Beating the Clock: Strategic Management under the Threat of Direct Democracy

Abstract

This article explores public sector responsiveness to voter-led initiatives, specifically, the degree to which public managers attempt to lock in resources before they are constrained by a particular initiative. The authors posit that such behavior, which they term "beating the clock," is a function of the potential impact of the proposed initiative, the degree to which managers can react to the initiative's central issues, and the perceived likelihood of passage. Although scholars have explored different responses to voter-led initiatives, this particular form of strategic behavior has yet to be studied. Using longitudinal data on public debt issuance, hypotheses are tested in the context of a reform proposed through the initiative process in Colorado in 2010. Results show that the number of debt issues increased by roughly 150 percent in advance of a potentially binding election, indicating the ability to preempt formal initiative efforts in certain policy areas. © 2012 by The American Society for Public Administration.