Performance Measurement and Budget Balancing: State Government Perspective

This research assesses the perspectives of budget officers and agency personnel in state governments about performance measurement applicability for budgeting purposes. Results show that both perspectives consider performance measurement use effective for improving communication, increasing awareness about results, improving service quality, and changing strategies to reach certain results. Then again, the use of performance information is not found as effective, often not at all, for cost or program cutting, or for changing spending levels. This suggests that while today's governors might need to temper their expectations regarding the usefulness of performance initiatives to support budget balancing in the short run, they should remain steadfast in promoting performance measurement applicability for the long‐term benefits recognized by both budgeters and agency staff.