New Developments in Performance Measures of Public Programmes

Abstract

Headlines on all levels of government speak of the pending crisis in public sector services: expect to pay more for less. Budget deficit, once only a concern of the federal level, is a worry in state capitals and municipalities. Additionally, an ever‐looming question at this time of economic reality is: are we getting all the government for which we are paying? This discussion of new developments in performance measures of public programmes covers the causes for the increased concern for public sector productivity. Gives examples of performance measures attempted on the state and local levels. Also analyses a method to compute efficient versus inefficient performance. Lastly, in an effort to introduce competition and force performance measurement, there is a move to convert many services to private sector contractors. Even public school children would be allowed to choose between public or private instruction if the “choice” initiative gains steam and becomes law. The key to this challenge to the public sector is meaningful measurements of performance and taking appropriate action.