Taken for Granted? Managing for Social Equity in Grant Programs

Managing for social equity performance has long been a goal without much guidance for public managers. We examine social equity performance in the context of indirect governance through the administration of grant programs and, more specifically, the matching of policy responses (grant funding) to social needs. Grant program managers must allocate funding to match needs while also ensuring accountability, but common administrative models that rely on competition can undermine social equity performance. We develop a unique framework to analyze the relative social equity performance of four models of grant administration in general. These models are defined by whether competitions or formulas are used to select grantees and to allocate funding. We test the implications of the framework in an analysis of funding distributions from the nonentitlement Community Development Block Grant program in four states. Our findings suggest that social equity in grant programs is better served when grantors do not rely solely on competitive grant contracting in the selection and distribution of grant funds, which is typical in grant administration. However, policy makers and managers can design institutional arrangements that utilize competition, but in a manner that does not create a bias against more socially equitable funding decisions.     

Federal Grants, Earmarked Revenues, and Budget Crowd-Out: State Highway Funding

This paper examines the potential for budget crowd-out in state highway financing. Highway projects are funded primarily through state earmarked tax revenues and federal highway grants. Theoretically, these two sources of revenues could crowd-out state general funds, freeing up these funds for other uses. Previous studies of highway funding show little evidence of significant crowd-out, providing support for the "flypaper effect." The empirical model of this paper better controls for the endogeneity of federal highway grants and state earmarked highway revenues than previous studies and results suggest little to no crowd-out. Also, our study concludes that state budgeting decisions in the post-Intermodal Surface and Transporation Efficiency Act era still support the "flypaper effect."     

Growing Stem Cells: The Impact of Federal Funding Policy on the U.S. Scientific Frontier

This paper articulates a citation‐based approach to science policy evaluation and employs that approach to investigate the impact of the United States’ 2001 policy regarding the federal funding of human embryonic stem cell (hESC) research. We evaluate the impact of the policy on the level of U.S. hESC research, the U.S. position at the knowledge frontier, and the strategic response of U.S. scientists. Consistent with recent research on the science of science and innovation policy, we employ a difference‐in‐differences approach using bibliometric data with the aim of analyzing the causal impact of the policy on cumulative research. Our estimates suggest that in the aftermath of the 2001 policy, U.S. production of hESC research lagged 35 to 40 percent behind anticipated levels. However, this relative decline was largely concentrated in the years 2001 to 2003 and ameliorated over time. The rebound in U.S. hESC research after 2003 was driven by contributions by researchers at elite U.S. institutions and U.S. researchers who collaborated with international partners. The results suggest that scientists respond strategically to research funding restrictions and that modest science policy shifts can have a significant influence on the within‐country composition of research and the pattern of global research collaboration.     

Decentralization, Local Priorities, and the Community Development Block Grant Program in Milwaukee

This article analyzes the geographic distribution of CDBG fundsacross twenty-three neighborhoods in Milwaukee, Wisconsin, bycomparing federal, city, and neighborhood responses to localneed and by testing the impact of these responses on the finalfunding allocations. In Milwaukee, decentralizing decisionmakingto the city improved the program's responsiveness to local need.However, the funding decisions made by local officials did notalways direct funding exclusively to the most extreme need;nor did they distribute funding proportionately with respectto need, even though the city's targeting mechanisms were closelyrelated to the measure of need used in this analysis. We concludethat Milwaukee's program results were obtained through a mixtureof targeting rules and political competition over program decisions.     

Federal Preemption and State Regulation of Transportation and Telecommunications

Transportation and telecommunications are two of the most importantinfrastructural industries in the American economy. As theseindustries are so vital and because they exhibit characteristicsthat have frequently rendered them quasi-monopolistic, theirgrowth has been accompanied by state and federal regulation.We document how the imposition of regulation has led to continualconflicts over the extent to which federal regulation shouldtake precedence over state regulation. We illustrate how thejustifications for federal preemption have been applied notonly to the regulation, but also to the recent deregulation,of railroads, trucking, and telecommunications. We contend thatpolitical factors, such as congressional support, precedent-settingcourt rulings, and, most important, political pressure fromaffected interest groups that is related to the revenues stillgenerated within states by these industries, ultimately determinethe form of preemption that emerges from the Congress.     

How Credible Is the Evidence,and Does It Matter? An Analysis of the Program Assessment Rating Tool

This research empirically assesses the quality of evidence that agencies provided to the Office of Management and Budget in the application of the Program Assessment Rating Tool (PART), introduced in 2002 to more rigorously, systematically, and transparently assess public program effectiveness and hold agencies accountable for results by tying them to the executive budget formulation process and program funding. Evidence submitted by 95 programs administered by the U.S. Department of Health and Human Services for the PART assessment is analyzed using measures that capture the quality of evidence and methods used by programs and information on characteristics of agencies that might relate to program results and government funding decisions. The study finds that of those programs offering some evidence, most was internal and qualitative, and about half did not assess how their performance compared to other government or private programs with similar objectives. Programs were least likely to provide externally generated evidence of their performance relative to long‐term and annual performance goals. Importantly, overall PART and results scores were (statistically) significantly lower for programs that failed to provide quantitative evidence and did not use long‐term measures, baseline measures or targets, or independent evaluations. Although the PART program results ratings and overall PART scores had no discernible consequences for program funding over time, the PART assessments appeared to take seriously the evaluation of evidence quality, a positive step forward in recent efforts to base policy decisions on more rigorous evidence.     

Support for Performance‐Based Funding: The Role of Political Ideology,Performance, and Dysfunctional Information Environments

As performance‐based mechanisms for accountability have become increasingly commonplace in the public sector, it is apparent that administrative reactions to these reforms are central in determining their effectiveness. Unfortunately, we know relatively little about the factors that drive acceptance of performance‐based accountability by administrative actors. This article employs data collected from an original survey instrument to examine the perceptions of presidents at American public colleges and universities regarding performance funding. The author finds that acceptance of performance as a basis for funding is driven by a variety of factors, including the partisanship of the state legislature, organizational performance (measured by institutional graduation rates), dysfunction in the external information environment, and the political ideology of university presidents.     

Federal antitrust enforcement: A principal-agent perspective

We study the choices of two types of maximizing Public Servants over how far to carry privatization of industries and in what order to privatize. Two stylizations of the Public Servant's objectives are considered, a Niskanen-style Bureaucrat who maximizes a surplus budget subject to the constraint of staying in office, and a Populist who maximizes popularity/consumer welfare subject to the constraint of a balanced budget. Other things being equal, the Bureaucrat will privatize the sector (firms) with the least market power and the largest subsidy first. The Populist will adopt the same policy, if the marginal costs of products in the private sectors are not too high with respect to the marginal utilities. If the marginal costs are too high, however, the Populist will privatize the sector with the largest market power first. We also show that privatization is easier and faster in less democratic societies.     

Trouble Keeping Promises? An Analysis of Underfunding in State Retiree Benefits

This article examines the funding of two key components of state government total compensation: pensions and other postemployment benefits (OPEB), the latter consisting primarily of retiree health care. A brief overview of the economic, political, and legal environments of state pensions and OPEB is followed by an analysis of the unfunded liabilities for these respective benefits. Regression results suggest the importance of state management capacity, per capita income, and public employee density in understanding differences in the states' pension and OPEB funding performance. Additionally, employers' level of pension contributions, legislative professionalism, and fiscal constraint are significantly related to pension funding, while political ideology and levels of state pension funding are significantly related to OPEB funding. The article concludes by discussing the tensions that states face in attempting to balance the fiscal imperative of funding retiree benefits liabilities with the human capital challenge of attracting and retaining a professional workforce. Failure on either could be costly to state government.     

After Citizens United: How outside spending shapes American democracy

We study the political consequences of lifting restrictions on the funding of groups engaging in outside spending (e.g., independent political advertising) in elections. Theoretically, we assume that outside spending changes the salience of candidate-specific attributes relative to their party labels. Empirically, we employ a difference-in-differences design that exploits the removal of state-level restrictions on the funding of outside spending mandated by the federal-level rulings in both Citizens United and SpeechNow.org v. FEC. We find strong evidence that these regulatory changes increase the electoral success of Republican candidates, thereby leading to more ideologically conservative legislatures. We find no effect on polarization. Consistent with our theory, the size of our estimated effects depends on the power of labor unions and the alignment of business interests with the Republican party.     

Old Pictures in New Frames: Issue Definition and Federal Arts Policy

Over the past three decades, those advocating for arts funding have shifted their arguments. When the National Endowment of the Arts (NEA) was created in 1965, its supporters praised arts and culture for their uplifting qualities, and for their ability to counterbalance trends toward materialism and militarism. By the 1990s, arts advocates were far more likely to use instrumentalist arguments, showing that investment in arts and culture produce other desirable benefits, most notably economic development advances. This article reviews the changing discourse of arts advocacy in several ways: (1) by reviewing and coding Congressional debates on arts funding from 1965–2000, (2) reviewing arts coverage in the New York Times and selected arts periodicals during this same time period. Comparing this case to others in the literature on policy redefinition, the paper argues that cultural advocates have consciously reframed their arguments to broaden their appeal in the face new and more threatening opposition.     

The Use and Efficacy of Capacity‐Building Assistance for Low‐Performing Districts: The Case of California's District Assistance and Intervention Teams

The theory of action upon which high‐stakes accountability policies are based calls for systemic reforms in educational systems that will emerge by pairing incentives for improvement with extensive and targeted technical assistance (TA) to build the capacity of low‐performing schools and districts. To this end, a little discussed and often overlooked aspect of the No Child Left Behind Act (NCLB) mandated that, in addition to sanctions, states were required to provide TA to build the capacity of struggling schools and Local Education Agencies (LEAs, or districts) to help them improve student achievement. Although every state in the country provides some form of TA to its lowest performing districts, we know little about the content of these programs or about their efficacy in improving student performance. In this paper, we use both quantitative and qualitative analyses to explore the actions taken by TA providers in one state—California—and examine whether the TA and support tied to California's NCLB sanctions succeeds in improving student achievement. Like many other states, California requires that districts labeled as persistently failing under NCLB (in Program Improvement year 3, PI3) work with external experts to help them build the capacity to make reforms that will improve student achievement. California's lowest performing PI3 districts are given substantial amounts of funding and are required to contract with state‐approved District Assistance and Intervention Teams (DAITs), whereas the remaining PI3 districts receive less funding and are asked to access less intensive TA from non‐DAIT providers. We use a five‐year panel difference‐in‐difference design to estimate the impacts of DAITs on student performance on the math and English language arts (ELA) standardized tests relative to non‐DAIT TA during the two years of the program intervention. We find that students in districts with DAITs perform significantly better on math California Standards Tests (CSTs) averaged over both treatment years and in each of the first and second years. We do not find evidence that students in districts with DAITs perform higher on ELA CSTs over the combined two years of treatment, although we find suggestive evidence that ELA performance increases in the second year of treatment relative to students in districts with non‐DAIT TA. Ordinary least squares (OLS) regressions that explore the association between specific activities fostered by DAITs and changes in districts’ gains in achievement over the two years of treatment show that DAIT districts that report increasing their focus on using data to guide instruction, shifting district culture to generate and maintain high expectations of students and staff, and increasing within‐district accountability for student performance, have higher math achievement gains over the course of the DAIT treatment. In addition, DAIT districts that increase their focus on ELA instruction and shift district culture to one of high expectations have higher ELA achievement gains than do DAIT districts that do not have a similar focus. © 2012 by the Association for Public Policy Analysis and Management.     

Sticky Dollars: Inertia in the Evolution of Federal Allocations for HIV Care through the Ryan White HIV/AIDS Program

While substantial research examines the dynamics prompting policy adoption, few studies have assessed whether enacted policies are modified to meet distributional equity concerns. Past research suggests that important forces limit such adaptation, termed here "policy inertia." We examine whether block grant allocations to states from the Ryan White HIV/AIDS Program have evolved in response to major technological and political changes. We assess the impact of initial allocations on later funding patterns, compared to five counterfactual distributional equity standards. Initial allocations strongly predict future allocations; in comparison, the standards are weak predictors, suggesting the importance of policy inertia. Our methodology of employing multiple measures of equity as a counterfactual to policy inertia can be used to evaluate the adaptability of federalist programs in other domains.     

Local government reform in South Africa: An analysis of financial management legislative compliance by municipalities

South African local government has undergone radical transformation. The reform process included a local government financial management best‐practice technical assistance programme (MFMTAP) targeting financial management and especially budget quality reform. Dollery and Graves (2009) earlier examined the efficacy of the South African National Treasury (NT's) municipal budget funding compliance technique for measuring adherence to the Municipal Finance Management Act's (MFMA) budget funding requirements using a single metropolitan municipality case study. This article further evaluates the robustness and validity of the funding compliance instrument as a reform performance measurement tool by comparing the results of four geographically and demographically different municipalities. Also introduced is a performance ‘trend’ instrument similar to a ‘Likert scale’ for comparing municipal performance. Optimal tax revenue theory is invoked to examine this key revenue variable for producing a compliant budget. The article finds the ‘budget funding’ reform component of the Best‐Practice Technical Assistance (BPTA) programme presently ineffective and unsustainable. Copyright © 2009 John Wiley & Sons, Ltd.     

The Impact of Funding Modalities on the Performance of Indigenous Organisations

Governments’ choice of funding modality can produce powerful incentives for organisations to perform in preferred ways, but it can also divert limited resources, narrow accountability, and undermine capability. Through literature review and interviews, the research explored the international literature on public finance management in developing country contexts, and compared this to case studies of Indigenous organisations. The situation in Australia was found to differ in three ways: (1) performance indicators are imposed, rather than negotiated; (2) few existing public funding modalities reward performance or provide incentives; and (3) funding arrangements do not generally require receiving organisations to be accountable to their constituents. Stability and durability of funding modalities, and clarity in functions and jurisdictional boundaries, were also found to positively influence performance. Further research is required to design new performance frameworks that build around the organisation, rather than the grant, with indicators of governance capability and downward accountability to constituents.     

Leadership and Public Service Motivation in U.S. Federal Agencies

ABSTRACT

This analysis of over 6,900 federal employees’ responses to the Merit Principles Survey 2000 examines the influences of leadership and motivational variables, and especially public service motivation, on the “outcome” variables job satisfaction, perceived performance, quality of work, and turnover intentions. CFA confirms a factor structure for transformation-oriented leadership (TOL), public service-oriented motivation (PSOM), transaction-oriented leadership (TSOL), and extrinsically oriented motivation (EOM). Multivariate regression analysis shows that TOL and PSOM, as well as interaction effects of TOL-TSOL and TOL-PSOM, have strong relations to the outcome variables. SEM analysis examines direct and indirect effects of the main variables. Overall, the results indicate that TOL and PSOM have more positive relations to the outcome variables than do TSOL and EOM. The combination of high TOL and high PSOM has the strongest positive, and hence desirable, relation with organizational outcomes. Among this very large sample of federal employees, those who perceived their leader as displaying TOL (i.e., leadership that is encouraging, supportive, informative, and that emphasizes high standards) also expressed higher levels of PSOM and higher levels of job satisfaction, perceived performance and work quality, and lower turnover intentions. The SEM analysis further indicates that TOL has these effects by way of empowerment, goal clarification, and PSOM, and is distinct from TSOL (transaction-oriented) leadership, which shows no such relationships.     

Federal homeless social policies for the 1990s

Abstract

While numbers are important, a substantial part of the disagreement concerning the number of homeless people and their characteristics derives from differing defi‐nitionsof homelessness. However, there is a consensus on basic needs to proceed with social policies that address homelessness, with the aim of ending it. Housing assistance is essential to ending homelessness and will need to be provided, at least in the short run, to all homeless and at‐risk households to enable them to obtain decent housing. The attrition in the number of unsubsidized low‐rent units and the loss of the single‐room occupancy(SRO) stock have been major causes of homelessness in the 1980s. Permanent housing must be coupled with other services to address the additional, nonhousing problems of a substantial portion of homeless people. The federal plan to end homelessness offers promise of developing a viable, coherent set of programs and policies, particularly if mainstream programs are improved and made accessible to homeless people. But carrying out a meaningful plan to end homelessness will require both committed and sustained political leadership and substantial increases in funding.     

Superfund expenditures and cleanup priorities: Distributive politics or the public interest?

Using data on all final National Priorities List (NPL) sites, this study employs an integrated model of distributive and public interest politics to determine whether the overall pace of cleanup efforts and funding of the 8.5 billion Superfund program over the past eight years reflects self-interested congressional influence or public interest objectives. Despite the fact that both EPA and Congress have substantial incentives to promote the Superfund program, the results indicate that once a site is on the final NPL, there is little committee-based congressional influence over the distribution of site cleanup or funding, although evidence exists that legislators can hasten a site's transition from proposed to final status on the NPL. The chief determinants of cleanup pace and level of funding are the site's Hazard Ranking System (HRS) scores, whether federal funds are financing the cleanup, and whether the site is designated as a state priority.     

Understanding the changing role of public sector performance measurement in less developed countries

This article develops a framework for understanding changes in the demand for and supply of performance information in public sector organizations in less developed countries (LDCs). New Institutional Sociology (NIS) is used to argue that pressures from specific stakeholders stimulate organizations to produce particular performance information. The article distinguishes three groups of stakeholders (i.e. funding bodies, statutory boards and purchasers), and elaborates on the performance dimensions these stakeholders are interested in. The group of funding bodies, with their interest in financial performance information, used to be the most important group of stakeholders. However, statutory boards and purchasers are gaining importance as a result of recent public sector reforms, which include decentralization, marketization and the implementation of anti‐corruption programs. As a consequence of pressures coming from these stakeholders, new performance dimensions, such as the quality and quantity of services and the political governance structure, will be added to organizations' performance measurement (PM) systems. Whether these and other—often more traditional financial—performance dimensions will be balanced and integrated throughout organizations depends on the power positions of the various stakeholders. The arguments presented in this article intend to stimulate public sector organizations in LDCs to design and redesign PM systems as a response to changing stakeholder interests. Copyright © 2010 John Wiley & Sons, Ltd.