Financial Performance Information and Citizens' Voting Decisions: Evidence from School District Budget Referenda

Abstract

Disclosing financial information to the public is a widespread practice among state and local governments to promote transparency and facilitate informed citizen engagement. Despite its increasing prevalence, little is known about how such disclosure of government financial performance information influences voter behavior. To address this gap, this study examines school district budget referenda and investigates whether and how public disclosure of financial performance affects voter turnout and approval rates. The findings indicate that when a district's low financial performance is publicly disclosed, voter turnout increases, but the share of "yes" votes decreases in subsequent referenda.