COMPARING BUDGETARY STRUCTURES AND PROCESSES The cases of Paris and São Paulo

Peres, Ursula Dias; Allé, Camille

doi:10.1590/3610701/2021

Ursula Dias Peres

Escola de Artes, Ciências e Humanidades da Universidade de São Paulo, São Paulo, SP – Brasil.

http://orcid.org/0000-0002-7853-0576

Camille Allé

Sciences Po Paris, Paris – France.

http://orcid.org/0000-0002-3503-5348

E-mail: uperes@usp.br

E-mail: camille.alle@sciencespo.fr

1) Complexity of budgetary rules (instruments)	Core, 2007CORE, Fabiano. (2007), “Reforma Gerencial dos Processos de Planejamento e Orçamento”, in J. Giacomoni, & J.L. Pagnussat (org.), Planejamento e Orçamento Governamental, Brasília, ENAP.; Bezes and Siné, 2011BEZES, P., & SINÉ, A. (2011). “Introduction”, in P. Bezes & A. Siné (org.) Gouverner (par) les finances publiques, Paris, Presse de Sciences Po.; Lascoumes and Le Galès, 2012LASCOUMES, Pierre & LE GALÈS, Patrick. (2012), “A ação pública abordada pelos seus instrumentos”. Revista Pós Ciências Sociais, 9, 18: 9-44.
2) Hierarchical budgetary organization and budget bureaucracy influence in decision making	Miller, 1992MILLER, Gary J. (1992), Managerial dilemmas: the political economy of hierarchy. Canada, Cambridge University Press.; Peres, 2007PERES, Ursula Dias. (2007), “Custos de transação e estrutura de governança no setor público”. Revista Brasileira de Gestão de Negócios-RBGN, 9, 24: 15-30. and 2018
3) Inertia in the allocation of resources	Hayward, 1976HAYWARD, Jack. (1976), “Institutional inertia and political impetus in France and Britain”. European Journal of Political Research, 4, 4: 341-59. DOI: 10.1111/j.1475-6765.1976.tb00539.x. https://doi.org/10.1111/j.1475-6765.1976... ; Peres, 2018PERES, Ursula Dias. (2018), “Análise da Governança do Orçamento Público”, in E.C.L. Marques (org.), As políticas do urbano em São Paulo. 1st edition, São Paulo, Unesp.
4) Negotiation and muddling through	Lindblom, 2009LINDBLOM, Charles Edward. (2009), “Muddling through 2: a ubiqüidade da decisão incremental”, in F.G. Heidemman & J.F. Salm (org.), Políticas públicas e desenvolvimento: bases epistemológicas e modelos de análise, Brasília, Editora UnB.; Wildavsky, 1975WILDAVSKY, Aaron B. (1975). A comparative theory of budgetary processes. Boston, Little, Brown and Company.; Wildavsky and Caiden, 2004WILDAVSKY, Aaron B. & CAIDEN, Naomi. (2004), The new politics of the budgetary process. New York, Pearson/Longman.
5) Discretionary power of politicians to allocate a small part of financial resources	Jones et al., 1998JONES, Bryan D.; BAUMGARTNER, Frank R.; TRUE, James L. (1998), “Policy punctuations: US budget authority, 1947-1995”. The Journal of Politics, 60, 1: 1-33. DOI: 10.2307/2647999. https://doi.org/10.2307/2647999... ; Baumgartner et al., 2011BAUMGARTNER, Frank R.; FOUCAULT, Martial; FRANCOIS, Abel. (2011), “L’incrémentalisme et les ponctuations budgétaires en France”, in P. Bezès & A. Siné (org.), Gouverner (par) les finances publiques, Paris, Presses de Sciences Po.; Peres, 2018PERES, Ursula Dias. (2018), “Análise da Governança do Orçamento Público”, in E.C.L. Marques (org.), As políticas do urbano em São Paulo. 1st edition, São Paulo, Unesp.

	São Paulo	Paris
State Structure	Federal	Unitary State
Administrative Decentralization	Mandatory local public services and political responsibility	Mandatory local public services and political responsibility
Political Decentralization	Elected Executive and legislative powers/ constitutional autonomy	Executive power elected indirectly by citizens
Financial Decentralization	Partial Budgetary Autonomy: budgetary laws & earmarked funds	Budgetary Autonomy: annual budget and mandatory competences
	Very Partial Fiscal Autonomy	Partial Fiscal Autonomy
	No Bank Autonomy (access to credit)	Bank Autonomy (access to credit)
Two economic capitals	Limited access to the State administrations and to the Federal Government	City-State
	High pressure from companies and other interest groups.	Privileged access to the State administrations and to the Government + specificities of Paris (city + department/metropolis, region)
	Distributive Conflict over Public Funding (limited funding)	High pressure from companies
		And other interest groups.
	Distributive Conflict over Public Funding (limited funding)	Distributive Conflict over Public Funding (different funding possibilities compared to São Paulo)

São Paulo	Paris
R$ 59.5 B	R$ 37.5 B
R$ 4,500 per inhabitant	R$ 9,390 per inhabitant

	São Paulo	Paris
The Mayor	Directly elected by citizens (the first-past-the-post system)	Elected by the Municipal Council
Vice-Mayors or Secretaries	Revocable secretaries appointed by the Mayor	Appointed by the mayor, among municipal councillors.
		Vice-mayors benefit from a delegation of power from the Mayor to manage sectoral public policies
Municipal Council	Elected by citizens (proportional vote)	Elected by each district council.
	Municipal councillors make up the legislative branch and vote the municipal budget.	Municipal councillors deliberate (including on the budget), but do not have legislative power
Sub municipalities or Boroughs	thirty-two sub mayors appointed by the Mayor who manage a reduced local budget authorized by the Mayor	Twenty submayors indirectly elected: they are appointed by district councillors of each of the 20 boroughs
		District councillors are elected by citizens of each Borough/district (proportional vote)
		Each district manages a small budget dedicated to very local issues (maintenance of elementary schools, libraries, gymnasiums, among others)
Political orientation	Alternation of power (left wing and center-right wing)	Socialist since 2001

	Exclusive Responsibilities		Shared competence with other level of government		Exclusive responsibilities of other level of government (Region, State)
Public Policies	Paris	São Paulo	Paris	São Paulo	Paris	São Paulo
Urbanism and housing	Social housing, road maintenance, urban planning.	Road maintenance, urban planning.		Social Housing	Regional planning	Regional planning
Utilities		Waste management	Waste management	Water supply, basic sanitation
Public space cleaning	Green areas, streets.	Green spaces, streets; landfills;
Culture and sports	Municipal Museum, cultural centers, public swimming pools, sports centers, municipal stadium…	Municipal Museum, cultural centers, public swimming pools, sport centers, municipal stadium.			National Museums	National Museums
Education	Public Kindergarten (infrastructure + employees), Elementary schools and High School (infrastructure and maintenance)	Public Kindergarten (infrastructure + employees), Elementary schools (infrastructure and maintenance)		Public Elementary schools (infrastructure + employees)	High school (Lycée), teachers wages of Elementary, Middle School and High School, University	High school (Lycée), University

Transportation		Public Buses	Urban transport (bikes, buses, subway, some trains)		Regional and national transportation	Urban transport (subways, some trains)
Healthcare and social services	Unemployment insurance, autonomy pension for modest elderly people, invalidity pension for disabled persons	Social services (primary care)		Public Health Social Services (special care)	Regional or national public hospitals, retirement pension, social insurance for healthcare	Regional public hospitals, retirement pension, social insurance for healthcare

				Local actions against air and water pollution, noise; local actions to protect biodiversity, environmental education.	Regional and National planning for Biodiversity, for Energy Transition, for Climate etc.	Regional and national planning for biodiversity, Energy Transition, Climate
Environmental care	Local actions against air and water pollution, noise; local actions to protect biodiversity.
Public Security	Municipal police	Local guard for public buildings	-		National Police and Military	Military and Civil Police
						Federal Investigation Police

	São Paulo	Paris
The top budget management		No structuring, but a plurality of players:
	Formal structure called the Financial and Budgetary Board (JOF): comprised of four departments (finance, government, administration, and justice), the JOF makes all decisions on spending and revenues parameters.	- the Mayor and their office (political councillors).
		- the deputy-mayor of Finance and their office;
	The four Members of the JOF are appointed by the Mayor.	- the General Secretariat (involved in all transversal subjects);
		- the Director of the Department of Finance (administrative);
		- Sectorial deputy-mayors: they intervene in the budget process but only have certain influence over it;
		- Sub-mayors: they intervene to defend their Sub-municipal budget.
The Municipal Council and its Commission in charge of Finance	Deputies amend the project of Law in the Economics commission, during bilateral negotiations and during the Public Debate.	Political groups formed by municipal councillors can marginally amend the budgetary project during the Financial commission or negotiate bilaterally.
	The most important political players in this negotiation are the budget rapporteur and the government leader.
The Budgetary Department (“savers”)	The Sub-Secretariat of Planning and Municipal Budgeting (SUPOM) is part of the Finance Secretariat and:	The Sub-Department of the Budget is part of the Department of Finance and Procurement and:
	- Is responsible for setting deadlines for the preparation and implementation of the budget,	- Is responsible for setting deadlines for the preparation and implementation of the budget;
	- Coordinates the work of the Planning and Budgeting Centers of all municipal bodies;	- Coordinates the budgetary planning and forecast with other departments of the municipality;
	- Provides bureaucratic support to the JOF;	- Produces all legal documents;
	- Produces all legal documents.	- Produces financial analysis for the office;
		- Produces annual and pluriannual forecasts.

Other Departments (“spenders”)	Twenty-seven Secretariats: Department of Health, Department of Education, among others.	Twenty-five Departments: Department of urbanism, Department of social aid, Department of Housing, Department of Sports, Department of Economic Activities, Department of Culture, among others.
Other Departments (“spenders”)	Thirty-two Sub municipalities.

Level of funding	São Paulo	Paris
Federal level	R$ 0.7 billion – 6.7%	-
State level	R$ 0.5 billion – 4%	R$ 2 billion – 11.6%
Municipal level	R$ 8 billion – 89.3%	R$ 20 billion – 88.4%

[1] E-mail: uperes@usp.br

Brasil

Brasil

COMPARING BUDGETARY STRUCTURES AND PROCESSES The cases of Paris and São Paulo

COMPARANDO ESTRUTURAS E PROCESSOS ORÇAMENTÁRIOS: OS CASOS DE PARIS E SÃO PAULO

PROCESSUS ET STRUCTURES BUDGÉTAIRES COMPARÉES: LES CAS DE PARIS ET SÃO PAULO

Abstract