Performance-Based Budgeting in the States

Source: Erica MacKellar, Legisbrief, Vol. 24 no. 35, September 2016

In an effort to ensure that tax dollars are spent more efficiently and effectively, some state legislatures are using performance-based budgeting. This strategy focuses on outcomes, requiring programs and agencies to work toward a larger purpose while meeting specific goals. There are practical challenges to this approach, however, such as defining goals and collecting data to measure performance.