Analyzing How Local Governments Establish Service Priorities

Resource limitations and increasing citizen expectations are causing decisionmakers to reexamine existing approaches to establishing priorities in the funding of governmental services. Using local governments as a contextual example, this article investigates the decision making processes used by Texas cities The research seeks to understand the role different budgetary frameworks, i.e., incremental, performance and community values, play in resource allocation. Factors such as the budget sequence, the participants and the reference sources are considered to better understand local budget deliberations. This research indicates that a mixed or hybrid framework (any combination of the incremental, performance and community values approaches) dominates decision making in Texas cities. That is, most cities attempt to incorporate the politicalness of incrementalism, the results orientation of the performance framework, and the utility maximization desired under the community values framework. Results from this research indicate that Texas cities are moving away from a single framework orientation as a rule and are incorporating more rational and participative aspects into their budget process. This refutes common wisdom on this topic and suggests a more complicated approach to decision making that emphasizes the injection of more objective performance-related data, as well as the subjective perceptions of non-traditionally dominant participant groups.