1.) Productivity is defined as the relationship between resources used and results obtained¹. Improvement in this area means either achieving more and better program results from a given level of resources, or using fewer resources to maintain or improve a certain level of results. The federal government has a vital interest in improving the productivity of state and local governments for two primary reasons: (1) the national economy is strengthened by improving the productivity and fiscal outlook of this key sector; and (2) the effectiveness and efficiency of the multitude of federal grant and regulatory programs using state and local governments to implement federal policies are directly related to the management capacity of those governments². State and local government productivity is lower than it could be. , resulting in higher costs and/or lower utility levels. State and local government operations do not have a profit incentive to improve productivity as is the case in the private sector. However, substantial financial and performance benefits have been achieved through innovative state and local governments that have initiated productivity improvement programs. Productivity improvement has been used as a strategy to alleviate the increasing budgetary pressures facing state and local governments, but most state and local governments do not have meaningful and comprehensive productivity improvement programs. . Key barriers preventing or limiting national and local improvement programs include internal resistance, the large initial investment required to start a program, and limited capacity of organizational systems. The federal government's biggest impact on state and local productivity...... middle of article...... expand. Works Cited Florida Center for Public Management. (2006, September). Is productivity more than a slogan in your organization? www.fcpm.fsu.edu.2 Statistics, Elmer. (1978). Improving state and local productivity: what is the role of the federal government? GGD-78-104. Washington. http://archive.gao.gov/f0902c/107983.pdf.3 Milakovich, Michael E. and George J. Gordon. “Performance management in the public sector”. Public administration in America. Tenth ed. Boston: Clark Baxter, 2009. 468-469. Print.4 Stevenson, Richard W. "The Nation; Breaking Up is Hard. Merging is Harder..." New York Times June 23, 2002: 1. Review of the Week. Internet. November 18, 2011.5 Landay, Johnathan S. and Shannon McCaffrey. "Chertoff delayed federal response, memo shows." Common dreams. Np, September 14, 2005. Web. November 18. 2011. .