Practice and Theory: The Diffusion of State Legislative Budget Reform

Authors

  • Sungkyu Jang Indiana University - South Bend
  • Sung-Jin Park Indiana University - South Bend
  • Robert J. Eger III University of the Pacific

DOI:

https://doi.org/10.20899/jpna.7.3.307-323

Keywords:

Performance-Based Budgeting, Event History Analysis, Budgetary Rule Choice

Abstract

We question why some state legislatures responded to public discourse promptly while other state legislatures resist change. We use the choice of performance-based budgeting (PBB) to set the stage in answering this compelling question. We employ a logit model as a discrete event history analysis (EHA). We use the EHA to determine how and what variables influence the probability of an organization’s qualitative change (or “event”) at a given point in time. In this study, the organizations are states, and the event to be analyzed is the enactment of PBB law. Our data set is a modified panel of 50 states between the years 1993 and 2008. We study the factors that would influence state legislators to pass PBB laws across the nation. While our empirical result shows that political preferences are not statistically significant factors for states to pass PBB law, state legislators seem to favor the factors associated with the financial management explanation to adopt PBB. Also, the factors of path dependence and mimicking influence states to adopt PBB.

Author Biographies

Sungkyu Jang, Indiana University - South Bend

Sungkyu Jang is an Assistant Professor of Public Administration in the Department of Political Science at Indiana University South Bend. His research interests are tax collection, performance budgeting, and accounting for governmental and nonprofit entities. He has been published in the American Review of Public Administration.

Sung-Jin Park, Indiana University - South Bend

Sung-Jin Park is an Assistant Professor in Accounting at Indiana University South Bend (IUSB). Prior to joining IUSB, he taught at the University of Texas at San Antonio and practiced public accounting in the state of Indiana. Dr. Park is a Certified Public Accountant and a member of the American Accounting Association.

Robert J. Eger III, University of the Pacific

Robert J. Eger III is the Neven C. Hulsey Endowed Chair in Business Excellence and Professor of Accounting at the Eberhardt School of Business, University of the Pacific. His areas of interest are governmental and nonprofit accounting, public financial management, and methodology. He has published in an array of academic and practice journals on topics that include accounting in government, defense auditing and spending, public health financing, tax strategies and complexities, tax evasion and auditing activity, and managing intergovernmental revenues.

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Published

2021-12-01

Issue

Section

Research Articles