The state of the states: Performance-based budgeting requirements in 47 out of 50

What are state agencies required to do with respect to performance measurement and performance budgeting? This article addresses the trend toward improving performance in government. Past research on performance-based budgeting (PBB) in the states concentrates on anecdotal information and care analyses, usually including fewer than 10 states. This article provides national coverage of requirements for performance-based budgeting in the states. We survey the 50 states concerning existing or planned legislation related to performance-based budgeting as well as administrative requirements. We review legislation and budget guidelines to determine their scope and focus. Results show that all but three states have performance-based budgeting requirements, and most have established these requirements within the last few years. Thirty-one states have legislated performance-based budgeting to be conducted while sixteen states have initiated this reform through budget guidelines or instructions. This research analyzes the foundations for conducting performance-based budgeting in the states. It serves as a stepping stone to determining effective method-to create and sustain this budget system in the states.