Implementing Performance Budgeting at the State Level: Lessons Learned from New Jersey

This article considers barriers and strategies for implementing performance budgeting in real-time application by a state-level government. The lessons learned from the State of New Jersey’s implementation of the Governor’s Performance Budgeting Initiative offer guidelines for public and nonprofit sector organizations attempting similar efforts. Data was gathered through a series of focus groups with key executive-level administrators. Observations and recommendations for enhancing and reenergizing current performance budgeting strategies for a state or agency are suggested.     

Policy Diffusion and Performance-based Budgeting

This article applied the policy diffusion model as a theoretical framework for interpreting the international spread of performance-based budgeting, based upon 33 OECD case studies of countries that have implemented this reform. The data show that the historical development of performance-based budgeting was fairly consistent with the diffusion model. In particular, the adoption of performance budgeting took off during 1985–1995 and then accelerated over the following 15 years, and the primary innovators were a group of four English-speaking countries with comparatively laissez-faire economies (the United States, Canada, Australia, and New Zealand). The case studies indicated that performance-based budgeting was generally part of a broader program of governmental reform, that executive agencies were more important than parliaments in managing it, that it became quite important in budget- and policy-making, and that implementing it faced a significant number of challenges.     

Contract Budgeting

Contract budgeting attempts to reconfigure public budgeting as a system of purchase contracts between provider agencies and central government. It draws its inspiration from a simple model of contract in which the purchaser buys clearly specified outputs from a provider at a preagreed price. Contract budgeting thus represents a fusion of output-based budgeting schemas with the newer enthusiasm for placing the public sector on a 'market' footing. This paper reviews the problems which confront any form of output based budgeting, and then analyses the specific issues of contractualization. It concludes that contract budgeting does not well fit the realities of budgeting in a complex public sector.     

Budgeting information resources: Some alternative approaches

As concern over public sector efficiency and effectiveness has grown, attention has turned to budgetingressurces not heretofore budgeted well. This paper foctlses upon one such resource--the information resource--and examines implications for the improvement of public services and management decisions. In the pas:, managers have not viewed information as a resource to be managed as we have human and financial resources. With the rapid growth of information technology and its increasing use, we are becoming more aware of the costs of information and the need to budget for information services. We argue that information resources should be visible, traceable and chargeable. Alternative styles of decision making/budgeting are identified built around two methods of information use: one is called the input-oriented approach, the other, the output-oriented approach. The input-oriented approach is based upon the concept of incrementalism while the output-oriented approach reflects the rationalistic decision style. These approaches are further broken down into four modes of budgeting information resources. The characteristics of each of these modes are identified, analyzed and problems discussed.     

Budgeting,policy and administration: patterns and dynamics in the U.S

This article examines the relationships between policy, administration, and budgeting I argue that the administration of government is directly and primarily influenced by changes in policy and budgeting. A conceptual framework of the interrelationship between these three factors is presented. This framework is applied to Schick's classic periodicization of twentieth century U.S. history. Three value orientations of budgeting—control, management, and planning—were evident at different times during these periods. The framework is then applied to the period since 1981, labeled a phase of limitation. This phase has been an unhealthy development in American government.     

Useful,But Not A Panacea: Performance-Based Program Budgeting in Florida

Abstract

Florida's performance-based budgeting reform, called performance-based program budgeting or PB², followed a defined plan of implementation from its inception in 1995. The reform's implementation was perhaps more interesting for its dynamic adjustments than its planned progression, however. At various points along the reform trajectory key entities charged with driving the reform process had to deal with challenges to both the substance of reform and its day-to-day management. This article presents some of the story of this process. PB² has not proved a panacea for all the budgeting woes governments like Florida's may face, but it has been useful and the story of its implementation should be of interest.     

Public Participation in Budgeting: The New Path of Budget Reform in Thailand

The purposes of this article are three fold. First is to explore the status of public participation budgeting in central, regional, and local administrative levels of Thailand. Second is to develop a model of public participation budgeting that fits with the contexts of each level. Third is to recommend some directions for budgetary reform in Thailand. This article employs qualitative methodologies using a multi-method approach for data collection, including in-depth interviews, focus groups, and work visits. The findings are discussed and compared with international experiences. Finally, a public participation budgeting typology is proposed and guidelines for budget reform are provided.     

Planning,Budgeting, and Health Care Performance in Ukraine

Abstract

The Government of Ukraine has not pursued health care reforms now commonplace in the rest of Europe and Central/Eastern Europe that rely less upon centralized, state delivery of services and more on decentralized operational responsibilities and competition for services that increase patient choice. The Ukrainian health sector suffers from personnel overspecialization and facility overcapacity, resulting in high-cost, low productivity services. Budget funds are unavailable for operations and maintenance resulting in poor quality services. The state provides health care as a constitutionally-protected monopoly, relying on the traditional command and control model which ignores cost/quality competition options and responsibilities to patients. Overall, the system which produces these results is over-centralized, requiring achievement of physical service norms without providing sufficient funds. The centralized system does not monitor or evaluate services beyond narrow financial accountability and control requirements. The health care system is paradoxically over-centralized but unable to regulate or control local health care official decisions to ensure compliance with national standards. Needed are reforms in the health care policy and operational areas to produce the supply of services needed for national economic recovery. In the short-term, the budgetary framework can be improved as an operational/management guide through development of comparative information on results. Most of this information can be based on the economic classification consistent with the chart of accounts. Funding stability can be increased to improve expenditure control by implementing a new fiscal transfer formula that provides discretion (i.e., block grants) and performance criteria (i.e., outcome measures). In the medium-term, building on the technical foundation of physical norms and statistical reporting, the health care budgeting and financial management system should shift emphasis to: program planning, policy and management analysis, and public communications. The results of these reforms should lead to decentralized health care operations, service analysis, and delivery responsibilities. At the same time, the reforms should lead to proper centralization of responsibilities for strategic policy decisions, safety regulation, national standards, and program evaluation.     

Guiding the Public Sector: Assessing the Use of Recommended Practices in the Budgeting Process

Public administration is a field defined by principles, best practices, and recommended guidelines. According to advocates, these guidelines have the potential to improve the effectiveness and efficiency of public organizations. However, this potential is predicated on the degree to which they are actually followed in practice. Using an original survey of local budgeting officials across the United States, this study examines the correlation between current budgeting practices and established, recommended practices. While a significant number of current practices closely match those that have been recommended, notable variations were present. The trends and their implications conclude the assessment.     

Cultural Resistance,Output Measures,and Audit Practice: Impact on Non-Implementation of Program-Based Budgeting in Nigeria

Excessive spending on recurrent expenditure hampers economic growth. A program-based budgeting approach has been proposed to discipline fiscal excesses of agencies outside direct civil service machinery but government is inactive. This study hypothesized that difficulty in securing output measures, resistance from politicians, agency heads, and workers; current audit practice; and cost–benefit considerations, hinder implementation. Analysis of perceptual data reveals that resistance from politicians and employees is the major factor that hinders implementation of a program-based budgeting in Nigeria. In addition, difficulty in securing measures to quantify outputs thwarts implementation initiatives, and current audit practice whereby private audit firms audit operational activities of agencies only at year-end subvert program reviews. The study recommends that politicians be advised on political considerations in budgetary allocation; a performance measurement committee be set up to develop measures of outputs acceptable to workers; and a body of auditors be nationalized to undertake audit of government agencies.     

The Role of Citizen Participation and the Use of Social Media Platforms in the Participatory Budgeting Process

In the United States participatory budgeting (PB) is a relatively new and innovative approach to municipal budgeting that has implications for improving the role of citizen participation in the budgetary process. The research is based on personal interviews with local community leaders involved in the PB process in the 49th Ward of Chicago, Illinois; the 6th Ward of St. Louis, Missouri; and the City of Boston, Massachusetts. Highlights are provided of the specific experiences and perceptions of these community leaders with a particular emphasis on the use of social media platforms in engaging citizens in the PB process. This article concludes with recommendations for creating a PB infrastructure, for increasing citizen participation in the PB process, and for assessing and increasing the impact of PB in cities within the United States.     

Budgeting the work force: Influences,elements, disclosure strategies,and roles

Work force budgeting is a comprehensive view of allocating resources recognizing that expenses flow from the use and remuneration of organizational members. The purpose of this essay is to: examine the influences and elements of work force budgeting; enhance the disclosure of such choices; and, isolate the tension in fiscal oversight of personnel decisions. It is incumbent upon managers to acquire, deploy, and control human resources in the production of public goods and services. An humane and ethical bureaucracy has to meet tests of efficiency and effectiveness. This essay supports the proposition that service delivery goals should guide budget decisions instead of simply having decisions premised upon adding up the cost of existing staffing patterns.     

Performance Contracting as an Instrument for Improving Performance in Government: An Indian Experience

In this article, the effectiveness of the Performance Contracting or the Results Framework Document (RFD) process and its impact on improving Government's performance in the Indian context were analyzed. The results reveal that the RFD process has a significant and positive impact on the performance of ministries in the Government of India. The initiative has helped in an objective assessment of ministries and a focused effort on achieving the organizational targets, and in enabling performance orientation among civil servants. It has also contributed to a refining of the organization's vision and mission and their integration with the organizational objectives. However, the process has been driven by civil servants. The initiative has not been integrated with the budgeting process, and the performance appraisal and performance-based incentive systems. The study has enabled validation of existing frameworks of PMS and incorporating the RFD process in a generic integrated framework of PMS.     

Revitalizing Local Government Performance Management: Further Dissecting the Role of Socioeconomic Status and Social Mobilization Policy

ABSTRACT

This article examines how socio-economic status and social mobilisation are linked to local government performance management in Nepal. As part of local government reform, Nepal adopted a social mobilisation policy in selected local governments to empower communities for their effective participation. Our results show that socio-economic status and social mobilisation have a significant relationship with performance management. Female literacy, for example, is strongly and significantly associated with performance management, while area has a significant positive relationship but population has only a weak positive relationship. In contrast, poverty has a significant negative correlation. More importantly, mobilisation has a significant, though modest, positive association with performance management particularly in participatory planning and budgeting, fiscal discipline, and administrative management. This indicates that improving the socio-economic status of citizens and their mobilisation for empowered collective action can be one important strategy to improve the performance capacity of local government.     

Russian Central Government Budgeting and Public Sector Reform Discourses: Paradigms,Hybrids, and a “Third Way”

ABSTRACT

This study explores how public sector reform discourses are reflected in Russian central government budgeting. Through the lenses of institutional logics, Russian central government budgeting is considered to be a social institution that is influenced by rivaling reform paradigms: Public Administration, New Public Management (NPM), the Neo-Weberian State, and New Public Governance. Although NPM has dominated the agenda during the last decade, all four have been presented in “talks” and “decisions” regarding government budgeting. The empirical evidence illustrates that the implementation of management accounting techniques in the Russian public sector has coincided with and contradicted the construction of the Russian version of bureaucratic governance, which is referred to as the vertical of power. Having been accompanied by participatory mechanisms and a re-evaluation of the Soviet legacy, the reforms have created prerequisites for various outcomes at the level of budgeting practices: conflicts, as in the UK, and hybridization, as in Finland.     

Citizen Preference and Resource Allocation: The Case for Participatory Budgeting in Seoul

This article seeks to measure the extent to which the service priorities of citizens of Seoul, South Korea, are reflected in corresponding resource allocations in the city's budget, despite there being virtually no participation by citizens in the budget creation process. We find a less than perfect congruence between budget allocations and citizen preferences at both the city and district level. Given these results, we discuss the potential for participatory budgeting to address discrepancies in resource allocation by focusing on the unique demographic and cultural makeup of Seoul constituencies.     

No staff,no time,no money: Can budget reform work in a rural county?

Budget reforms directed toward providing more information and analysis for management and policy making appear to be most widely used by larger jurisdictions. Reforms such as performance budgeting, program budgeting, and zero based budgeting are associated with professionalism, management information systems, budget staffs, and a lengthy budget preparation and planning phase. This article addresses the question of whether it is possible to implement budget reform without the staff and financial resources that so often goes hand-in-hand with it. The experience of one rural county government in attempting budget reform is examined.     

An Evaluation of Performance-Based Budget Reform in Asian Countries

This article investigates the effects of performance-based budgeting (PBB) adoption on the spending of the central government in eleven Asian countries over an 18-year period. The theoretical argument is that PBB does not permanently change the spending structure for various reasons, including but not limited to the lack of clear linkages between performance results and resource allocation. This hypothesis is supported by the study’s results, which suggest that PBB temporarily changes the spending size in some programs. However, such changes are not permanent; there are no structural changes in the baseline budget. These findings suggest that PBB may not be different than other budget reforms.     

Types of budgeting and budgeting problems in aclerican cities

This research investigates the types of budgeting formats used in over 200 United States cities and provides information about the budgetary problems facing American cities. The perception of budgeting problems differs significantly among cities with different types of budgeting. Cities using line-item budgeting are more likely to view the problems as more severe than do the cities using reform budgeting. The problems are the least severe in cities using planning, programming budgeting.