Does Performance Budgeting Work? An Examination of the Office of Management and Budget’s PART Scores

In this paper, the authors use the Bush administration’s management grades from the Program Assessment Rating Tool (PART) to evaluate performance budgeting in the federal government—in particular, the role of merit and political considerations in formulating recommendations for 234 programs in the president’s fiscal year 2004 budget. PART scores and political support were found to influence budget choices in expected ways, and the impact of management scores on budget decisions diminished as the political component was taken into account. The Bush administration’s management scores were positively correlated with proposed budgets for programs housed in traditionally Democratic departments but not in other departments. The federal government’s most ambitious effort to use performance budgeting to date shows both the promise and the problems of this endeavor.