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Poster #14 - Does Civic Engagement Shape Public Spending? Evidence from the Community Development Block Grant Allocation Decisions

Friday, November 6, 5:00 to 6:30pm, Property: Boston Marriott Copley Place, Room: Salon EFG

Abstract

How do participatory governance processes shape public policy outcomes? This study investigates whether and how modes of civic engagement influence the allocation of federal community development resources under the Community Development Block Grant (CDBG) program. While participatory mechanisms are widely promoted to improve accountability and responsiveness in public decision-making, there remains limited empirical evidence on whether these processes meaningfully affect distributive policy outcomes. This study addresses this gap by analyzing the relationship between civic engagement structures and the allocation of CDBG funds across competing policy priorities. Grounded in the stakeholder theory, the study conceptualizes CDBG allocation decisions as outcomes of competing stakeholder influences, where the configuration of civic engagement determines whose preferences are incorporated into policy decisions. The central question asks: Do differences in civic engagement configurations systematically influence the distribution of public resources towards community-serving versus growth-oriented policy categories? This is tested using two hypotheses. First, cities with more extensive and interactive civic engagement processes are expected to allocate a greater share of funds to community-serving categories – such as housing, homelessness services, and public and social services – that directly benefit low-and moderate-income populations. Second, cities with institutionalized participation mechanisms, such as formal advisory committees, are expected to exhibit stronger alignment with community-serving priorities due to their more structured incorporation of citizen input. The study employs quantitative panel design using city-level data from Texas CDBG entitlement jurisdictions and covers program years from 2021 to 2024. Preliminary results show that indeed modes of civic engagement influence CDBG allocations across competing policy categories. The contribution of this study lies in the broader debates in public policy on governance, equity, and state responsiveness. The findings have implications for the design and implementation of federal grant programs and local participation requirements: they suggest that the structure and not just the presence of civic engagement may play a critical role in shaping distributive equity. It also provides the framework to evaluate participatory governance in other policy contexts to advance our understanding of when and how citizen participation translates into meaningful policy change.

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