Book excerpt: This report follows an earlier AASHTO report for the National Surface Transportation Policy and Revenue Study Commission (the Commission) entitled State DOT Performance Management Programs: Select Examples, published in June 2007. It examined performance-based surface transportation program approaches currently being implemented at some of the state DOTs around the country. Building on that primer, this report describes the basic principles involved in applying performance measurement to the state budgeting and program delivery process, and profiles how 11 states have applied these principles to improve performance and accountability.