Carol Ebdon

Beyond the public hearing: citizen participation in the local government budget process

This study explores the use and effects of citizen participation in city budgeting. Interviews were conducted with budget directors in 28 midwestern cities. Participation was found to affect budget decisions, but the public hearing remains the primary formal opportunity for input in most cities. Technology is increasingly being used to expand the budget information available to the public. Budget complexity and citizen disinterest were cited as the major barriers to participation. However, a number of cities have successfully used participation mechanisms in the budget development process that can serve as models for other cities.

Are we All Touching the Same Camel? Exploring a Model of Participation in Budgeting

Theory offers a vast quantity of normative prescriptions concerning citizen participation in budget decisions. Yet cities struggle with this activity and report unsatisfactory outcomes. Why does this occur? It may be because, similar to the parable of the blind men describing the different parts of the camel, the extant literature suggests so many variables but does not integrate what we know to see the whole picture, nor does it eliminate variables having little explanatory value and there has been limited systematic testing of hypotheses in this area. To manage the complexity caused by a multiplicity of variables, the authors test a causal model with four different factors (structure, participants, process, and mechanisms) thought to influence effective citizen participation outcomes on cases of two midwestern cities. In this limited application, the model shows promise for predictive validity.

Public-Private Partnerships, Public Authorities, and Democratic Governance

This case explores public-private partnerships in Omaha, Nebraska, where substantial private donations were received for the construction of two city-owned facilities: a convention center/arena and a baseball stadium. The donors required creation of a new public authority to undertake the construction and operation of the projects. This article analyzes key issues related to the decision to enter into the partnerships, contract terms, risk-sharing, transparency, and accountability. It also identifies several important factors that have not been well addressed in the literature, including the role of institutions, leadership of individual actors, contractual modifications, and power and politics. The study helps to advance theory-building in this area and, as well, provides advice to public administrators and officeholders in governments considering private donations for public projects.

Beyond the property tax: local government revenue diversification

Local governments in the U.S. rely less on the property tax than they have historically. This long-term trend has been accompanied by important shifts in the composition of local revenues. While the property tax still serves as one primary source of local government revenue, increasingly other sources are used to pay for local government. This paper first examines that trend, the forces behind it, and its regional impact. We then explore trends in three central states - - Iowa, Nebraska, and Arkansas -- that have experienced substantial revenue shifts in recent years. A concluding section discusses the options for the future.

The effects of voter control on budget outcomes

This study analyzes the effects of budget referenda on spending levels. An agency theory framework is used to identify the incentives of voters and school boards, and to discuss the use of the referendum as a budget control mechanism. The regression analysis compares expenditures in New York State school districts with and without referenda requirements. Total spending is found to be 5.5% higher in districts without referenda, ceteris parabis. However, the specific rules related to referenda and budget defeats appear to be important determinants of their effectiveness.

Government structure in large U.S. cities: are forms converging?

This article examines changes in form of government and other structural elements over a fifteen year period for all cities with a population greater than 100,000. No evidence is found to support current theories related to form changes in large cities during this period. Some convergence between the council-manager and mayor-council forms has occurred in the use of district city council elections, directly-elected mayors, and professional management positions. However, disparities still exist between forms in the use of nonpartisan elections, mayoral voting power, and city council size. The changes in structural design reflect an increased blending of representation and efficiency values.

The effect of board composition on public sector pension funding

Public pension plans in the U.S. are seriously underfunded, especially following the financial market crisis of 2008-2009 which resulted in large investment losses. However, funding levels vary widely across plans. Pension boards of trustees make key management decisions in pension systems and these decisions have significant effects on funded levels, yet our empirical knowledge of board management is limited. This study explores the effect of board composition on pension funding levels. Existing theoretical debates lead to differing expectations, and previous studies have mixed results. Our research uses a panel data set of large public pension plans from 2001-2009. We also collect data for pension board composition from this time period. We find that increasing political appointees and employee members on the board increases the funding performance of the pension system.

Institutional Arrangements for Public Library Funding and Spending

Wide variation in institutional structure and funding patterns in public libraries make this government function useful for exploring the effect of these differences on expenditures. Based on literature related to willingness to pay, special districts, and fiscal illusion, we hypothesize that libraries with taxing authority and more revenues from nonlocal sources will have higher levels of spending. We use data from an Annual Public Library Survey, and U.S. Census data, in ordinary least squares (OLS) regressions for 2007 and 2010. We find that taxing authority leads to increased spending, as expected. However, the results of funding sources are contrary to expectations; relative reliance on nonlocal sources is generally associated with lower levels of spending. This may be due to “crowding-out” of local sources, and there may also be some effect from reduced state aid following the Great Recession.

Elected officials’ perceptions of governance relationships and budget participation mechanisms

Issues like fiscal crises and sequestration may cause elected officials to get citizen input in the budget process. This action can be viewed as a reactive strategy used when the relationship with citizens is weakening; or, a proactive strategy to keep governance relationships strong. This conundrum prompts examination of how budgetary participation mechanisms serve representative democracy and governance goals. Using survey results from public officials in 391 midwestern cities regarding perceptions of governance relationships and the use of participation mechanisms, we find no significant relationships and weak explanatory power in the causal model. When trust in government keeps falling, the relative strength of the relationship between public officials and citizens is an issue that public administrators must understand to develop effective budget participation mechanisms.

MULTILEVEL GOVERNANCE PROCESSES - CITIZENS & LOCAL BUDGETING: COMPARING BRAZIL, CHINA, & THE UNITED STATES

Modifications to policymaking processes and actors are crucial when transitioning to multilevel governance. Civic engagement in budgeting processes, where crucial policy decisions are determined, is an important component of shared governance. Understanding the new roles for citizens in the budget process, then, can extend our knowledge of multilevel governance. This research explores the ways in which the budget process incorporates citizen participation to foster an ideal of civil society in the United States, Brazil, and China. The comparative case analysis probes the extent to which institutional changes have occurred, why they have occurred, and the degree to which municipal budget processes are characterized by multilevel governance.