Public Capital Investment and Economic Growth in Forth Worth: The Implications for Public Budgeting and Infrastructure Management

There is a common assumption that local government investment in infrastructure stimulates private development. This article examines relationships in one southwestern city between public capital spending and city infrastructure assets and private economic activity as measured by building permit activity, permit values, and assessed property valuations. Two research questions are examined: (1) Is public investment in new capital associated with private capital formation? and (2) Is public investment associated with improvements in the property tax base? The findings hold implications for infrastructure planning, budgeting, and management. First, public and private capital spending patterns varied in tandem across several cycles, and tracking such cycles may help public managers predict short- and mid-term infrastructure needs. Second, utility capital spending is critically related to private capital formation, and may offer higher fiscal returns than other public infrastructure. Third, infrastructure capital had a strong significant effect on the assessed value of urban property, and will therefore influence the property tax base.     

Inside Collaborative Networks: Ten Lessons for Public Managers

This paper offers practical insights for public managers as they work within interorganizational networks. It is based on the author's empirical study of 14 networks involving federal, state, and local government managers working with nongovernmental organizations. The findings suggest that networks are hardly crowding out the role of public agencies; though they are limited in their decision scope, they can add collaborative public value when approaching nettlesome policy and program problems.     

Budgeting Rights: The Case of Jail Litigation

Judicial decisions are one element in the erosion of local government budgetary discretion. For example, litigation concerning constitutional rights forces local government officials to allocate resources toward the rights-based population. While rights-based allocation decisions may narrow the budgetary discretion of public officials, some managers may, paradoxically, be "better-off"—defined as the ability to protect and defend their budgets — when discretion is reduced. This thesis is tested through a case study of jail overcrowding litigation in a county government.     

Community not the Councillors: A Study of Commitment of Australian Senior Council Officers Working under a Politicised Employment Relationship

Council officers as public managers are expected to work for the community. Yet, it has been argued that council officers working under a politicised employment relationship are likely to be more committed to the elected councillors than to the community. This proposition has been examined through a survey of senior council officers across Australia and the results are presented in this article. This study develops an analytical approach which combines for the first time the multi-focus and the multiple bases of managerial commitment approaches, applies this to the case of Australian local government managers and finds that although most senior council officers perceive that their employment is politicised they remain committed to the community. Based upon these findings, it is argued that a conceptual framework utilising a combined multi-focus and multiple bases approach is more appropriate to the study of commitment of local government managers and to managers in the public sector in general than the use of either approach alone.     

Managing in the Regulatory Thicket: Regulation Legitimacy and Expertise

Although the influence of government regulation on organizations is undeniable, empirical research in this field is scarce. This article investigates how the understanding of and attitudes toward government regulation among public, nonprofit, and for‐profit managers affect organizational performance, using U.S. nursing homes as the empirical setting. Findings suggest that managers’ perceptions of regulation legitimacy—views of regulation fairness, inspectors’ effectiveness, and internal utility of the mandates—positively affect service quality. Subgroup analysis suggests that managers’ views of regulation matter in nonprofit and for‐profit organizations but not in public organizations. In nonprofit homes, performance declines when managers report higher regulatory expertise—better knowledge of the regulatory standards. In for‐profit facilities, frequent communication with regulators lowers quality. These findings suggest that the regulated entities’ views of government regulation are central to their success, which necessitates improvements in the regulatory process.     

Computer-Based Performance Information for Executives in Local Government

Performance information is crucial to effective management. Computer-based information systems (CBIS) now play a significant role in the effective delivery of information to senior managers. Executive information systems (EIS) are emerging as popular tools to assist organisations in their strategic decision-making processes. This trend has spread from the private to the public sector, and is now evident in Australian government organizations
This article draws on the findings of a survey into the uses and benefits of CBIS and EIS, from a sample of Australian local government organisations. The study shows that lessons from the private sector are being heeded by system developers in public organisations, leading to successful EIS projects, or at least improved CBIS. The study indicates that EIS, which were originally developed for profit-oriented private companies, are now seen as appropriate for many public sector organisations, providing effective delivery of information to senior managers. Survey results indicate that improved information systems give executives a more accurate picture of their organisation's performance and so provide support for improved strategic decision-making. In addition, EIS are seen by respondents as offering significant benefits not only to managers but also to the rest of the organization.     

Public Sector ‘Modernisation’: Examining the Impact of a Change Agenda on Local Government Employees in England

Can public sector reform change service performance for the better? This is a hotly contested debate that carries significant theoretical and practical importance. In England, as in many countries, modernisation was at the heart of local government reform and represented an interpretation of New Public Management into a policy framework. This paper examines the role of the modernisation change agenda in England and what this has subsequently meant for ‘service improvement’. Drawing on both document analyses and qualitative interviews with local government employees, we find that while modernisation sought to establish continuous improvement, unintended consequences of modernisation have led to Staff Reductions, Skill Deficiencies, and Loss of a Competent Middle Core in local government, as well as performance outcomes creating an environment for Commissioning, Service Reduction, and Self‐Policing. Implications for the lasting roles and behaviours of public managers affected by this national change agenda are discussed, and conclusions for theory and practice are drawn.     

Leadership in Local Government: ‘No Girls Allowed’

This article explores the under‐representation of women at the Chief Executive Officer (CEO) levels of Western Australian (WA) local government. It draws on data collected from 21 second tier senior women managers about their perceptions and experiences of leadership within the sector, as well as their aspirations for CEO appointment. By applying critical gender analysis to the data, gender and specifically masculinity emerges as a significant and valued leadership attribute. While this analysis is not unique to local government, what sets the sector apart is its apparent disinterest in examining the reasons for, or the impacts of this continued leadership stereotype when at the same time Australian public and private institutions are challenging these traditional leadership models. This article points to fundamental weaknesses in the formal power structures and processes of local government that support deeply embedded biases about leadership. Perhaps the most significant contributor to these outcomes that emerged from the study is the apparent unencumbered power of Mayors and elected members over all aspects of CEO employment, especially recruitment.     

The Mythology of Privatization in Contracting for Social Services

States and municipalities have privatized services in an effort to improve their cost‐effectiveness and quality. Competition provides the logical foundation for an expectation of cost savings and quality improvements, but competition does not exist in many local marketplaces—especially in the social services, where governments contract primarily with nonprofit organizations. As government increases its use of contracting, it simultaneously reduces its own public‐management capacity, imperiling its ability to be a smart buyer of contracted goods and services. This article examines two questions about the privatization of social services based on interviews conducted with public and nonprofit managers in New York state: Does social services contracting exist in a competitive environment? And do county governments have enough public‐management capacity to contract effectively for social services? The findings suggest an absence of competition and public‐management capacity, raising the question of why governments contract when these conditions are not met.     

DIFFERING OPINIONS DO NOT SPOIL FRIENDSHIPS: MANAGING PUBLIC–PRIVATE PARTNERSHIP (PPP) INFRASTRUCTURE PROJECTS IN JORDAN

This research investigates the approaches, strategies and challenges facing the management of the implementation phase of public–private partnership (PPP) projects in Jordan. Jordan is a newer but common user of PPPs in the Middle Eastern region, where PPPs not only are of economic strategic importance but also entail significant investment risk given resource scarcity. This research involves semi‐structured interviews with senior managers representing different partnering organisations in two case study organisations in Jordan. The research finds that, despite the management difficulties confronting PPP managers, strategies adopted by them limit the impact of these challenges. The research makes an important theoretical contribution in providing a detailed analysis of effective PPP management approaches in response to difficulties at the implementation phase, which had not been systematically explored in extant PPP research, and broadens PPP research to the Jordanian context. Moreover, the research contributes greater understanding of how partnerships should be effectively managed. Copyright © 2013 John Wiley & Sons, Ltd.     

Municipal Bond Issuance: Is There Evidence of a Principal-Agent Problem?

Is there evidence of a principal-agent problem in the municipal bond industry? Do public managers, either on their own or through private sector agents, act to increase their own utility at the expense of the public? This article examines municipal bond decisions in the context of principal-agent theory based on data collected through a random sample survey of municipal bond issuers. Principal-agent theory is not well developed in the public sector. In the municipal bond industry, however, we have evidence that it helps explain the actions of public managers and elected officials, in particular for pay to play and the importance of interest rates vis-à-vis relationships. These actions carry potential costs to citizens.     

The Rise of Public–Private Partnerships in China: An Effective Financing Approach for Infrastructure Investment?

The rise of public‐private partnerships (PPPs) in China has spurred heated debates about their purpose and effectiveness. This article traces the fluctuation of China's PPPs over several decades and finds that PPPs have played a supplementary role in China's infrastructure investment, as a response to the pressures of fiscal shortfalls and government debts. The resurgence of PPPs in recent years aims to bridge the infrastructure gap and alleviate ballooning local debts. These expectations, however, are hard to realize. China's PPPs mainly involve state‐owned enterprises and place increasing financial burdens on the government. The central government has taken measures to attract private sector investment to mitigate the financial risk, but the prospects for PPPs remain unclear.     

Accountability and Entrepreneurial Public Management: The Case of the Orange County Investment Fund

This article presents a conceptual framework that illustrates four distinct types of accountability environments facing public managers. The framework is used as a heuristic tool to examine the broad facts and contexts surrounding the bankruptcy of the Orange County, California investment pool. The framework also suggests management philosophies and strategies that are appropriate for each type of accountability environment.     

City-level analysis of the effect of political regimes on?public good provision

This paper uses U.S. city-level data on five public expenditure categories to test empirically whether the form of local government affects the amount of public good provision. This also serves as an empirical test of a theory of national politics that predicts higher provision of public good in parliamentary than in presidential regimes. The robust results indicate that: at the city level, the mayor-council form of government provides significantly more public good than the council-manager form of government for two of the public expenditure categories; and, at the national level, presidential regimes provide more public good than do parliamentary regimes.     

A commentary on local authority commercialisation strategies

As growing numbers of local authorities in England are facing up to funding challenges, many of them are looking to commercialising services to increase revenue and to balance their budgets. This commentary paper outlines the characteristics of commercialisation and the drivers for it, reviews the commercial strategies being introduced by a number of local authorities, and offers some general reflections on commercialisation within local government. Although local authorities have created their own individual commercialisation strategies, a number of general themes can be identified within these strategies. These common themes include the drivers for commercialisation; the vision, aims, and objectives of commercialisation strategies; delivery plans and priorities; measurement; and risk management. In reflecting on local authority commercialisation strategies, the authors highlight the importance of developing both a communications plan and new skills and knowledge bases for employees, and they link their findings to the privatisation of public sector services and to neoliberal models of local service provision.     

State and Corporate Cash Management: A Comparison

Public and private sector portfolio managers pursue similar goals even though they perform their portfolio management responsibilities in significantly different environments. This article compares and contrasts corporate cash management with state government practices. The comparison and analyses are based on data drawn from a survey of state government portfolio managers and an earlier study which reviewed corporate cash management practice.
The comparison and analyses consider investment objectives, permissible assets, assets held, and asset holding period, among other factors. The results suggest that portfolio management practices are quite similar even though the cash management environment is significantly different.     

Prudent Public Sector Investing and Modern Portfolio Theory: An Examination of Public Sector Defined Benefit Pension Plans

This research examines the extent to which public pension programs allocate assets in a manner that is consistent with an optimal portfolio, as defined by Modern Portfolio Theory (MPT). The examination is pursued by way of a statistical analysis, using a portfolio optimization model and data on some of the nation's largest public DB plans. The analysis illustrates that the majority of the plans in the sample are incurring far more risk in their portfolios than is optimal given their target rates of return and that this risk level is a result of nonprudent allocation across asset classes. The findings suggest that there might be opportunities to improve the long‐term performance of defined benefit plans by adjusting asset allocation targets and legal lists in a manner that is more consistent with MPT.     

Local Pork-Barrel Politics in National Pre-Election Dates: The Case of Italy

Political representation in the national assemblies isgeographic and elected representatives care about whogains and who loses in their electoral districts. Since legislators are re-election oriented, theirchances of electoral success are directly associatedwith the net benefits delivered to their constituents. In this perspective, geography is not only the basisfor political organisation and representation, butalso the hallmark of distributive politics. In thiscontext, it is likely that locally elected politiciansand party leaders standing in national elections wouldtend to cooperate in pre-election dates. In thispaper we argue that local administrators have anincentive to manipulate local government outlays inconnection with national election dates to enhance there-election prospects of their national party leaders. In particular, given the matching character ofnational grants with local investment spending, weexpect that in pre-election dates local policy-makerswould be induced to raise investment outlays beyondtheir standard growth rate. This would determineinefficient local public spending as a result of thegeographically-based system of democraticrepresentation. The case study under our investigationis the behaviour of Italian local policy-makers inconnection with national election dates.     

Public Wi‐Fi provision by Australian local government authorities

Investment by Australian local government authorities (LGAs) in public Wi‐Fi (PWF) provision has grown substantially in recent years. PWF represents the first significant venture of LGAs into telecommunications, a field of national jurisdiction, and thus is a precursor of wider local investment in digital communication technologies, particularly the Internet of Things and other ‘smart city’ infrastructure. However, there has been little published analysis of PWF provision and use in Australia. This knowledge gap limits understanding of the rationales, business models, and uses and impact of investment in these networks and offers little guidance for local authorities and communities contemplating wider ventures in the field of digital networks. This article draws on a national survey of PWF provision by LGAs, together with interview data and critical analysis of policy and institutional settings, to present an overview of local PWF provision in Australia. The analysis highlights some familiar problems associated with LGA infrastructure investment and service delivery, as well as some novel challenges posed for local managers by digital communication networks. Following an empirical mapping of PWF provision in Australia, we explore three significant themes that our research in this field highlights: accountability and transparency, competence in the field of information and communication technologies (ICT) and evaluation.     

Competitive Tendering and Contracting, and Auditing: The Implications of the High Court Judgment in Esanda Finance

This article argues that the High Court has provided a timely warning of the legal dangers facing managers in their commercial dealings when engaged in competitive tendering and contracting (CTC). The Esanda case illustrates the increasingly close relationship between public administration and aspects of corporate governance.