Glossary
Participatory budgeting (PB)
A process where community members directly decide how to spend a defined portion of a public budget.
Also called: PB
Participatory budgeting is a process in which residents propose and vote on how to spend a defined portion of a public budget, a city, school district, or agency's discretionary funds, rather than leaving that allocation entirely to elected officials and administrators. The practice began as a municipal experiment and has since spread to cities and institutions in many countries.
A typical cycle runs through idea collection from residents, project development with agency staff to check feasibility and cost, a public vote, sometimes in person and sometimes online, to select winning projects, and then implementation. The analytics role is tracking proposal volume and voter turnout across neighborhoods or census tracts to check whether participation is representative of the population, and afterward monitoring whether funded projects were actually delivered, which overlaps with ordinary program evaluation. It differs from performance budgeting, which ties funding to measured program performance rather than to direct resident votes, and is often built on a simple logic model linking a proposed project to its intended community benefit.
Proponents cite gains in civic trust and better-targeted local spending, and some jurisdictions publish results as open data. The main pitfall is representativeness: participation skews toward residents who are older, wealthier, or more digitally connected unless outreach is deliberate, and the process typically governs only a small fraction of the total budget.
Last reviewed September 22, 2026