Constructing a fuzzy-knowledge-based- system: an application for assessing the financial condition of public schools

Financial evaluation in the public sector can utilize some of the tools developed for evaluation in the private sector. However, the emphasis on the bottom line characterized by productivity measures does not adequately address all of the issues faced by public institutions. Recent collaborations by researchers in management science and public administration have led to the successful development of an analytical approach that combines fuzzy set theory and knowledge based systems to produce a tool for evaluating the general performance of public institutions. Successful implementations have included evaluations of the management of state governments, the financial administration of large cities, and the credit worthiness of public institutions. This paper describes a recent collaborative project, funded by the State of New York, to develop a system to evaluate the financial condition of the state's nearly 700 school districts. (C) 2004 Elsevier Ltd. All rights reserved.