Transparency and Fiscal Responsibility : Traditional Critics vs. Participatory Budgeting

In the recessionary years following the 2008 financial crisis, prominent voices predicted an imminent crisis in state and municipal finances. The voices – including those of Bill Gates; Josh Ruah; Meredith Whitney; Paul Volcker; and Richard Ravitch – implied that the road to fiscal responsibility lies in reining in the pensions and benefits of public servants. We argue that by painting public employees as the villains, these voices are inserting divisiveness in what should be a universal goal of sound public finances. Instead, we suggest that the road to fiscal responsibility lies with budgetary transparency and widespread public knowledge of state and municipal finances. A key to achieving these objectives is the movement towards participatory budgeting