Trends in State Government Management: Budget Reduction, Restructuring, Privatization and Performance Budgeting

Most states have initiated various cutback-management strategies in the past two years to deal with budget shortfalls and projected deficits. However, restructuring state agencies has emerged as the most popular approach to the current financial crisis. State agencies are likely to continue to privatize some of their programs and services as a cost-saving tool, although the rate of savings has been moderate. A growing number of states are using performance measures in their budgeting, although they are not widely used as an efficiency tool in state agencies.

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About the Authors
Keon S. Chi is editor in chief of The Book of the States and monitors state politics, policies and management trends for The Council of State Governments.

Kelley A. Arnold, editorial assistant of The Book of the States, is a communications associate for CSG and specializes in political research and communications.

Heather M. Perkins, editorial assistant of The Book of the States, is an editorial associate for CSG and specializes in 50-state comparative data and research.

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