PROGRAM BUDGETING REFORMS IN SOUTH AUSTRALIA

Abstract: This study describes and assesses the recent progress (1975–83) in implementing program budgeting in South Australia. It outlines (1) the leadership of South Australia in this field in Australia, (2) the ways in which administrators adapted program budgeting for successful implementation, (3) the changing emphases which occurred in the reform process, involving parliamentarians, central control departments of government, and responses in ordinary departments, and (4) the relationships of the reforms to political change where that change was reflective of different government attitudes to social reform and to the economic management of stagflation. The study also evaluates what more needs to be done, especially in the more difficult analytical components of program budgeting. In appreciation that program budgeting is of recent origin in Australian public administration, the writing is deliberately structured to explain the essential nature of program budgeting, using the relevant general principles to assess the progress of implementation in South Australia.     

The Ups and Downs of State Budget Process Reform: Experience of Three Decades

From zero-base budgeting to the Government Performance and Results Act, state budgeting systems have been synonymous with budgeting reform for over 30 years. This article examines the trends, both long-term and short-term, which have been identified through analysis of state budgeting office practices. Particular emphasis has been placed on understanding the changes in performance measurement over the period of 1970 to 2000. The findings reveal trends such as changes in the makeup of budget office personnel, a lack of budget offices in moving toward cost accounting, and trends in budget preparation and budget documents. Some budget reforms seem to have plateaued, beginning in the mid-1990s, while other reforms have exhibited "backsliding." It is clear that the states are not all marching in unison in reforming their budget systems. As with earlier phases of this study, the 2000 data raise many questions that will be explored in future research.     

Tribute to Richard E. Zody

Public budgeting is multifaceted. It draws from areas of study and practice ranging from management to administration to planning. Guided by analysis—enhanced by computational and technical advances—and political systems, it overlays the public sector at every level of government, including local, state, national, and international. It is also the domain of both academics and practitioners. This tribute honors Richard E. Zody by focusing on the multifaceted nature of public budgeting to reflect the career of a man committed to many of these dimensions. The central focus of his career was on improving public budgetary and management systems, and in doing so, he deftly drew from the many dimensions of budgeting. Dick demonstrated in his study, writing, teaching, and application an intellectual interest in two particular themes: the relationship between academics and practitioners; and budgeting and management, which includes the use of analytical skill and strategic planning. Through these interests, Dick impacted many lives.     

Deliberative participatory budgeting: A case study of Zeguo Town in China

The search for a better practice instrument of civic engagement has led to participatory budgeting and deliberative polling in recent years. Participatory budgeting stresses empowerment and citizens' struggle against the establishment and unequal social structures, whereas deliberative polling works within the system and focuses on improving democratic decision‐making processes by applying credible social science methods. Often, these two processes are presented as being in conflict with each other, which is to the detriment of the search for best practice in deliberative governance. This paper develops a theoretical analysis of deliberative participatory budgeting which is distinguished from unrepresentative and non‐deliberative but self‐selected participatory budgeting; that is, it considers how the quality of participatory budgeting can be improved through deliberative polling. This theoretical analysis is backed by an empirical study of deliberative participatory budgeting in Zeguo Township, Zhejiang Province, China. It explores whether, how, and under what conditions it is possible to combine deliberative polling and participatory budgeting. It details four experiments and assesses the successes, failures, limitations, and problems of the experiments. The case of Zeguo offers scholars, activists, and officials lessons about how to pursue best deliberative practice in both authoritarian states and democratic societies.     

An Analysis of Introducing Program Budgeting in Local Government

Program budgeting has been in use for 30 years. It has had a checkered history, being considered alternately a great advancement or an unworkable system. Little has been written about the consequences for the organization that has adopted it. This study was undertaken concerning local government across the State of Victoria, Australia. A questionnaire was sent to all municipalities. There was a 60 percent response rate. Results show that information generated by planning programming budgeting (PPB) is used for decision making but in a limited way. The proposition that PPB will have an impact on the operations of councils is only partially supported.     

Responsibility Budgeting at the Air Force Materiel Command

The case study reported here challenges conventional wisdom about the feasibility of implementing responsibility budgeting and accounting practices in U.S. government. A variant of this practice took root and operated effectively in a large federal agency—the Air Force Materiel Command—during the period of study. Contrary to conventional wisdom, implementing a meaningful form of responsibility budgeting and accounting does not require changes in public management policies or systemic institutional reform. However, the evidence shows that instituting practices of responsibility budgeting and accounting may require considerable administrative ingenuity in adapting the generic practice to the situation at hand.     

From Cash to Accrual Budgeting and Accounting in the Public Sector: The Dutch Experience

Traditionally, governments used to deploy input‐based budgeting systems and cash‐based accounting systems. However, these systems do not provide the information that is necessary for a government to operate efficiently and effectively. Therefore, a growing number of countries have already shifted or are planning to shift from cash‐based to some form of accrual accounting in the public sector. Usually, the implementation of some accrual‐based system is linked to wider financial management reforms including performance management requiring information on cost. This paper focuses on the Dutch experience with the shift from cash‐based accounting and budgeting systems to an accrual‐based system.     

Advocacy and Innovation in Interagency Management: The Case of Centrelink

Two basic principles of public organization have been the strength of the functional principle as the basis for most central government organization and the direct control of the ministerial department over delivery of big‐budget social services. Both were challenged in the 1990s as the combined impact of new public management and customer service suggested new ways of handling these questions. One result was a new type of agency that combined the functional separation of delivery and purchaser–provider from new public management, but also horizontal integration of delivery. This creative design seemed to offer solutions to specific problems, but it also produced tensions with others arising from governance issues and the complexities entailed in the connections between specialization and coordination.     

Planning and budgeting in Pakistan

Twenty years ago a pioneering study of planning and budgeting in Pakistan pointed to significant weaknesses. This article reviews the changes made subsequently to the formal processes and assesses how these are currently working. The planning agency is now a permanent organization. Planning and budgeting have been combined and these processes have moved closer to the centre of political power. On the other hand there are difficulties over linking planning and budgeting to the management of economic and fiscal policy; planning is geared to securing foreign aid funds; the planning processes favour large expensive projects which emerge from the more developed areas of the country and discriminate against the smaller projects with a shorter time horizon needed in less developed provinces–thus accentuating economic imbalances. Finally, although the importance of evaluation is recognized, in practice reporting and evaluation are not adequately practised.     

Introduction to Jesse Burkhead Symposium

Government budgeting is one of the major processes by which the use of public resources is planned and controlled. To the extent that this is done well, governmental programs are brought increasingly to the service of its citizens, enhancing their material and cultural status.
The study of government budgeting is a study in applied economics—in the allocation of scarce resources. This study must look at operations and begin with organization and procedure, the routines which have been established for decision–making in government. It should extend to an examination of the influences, governmental and nongovernmental, that come to bear on the decision-making process.
Ours is both an organized society and a society of organizations. The significance of organization is nowhere more evident than in the public sector. Here organizational arrangements bring together the learning of all social scientists. The patterns for decision-making do not provide separate compartments for economic knowledge, for political knowledge, for social knowledge. These are merged in the organizational arrangements which have been established for the conduct of governmental affairs.1     

Evolutions and Limits of New Public Management—Inspired Budgeting Practices in Italian Local Governments

In Italy, New Public Management (NPM)‐inspired reforms have been mostly legislation‐driven. For Italian Local Governments (LGs), one of the most significant reforms was the introduction, in 1995, of an “Executive Management Plan” (EMP). The EMP has been interpreted and applied by Italian LGs differently across space and over time. Some LGs have introduced it only formally. Others have interpreted it as a tool to define individual managers's spending authorizations. Only some have viewed it as a building block of a wider management control system. Over time, LGs have since been making continuous changes to their budgeting systems, without yet reaching a new steady state.     

Federal Financial Management Control Systems: An Integrative Framework

The increasingly large and complex web of federal government finances seems to require ever more comprehensive and consistent financial management control systems to achieve managerial responsibility. This article identifies a framework for promoting integrated accounting, budgeting, and financial reporting in order to achieve the goal of providing relevant information to management and policy leaders. The article identifies four central areas in which endeavors to develop effective financial management control systems should concentrate: accounting for funds; assessing the cost of operations; managing cash; and collecting money due the government.     

Social rehousing policy in britain: Needs,rights, and choices

Abstract

When selecting among competing applicants for rehousing in social rented property, the perceived wisdom in Britain since the 1940s has been to award priority to households in the greatest housing need. “Need” is often defined in highly complex ways. However, a shift has occurred in local authority and housing association rehousing policies away from allocations made solely on the basis of need. This shift comes in response to the changing context in which social rented housing has operated in the past 15 years and to perceived weaknesses in needs‐based systems. Present policies are designed to address wider objectives, including developing stable communities and minimizing housing management problems.

This article examines these policy changes and the extent to which local housing allocations are used to address not only individual household needs, but also the concerns of local communities and wider housing management issues.     

To PPB or Not PPB – Budgeting in Victorian Local Government

Budgeting is an important element in a public sector organisation's accounting control system. There are a number of budgetary methods that could be used, each with an explicitly different focus. This article investigates possible reasons for Victorian local government selecting line item budgeting, planning programming budgeting (PPB) or a combination of the two. While program budgeting arguably failed in the USA, research shows it was adopted by local government. Australian researchers report similar findings, yet the introduction of program budgeting into local government has not been explored. Four reasons are postulated: (1) PPB will be adopted because of the complexity of the organisation; (2) PPB will be adopted because it is perceived as an aid to planning; (3) line item budgeting will continue to be used because users are familiar with this type of budgeting; and (4) management's support for the adoption of PPB will be a significant factor in its introduction. A questionnaire was distributed to all the local governments in Victoria and 60 percent were returned. The findings reported in this article confirm the reasons postulated.     

Is the U.S. Congress an Insurmountable Obstacle to Any “Far‐Sighted Conception of Budgeting”?

In recent years, Congress has recurrently failed to meet its minimum responsibilities in federal budgeting. This article analyzes whether it is possible to repair this problem, using concepts popularized by Allen Schick in his influential article “The Road to PPB.” His article compared the PPB reform effort to the history of budget process reforms that started with the design of the executive budget. It publicized a logical sequence of budget process improvements that started with control and then advanced through management and planning. The article did not substantially address the role of Congress, but eight years after it was published, Congress reasserted its constitutional role in the budget process. Its record of performance since then has ranged from mixed to dysfunctional. The Congress has been criticized for budgetary delays, micromanagement, myopia, procrastination, indiscipline, and an inability to prioritize intelligently. If these faults are set in stone, then an integrated system of budgeting, as described in “The Road to PPB” and related work, is unattainable. On the other hand, if reform of Congressional budgeting is politically feasible, improvements to that system can utilize the unique contributions that a legislature can make to a good system of budgeting.     

The Roads to Transformation: Budgeting Issues in the Czech and Slovak Federal Republic 1989–1992

The Czech and Slovak Federal Republic no longer exists, but by the time of its dissolution, the transformation from a socialist to a democratic model of budgeting to another was well under way. This article illustrates some of the major issues facing countries attempting to remodel their systems of budgeting and financial management toward a more liberalized and democratic society.     

Reforming Budget Systems in Countries of the Former Soviet Union

The countries of the former Soviet Union (FSU) required considerable revision to their budget processes and procedures to establish systems consistent with transformation from controlled dependencies within a larger planned economy to independent governments of fledgling market-oriented democracies. This article considers the degree to which preexisting, reforming, and reformed budget systems in FSU countries deliver the basic expectations of a public sector resource allocation system. Evidence indicates failures to realign budgeting and finance systems designed for command and control environments to the demands of more market based economic systems, with effects often magnified by the hybrid economies of these transitional states. Significant difficulties and shortcomings in the ability of existing systems to perform basic public sector allocation, management, and control functions are the result, but some countries are ahead of others and their experience can guide reforms across the FSU.     

Implementing Program Budgeting in the Serbian Ministry of Defense

The Republic of Serbia's Ministry of Defense (MoD) is attempting to implement a program‐oriented, multi‐year budgeting system in 2010. This paper reveals several challenges that threaten the success of this initiative. First, we find that the proposed budget system confuses organizations and programs. Second, there does not appear to be a centrally coordinated effort to implement program budgeting, leading to significant disparities in comprehension, organization, and implementation amongst the subordinate commands in MoD. Finally, there is a distinct lack of communication within the MoD regarding the necessity of a program budget and how the process should move forward. These issues inhibit the implementation of program budgeting in the MoD and diminish the possible gains associated with the multi‐year, programmatic allocation of defense resources.     

Performance Budgeting and Performance Funding in the States: A States Assessment

For a variety of reasons, performance budgeting has gained new life in the 1990s. Initially introduced in the 1950s by the Hoover Commission and others, performance budgeting efforts, in the 1990s, go beyond the workload productivity and efficiency focus of earlier phases and place greater emphasis on outcomes and accountability. This study reports on a survey of state executive-branch budget officers designed to determine the current status of state performance budgeting efforts including performance budgeting processes used by the states, their perceived impacts on budget decision making, and their probable future use. In addition, the study assessed the emerging role of performance funding as a further extension of performance budgeting processes. The linking of performance to the allocation or distribution of appropriated funds may be emerging as the next iteration of performance budgeting in the states. In addition to reporting on the survey, relationships between performance budgeting and various aspects of state budgeting practices are analyzed through crosstabulations, and regression analysis is employed to examine the states' organization, fiscal, and political capacity to implement performance budgeting and funding.     

Downsizing the civil service in developing countries: golden handshakes or smiling farewells?

Some researchers have suggested innovative ways to successfully implement civil service reform in developing countries. Although most approaches to implementing public sector management reform are still very much process-driven, and focus almost exclusively on civil service reform, long-term success in making the public sector more efficient may be better assured if civil service reform is but one outcome of a broader public sector management reform agenda. Particularly, re-focussing from traditional input-driven reform thinking towards output-oriented measures, such as the introduction of accrual budgeting in the public sector, may well result in greater popular acceptance and, thus, longer-term success for sensitive reform programs. Although output-driven accrual budgeting is by no means a panacea for all public sector illnesses, it can at least set the scene for profound and durable cultural change in the public sector. © 1998 John Wiley & Sons, Ltd.