Local Government Finance in Hungary: Okun Revisited

Fundamental change in the economic systems of the nations-of central Europe is now taking place. The economic transition has broad social and cultural consequences, among these the alteration of local government service provision and financial management. In this article, the authors describe some of the fiscal characteristics of local governments in Hungary with an analysis of the dilemmas of transition. Efforts to create and enhance local government financial management capability are detailed. This article portrays the difficulty of developing a fully operational market economy within a democratic context in the post-Communist era while, at the same time, maintaining social protection for citizens through the continued provision of a wide array of social benefit programs. The essential dilemma for local government social program managers and budget officials is that service demand far surpasses the financial resources available to continue services at the levels to which people grew accustomed under the Communist regime.     

Social Value and the Management of Community Infrastructure*

The management of community infrastructure by local governments has emerged as a significant policy issue in Australia as evidence mounts of a funding shortfall to maintain ageing physical assets. In 2003 the Victorian government introduced a new infrastructure management policy to focus local government decision‐making on service potential and financial sustainability rather than political interests or community preference. However, the policy relies on a model of local government as a service provider that is inattentive to new interests in community building and governance and takes limited account of the wider social value of community facilities. This article backgrounds debates over infrastructure, particularly at local level, and critically analyses the new policy direction set by the Victorian government.     

Australian Rural Local Governments and Environmental Sustainability: An Evaluation of Progress

Local government is often characterised as being well-placed to enact a successful agenda for environmental sustainability because of its closeness to both people and the environment. The purpose of this article is to examine the extent to which this assumption is correct in terms of local government environmental policies and programs in rural Australia. Using case studies with eight local government authorities in Queensland and New South Wales, the article documents three different positions on a continuum of environmental engagement. These are 'disengaged', 'moving towards engagement' and 'engaged'. The article concludes by arguing that the resource constraints facing rural local councils limit their capacity to engage with environmental management.     

Reforming Social Services in Hong Kong: The Role of Contracting and Performance Management in the Non‐Profit Sector

Contracts and performance management, along with the concept of consumerism, have become the fundamental metaphors for New Public Management (NPM) and key changes in the public service. ‘Doing well while doing good’ and finding generally acceptable accountability measures for social services have become the perennial aspirations of planners, service providers and funders. This article examines the contingent factors and rationales behind the quality movement and recontracting exercise in reforming the delivery of personal social service programs in Hong Kong within the framework of New Public Management (NPM). It explains the use of long‐term relational contracts rather than the standard business contracts between the government as funder and non‐profit organisations as service providers. It also deals with the complex relationships among quality issues, quality standards, consumerism, accountability, performance indicators, and performance management.     

THE BEHAVIOUR OF LEGISLATORS AND BUREAUCRATS AND POLICING EXPENDITURES: A CONCEPTUAL FRAMEWORK AND SOME EMPIRICAL RESULTS*

Abstract: This paper is concerned with an analysis of legislation, public administration and government expenditure decisions on policing activities. These three dimensions of government can be used as mechanisms of social control. Whether they are or not is an empirical question that has to be determined in each case. It is shown that there are no strict relationships between the three dimensions of government activity: separate decision-making is undertaken for each of the three dimensions. It is indicated that there are eight possible combinations of the three dimensions, assuming that the three dimensions of government activity are bivariate and discrete. The empirical analysis relates to the state of Queensland and it is concluded that Queensland can be described as a case consisting of authoritarian legislation, public administration contrary to the rule of law, and low policing expenditures.     

A comparison of management adaptations for joined‐up government: Lessons from New Zealand

Despite considerable attention, helping agencies to work more effectively together is one of the most important contemporary challenges of public administration theory and practice. The New Zealand Better Public Services (BPS) Results program has been an unexpected success in this area and provides a positive case study. In 2012, the New Zealand government set targets for solving 11 important social problems where responsibility crossed agency boundaries and has made significant measurable progress in all 11 problems. This paper explores the conditions that may have enabled the most progress and possible management adaptations when these initial conditions are not fully met. In particular, the case demonstrates how goal commitment can be supported where there exist a large number of potential actors and how interagency trust can be built in the absence of existing relationships.     

Performance and Accountability: Budget Reform in New Zealand

Since 1984, New Zealand has made major changes in public sector management. This article describes the perceived problems with the previous New Zealand system and discusses the reforms designed to address these problems. The changes attempt to increase efficiency by: (1) separating commercial functions from other government operations; (2) strengthening lines of ministerial and executive accountability; and (3) designing budget and financial management systems to improve measurement of public sector performance. This last reform includes shifting from an input to an output-based system, changing from cash to accrual accounting, and creating different forms of appropriations for different types of government activities. While it is too early to assess whether the reforms are successful, we note potential problems.     

Financial planning in metropolitan municipalities—lessons for South Africa from selected countries

In South Africa, municipalities are central to government's service delivery efforts to its communities. Because of inadequate revenue collection processes or impoverished communities that are unable to supply necessary operational revenues, both national and provincial government need to transfer funds to the local government to achieve delivery of priority services and economic development infrastructure. This study investigates, through a desktop study, the best financial planning practices for municipalities to implement in order to be financially viable, by reviewing and comparing the legislative and legal frameworks relating to financial planning and the financial planning practices in Australia and New Zealand, whose legislation served as an example for the drafting of current South African legislation. Copyright © 2014 John Wiley & Sons, Ltd.     

Local Heroes? Learning from Recent Community Strengthening Initiatives in Victoria1

Policies and programs which aim to strength the engagement, connectedness and resilience of local communities have increasingly become a core element in public policy responses to the challenges posed by globalising social and economic relations. However, for many politicians, policy makers and citizens the conceptual framework and practical benefits of ‘community strengthening’ remain vague and unclear. This article aims to contribute to debates about the significance of community strengthening by providing a concise overview of the development and implementation of community strengthening initiatives by the Bracks Labor government in Victoria. Initial learning from this experience suggests that engaging and linking local communities can make a useful contribution to local social, environmental and economic outcomes as well as providing a foundation for the democratic renewal of local governance. Key factors underpinning successful community strengthening programs include strong local ownership and leadership, backed by sustained government investment in the social and physical infrastructure priorities identified as important by local communities. However, while local community strengthening strategies can lead to real improvements in community networks, infrastructure and capacity they are no substitute for the inclusive and redistributive taxation, income security, service delivery and labour market policies needed to create the conditions for sustainable reductions in poverty, inequality and social exclusion.     

Lesson-Drawing from New Zealand and Covid-19: The Need for Anticipatory Policy Making

The Covid-19 pandemic has seen most governments worldwide having to think on their feet rather than implementing detailed and well-rehearsed plans. This is notwithstanding the fact that a pandemic was bound to happen, sooner or later (and will happen again). The effectiveness of national responses has varied enormously. Globally, New Zealand has been perceived as setting the gold standard in ‘curve crushing’, and for a short period achieved Covid-free status. For this achievement, much credit is due to the New Zealand government, especially to Prime Minister, Jacinda Ardern. However, post-lockdown the New Zealand government has encountered a number of Covid policy implementation problems (many of which could have been anticipated). Nevertheless, Covid-19 might still turn out to have been a seismic shock to existing policy processes and policy frames (such as austerity). If so, there are grounds for hope that in the future, governments and voters might be less short-term in their outlook. Perhaps anticipatory, rather than reactive policy making, might become more fashionable?     

Public management reform and lessons from experience in New Zealand

This article is edited from a speech delivered to the University of Victoria, Wellington—IPMN Workshop on the theme lessons from experience in New Zealand. The author articulates a number of lessons that have been learned, and identifies some lessons that should have been learned. Scott writes from the perspective of having been directly and centrally involved in the development and implementation of what has been characterized as “the New Zealand model” of public management for more than twenty years, a record of service that continues to date. The views expressed also benefit from extensive consulting by the author for governments around the world. Among the lessons learned are (a) the need for clarity of roles, responsibilities and accountability in the implementation of management reform, (b) the importance of matching decision capacity to responsibility, (c) the significance of ministerial commitment and clarity on expectations, (d) the advantages gained from structural innovations within the New Zealand cabinet, (e) the need to analyze disasters carefully for what they teach, (f) approaches to embrace and foibles to avoid in implementing performance specification, (g) problems caused by confusion over ownership and improper assessment of organizational capability, (h) the fact that actually doing strategic management in the public sector is hugely complicated, (i) that it is time to put an end to the notion that there is an “extreme model” of public management in application in New Zealand, and (j) that public management, government and governance innovations in New Zealand are no longer novel compared to those advanced in other nations. With respect to lessons not learned satisfactorily, many are simply the dark shadow of positive lessons, i.e., having not understood or implemented the successes achieved in some parts of New Zealand government into others. The author concludes with an admonition to avoid jumping too quickly, in response to post-electoral rhetoric, to the conclusion that past reforms in have to be modified quickly and radically, and that the New Zealand Model has failed.     

Balanced Scorecard Use in New Zealand Government Departments and Crown Entities

While the concept of a balanced scorecard (BSC) has been extensively documented, there is limited research on the application of the balanced scorecard in a public sector environment and in New Zealand. This article examines how the BSC is being used as a performance management system, a strategic management system and to discharge external reporting obligations in three New Zealand public sector organisations. The findings are relevant to both the academic community and managers by highlighting how the BSC has been adapted to reflect the unique characteristics of public sector organisations.     

Measuring Financial Condition: A Study of U.S. States

This study tests a measure of financial condition using government‐wide information as required under the new financial reporting model set forth in GASB Statement No. 34. The measure consists of four financial condition dimensions in cash, budget, long‐run and service‐level solvencies, and 11 financial condition indicators. Results show that the measure is relatively reliable and valid and that government‐wide information reported under the requirements of GASB Statement No. 34 provides a useful reporting framework to evaluate financial condition of a government. Additionally, financial condition among states varies greatly and there is much room for improvement.     

Is Biggest Best? A Comparative Analysis of the Financial Viability of the Brisbane City Council

Structural reform through forced mergers has been a dominant feature of Australian local government for decades. Advocates of compulsory consolidation contend that larger municipalities perform better across a wide range of attributes, including financial sustainability. Although empirical scholars of local government have invested considerable effort into investigating these claims, no one has yet examined the performance of Brisbane City Council against other local authorities, despite the fact that it is by far the largest council in Australia. This paper seeks to remedy this neglect by comparing Brisbane with Sydney City Council, an average of six southeast Queensland councils and an average of 10 metropolitan New South Wales councils against four measures of financial performance over the period 2008–2011.     

Promoting Accountability in Municipalities

Local government financial reporting reforms in Australia in the late 1980s and early 1990s were promoted on the basis of usefulness for decision making and for enhanced accountability purposes. Persistent criticisms of these reforms continue to be made, including those made by councillors and other ratepayers who often appear to find such information to be too narrow, too complex and often bewildering. A case is made for rethinking the present mentality, requirements and practices, especially with respect to the contrived recognition of ‘community assets’. Instead, an emphasis is placed on advancing broad‐scope accountability and meaningful financial reporting. To this end, the disclosure of a set of factual, reliable and interpretable indicators is proposed to enable a broader, more functional notion of accountability to be applied in Australian local government within prevailing social and organisational contexts. This contribution seeks to present a series of views, questions and proposals that are strictly concerned with ‘promoting accountability in municipalities’ (PAM).     

Centrelink – Viewed from the Community Sector

The government's introduction of a new service delivery agency, Centrelink, to deliver a range of programs including income support has been heralded as a major step forward in government service provision. Certainly no one would dispute that an improved level of service delivery can have major benefits for many low-income and disadvantaged people. However, it is becoming more apparent that there are tensions between the strong emphasis being placed on improving customer services and a social security system predicated on rights and entitlements under legislation. In a system where the former takes priority, the satisfaction of numerous customers with relatively uncomplicated situations may well be considered a more valuable outcome than the satisfaction of one person with a very complex situation that may require a high input of resources. When dealing with a 'service' such as income support – where people's access to assistance can make a fundamental difference to their ability to live decently – it is imperative that great care is taken before managerial and administrative models, such as a 'purchaser-provider split', are imported from other sectors. This article will explore these issues from the perspective of the community sector, particularly those who assist and advocate on behalf of low-income and disadvantaged people.     

Devine intervention? Lessons in systemic retrenchment from Canada’s most generous welfare state

This article tackles the importance of systemic retrenchment in welfare state research by focusing on two core elements neglected in the literature: the civil service and governmental revenues. Saskatchewan has possessed key ingredients associated with generous welfare states: a dominant left-wing party, a supportive bureaucracy and important non-visible fiscal revenues. According to the comparative welfare state literature, this is also an excellent recipe for maintaining a generous welfare state amid attempts, primarily by right-wing governments, to scale it back. Yet, most social indicators in the post-Devine years demonstrate that Saskatchewan can no longer be considered a leading welfare state in Canada. Reforms to the bureaucracy and a host of financial measures resulting in a near default explain why the Devine government was successful in its efforts to disrupt the CCF/NDP social legacy despite the fact that the NDP regained power for 16 years afterwards.     

Remaking New Zealand's Economic Policy: Institutional Elites as Radical Innovators 1984–1993

During the mid-1980s and early 1990s the New Zealand economy moved from being one of the most regulated outside the former communist bloc to among the most liberal in the OECD. Largely unheralded and begun by an ostensibly social democratic Labour government, changes included the floating of the exchange rate; extensive liberalization of financial, capital and other markets; lowering of trade protection; fiscal restraint and monetary disinflation; changes to the machinery of government; corporatization and then sale of state assets; and changes to industrial relations frameworks (Castles, Gerritsen and Vowles 1996). Known as Rogernomics after Minister of Finance Roger Douglas, these economic policies were heavily derivative of neoclassical economic theories, such as the New Classical and Chicago schools, public choice and new institutional economics (Boston et al. 1996, ch. 2; Goldfinch 1997). This article explains how such radical economic restructuring occurred through the influence of a select group of strategically located institutional elites.     

Efficiency Measurement in Australian Local Government: The Case of New South Wales Municipal Water Services

Australian local government has experienced a series of reforms directed at increasing economic efficiency. An important element in the reform program has been the development of a number of partial indicators of local government service delivery in the states and territories. This paper attempts to augment this literature on performance measurement in Australian local government by using data envelopment analysis (DEA) with holistic indices of allocative and technical efficiency in New South Wales (NSW) municipal water services. It also seeks to incorporate qualitative indicators into efficiency measures. “Best-practice” councils are identified and the underlying causes of municipal water service efficiency are analyzed.