State and Local Government Statistics at a Crossroads (2007) / Chapter Skim
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3 Data Users and Uses
3 Data Users and Uses
Pages 38-68
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From page 38... ...
One important application of the Governments Division data is not discussed here, except in the context of uses by state and local government public interest groups. Individual state and local governments must determine how they measure up to other governmental bodies in terms of tax burden, expenditures by function, employees, payrolls, and revenues.
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From page 39... ...
The state and local data were essential for the work of the ACIR, and, for a time, the interface between the ACIR staff and the Governments Division staff was exceptionally close and symbiotic. The ACIR also utilized and added value to the Census Bureau's state and local government data in the preparation and publication of an annual volume entitled Significant Features of Fiscal Federalism.
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From page 40... ...
It collects some source data itself but relies heavily on other agencies, in particular, the Census Bureau, for most source data. BEA uses the data from the state and local government statistics programs as a primary source for the state and local components of the NIPAs and the regional economic accounts and for elements of other economic statistics, such as input-output accounts. BEA underscored the importance of the Governments Division data to Statement by Thomas Mesenbourg, associate director for economic programs, U.S.
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From page 41... ...
BEA also provides updated quarterly estimates as the source data are released, and it derives price indexes and real constant dollar measures for the state and local government component on the same basis as other BEA series. One of the two main regional account series is the gross domestic product for states (formerly called the gross state product)
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From page 42... ...
In 2003, the adjustments for accounting and conceptual differences amounted to about a 30 percent reduction in state and local government revenues and expenditures from the original Governments Division estimates. BEA Uses of Employee Retirement, Employment, and Other Data in Producing Personal Income Data In response to an inquiry from the panel, BEA explained its need for data from the Governments Division public employee retirement system survey.
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From page 43... ...
The NIPA household sector includes retirement program-related expenditures of state and local governments. The NIPAs include imputations.
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From page 44... ...
BEA Suggestions to Enhance the Governments Division Data BEA would like to receive the Governments Division data on a more timely basis. BEA also reported to the panel that the following enhancements to the Governments Division data would be helpful: • the addition of information on defined-contribution retirement plans of state and local government workers; • more data on social benefit programs; • industry detail for tax data; and • data on intangible capital, such as innovative property (e.g., R&D)
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From page 45... ...
. The FRB uses three of the Governments Division surveys for its flow of funds accounts -- the Annual Survey of State and Local Government Finances, the Annual Survey of State and Local Government Public Employee Retirement Systems, and the Quarterly Survey of Finances of Selected Public Retirement Systems. Annual Survey of State and Local Government Finances Many of the inputs to the flow of funds accounts representing state and local government finances (excluding retirement plans)
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From page 46... ...
The FRB extrapolates estimates until quarterly survey estimates become available. FRB Suggestions to Enhance the Governments Division Data The FRB expressed interest to the panel in the addition of data items to the survey of state and local government finances to include more detail by asset categories, estimates of total assets held in pooled accounts and how these assets are invested, and greater access to the Governments Division electronic CAFR database.
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From page 47... ...
It would also like the division to conduct separate annual and quarterly surveys of state and local government defined-contribution retirement plans, for which information is currently missing from the flow of funds accounts. The FRB has, in fact, developed an idealized form for such a survey and has discussed it with the Governments Division.
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From page 48... ...
It uses BEA estimates that are based on the division's data as input to estimates of other categories in the NHEAs, such as hospital care. CMS Suggestions to Enhance the Governments Division Data CMS's suggestions and concerns regarding the Governments Division data for the most part center on the Government Finance and Employment Classification Manual, which is produced by the Governments Division and used to code its federal and state and local government statistics.
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From page 49... ...
that impede its ability to produce needed estimates: limited functional detail for health services; functional codes that do not match international codes; the overly broad definition of function code 32 (other health, now "health") ; and the treatment of medical transportation.
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From page 50... ...
At a minimum, 3-digit COFOG detail for health would be needed for CMS to produce sufficiently detailed estimates of government public health activity by function and nature of service from the Governments Division data. Definition of function code 32: health.
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From page 51... ...
PUBLIC INTEREST GROUPS Public interest groups use the Governments Division data on state and local government organization, finances, and employment as the basis for tracing changes in the well-being of their constituents, for analyzing general government trends, and for research, advocacy, and lobbying purposes. Seven organizations invited by a subgroup of the panel participated in a May 2006 meeting to express their thoughts on the work of the Governments Division: the Federation of Tax Administrators; the Governmental Research Association; the International City/County Management Association; the National Association of Counties; the National Association of State Budget Officers; the National Association of State Retirement Administrators; and the National League of Cities.
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From page 52... ...
The International City/County Management Association (ICMA) , a professional association of appointed local officials, including county managers; city, town, and village managers; department heads; and other local government officials, rarely uses the Census Governments Division data directly.10 However, ICMA does use the Governments Division's surveys and data to develop the samples for their own surveys.
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From page 53... ...
Finally, the National Association of State Retirement Administrators, the National Conference of State Legislators, and the Federation of Tax Administrators conduct surveys on public pensions, annual state expenditures, and taxes, respectively. RESEARCH INSTITUTIONS AND ACADEMIC RESEARCHERS Researchers in universities and public policy institutes use the Governments Division data for purposes similar to those of public interest groups -- to conduct policy research and to communicate current issues of state and local government finance and organization to policy makers and the media.
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From page 54... ...
The aforementioned gap in 2001 and 2003 state and local revenue data from the Governments Division came at a time of recession. While some analysts believe that property taxes acted as a savior for many state and local governments during that time, there are no data to support that theory because of the gap.
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From page 55... ...
The disappearance of these data has made the analysis conducted by Canisius College for the HUD data system more difficult. Uses and Misuses of Rankings The Urban Institute–Brookings Institution Tax Policy Center database of state and local government information (described below)
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From page 56... ...
Without this background information, the Governments Division data could be taken to indicate a large increase in the state's share of education funding. More generally, panel members, as well as other researchers, commented on important changes and trends in state and local government finances and employment for which the current Governments Division data provide too little detail for analysis.
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From page 57... ...
As another example, many policy researchers -- and the press and the public -- are interested in the extent to which state and local governments have privatized functions previously conducted by government workers. This, too, is an important policy area about which the Governments Division data can provide no current information.
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From page 58... ...
The organizations represented are the Urban Institute–Brookings Institution Tax Policy Center, the Public Policy Institute of California, and Governing Magazine. Urban Institute–Brookings Institution Tax Policy Center The Urban Institute has made a significant commitment to creating a data resource for the occasional user of state and local government financial information -- for example, if users are interested in property tax revenues across all states over time, they can get that information from the Urban Institute instead of having to go to the Governments Division and look up the information state by state.14 The Urban Institute–Brookings Institution Tax Policy Center has been working on a data query system that is geared to neophyte users, people who are new to the Governments Division data and may be intimidated by them, although it will serve many of the needs of more sophisticated users as well.
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From page 59... ...
Governing Magazine While Governing Magazine is not an academic institution, its readers represent the same interests as those of users of the Urban Institute and PPIC data systems.16 The magazine provides one of the major sources of information tailored to the needs of users of state and local government information. The magazine uses Census Bureau data, from both the Demographic Directorate and the Economic Directorate, with supplemental information from a daily review of about 75 local newspapers to publish a ranking of the 1,000 largest jurisdictions by revenue and a listing of the nation's billion dollar governments in terms of revenue, including all 50 states, 15 cities, 25 counties, and 8 special districts.
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From page 60... ...
The magazine is aware of and uses similar data from other sources, such as the National Association of State Budget Officers, the National Conference of State Legislatures, and the Rockefeller Institute of Government; however, these sources collect more data on tax revenues than on spending, and they provide limited information on local governments. The consistency of the Governments Division data is the major reason why the magazine continues to use it as a primary source.
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From page 61... ...
CONCLUSIONS AND RECOMMENDATIONS Based on the foregoing discussion, gleaned from meetings with data users and reflecting the expertise and experience of its members, the panel makes four overall conclusions on the topics of usefulness of the Governments Division data; the trust by users in the data; the importance of uses of aggregate time series and of micro-level data; and the priority needs of data users. The panel's recommendations in this chapter address two of users' three main priorities: providing needed detail and classifications, and maintaining time series.
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From page 62... ...
The large numbers of users of measures of state and local government expenditures, revenues, assets, and debts in the NIPAs, the flow of funds, and the national health expenditure accounts, who are dependent on the Governments Division data, are often unaware of the fact that Governments Division data play an important role in the development of the measure of interest. Conclusion 3-2: Virtually all users of the Census Bureau's Governments Division data, including federal agencies, public interest groups, and academic researchers, view the data as authoritative and valuable be cause of the consistency of the data over time and across governments and the use of carefully specified standards and definitions for classify ing governments and governmental activities.
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From page 63... ...
As examples, the research community and public interest groups want more disaggregated data on state and local government finances and greater attention to the information on cities and special districts, while the Centers for Medicare and Medicaid Services want data for health expenditures that are more detailed and consistent with international classifications. Not satisfied with the data available from the Census Bureau, some public interest groups conduct special surveys to obtain additional detail beyond that available from the Governments Division.
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From page 64... ...
Employment data would be more relevant if there were information on the privatization of government services formerly performed by government workers, a need that is understandable in light of the perceived trend toward outsourcing. Balancing Relevance with Budgetary and Burden Considerations Given the wide variety of data desired, satisfying all of the specific requests for new and disaggregated data to maintain the relevance of state and local government statistics might well overwhelm the Governments Division's budget.
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From page 65... ...
Even when changes in data collection can be made, there is a challenge in avoiding discontinuities in the data series that would adversely affect the time series required by key data users. Several methods are available for bridging the gap between old and new series.
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From page 66... ...
Based on feedback from users, the division should develop a plan with well-justified priorities for improvements to be made in the 2012 Census of Governments and subsequent annual surveys. Maintaining Time Series In the state and local government statistics program, as with all federal government statistical programs, there is a tension between ensuring relevance, and thus the analytical value of the data, and maintaining historical continuity of the data series.
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From page 67... ...
How did state and local fiscal structures relate to response to the recession -- for example, were expenditures during the recession more stable in states in which local governments relied more heavily on property taxes? Recommendation 3-2: The Governments Division should give priority to maintaining basic time series on state and local government finances and employment.
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From page 68... ...
Nonetheless, the value of having the Governments Division collect such data is that the information provided would be consistent and comparable. Recommendation 3-3: In view of the importance of consistent, com parable, objective data on property tax valuation and other features of property taxation by state and local governments, the Governments Division should carry out a program of research and testing to explore conceptually sound and cost-effective means of collecting these data, which could be in conjunction with, or independent from, the Census of Governments.
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