The Effect of Good Governance Dimensions on School Budget Performance

Good Governance has become a hot discussion in the last two decades. The concept of good governance is expected to increase the competitiveness of schools to produce quality students. At the same time, schools face challenges in budget management. Sources of school funding from various parties, for example, the community (students), the government, and donors create challenges for accountability. This study aims to 1) examine the effect of good governance practices on school budget performance. The principle of good governance is seen as being able to control the performance of school management which is observed from its budget performance. The results showed that the three dimensions of good governance observed positively affected school budget performance. The three dimensions are accountability, participation, and transparency. The findings of this study are strategic because the dynamics of governance in schools have not been studied entirely and specifically refer to budget management oriented toward learning. This research bridges three aspects such as the principles of good governance, strategic elements of organizational leadership, and school budget performance. This finding can be a reference for policymakers to establish strategies to provide corridors for schools to achieve good budget performance. The corridor, of course, refers to the principles of good governance.