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Survey Report on Perceptions of Governmental
Financial Management
Justin Greeves, Vice President, Public
Affairs Research
Kaylan Orkis, Research Assistant, Public
Affairs Research
www.harrisinteractive.com
February 20, 2008
©2007, Harris Interactive Inc.
Presented by
All rights reserved.
Association of Government Accountants
Contents
Background & Objectives……………………………………………..3
Methodology…………………………………………………………….4
Executive Summary……………………………………………………5
Detailed Findings
The Expectations Gap………………….……….……………….12
A Problem with Trust……..…………………………….……......18
What the Public Wants..…..……………………….…….….…...28
Information Categories …..………………….….….….…….…..42
Demographics …………………..………………………………..47
Conclusions…………………..…………………….……………..50
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Information Sources ………….……….…………….…….……..44
2
Background & Objectives
This research, commissioned by the Association of Government Accountants and
conducted by Harris Interactive, was conducted to serve as a benchmark of attitudes
and opinions among the general public toward governments’ financial management
and perceived levels of accountability to the public at all levels.

Measure broad perceptions of importance and satisfaction with regard to receiving
financial management information from government (local, state, federal)

Assess the relative importance and performance by government on specific elements
of financial management delivery to the public

Determine which sources of information Americans rely on for governments’ financial
management information (local, state, federal) and how this information is used by
the public.

Seek suggestions on how government can improve on its accountability and delivery
of financial information to the public
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Objectives
3
Methodology
 Audience: United States residents, 18 years or older
 Method: Online Survey using the Harris multi-million member online
panel
 Field Dates: January 4-8, 2007
 Surveys Completed: n = 1,652
 Sampling Error: +/- 2.4 percentage points in 95 out of 100 cases
©2007, Harris Interactive Inc.
 Survey Duration: 14 minutes
HARRIS INTERACTIVE
4
©2007, Harris Interactive Inc.
Executive Summary
HARRIS INTERACTIVE
5
Executive Summary – Headlines and Themes
 Government at all levels is failing to meet the needs of its citizens with regard
to financial management reporting. This expectations gap is quite large.
– The public at large overwhelmingly believes government has the obligation to
provide reporting that explains how the government generates and spends its
money; however, government is not meeting expectations in any area included in
this survey.
 Poor performance on financial management reporting has created a problem
with trust between citizens and their governments in regards to spending
practices.
 Respondents are specific in the ways in which government can address their
needs and improve accountability, including better reporting (open disclosure,
easy-to-read reports), a change in attitude in communications (honesty and
transparency) and better information in the right channels (websites, through
the press).
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
– Across all levels of government, the gaps are widest in being “open and honest in
spending practices” and being “responsible to the public for its spending.”
Surprisingly, no level of government, including local, receives an average rating
above the mid-point (5, on a 1-10 scale) on any aspect of financial management.
6
Executive Summary
The Expectations Gap
 There is an overall agreement on the importance for federal, state and local
governments’ financial management information to be available to the public.
– 72% say that it is important to receive this information from the federal
government.
– Only 5% believe that having this information available to them is not important,
regardless of level of government.
 However, among those who do receive information about governments’
generation and spending of money, there is a strong dissatisfaction with the
information that they receive.
 A large majority of Americans (90%) believe that as taxpayers, they are
entitled to transparent financial management information.
– 57% take the strongest position possible that government has an obligation to
provide reports that explain how the government generates and spends money .
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
– The strongest dissatisfaction is with the information about the federal
government’s financial management (Federal, 60%; State, 46%; Local, 38%).
Only 5% are satisfied with what they receive from the federal government.
7
Executive Summary
A Problem with Trust
 Americans perceive governments to be significantly under-delivering in
regards to practicing open, honest and responsible spending. They are also
performing below expectations as it relates to providing understandable and
timely financial management information.
 While the overall magnitude of performance scores is still poor, all three
levels of government are rated most effective at being responsible to the
public for its spending - the aspect that is most important to Americans.
Again, this level of performance is still at the bottom of the scale (Top 2 Box
on 10 point scale – Federal, 9%; State, 9%; Local, 12%).
 The gaps between importance and performance decrease as government
becomes more localized, but no level of government scores above a 5 in
performance (10 point scale).
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
 Governments are especially underachieving in the aspect that ranks second
in importance – being open and honest in spending practices (Bottom 2 Box
on 10 point scale – Federal, 5%; State, 5%; Local, 7%).
8
Executive Summary
What The Public Wants
 Of those who currently receive information or believe that having financial
information available is at least somewhat important, almost three-quarters
(71%) mention the information would influence their voting decision.
– Other common mentions include contacting my representative (48%), attending
town hall meetings and gatherings (28%), and simply wanting to be informed
(26%)
 The major concern with financial management across all levels of
governments is the Excessive Amounts of Unrestrained Spending.
– 23% mention it as their biggest concern with the Federal governments’
management, while 15% mention it as their concern with the state and local
governments.
– The most frequent specific mentions across all categories were: Provide Open
Disclosure of Spending (18%), Easy to Read Reports (7%), Be Honest (10%),
Cut Down on Unnecessary Spending (9%), and Provide Information on Websites
(7%).
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
 When asked about the ways in which government can demonstrate greater
accountability, the most common themes are Improved Reporting (42%) and
a different Attitude (28%) in reporting.
9
Executive Summary
Information Categories
 Respondents were asked to rank the importance of each category of
financial spending information across Federal, State and Local Government.
The findings indicate that respondents have clear expectations on which
levels of government should deliver on which categories of information:
– At a Federal level, respondents perceive Health Care information (75%) and
Environment information (62%) to be most important to them personally.
– At a State level, information about Transportation (58%) and Education (57%)
were most important.
©2007, Harris Interactive Inc.
– At a Local level, information about Safety (55%) was the single most important
category.
HARRIS INTERACTIVE
10
Executive Summary
Information Sources
 Americans are most likely to rely on traditional sources -- the news and
newspaper -- for information on government financial management.
– Federal: News, 73%; Newspaper, 58%
– State: News, 70%; Newspaper, 58%
– Local: Newspaper, 59%; News, 57%
 A significant portion of the population is searching online for information on
how the government is generating and spending money (Federal, 33%; State,
30%; Local, 24%).
©2007, Harris Interactive Inc.
 Over one in ten say that they do not get any information on federal, state or
local government financial management (Federal, 12%; State, 13%; Local,
15%).
HARRIS INTERACTIVE
11
Detailed Findings
©2007, Harris Interactive Inc.
The Expectations Gap
HARRIS INTERACTIVE
12
Nearly three-quarters of Americans say it is personally important that
financial management information, across all levels of government, is
available to them; however, the majority of Americans who currently get
information are not satisfied with what they receive.
Federal
Government
72%
Extremely/Very Important (NET)
5%
Extremely/Very Satisfied (NET)
State
Government
7%
72%
13%
©2007, Harris Interactive Inc.
Local
Government
73%
*Please note base sizes differ
Base: All Respondents (n = 1652)
Q515 How important to you personally is it that information about your Federal, state and local governments’ financial management is available to you?
Base: Get information (Federal; n= 1461) (State; n= 1443) (Local; n= 1413)
Q505 How satisfied are you with the information you get about your governments’ financial management?
HARRIS INTERACTIVE
13
Federal Government: Americans are the most dissatisfied with the
information they receive about the Federal government’s financial
management – 72% say it is important, yet 60% are not satisfied.
Satisfaction
Extremely
Importance
32%
Top 2 Box
1%
Important (NET): 72%
Very
40%
5%
Satisfied (NET): 5%
23%
Somewhat
Not very
-67%
34%
3%
31%
Bottom 2 Box
Not Important (NET): 5%
2%
30%
Not Satisfied (NET): 60%
*Please note base sizes differ
Base: Get information (Federal; n= 1461)
Q505 How satisfied are you with the information you get about your governments’ financial management?
Base: All Respondents (n = 1652)
Q515 How important to you personally is it that information about your Federal, state and local governments’ financial management is
available to you?
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Not at all
14
State Government: Almost half (46%) are not satisfied and another
47% are only somewhat satisfied with the information they receive
about their state’s financial management.
Satisfaction
30%
1%
43%
Very
6%
Not at all
-66%
22%
Somewhat
Not very
Top 2 Box
Top 2 Box
Important (NET): 73%
25%
Satisfied (NET): 7%
28%
47%
3%
28%
Bottom 2 Box
Not Important (NET): 5%
1%
19%
Not Satisfied (NET): 46%
*Please note base sizes differ
Base: Get information (State; n= 1443)
Q505 How satisfied are you with the information you get about your governments’ financial management?
Base: All Respondents (n = 1652)
Q515 How important to you personally is it that information about your Federal, state and local governments’ financial management is available to you?
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Extremely
Importance
15
Local Government: Americans are the most satisfied with information
provided by their local government (13%), but two in five (38%) are still
disappointed with the information they get.
Satisfaction
Extremely
Importance
34%
Top 2 Box
1%
Important (NET): 72%
39%
Very
12%
-59%
22%
Somewhat
Not very
Satisfied (NET): 13%
49%
3%
21%
Bottom 2 Box
Not Important (NET):5%
2%
17%
Not Satisfied (NET): 38%
©2007, Harris Interactive Inc.
Not at all
*Please note base sizes differ
Base: Get information (Local; n= 1413)
Q505 How satisfied are you with the information you get about your governments’ financial management?
Base: All Respondents (n = 1652)
Q515 How important to you personally is it that information about your Federal, state and local governments’ financial management is available to you?
HARRIS INTERACTIVE
16
An overwhelming majority of Americans (90%) believe taxpayers are
entitled to receive reports that explain how the government
generates and spends its money; only 4% believe the opposite.
Total Jones
Government is
not obligated to
provide reports
4%
Exactly like Jones
1%
Exactly like Smith
57%
Somewhat like
Jones
3%
Neither like Smith
or Jones
6%
Total Smith
Somewhat like
Smith
32%
90%
Base: All Respondents (n= 1652)
Q510 After you read both statements, please indicate which opinion comes closest to your own.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Government is
obligated to
provide reports
17
Detailed Findings
©2007, Harris Interactive Inc.
A Problem With Trust
HARRIS INTERACTIVE
18
Federal Government: The two areas in need of the most attention
relate to spending practices – honesty (5.9 point gap) and
responsibility to the public (5.7 point gap).
Top 2 Box (9,10 on 10 point scale)
Responsible to the
public for spending
Open and honest in
spending
Provides
understandable
financial information
Provides timely
finanical statements
Educates public on its
current challenges
9.1
3.4
- 5.7
Importance
78%
9%
73%
5%
8.7
2.8
62%
8.4
3.1
4%
50%
8.0
3.4
4%
49%
5%
Gap
7.9
3.3
- 5.9
- 5.3
- 4.6
- 4.6
©2007, Harris Interactive Inc.
Performance
Mean Scores
Base: All Respondents (n = 1652)
Q530 Please indicate, using a 10-point scale, how important it is to you personally that the Federal government deliver on that statement.
Q540 Please indicate how well you think the Federal government is performing on each of these statements.
HARRIS INTERACTIVE
19
Federal Government: Over three-quarters (78%) believe that it is
very important for them to be held accountable to the public for their
spending, yet less than one in ten (9%) say they are performing up to
these expectations.
Top (9,10)
Mid (3-8)
Bottom (1,2)
Not sure/Decline
The Federal government is responsible to the public for its spending.
Importance
78%
15%
3% 3%
10 point scale: 10=Extremely important, 1=Not important at all
Performance
9%
36%
49%
6%
10 point scale: 10=Extremely well, 1=Not well at all
0%
20%
40%
60%
80%
100%
The Federal government is open and honest in its spending practices.
73%
Importance
17%
6% 4%
10 point scale: 10=Extremely important, 1=Not important at all
32%
57%
6%
10 point scale: 10=Extremely well, 1=Not well at all
0%
20%
40%
60%
80%
100%
©2007, Harris Interactive Inc.
Performance 5%
Base: All Respondents (n = 1652)
Q530 Please indicate, using a 10-point scale, how important it is to you personally that the Federal government deliver on that statement.
Q540 Please indicate how well you think the Federal government is performing on each of these statements.
HARRIS INTERACTIVE
20
Federal Government: Having understandable information about
federal finances is very important to 62%, but half (49%) say the
Federal government is not performing well on this.
Top (9,10)
Mid (3-8)
Bottom (1,2)
Not sure/Decline
The Federal government provides timely financial statements and status reports.
50%
Importance
38%
5% 6%
10 point scale: 10=Extremely important, 1=Not important at all
Performance 4%
44%
44%
9%
10 point scale: 10=Extremely well, 1=Not well at all
The Federal government educates the public on its current challenges.
Importance
49%
41%
5% 5%
10 point scale: 10=Extremely important, 1=Not important at all
Performance
5%
45%
43%
8%
10 point scale: 10=Extremely well, 1=Not well at all
The Federal provides understandable information about its finances.
30%
5% 5%
10 point scale: 10=Extremely important, 1=Not important at all
Performance
4%
8%
10 point scale: 10=Extremely well, 1=Not well at all
0%
HARRIS INTERACTIVE
49%
41%
20%
40%
60%
80%
100%
©2007, Harris Interactive Inc.
62%
Importance
Base: All Respondents (n = 1652)
Q530 Please indicate, using a 10-point scale, how important it is to you personally that the Federal government deliver on that
statement. Q540 Please indicate how well you think the Federal government is performing
21
on each of these statements.
State Government: The state governments are also performing the
most poorly in their openness and honesty with spending practices.
Top 2 Box (9,10 on 10 point scale)
Responsible to the
public for spending
Open and honest in
spending
Provides
understandable
financial information
Educates public on
its current challenges
Provides timely
finanical statements
64%
9%
60%
Gap
8.4
4.3
- 4.1
8.1
- 4.3
3.8
5%
51%
7.8
- 3.8
4.0
5%
49%
7.7
- 3.5
4.2
5%
47%
4%
Mean Scores
Importance
7.7
4.0
- 3.7
©2007, Harris Interactive Inc.
Performance
Base: All Respondents (n = 1652)
Q550 Please indicate, using a 10-point scale, how important it is to you personally that the state government deliver on that statement.
Q560 Please indicate how well you think the state government is performing on each of these statements.
HARRIS INTERACTIVE
22
State Government: Nearly two-thirds (64%) of Americans agree that it is
exceptionally important for governments to be responsible for their
spending, but only 9% say they are performing up to these expectations.
Top (9,10)
Mid (3-8)
Bottom (1,2)
Not sure/Decline
The state government is responsible to the public for its spending.
Importance
64%
23%
6% 6%
10 point scale: 10=Extremely important, 1=Not important at all
9%
Performance
50%
32%
9%
10 point scale: 10=Extremely well, 1=Not well at all
0%
20%
40%
60%
80%
100%
The state government is open and honest in its spending practices.
60%
Importance
7%
27%
6%
10 point scale: 10=Extremely important, 1=Not important at all
5%
35%
50%
10%
10 point scale: 10=Extremely well, 1=Not well at all
0%
20%
40%
60%
80%
100%
©2007, Harris Interactive Inc.
Performance
Base: All Respondents (n = 1652)
Q550 Please indicate, using a 10-point scale, how important it is to you personally that the state government deliver on that statement.
Q560 Please indicate how well you think the state government is performing on each of these statements.
HARRIS INTERACTIVE
23
State Government: Half (51%) believe it is very important to be
provided with understandable information, 48% want to educated on
the states’ challenges and 47% want timely reports.
Top (9,10)
Mid (3-8)
Bottom (1,2)
Not sure/Decline
The state government provides timely financial statements and status reports.
Importance
47%
40%
6%
7%
10 point scale: 10=Extremely important, 1=Not important at all
Performance 4%
55%
30%
11%
10 point scale: 10=Extremely well, 1=Not well at all
The state government educates the public on its current challenges.
Importance
48%
39%
7%
6%
10 point scale: 10=Extremely important, 1=Not important at all
5%
58%
29%
9%
Performance
10 point scale: 10=Extremely well, 1=Not well at all
The state provides understandable information about its finances.
Importance
51%
6%
35%
7%
Performance
5%
30%
55%
11%
10 point scale: 10=Extremely well, 1=Not well at all
0%
20%
40%
60%
80%
100%
Base: All Respondents (n = 1652)
Q550 Please indicate, using a 10-point scale, how important it is to you personally that the state government deliver on that statement.
Q560 Please indicate how well you think the state government is performing on each of these statements.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
10 point scale: 10=Extremely important, 1=Not important at all
24
Local Government: The performance gaps are smaller among local
governments’ scores but there is room for improvement in all aspects
of financial management.
Top 2 Box (9,10 on 10 point scale)
Responsible to the
public for spending
Open and honest in
spending
Provides
understandable
financial information
Educated the public
on its current
challenges
Provides timely
finanical statements
62%
12%
57%
7%
8.3
4.7
8.0
4.4
52%
7.8
4.5
7%
50%
7.8
4.6
7%
49%
7%
Mean Scores
Gap
Importance
7.7
4.5
- 3.6
- 3.6
- 3.3
- 3.2
- 3.2
Base: All Respondents (n = 1652)
Q570 Please indicate, using a 10-point scale, how important it is to you personally that the local government deliver on that statement.
Q580 Please indicate how well you think the local government is performing on each of these statements.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Performance
25
Local Government: Three in ten (30%) believe that they are not
exhibiting open and honest spending practices and 28% say they are
not effective at being responsible to the public for their spending.
Top (9,10)
Mid (3-8)
Bottom (1,2)
Not sure/Decline
My local government is responsible to the public for its spending.
62%
Importance
27%
5%
7%
10 point scale: 10=Extremely important, 1=Not important at all
Performance
12%
46%
28%
8%
10 point scale: 10=Extremely well, 1=Not well at all
My local government is open and honest in its spending practices.
57%
Importance
28%
7%
8%
10 point scale: 10=Extremely important, 1=Not important at all
7%
52%
30%
11%
10 point scale: 10=Extremely well, 1=Not well at all
0%
20%
40%
60%
80%
100%
Base: All Respondents (n = 1652)
Q570 Please indicate, using a 10-point scale, how important it is to you personally that the local government deliver on that statement.
Q580 Please indicate how well you think the local government is performing on each of these statements.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Performance
26
Local Government: Half of Americans believe it is very important that
local governments provide understandable (52%) and timely (49%)
information, as well as education on its current challenges (50%).
Top (9,10)
Mid (3-8)
Bottom (1,2)
Not sure/Decline
My local government provides timely financial statements and status reports.
49%
Importance
35%
7%
8%
10 point scale: 10=Extremely important, 1=Not important at all
Performance
7%
54%
28%
12%
10 point scale: 10=Extremely well, 1=Not well at all
My local government educates the public on its current challenges.
Importance
50%
36%
7%
7%
10 point scale: 10=Extremely important, 1=Not important at all
Performance
7%
54%
27%
10%
10 point scale: 10=Extremely well, 1=Not well at all
My local provides understandable information about its finances.
8%
33%
8%
10 point scale: 10=Extremely important, 1=Not important at all
Performance
7%
27%
55%
12%
10 point scale: 10=Extremely well, 1=Not well at all
0%
HARRIS INTERACTIVE
20%
40%
60%
80%
100%
©2007, Harris Interactive Inc.
52%
Importance
Base: All Respondents (n = 1652)
Q570 Please indicate, using a 10-point scale, how important it is to you personally that the local government deliver on that statement
Q580 Please indicate how well you think the local government is performing on each of these
27
statements.
Detailed Findings
©2007, Harris Interactive Inc.
What the Public Wants
HARRIS INTERACTIVE
28
Seven in ten (71%) of those who receive information or believe it is
important to receive information say they would use the info to influence
their vote; half (48%) say they would reach out to a representative.
Influence my voting decision
71%
Contact my representative
48%
Attend a town hall meeting or other
political gathering
28%
I may not do anything, but want to be
informed on my government's financial
management
Other
Nothing/Don't know/Decline to answer
1%
2%
Responses include: letters to the editor,
discussing with family and friends and
passing on the information to others
1%
Base: Get information or important to get info ( n= 1617)
Q520 How would you use information about your government’s financial management? Please select all that apply.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Media publicity
26%
Older, more educated and higher
income individuals as well as
those living in the East are more
likely to say the information might
affect their vote
29
Disclosing understandable information and being honest in reports
are the most effective ways for the government to demonstrate
accountability.
Total
Base
1652
Base
REPORT (NET)
42%
Ask for public opinion
1652
3%
Provide open disclosure of spending
18%
Be responsible
2%
Easy to read/Clear report
7%
Respond to needs of economy/Invest money for social cause
2%
Provide financial reports to the public
6%
Enforce ways to solve problems
1%
Provide access to financial reports
4%
Admit mistakes
1%
Publish reports on a regular basis
3%
Other attitude mentions
2%
Publish quarterly reports
3%
Publish the needs and resolutions to needs
2%
Cut down on unnecessary spending/Don't overspend
9%
Transparency with regard to extra expenses
2%
Publish budgets with expenses against the income
4%
Publish annual report
2%
Better balancing of budget
3%
Publish monthly reports
1%
Independent auditing
3%
Other report mentions
3%
Lower the taxes
2%
28%
Stay within the budget
1%
Be honest
10%
Publish budget
1%
Transparency/Openness
9%
Other financial issues mentions
3%
Do things as promised to the public
4%
ATTITUDE (NET)
FINANCIAL ISSUES (NET)
Base: All Respondents (n = 1652)
21%
©2007, Harris Interactive Inc.
Total
Q590 As a taxpayer, what is the most effective way for a government to demonstrate accountability?
HARRIS INTERACTIVE
30
Around one in ten (7%) Americans mentioned that having information
available on a website would help to show accountability.
Total
Total
Base
INFORMATION (SUBNET)
19%
GENERAL (NET)
12%
13%
Publish reports in a timely manner
3%
Provide information on the website
7%
Punish the responsible politician
1%
Provide detailed financial information
2%
Follow the Constitution/laws
1%
Provide accurate information
2%
News letters/News reports
1%
Other information mentions
2%
Eradicate politics/Corruption/Bureaucracy
1%
Public Meetings
2%
Answer the queries
1%
Communication through e-mail
2%
Other general mentions
4%
Communication through mail
2%
MEDIA (NET)
7%
Keep people informed
1%
Newspaper/Press
5%
Improve communication
1%
Television
2%
Other communication mentions
1%
Other media mentions
2%
Don't know
9%
Refused/Declined to answer
3%
None/Nothing
2%
Base: All Respondents (n = 1652)
©2007, Harris Interactive Inc.
COMMUNICATION (NET)
Q590 As a taxpayer, what is the most effective way for a government to demonstrate accountability?
HARRIS INTERACTIVE
31
Accountability Verbatims
 A 24-7 open-books policy which allows the taxpayer to access and examine
the governments generation of and spending of our tax dollar. This should
be available from general categories of spending right down to individual
line-items, given the individuals level of interest.
 Make available all accounting records. Have an oversight committee to
monitor spending.
 Newspaper reports, make it easy for everyone to find and understand the
way they spend the taxpayer's money.
 Provide a grade card for the public to fill out based on their view of the
government spending. Publish those results to show how well the public
thinks things are going, and then have a program in place to require
improvement
Base: All Respondents (n = 1652)
©2007, Harris Interactive Inc.
 Have information available on website in timely manner.
Q590 As a taxpayer, what is the most effective way for a government to demonstrate accountability?
HARRIS INTERACTIVE
32
Federal Government: One quarter of Americans (23%) say their biggest
concern with the Federal government’s financial management is wasteful
spending and 14% specifically mentioned pork barrel spending.
Total
55%
GENERAL (NET)
27%
Overspending/Wasting money (general)
23%
Federal deficit/debt
7%
Pork barrel spending
14%
Mismanagement
4%
Spending on war
9%
Social security
3%
Healthcare
3%
Public interest not taken care of
2%
Too much spending on defense
3%
Too much political involvement
2%
Overspending on foreign aid/countries
2%
Economy/Employment/Attracting business
1%
Spending on welfare/social causes
2%
Too many people/Too big government
1%
Funds spent on salaries/bonuses
1%
Other general mentions
8%
Education
1%
Spending on illegal immigrants
1%
Spending on infrastructure
1%
Safety
1%
Other expenditure mentions
5%
Republicans are twice as likely as Democrats to
mention pork barrel spending (22% vs. 11%) and
Democrats are seven times more likely to mention
concerns about spending on war (14% vs. 2%)
Base: All Respondents (n = 1652)
Q605 What is your biggest concern about the Federal government’s financial management? Please be as
specific as possible.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
EXPENDITURE (NET)
Total
33
Federal Government (cont): Another 14% mentioned negative
perceptions as their biggest concern about the Federal government.
ATTITUDE (NET)
Total
14%
BUDGET CONCERNS (NET)
5%
Lack of transparency
5%
Lack of balanced budget
2%
Honest
4%
Allocation of funds
1%
Corruption
2%
Other budget mentions
3%
Lack of a responsible/caring attitude
1%
Incompetence/Inefficient
1%
Increasing/High taxes
1%
Fraud
1%
Taxes (unsp)
1%
Other attitude mentions
3%
Other tax mentions
1%
COMMUNICATION/INFORMATION (NET)
7%
None/Nothing
4%
No accountability
6%
Refused/Declined to answer
3%
Other communication/information
1%
Don’t know
3%
TAXES (NET)
4%
Democrats are more likely than Republicans to
mention attitudes as a concern (17% vs. 10%)
Base: All Respondents (n = 1652)
Q605 What is your biggest concern about the Federal government’s financial management? Please be as
specific as possible.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Total
34
Federal Government Concerns Verbatims
 There is no accountability for what they spend the money on and why they
choose to allocate an amount to a certain fund.
 Lawmakers in Washington spend our money without any care or concern.
Many think there is an unlimited checkbook, funded by taxpayers. They
need to control spending and eliminate the national debt!
 There is a lot of information available, but it is scattered through a million
agencies and offices, and no easy way to learn of its existence.
 Overspending and pork barrel spending on useless items to benefit
particular interest groups.
 There is none, financial management that is.
Base: All Respondents (n = 1652)
Q605 What is your biggest concern about the Federal government’s financial management? Please be as
specific as possible.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
 They have no restraint and try to hide their spending in 1000 page
volumes of appropriations bills.
35
State Government: Two in five (40%) mentioned a problem with
spending practices, with one in ten (10%) expressing a specific
concern about educational spending.
Total
Total
EXPENDITURE (NET)
40%
GENERAL (NET)
19%
Overspending/Wasting money (general)
15%
Mismanagement
3%
Education
10%
Economy/Employment/Attracting business
3%
Pork barrel spending
6%
Positive mentions
1%
Healthcare
3%
Too much political involvement
1%
Spending on infrastructure
3%
Lack of development in the local/rural area
1%
Transportation
2%
Environmental affairs
1%
Funds spent on salaries/bonuses
1%
Reliance on gambling revenues
1%
Spending on illegal immigrants
1%
Public interest not taken care of
1%
Spending on welfare/social causes
1%
Not familiar enough/Don't know much about it
1%
Safety
1%
Lack of oversight
1%
Spend more on reducing poverty
1%
Other general mentions
5%
Other expenditure mentions
1%
Graduates of 4-year colleges are more likely than non-grads to
mention educational spending concerns (13% vs. 7%)
Base: All Respondents (n = 1652)
Q610 What is your biggest concern about your state government’s financial management? Please be as
specific as possible.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Base
36
State Government (cont): One in six (16%) cited negative attitudes
as their biggest concern with state governments.
ATTITUDE (NET)
16%
Total
TAXES (NET)
8%
Corruption
3%
Increasing/high taxes
3%
Too much cronyism/favoritism
3%
Property tax
1%
Honest
3%
Taxes (unsp)
1%
Lack of a responsible/caring attitude
3%
Cutting taxes/Tax breaks
1%
Lack of transparency
2%
Other taxes mentions
1%
Internal conflicts/fights
1%
Incompetence/Inefficient
1%
Allocation of funds
2%
Crooks/Idiots
1%
Lack of balanced budget
2%
Other attitude mentions
2%
Lack of funding
1%
8%
Timely budget
1%
No accountability
6%
Other budget concerns mentions
1%
Lack of information
1%
None/Nothing
7%
Other communication/information mentions
1%
Decline to answer/No answer
5%
Don't know
5%
COMMUNICATION/INFORMATION (NET)
BUDGET CONCERNS (NET)
6%
Base: All Respondents (n = 1652)
Q610 What is your biggest concern about your state government’s financial management? Please be as
specific as possible.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Total
37
State Government Concerns Verbatims
 The voters are not being told the whole story. We only get pieces of the
story at various times.
 Mismanagement of funds allocated to schools.
 The same as the Feds. There needs to be an itemized accounting of
spending which includes the person in authority who signed off on the
spending.
Base: All Respondents (n = 1652)
Q610 What is your biggest concern about your state government’s financial management? Please be as
specific as possible.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
 There is also a lot of waste at the state level.
38
Local Government: One third (33%) mentioned an expenditure
concern with 15% mentioning overspending or wasteful spending.
Republicans are more likely than
Democrats to mention expenditure
concerns in general (38% vs. 31%), as
well as wasteful spending (20% vs. 12%)
Local governments’ financial management
had the most positive mentions (4%)
Total
Total
Base
33%
GENERAL (NET)
24%
Overspending/Wasting money (general)
15%
Positive mentions
4%
Education
6%
Economy/Employment/Attracting business
4%
Spending on infrastructure
5%
Public interest not taken care of
3%
Safety
2%
Mismanagement
2%
Spend more on public utility service
2%
Unqualified personnel
1%
Funds spent on salaries/bonuses
1%
Lack of development in the local/rural area
1%
Pork barrel spending
1%
Not familiar enough/Don't know much about it
1%
Transportation
1%
Other general mentions
8%
Healthcare
1%
Spending on illegal immigrants
1%
Other expenditure mentions
2%
Base: All Respondents (n = 1652)
Q615 What is your biggest concern about your local government’s financial management? Please be as
specific as possible.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
EXPENDITURE (NET)
39
Local Government (cont): The image of dishonest and unfair financial
management has the same prevalence at the most localized level.
ATTITUDE (NET)
14%
Total
BUDGET CONCERNS (NET)
5%
Too much cronyism/favoritism
3%
Lack of funding
3%
Honest
3%
Lack of balanced budget
1%
Lack of transparency
2%
Allocation of funds
1%
Corruption
2%
Other budget concerns mentions
Incompetence/Inefficient
1%
TAXES (NET)
5%
Fraud
1%
Property tax
2%
Internal conflicts/fights
1%
Increasing/high taxes
2%
Crooks/Idiots
1%
Taxes (unsp)
1%
Other attitude mentions
1%
Other taxes mentions
1%
COMMUNICATION/INFORMATION (NET)
7%
None/Nothing
9%
Lack of information
3%
Don't know
6%
No accountability
3%
Decline to answer/No answer
5%
Other communication/information mentions
1%
Those aged 55 years or older are twice as likely to mention
communication barriers than 18-35 years old (10% vs. 5%)
*
Base: All Respondents (n = 1652)
Q615 What is your biggest concern about your local government’s financial management? Please be as
specific as possible.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Total
40
Local Government Concerns Verbatims
 They make some decisions too quietly so it is difficult for citizens to play
any kind of active role.
 Lack of information reported to the citizens by media.
 Exactly where are our dollars going, an itemize list of those things.
 Failure to divulge spending and budgets.
 All they can do is raise our taxes and yet never tell us why the increase is
needed.
Base: All Respondents (n = 1652)
Q615 What is your biggest concern about your local government’s financial management? Please be as
specific as possible.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
 Special interests exert pressure on politicians at a local level.
41
Detailed Findings
©2007, Harris Interactive Inc.
Information Categories
HARRIS INTERACTIVE
42
Americans rely on the Federal government for information about health
care and the environment, the state governments for information about
transportation and education and the local governments for safety info.
75%
Health Care
Funding health care coverage and assistance,
funding public health initiatives and programs to
reduce the cost of prescription drugs.
20%
4%
62%
Environment
Funding programs to protect wildlife and
public parks lands as well as promoting
reductions of greenhouse gas emissions.
29%
9%
43%
Economy
35%
22%
Funding programs to encourage job creation
and attract business opportunities.
Federal Government
State Government
Local Government
26%
Transportation
Maintaining, developing, and funding
highways, roads, bridges and public
transportation systems.
58%
15%
19%
Education
57%
Funding public education, building schools
and universities, and providing assistance to
low-income students and their families.
16%
Safety
Supporting programs to build public services such
as police and fire fighting, funding initiatives to
reduce the use of and distribution of illegal drugs.
29%
55%
Base: All Respondents ( n= 1652)
Q600 Of the following, please indicate which one is most important, for you personally, to receive
information on about the government’s financial efforts at the Federal, state and local level.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
24%
43
Detailed Findings
©2007, Harris Interactive Inc.
Information Sources
HARRIS INTERACTIVE
44
Currently, the news and newspapers are the public’s two most commonly
used sources for financial management information. Online, friends and
family, and peers and colleagues comprise the second tier.
57%
58%
58%
59%
Newspaper
Online
33%
32%
32%
31%
32%
32%
Peers and colleagues
Do not get any information
3%
4%
13%
Federal Government
State Government
Local Government
5%
5%
5%
12%
13%
15%
Base: All Respondents ( n= 1652)
Q500 How do you currently get information about your [Federal/state/local] governments’ financial
management?
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Other
6%
9%
9%
Tier 3
Town hall, government meetings
33%
30%
Tier 2
24%
Friends and family
Mail
73%
70%
Tier 1
News
45
Older, more educated and higher income individuals tend to utilize
certain information sources to a greater extent than their respective
counterparts.
FEDERAL
STATE
LOCAL
35+ vs. 18-34 year olds
79% vs. 61%
75% vs. 57%
60% vs. 48%
Some college or more vs. HS or less
76% vs. 59%
73% vs. 52%
60% vs. 41%
35+ vs. 18-34 year olds
64% vs. 44%
64% vs. 42%
65% vs. 45%
$35, 000+ income vs. <$35,000
61% vs. 44%
61% vs. 44%
62% vs. 49%
Males vs. Females
38% vs. 28%
34% vs. 25%
28% vs. 21%
$125,000+ income vs. <$125,000
45% vs. 30%
38% vs. 28%
32% vs. 22%
Some college or more vs. HS or less
36% vs. 20%
32% vs. 18%
26% vs. 16%
5% vs. 2%
15% vs. 7%
News
Newspaper
Online
Town hall or meeting
35+ vs. 18-34 year olds
3% vs. 1%
Females vs. Males
15% vs. 10%
16% vs. 11%
17% vs. 12%
18-34 vs. 35+ year olds
19% vs. 9%
21% vs. 10%
22% vs. 12%
HS or less vs. Some college or more
24% vs. 10%
24% vs. 11%
25% vs. 13%
<$35,000 vs. $35,000+ income
18% vs. 11%
21% vs. 11%
24% vs. 12%
Base: All Respondents ( n= 1652)
Q500 How do you currently get information about your [Federal/state/local] governments’ financial management?
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
Do not get any information
46
©2007, Harris Interactive Inc.
Demographics
HARRIS INTERACTIVE
47
Demographics
Total
Age
Region
HARRIS INTERACTIVE
Male
48%
Female
Race/Ethnicity
White
71%
52%
Hispanic
12%
18 - 19
2%
Black/ African American (Net)
11%
20 - 24
5%
Black
9%
25 - 29
17%
African American
2%
30 - 34
7%
Asian or Pacific Islander
1%
35 - 39
12%
Native American or Alaskan native
1%
40 - 44
7%
Mixed racial background
1%
45 - 49
12%
Other race
1%
50 - 54
8%
Decline to answer
2%
55 - 59
9%
Less than high school
1%
60 - 64
6%
Some high school
1%
65 and over
16%
High school or equivalent (e.g., GED)
16%
East
22%
Some college, but no degree
28%
Midwest
22%
Associate's degree
8%
South
34%
College (e.g., B.A., B.S.)
23%
West
22%
Some graduate school, but no degree
6%
Graduate school (e.g., M.S., M.D., Ph.D.)
17%
Education
©2007, Harris Interactive Inc.
Gender
Total
48
Demographics
Total
Less than $15,000
4%
$15,000 to $24,999
Employment Status
Employed full time
53%
7%
Employed part time
11%
$25,000 to $34,999
9%
Self-employed
10%
$35,000 to $49,999
12%
Not employed, but looking for work
4%
$50,000 to $74,999
19%
Not employed and not looking for work
3%
$75,000 to $99,999
12%
Retired
19%
$100,000 to $124,999
9%
Student
11%
$125,000 to $149,999
5%
Homemaker
9%
$150,000 to $199,999
4%
Republican
26%
$200,000 to $249,999
1%
Democrat
35%
$250,000 or more
2%
Independent
27%
Decline to answer
15%
Other
4%
Not sure
6%
Decline to answer
4%
Political Affiliation
©2007, Harris Interactive Inc.
Income
Total
HARRIS INTERACTIVE
49
©2007, Harris Interactive Inc.
Conclusions & Recommendations
HARRIS INTERACTIVE
50
Conclusions
 Americans want transparent financial management information but are
frustrated with what they are currently receiving across all levels of
government.
>> Providing readily accessible information that is detailed yet understandable will
narrow the expectations gap that currently exists with regard to financial
management reporting for government at all levels.
>> An excellent opportunity exists to leverage the Internet as a means of
communication.
 The public perceives governments to be opaque, not fully open and honest
and careless in their spending practices.
 Increasing availability of financial management information may have some
particularly significant, positive, consequences as it relates to voting
behaviors, increasing trust in government, and peoples’ engagement with their
governments.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
>> Openly circulating complete expenditure information will increase governments’
accountability, in turn, positively enhancing their image among the public.
51
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Interactive
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invited to participate in online surveys, register at
www.harrispollonline.com.
HARRIS INTERACTIVE
©2007, Harris Interactive Inc.
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52