission, and Vision. ^ The results indicate that ASOs are struggling to survive financially by cutting programs, decreasing staff, and limiting service to consumers. They are also exploring ways to develop fundraising strategies; for example, increasing the number of proposals written for grants, focusing on fund development, and establishing for-profit ventures. Even organizations that state that they are currently financially stable are concerned about their financial vulnerability. There is little flexibility or cushioning to adjust to "funding jolts." The fear of losing current funding levels and being placed in a tenuous financial situation is a constant concern for these ASOs. ^ Further data collected from the self-administered Funding Checklist and demographic forms were coded and analyzed using Statistical Package for the Social Sciences (SPSS). Descriptive information and frequencies generated findings regarding the revenue, staff compliment, use of volunteers and fundraising consultants, and fundraising practices. The study proposes a model of funding relationships and presents implications for social work practice, and policy, along with recommendations for future research. ^

Community college faculty commitment to Florida performance -based funding indicators for academic programs

In 1996, the State of Florida implemented a performance-based funding program for the Associate in Arts degree offered by community colleges. Additional funds are allocated for distribution among public community colleges based on performance indicators. The indicators are comprised of 10 performance goals that refer to productivity indexed by overall degree completions as well as subgroups: special disadvantaged populations, transfers, job placements, and education acceleration. ^ This study examined the level of self-reported commitment of community college faculty to the 10 Florida performance-based funding indicators for academic programs. Also examined were the relationships between commitment and (a) self-efficacy in contributing to the achievement of the indicators and (b) personal financial reward expectation for contributing to the achievement of the indicators. The relationships between commitment and (a) gender, (b) academic rank, and (c) types of courses taught were analyzed based on secondary analyses. ^ The participants were 303 full-time faculty members of Miami-Dade Community College who taught courses taken by students pursuing the Associate in Arts degree. A questionnaire was developed to measure commitment, self-efficacy, and expectation of financial reward for each of the 10 indicators. ^ The mean composite commitment score for faculty members who responded to the survey was 4.07 in a scale of 1 to 5. Greater commitment was reported for indicators closely related to the traditional mission of community colleges (i.e., facilitating progress of special groups in earning the AA degree in preparation for transferring to a four-year university). Lower commitment was reported for indicators oriented to State priorities such as education acceleration mechanisms and job placements. Commitment was correlated with three variables: self-efficacy, expectation of financial reward, and types of courses taught. However, commitment was not related to gender and academic rank. Although a cause-effect relationship cannot be inferred from this study, the findings depict a positive relationship between faculty commitment to performance-based funding indicators and faculty self-efficacy to contribute to the achievement of the indicators. ^

The Debate on First Nations Education Funding: Mind the Gap (Working Paper 49)

It is at long last becoming part of the public discourse that improving living conditions and opportunities for First Nations communities in Canada is a national imperative. It is also widely recognized that the education is critical to fostering a better future for First Nations people. Yet, for many First Nations youth, particularly those on reserve, completing even high school is well beyond reach. The graduation rate of First Nations people living on reserve was 35.3 per cent as recently as 2011 compared with 78 per cent for the population as a whole. At the same time, the First Nations population is young and growing fast - in First Nations communities 49 per cent of the population is under 24 years of age compared to 30 per cent of the general population. Despite some incremental improvements in education success rates for First Nations students in recent years, the education gap between First Nations and the rest of the country is increasing. The concerns expressed in the 2011 Auditor General report continue to hold weight: "In 2004, we noted that at existing rates, it would take 28 years for First Nations communities to reach the national average. More recent trends suggest that the time needed may still be longer.

Third-mission policy goals and incentives from performance-based funding: Are they aligned?

In competitive knowledge-based economies, policymakers recognize the importance of universities’ engagement in third mission activities. This article investigates how a specific policy approach to encourage third mission engagement—the use of performance-based funding to reward universities’ success in this domain—aligns with the broader goals of third mission policy. Considering the case of the UK, the first country to have implemented a system of this kind, we analyse how the system has come into being and how it has evolved, and we discuss whether its implementation is likely to encourage universities to behave in ways that are aligned with the goals of third mission policy, as outlined in government documents. We argue that the system encourages universities to focus on a narrow range of income-producing third mission activities, and this is not well aligned with the policy goal to support a complex innovation ecosystem comprising universities with different third mission objectives and strategies. The article concludes by proposing possible avenues for achieving greater alignment between incentives and policy goals.

Policy Solutions and International Perspectives on the Funding of Public Service Media Content for Children: A Report for Stakeholders

This project on Policy Solutions and International Perspectives on the Funding of Public Service Media Content for Children began on 8 February 2016 and concludes on 31 May 2016. Its outcomes contribute to the policy-making process around BBC Charter Review, which has raised concerns about the financial sustainability of UK-produced children’s screen content. The aim of this project is to evaluate different funding possibilities for public service children’s content in a more challenging and competitive multiplatform media environment, drawing on experiences outside the UK. The project addresses the following questions: • What forms of alternative funding exist to support public service content for children in a transforming multiplatform media environment? • What can we learn from the types of funding and support for children’s screen content that are available elsewhere in the world – in terms of regulatory foundations, administration, accountability, levels of funding, amounts and types of content supported? • How effective are these funding systems and funding sources for supporting domestically produced content (range and numbers of projects supported; audience reach)? This stakeholder report constitutes the main outcome of the project and provides an overview and analysis of alternatives for supporting and funding home-grown children’s screen content across both traditional broadcasting outlets and emerging digital platforms. The report has been made publicly available, so that it can inform policy work and responses to the UK Government White Paper, A BBC for the Future, published by the Department of Culture, Media and Sport in May 2016.

Can my mom have a private nursing home room even though she depends on Medicaid funding? August 22, 2013

Information on qualifying for a private nursing home room if on Medicaid funding

KE & Science Europe briefing paper: Funding Research Data Management and related infrastructures

Responsible Research Data Management (RDM) is a pillar of quality research. In practice good RDM requires the support of a well-functioning Research Data Infrastructure (RDI). One of the challenges the research community is facing is how to fund the management of research data and the required infrastructure. Knowledge Exchange and Science Europe have both defined activities to explore how RDM/RDI are, or can be, funded. Independently they each planned to survey users and providers of data services and on becoming aware of the similar objectives and approaches, the Science Europe Working Group on Research Data and the Knowledge Exchange Research Data expert group joined forces and devised a joint activity to to inform the discussion on the funding of RDM/RDI in Europe.

Application of a policy framework for the public funding of drugs for rare diseases

BACKGROUND: In many countries, decisions about the public funding of drugs are preferentially based on the results of randomized trials. For truly rare diseases, such trials are not typically available, and approaches by public payers are highly variable. In view of this, a policy framework intended to fairly evaluate these drugs was developed by the Drugs for Rare Diseases Working Group (DRDWG) at the request of the Ontario Public Drug Programs. OBJECTIVE: To report the initial experience of applying a novel evaluation framework to funding applications for drugs for rare diseases. METHODS: Retrospective observational cohort study. MEASURES: Clinical effectiveness, costs, funding recommendations, funding approval. KEY RESULTS: Between March 2008 and February 2013, eight drugs were evaluated using the DRDWG framework. The estimated average annual drug cost per patient ranged from 28,000 to 1,200,000 Canadian dollars (CAD). For five drugs, full evaluations were completed, specific funding recommendations were made by the DRDWG, and funding was approved after risk-sharing agreements with the manufacturers were negotiated. For two drugs, the disease indications were determined to be ineligible for consideration. For one drug, there was insufficient natural history data for the disease to provide a basis for recommendation. For the five drugs fully evaluated, 32 patients met the predefined eligibility criteria for funding, and five were denied based on predefined exclusion criteria. CONCLUSIONS: The framework improved transparency and consistency for evaluation and public funding of drugs for rare diseases in Ontario. The evaluation process will continue to be iteratively refined as feedback on actual versus expected clinical and economic outcomes is incorporated. © 2014 Society of General Internal Medicine.

Investigating Stakeholders’ Preferences for Coral Reef Research Funding in Florida

Abstract: Heavily used and highly valuable, the Florida Reef is one of the world's most threatened ecosystems. Stakeholders from a densely urbanized coastal region in proximity to the reef system recognize its degradation, but their comprehension of climate change and commitment to pay for sustainable management and research funding have been opaque. With an emphasis on recreational anglers, residential stakeholders were surveyed online about their marine activities, perceptions of resources and threats, and willingness to pay (WTP) for dedicated coral reef research funding in Florida. The majority of stakeholders are wealthy, well educated, and politically independent. Supermajorities favored the two scenarios of taxation for a Florida Coral Reef Research Fund, and the scenario with matching federal funds earned higher support. In regression analyses, several factors emerged as significant contributors to stakeholders’ preferences, and the four recurring factors in extended models were prioritizing the environment over the economy, donating to environmental causes, concern about coral reefs, and concern about climate change, with the latter indicating a recent shift of opinion. Status in terms of income and education were found insignificant, and surprisingly income was negatively correlated with WTP. Perceptions through lenses of environmental and emotional attachments appear to overwhelm conventional status-based factors. Applied statewide, the first scenario's extrapolated WTP (based on a sales tax rate of 2.9%) would generate $675 million annually, and the extrapolated WTP under the second scenario, with matching federal funds (based on a sales tax rate of 3.0%) would generate $1.4 billion. Keywords: willingness to pay, coral reef research, taxation, climate change, stakeholder, perceptions, Florida Reef, recreational fishing, anglers

Film policy in practice: a case study of Scottish Screen’s funding schemes

This thesis examines cultural policy for film in Scotland, from 1997 to 2010. It explores the extent to which the industry is shaped by film policy strategies and through the agency of public funding bodies. It reflects on how Scottish Screen, Scotland’s former screen agency, articulated its role as a national institution concerned with both commercial and cultural remits, with the conflicting interests of different industry groups. The study examines how the agency developed funding schemes to fulfil policy directives during a tumultuous period in Scottish cultural policy history, following the establishment of the Scottish Parliament with the Scotland Act 1998 and preceding the Independence Referendum Act 2013. In order to investigate how policy has shaped the development of a national film industry, a further two case studies are explored. These are Tartan Shorts, Scotland’s former flagship short film scheme, and the Audience Development Fund, Scotland’s first project based film exhibition scheme. The first study explores the planning, implementation and evaluation of the scheme as part of the agency’s talent development strategy. The outcomes of this study show the potential impact of funding methods aimed at developing and retaining Scottish filmmaking talent. Thereafter, the Scottish exhibition sector is discussed; a formerly unexplored field within film policy discussions and academic debate. It outlines Scottish Screen’s legacy to current film exhibition funding practices and the practical mechanisms the agency utilised to foster Scottish audiences. By mapping the historical and political terrain, the research analyses the specificity of Scotland within the UK context and explores areas in which short-term, context-driven policies become problematic. The work concludes by presenting the advantages and issues caused by film funding practices, advocating what is needed for the film industry in Scotland today with suggestions for long-term and cohesive policy development.

“Productivity and Employment in Firm’s Acess to Public Funding to Support Innovation”

Innovation is at the heart of the Europe 2020 Strategy, in order to promote higher levels of employment and productivity. Special attention is given to increasing the effectiveness of innovation policy instruments, mainly as some authors found evidence that productivity could be negatively affected by subsidies. The aim of the study is to assess how the expected impact on firm productivity and employment is taken into account, when firms apply for public funding for innovation. The analysis is based on the case study of the Portuguese Innovation Incentive System in the Alentejo region. In order to understand which factors influence the public decision to financially support private investment, we estimated a logit model based on firms’ and applications’ characteristics, controlling for the macroeconomic environment. The results indicate that government preferences for promoting exports, exploiting firms R&D results and stimulating the level of qualified employment are shown to be more relevant than the impact on firm productivity. Furthermore, the cost to the government of new jobs created, measured at least by exemption of interest and financial charges on the loan, is almost twice as much for non-SMEs as for SMEs.