Alfred Ho (University of Kansas) will be presenting our paper at the 2017 Assoc. Budgeting & Financial Management Conference in Washington, D.C.
Performance Budgeting in U.S. cities: A Multi-Level Analysis
Many past studies have documented different types of performance information usage in the budgetary process. Many also show that various organizational factors influence its usage. In this study, we take a new theoretical approach by analyzing the practice of performance budgeting through a multi-level perspective. Using data from a survey study of U.S. local departments, this study analyzes how service nature, organizational capacity, leadership, organizational culture, and political institutional forces influence how performance analytics is used or not used to impact budgetary decision-making. The empirical results show that there are different dynamics for performance-informed performance budgeting and high-impact performance budgeting. Politics do not necessarily eliminate a need for performance-informed budgeting, but executive commitment to data-driven decision-making is necessary to achieve high impact in using performance budgeting.