Implementing Performance-Based Program Budgeting: A System-Dynamics Perspective

The article proposes a model for evaluating budget reforms that combines insights from budgeting, policy implementation, and system-dynamics literatures. System-dynamics modeling combines both quantitative and qualitative research techniques to provide a new framework for applied research; its use is illustrated using performance budgeting as an example. Applied to the implementation of Florida's performance-based program budget, the model identifies actions in the short run that will increase the reform's likelihood of success: providing clear communications; facilitative budget and accounting routines; reliable performance information. The model also identifies critical legislative behaviors that influence executive implementation: how the legislature in the long-run uses performance information to inform resource allocation and how it applies incentives or sanctions to programs that achieve or fail to achieve their performance standards. The legislature has the opportunity to use program reviews prepared by legislative staff to invigorate the executive branch's resolve to continue implementing the reform.     

Performance Measurement in Budgeting: A Study of County Governments

This article focuses on the use of performance measurement in public budgeting. Based on a national survey of county governments, it finds that governments use performance measurement in a wide range of budgeting areas. The results also show that performance measurement users are experiencing technical obstacles in conducting performance analysis and obtaining support from legislatures and citizens. The article concludes that analytical competency and political support increase the use of performance measurement in budgeting, which leads to a more efficient, effective, and accountablegovernment.     

Performance Budgeting: The Perspective of State Agencies

Although performance‐based budgeting requirements are pervasive, what remains a challenge is how to gain the support from all stakeholders in the budget process that are essential to the integration of performance information with budgeting. This study examines the perspective and role of state agencies on performance budgeting. The finding indicates that for agencies to conduct performance‐informed budgeting, the focus needs to be on elevating managerial capacity to use performance information, and improving measurement quality. Moreover, it is crucial to recognize that performance budgeting is a collaborative process in which each participant plays a valuable role.     

Flexibility and Adjustment in Public Budgeting: The Netherlands Experience

This article deals with the flexibility of public expenditure, or perhaps the lack of it. Inflexibility finds its roots in the establishment of public services, their expansion and development. Therefore, in this article the structure and development of the public sector is discussed. In many western countries the largest part of the public sector consists of transfer expenditures. These statutory programs are directly affected by economic development, cyclical and structural. That is why attention is directed here to the relationship between the economic situation and perspective on the one hand and the public sector on the other. These are also a reflection of the sociological and political development of the society in question. This is a relationship that is difficult to examine in terms of managing expenditures. In addition, inflexibility is a product of the public services provided, and certain methods, such as multiyear budgeting, can further enhance inflexibility. In the last part of this article, methods to create more flexibility in public expenditure are discussed. Experience with new budget techniques to enlarge flexibility is considered.     

Assessing the Impact of Performance-Based Budgeting: A Comparative Analysis across the United States, Taiwan, and China

What is the impact of performance-based budgeting (PBB) on governmental spending? Do various PBB implementation strategies result in different outcomes? The authors, Jack Yun-jie Lee of National Open University in Taiwan and XiaoHu Wang of the University of Central Florida, gathered data from the United States, Taiwan, and China (Guangdong Province) to explore the possible intermediate- and long-term results of PBB. The data demonstrate how the impacts of PBB vary across countries and regions.     

Perceptions on Federal Budget Reforms: Public Budgeting Researchers' View

This study examines budget experts' perceptions on suggested federal budget reforms. Based on the response of a group of selected public budgeting professors (N = 46), the study identifies several specific reforms that are supported by the experts from both the viability and adoptability consideration. The study also reveals the fact that the respondents are less optimistic about the adoptability of the suggested reforms even though they generally agree with most of the reforms. Addressing the federal deficit problem, the authors further discuss the implication of the experts' perceptions on federal budget reforms.     

Searching for Efficiency in the Public Sector: Interim Evaluation of Performance Budgeting in New Zealand

In this article I examine the efforts to promote performance measurement in the public sector with particular reference to New Zealand. In section two I examine the State Sector Act of 1988 and the Public Finance Act of 1989, which together brought about changes in the New Zealand public sector. In section three I examine the problems of implementing the reform. In section four I discuss the experience of developing statements of performance measurement required under the Financial Administration Act of 1989 and in section five I develop an alternative scheme on the basis that a uniform approach is less likely to be applicable to a range of public sector agencies. The final section contains a brief conclusion.     

Integration of Integrity Information into Performance Evaluation: The Impact on Korean Public Enterprises

ABSTRACT

This article analyzes Korean public enterprises that have integrated integrity information within their performance evaluations. Performance and integrity often tend to be separately managed because they are regarded as mutually exclusive. In the Korean case, some public enterprises had expected that the integration of performance and integrity management would not produce significant changes, mainly because of the lack of direct incentives and the light weight (3%) given to integrity in performance evaluation. However, this article shows a positive correlation between performance and integrity. Moreover, we can observe an improvement in integrity following the integration of integrity information into performance evaluation. Such a change was possible not only because of financial incentives, but also because of the increasing attention CEOs placed on integrity management, which made it easier for public enterprises to institutionalize their own ethical management policies. At the same time, competition amongst public enterprises over performance scores expedited the diffusion of innovative integrity policies.     

构建公共政策评估的关键绩效指标体系探析——以X市试行众创空间绩效考评制为例

在企业绩效管理中运用较为成熟的关键绩效指标(KPI)方法,具有战略导向型、动态性、精练性和可操作性等特征,使其成为能够应用到公共政策评估中的可行性方法。以X市试行众创空间绩效考评制为例,阐述公共政策关键绩效指标体系的构建方法,针对公共政策评估实践中KPI方法的不足之处,提出政策评估程序化、多层次有针对性地构建关键绩效指标体系和建立独立的政策评估机构等建议。     

The Impact of Performance Management on Performance in Public Organizations: A Meta‐Analysis

Performance‐based management is pervasive in public organizations; countless governments have implemented performance management systems with the hope that they will improve organizational effectiveness. However, there has been little comprehensive review of their impact. This article conducts a meta‐analysis on the impact of performance management on performance in public organizations. It contributes to the current literature in three ways. First, it examines the effect of the “average” performance management system. Second, it examines the influence of management: whether beneficial performance management practices moderate the average effect. Third, it examines the effect of “time” on performance management. Using 2,188 effects from 49 studies, the analysis finds that performance management has a small average effect. However, the effect is substantially larger when indicators of best practices in high‐quality studies are included, indicating that management practices have an important impact on the effectiveness of performance management systems. Evidence for the effect of time is mixed.     

Rules and Flexibility in Public Budgeting: The Case of Budget Modernisation in Australia

This paper explores the features of public budgeting that make it resistant to efforts to balance central oversight and situational flexibility. Its aim is to help explain why systemic efforts at budget modernisation in the name of ‘devolution’ may have failed to deliver expanded budget flexibility. After defining flexibility, and briefly surveying how it can be inhibited by budget practices using the example of collaboration, the paper applies a taxonomy of general ‘budget rules’ to illustrate the trade‐offs between control and flexibility. It uses an analysis of budget reform in the Australian federal government over the last 30 years to identify a key set of ‘legacy reforms’ – all intended primarily to enable budget flexibility – to show how their design and redesign were purposed as modification to the general rules, and how, ultimately, they were constrained by them.     

The Implications of GASB Statement No. 34 for Public Budgeting

This paper discusses a variety of audit issues related to the implementation of GASB Statement No. 34. Ten specific audit issues are addressed. Each issue is defined and discussed, and the relevant professional literature is reviewed. The results of interviews of four experienced auditors of governments are presented with respect to these issues. These auditors identified several additional issues related to the implementation of Statement No. 34. The focus is on gaining insight from the concerns of auditor professionals to assist academics by identifying topics that warrant future research.     

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.     

Individual Engagement to Collective Participation: The Dynamics of Participation Pattern in Performance Budgeting

Active participation from all stakeholders in the budget process is one of the key issues to the integration of performance information with budgeting. While individual stakeholders' participation is cited as important by various studies, participation pattern, that is, how they engage relative to each other in performance measurement, is less known. Empirical studies on participation patterns and their collective impact on performance budgeting are scarce. Using the survey data collected in Georgia, this study conducted a cluster analysis in order to further provide a dynamic understanding of the mechanism and structure of a participative process in performance budgeting. The findings suggest that participation pattern is a different construct than individual participation and that the effective patterns vary by the purpose for which performance information is used. In addition, the patterns that are open to external professionals and citizens, with shared responsibilities among the agencies, executive offices and the legislative branch, and tailored to various purposes are more likely to be effective in integrating performance information with management and budgeting.