Public sector performance measures have been advocated by numerous regulatory bodies (FASB 1980; CCAF 1987; CICA 1988; GASB 1989). Proposed Service Efforts and Accomplishment (SEA) disclosures include measures of inputs and input-output efficiency ratios (GASB 1989). Such metrics, it is argued, improve internal control and external accountability. To date, SEA disclosures are not widely disseminated.Our study examined the potential utility of SEA disclosures in determining public policy in education. Specific concerns of the Illinois State Board of Education and the state legislature with respect to fiscal neutrality and tax referenda in education were examined. As proposed by the GASB (1989, x-xii), educational input and output indicators were compiled for 207 school districts. To overcome specification problems, DEA analysis was used to measure input-output efficiency. Non parametric hypothesis tests were performed on the resulting efficiency and effectiveness measures.Results indicated that: 1) efficiency and effectiveness measures were not revenue neutral; 2) neither efficiency nor effectiveness performance measures were predictive of educational tax referenda outcomes. These findings corroborate the utility of SEA disclosures in improving managerial control systems and public sector accountability.
Financed by the National Centre for Research and Development under grant No. SP/I/1/77065/10 by the strategic scientific research and experimental development program:
SYNAT - “Interdisciplinary System for Interactive Scientific and Scientific-Technical Information”.