A key part of the New Public Sector in the UK has been an increased use of delegated budgeting in health and education. Initiatives such as the Local Management of Schools, GP-Fundholders and the Purchaser-Provider split in the National Health Service have required resources and associated budgets to be allocated down to smaller, more local entities than previously, on the basis of an explicit funding formula. This paper examines the relative merits of such a system of devoted budgeting and formula funding compared to other possible approaches to public sector budgeting from the viewpoint of the extent to which these different approaches are likely to promote equity in the funding of public services to disadvantaged groups. The paper illustrates the issues involved by reference both the UK experience and to the impact that health care funding formulae have on one particularly disadvantaged group in an otherwise advanced economy, namely the Aboriginal population of the Northern Territory of Australia.

The Barnett Formula is the mechanism used by the United Kingdom Government to allocate more than half of total public expenditure in Scotland, Wales and Northern Ireland. The Formula has been used for the last thirty years to determine the annual increase in allocation (the increment). Each year these increments are added on to the previous year's allocation (the baseline) to create what is now a significant block grant of funds. The Formula accounted for almost £49 billion of public spending in 2007-08. Despite the political changes within the United Kingdom the Formula has continued to be used and has never been reviewed or revised. The Formula was only intended to be a short term measure and should no longer be. A UK Funding Commission should be established to assess relative need in the UK's regions and advise on a new method of distributing funding to reflect those needs. The baseline has never been reviewed to take account of changing population patterns; this means that the grant provides funds without reference to the needs of each of the countries and regions of the UK. There should be a link between the grant of funds made to each of the administrations and their actual per capita funding needs. The Committee's research suggests that England and Scotland have markedly lower overall needs per head of population than Wales and Northern Ireland. The Committee suggest that the UK Funding Commission undertake an assessment of relative need now and in the future and that they undertake periodic reviews as well as publish annual data about the allocation of funding between the devolved administrations.

This CIMA research report focuses on post-1997 policy innovations for the public sector and their impact on traditional budgeting practices. In light of recent failures to reform local budgeting post 1997, it seeks to distinguish between original intentions of reform and their consequences offering alternatives to local government modernisation, appropriate changes in strategic partnerships, and new organisational structures.The key question for the report is the extent to which it is possible or useful to reform traditional practices, paying particular emphasis to the nature of modernisation in the governmental post 1997 period.The report includes an in-depth investigation into two case authorities in the UK. The analysis will include findings from sources beyond the finance divisions of these authorities. The study is comprehensive, insightful and practical focussed. The authors concentrate their investigation on a longitudinal field study of budgetary practice in two large and contrasting English local and produce a detailed comparison of the two cases. The report concludes with recommendations to users of local government budgeting.The final chapter discusses the comparison of the two cases. It provides us with a number of concluding observations: e.g.* There is a need for more participation in budgeting and especially a more credible system for schools to get involved in the budget setting process and if the school's budgeting system is to remain centralise dor become even more centralised then policy makers need to have a better knowledge of educational cost drivers - A pioneering study evaluating individual service areas as opposed to ranking of overall corporate performance and offering a pragmatic solution to local government modernisation - The first comprehensive investigation of two vastly different geographical locations of UK - Aids understanding by analysing and producing a detailed comparison of two local authorities

The use of formulae has become widespread in recent years across most developed countries. In the UK, a conservative estimate is that annually £150 billion of public service expenditure is distributed using formulae, in services such as health care, local government, social security and higher education. This book offers a comprehensive introduction to the theory and practice underlying the use of such formulae as a basis for funding public services. The philosophy, design and economic consequences of funding formulae have become key policy issues worldwide. However, till now, there has been no text which brings together the economic, statistical and political issues underlying formula funding. This key book fills that gap. Written by a leading international expert on the design of funding formulae, this important book includes empirical evidence from a range of countries and will be a valuable resource for all those involved in this field.

This essential resource provides a roadmap for redirecting school funds in ways that will dramatically improve student performance. Lead author Allan Odden3⁄4one of the nation?s foremost scholars in school finance3⁄4offers a vision of finance reform that will give local schools more control over their budgets and ultimately boost student performance. Allan Odden and Carolyn Busch look at the inefficiencies in current education spending, examine varied approaches to school-based financing, and offer recommendations for restructuring financing systems to meet ambitious reform goals. In addition, they propose ways to make funding more equitable across districts, outline the various elements that make school-based management work, and describe the key roles and responsibilities for the district even in a decentralized system. Financing Schools for High Performance is filled with examples of creative finance structures, formulas, and actual school budgets that support student learning and rigorous instructional programs. It will prove to be an indispensable aid for state, district, and school-level administrators.

Examines recent evidence of a growing symmetry in the operation of devolution in Scotland, Wales and Northern Ireland. This book makes one of the first systematic and detailed comparisons of the operation of the devolved institutions and machinery of governance. It uses a comparative approach to explore the key workings of government.