Fiscal Bureaucrats: Shaping Public Finance and Service Delivery in Education and Beyond

• In Event: 40860 - Section on Economic Sociology Roundtables
  In Refereed Roundtable (60 minute): Table 8. Fiscal regimes

Abstract

This paper introduces and examines the crucial yet understudied role of "fiscal bureaucrats" in public sector organizations—professionals who serve as key intermediaries between policymakers, street-level bureaucrats, and citizens in managing and implementing public finances. Despite the enormous scale of public spending in the U.S. ($6.9 trillion in FY2024, with 90% allocated to public programs), we know surprisingly little about how these financial resources are transformed into tangible social outcomes.

Using K-12 education as a critical case study, where federal funding reached $125 billion in FY2022 plus an additional $190 billion in COVID relief, this research investigates how fiscal bureaucrats in central offices shape resource allocation and, ultimately, student outcomes. While extensive research exists on teachers, principals, and superintendents, the crucial role of fiscal bureaucrats in educational resource management remains largely invisible to scholars.

This study advances organizational and economic sociology by examining three key dimensions: (1) the micro-level dynamics of resource allocation within public organizations, (2) the interplay between formal rules and informal practices in budget processes, and (3) the exercise of discretion in the "grey area" of public finance. By focusing on these understudied bureaucratic actors, we illuminate how organizational structures and practices mediate the relationship between public funding and social outcomes.

The research contributes to sociological understanding by revealing the "black box" of public finance implementation, offering new insights into how organizational processes and human agency shape the distribution of public resources. This work has important implications for theories of organizational behavior, institutional change, and social equity in public service delivery, while also providing practical insights for policy implementation and organizational design.

Author

• Sandra Okonofua, Yale University