An Integrated Valuation Framework for Estimating ROI in Public Services: The Case of Public Libraries in Kansas

Public sector leaders are increasingly expected to justify public investment with evidence that is credible to external stakeholders and useful for internal management. Yet ROI (Return On Investment) estimates based largely on spending impacts can understate value, while estimates based only on stated-preference (willingness to pay) surveys can face legitimacy concerns and uncertainty. This article proposes and applies an integrated valuation framework for estimating ROI in public services, using public libraries in Kansas as a case, to combine three measurement logics: market-analogue pricing for services with defensible commercial substitutes, contingent valuation to estimate diffused social benefits not well measured by market comparators, and local economic impact estimation that focuses on net effects rather than gross spending. The framework is designed to support administrative decision-making by making valuation boundaries transparent and by linking each component to a distinct pathway of public value relevant to budgeting, evaluation, and service planning. We illustrate its application in the public library setting and show that the integrated framework offers a replicable, management-relevant approach to producing defensible ROI estimates for public services.