Does accountability improve government performance? Evidence from the U.S. state fiscal monitoring and intervention systems

Kim, Youngsung; Park, Young Joo

doi:10.1080/14719037.2022.2052945

Cited by 6 publications

(4 citation statements)

References 43 publications

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“…Preventive control in this research refers to provisions containing central government intervention toward regional governments in regional budget planning. Detection is a form of anticipation of deviations in planning that supports accountability and control after implementation (ex-post) (Kim & Park, 2022).…”

Section: Detection Prevents Non-conformitiesmentioning

confidence: 99%

Central-Local Government Relations in Regional Planning and Budgeting in Indonesia: Between Autonomy and Control

Fatimah,

Haryanto,

Dwi Retnandari

2024

pgr

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This article analyzes the relationship between central and local governments in regional planning and budgeting policies, while exploring the direction of central government control over regions through regional planning and budgeting policies. The issue of relations between central and regional governments in regional planning and budgeting is finding the right balance between autonomy and control. The research methods used are regulatory content analysis and interviews with policymakers. The results showed that the central government uses planning and budgeting to control the implementation of local government affairs and functions through guidance, detection, coercion, and evaluation of existing regulations. These findings fill the discussion gap regarding central government control of regional governments not only through guidance and supervision but through planning and budgeting policies. This study provides insight into the forms of central government control over regional governments, contributing to the trend of central and regional government relations. The practical benefit of this research is as input in improving regional planning and budgeting system policies for the government.

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Section: Detection Prevents Non-conformitiesmentioning

confidence: 99%

Central-Local Government Relations in Regional Planning and Budgeting in Indonesia: Between Autonomy and Control

Fatimah,

Haryanto,

Dwi Retnandari

2024

pgr

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“…Another possible mechanism operates through accountability to the public (Hopland 2014; Thompson and Whitley 2017; Kim and Park 2022). When a state government evaluates the local government's financial performance and releases the evaluation results, it can serve as a negative signal to voters.…”

Section: Local Governments Response To Smsmentioning

confidence: 99%

“…In this vein, more than twenty state governments in the United States have implemented some form of fiscal monitoring system (Pew Charitable Trust 2016; Kim and Park 2022). The core idea of such state monitoring systems (SMS) is that state governments can regularly monitor the financial condition of local governments and provide objective information to local administrators and citizens.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Fiscal Stress Labels on Local Governments’ Financial Management: Evidence from New York State Fiscal Stress Monitoring System

Kang,

Chen

2023

Public Finance Review

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State government's role in monitoring local governments’ fiscal distress gained importance after several local financial crises. Although many states have implemented state monitoring systems, the effectiveness of these systems has not been well understood. Using the case of the New York State, we conducted a regression discontinuity analysis to examine the effect of fiscal stress labeling on local governments. We find some evidence to support that fiscal stress labels lead local governments to improve their fund balance and cash positions. Specifically, school districts at the early stage of fiscal stress are more responsive to the labels than districts under more severe fiscal stress.

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“…Our analysis identifies financial and economic indicators that predict state intervention into local governments, adding to the literature on measurement of financial health and fiscal stress (Gorina, Joffe, & Maher, 2018; Gorina, Maher, & Joffe, 2018; Stone et al, 2015). We also add to the broader conversation about state oversight of local finances, which includes a growing empirical literature on local responses to state monitoring of local finances (Gerrish & Spreen, 2017; Kim & Park, 2022; Nakhmurina, 2020; Spreen & Cheek, 2016; Thompson, 2017). Our empirical results add to this literature by demonstrating that local financial distress and recovery are predominantly functions of the local economy rather than the individual(s) charged with decision‐making authority.…”

Section: Introductionmentioning

confidence: 99%

Decree or democracy? State takeovers and local government financial outcomes

Singla

Spreen

Shumberger

2023

Public Administration Review

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Many states possess the authority to intervene in local fiscal emergencies, in some cases curtailing decision-making powers of local officials through the appointment of an emergency financial manager. Previous research has recognized that these managers can push through unpopular reforms that may improve financial health but come at the expense of local control and democratic accountability. We assess the financial outcomes after eight recent state takeovers relative to a matched counterfactual comprised of similarly distressed general purpose local governments. The staggered difference-in-differences analysis shows emergency managers improve budgetary solvency and increase fiscal reserves. These enhancements are achieved through significant reduction of general fund expenditures. Several long-term indicators show deterioration in financial health after state intervention reflecting a significant decline in long-term assets. Overall, municipalities subjected to a state takeover did not realize significant long-run improvements in financial health indicators relative to counterfactual governments. Evidence for practice• States exercise their power to appoint emergency financial managers (EFMs) that assume decision-making authority of a municipal government when financial and economic indicators deteriorate. • In contrast with local elected officials, EFMs favor reducing general fund expenditures and liquidating assets to resolve local fiscal crises. • EFMs do not outperform the local elected officials that they replace across several indicators of financial health.

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Does accountability improve government performance? Evidence from the U.S. state fiscal monitoring and intervention systems

Cited by 6 publications

References 43 publications

Central-Local Government Relations in Regional Planning and Budgeting in Indonesia: Between Autonomy and Control

Central-Local Government Relations in Regional Planning and Budgeting in Indonesia: Between Autonomy and Control

The Effect of Fiscal Stress Labels on Local Governments’ Financial Management: Evidence from New York State Fiscal Stress Monitoring System

Decree or democracy? State takeovers and local government financial outcomes

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