more than the mean number of voluntary policy councils in a given year and “0” if it does not.<sup>5</sup> The second indicator records whether a municipality has greater than one standard deviation above the mean voluntary council presence and 0 if it does not. Of these observations, 14% are coded “1” and 86% are coded “0”. The third variable records whether municipalities have a mean or greater than mean-level of councils that do carry federal funds with them. Finally, we record the percentage of voluntary councils, out a possible total of 17. The mean percentage is 35 and the standard deviation is 21.

# _Participatory Budgeting (PB), Years PB has been in place_

We updated Boulding and Wampler’s (2008) original database of PB for all Brazilian municipalities with at least 100,000 residents (N = 253). Our information on the adoption of PB programs comes from similar sources as theirs: surveys of Brazilian officials, a non-governmental organization’s records, and secondary sources for the 1989–2016 period (Spada et al. 2016; Wampler and Touchton 2017; Spada et al. 2012; Torres and Grazia 2003; Wampler and Avritzer 2008). We begin with a dichotomous measure, but also move beyond a simple distinction between whether municipalities do or do not adopt PB to capture the significant variation that exists in the quality of participatory budgeting programs (Avritzer and Navarro 2003; Goldfrank 2007; Nylen 2003; Wampler 2007). Our data set records the number of years PB has been used in a municipality- some municipalities have used PB for 20 years where it has become an institution that anchors the budgeting process. In contrast, other municipalities have yet to adopt the policy or have recently adopted it and are still experimenting with its configuration. During 1989–2016, 138 municipalities in our data set adopted a participatory budgeting program for at least four years, although some adopted PB for the entire 20-year period. Accounting for this variation allows us to determine whether a longer experience with PB influences any relationship it has with tax outcomes. We recorded a 0 for municipalities that had not adopted PB during each four-year timeframe between 1989 and 2016 and a 1 for those that had. Some cities in our sample adopted PB and then eliminated it after a few years. These cities’ scores reverted to 0 and began anew with 1, in the event they re-adopted PB as a policy later in the timeframe our data cover.<sup>6</sup> We select municipalities with more than 100,000 residents because they are representative of the average Brazilian citizen’s experience with governance. By 2010, 85% of Brazil’s population lived in urban areas and the overwhelming majority 5 The source surveys we use do not always include the same question for each year. We assume municipalities maintained their policy councils through the mayoral administration when the survey question was originally asked in the absence of countervailing evidence. This assumption aligns with survey responses in our data set where only 3% of municipalities eliminated a policy council during the same mayoral administration.

6 There are approximately 3% of cases in our data set where a municipality adopted participatory budgeting, abandoned it and then adopted it again.

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