Reconciling the Research: Municipal finance officers on the Role of Performance Data in the Budget Process

Abstract

Research on the use of performance measurement points to contradictory conclusions. Most municipalities self-report that they collect performance data on a regular basis but actually use the information only sparingly during the budget construction process. To explore what may be happening or not happening, the authors began with a case study of a medium-sized municipality in the southeast, then expanded to a survey of similar-sized cities in the same region. They conclude that most municipalities are indeed collecting performance data but are simply adding them to the budget document after the deliberation process is over. The role of the budget office in performance-based reform is discussed along with the organizational changes needed to embrace performance measurement during budget construction.