Budget Processes/Performance Measures

 

State budget processes refer to various budgeting activities and stages in the development of a state’s budget, including the budget cycle, budget requirements, budgeting tools, the budget document, and monitoring the budget. Technical and administrative advancements in the budget process can redirect spending to more effective programs and ultimately lead to better service delivery. In the coming years, changes to state budget processes will likely reflect a growing need to establish clear linkages between funding levels and program results.

Staff Contact: Kathryn Vesey White

NASBO Publications

  • The primary motive driving the commission and public-sector performance management in general is the conviction that governments must improve their focus on producing results that benefit the public, and also give the public confidence that government has produced those results. The emphasis on process and compliance that has typified traditional publicsector management has not been sufficient to make this happen. Therefore, governments must change their approach. Public-sector management must become synonymous with performance management.
  • This report finds that the recent improvement in the national economy has not translated to strong growth in total state spending. This is largely due to the fact that state revenues have not increased as fast as Recovery Act funds have declined, leading to a unique situation in which total state expenditure growth has slowed during the same time that the national economy has been improving.
  • Although state fiscal conditions continue their slow improvement in fiscal 2012, they are likely to remain constrained due to the lack of a strong national economic recovery and the withdrawal of Recovery Act funds. This slow improvement in state finances is highlighted by the 38 states that reported general fund spending growth in 2011 and the 43 states that reported spending growth for 2012. However, 29 states still have lower general fund spending in fiscal 2012 compared to the pre-recession levels of fiscal 2008.