The three case examples also demonstrate what can be called the natural evolution of outcome budgeting.
At the experimental stage (Arizona), governments use several types of performance measures (inputs, process, outputs, and outcomes).
Governments at the refinement stage (Texas), increase their use of outcome performance measures and decrease their use of other types.
And at the institutional stage, the use of outcome performance measures dominates and forms the basis for the creation of a quasicontractual relationship in which the accomplishment of agreed upon outcomes is exchanged for increased funding flexibility.