Following the Money

2010-04-13

Executive Summary

The ability to see how government uses the public purse is fundamental to democracy. Spending transparency checks corruption, bolsters public confidence in government, and promotes fiscal responsibility.
In the private sector, Internet search technology has revolutionized the accessibility and transparency of information.
We take for granted the ability to track deliveries online, to check cell phone minutes and compare real estate on the Web,
and even to summon—at the click of a mouse—satellite and street-level views of any address. But until recently, when
it came to tracking government expenditures online, we were left in the dark.
State governments across the country are changing that. At least 32 states currently mandate that residents be able to
access an online database of government expenditures with “checkbook-level” detail. Most of these Web sites are also
searchable, making it easier for residents to follow the money and monitor government spending.
This report evaluates states’ progress toward “Transparency 2.0”—a new standard of comprehensive, one-stop, one-click
budget accountability and accessibility. At least 7 states have become leaders in the drive toward Transparency 2.0, launching
easy-to-use, searchable Web sites with a wide range of spending transparency information.
Twenty-five additional states have made initial steps toward online spending transparency by launching Web sites with
checkbook-level detail on state spending that nonetheless have much room for improvement.
These Transparency 2.0 states are beginning to reap the benefits of transparency in greater government accountability
and cost savings. The remaining states should join the ranks of Transparency 2.0 states by providing their budget information
online in an accessible manner. All states should look to expand and improve their transparency Web sites to provide more and better information to citizens.