Changes in performance-based budgeting system (performance budgeting) that pro-motes community participation, provide an important role in Parliament as represen-tatives of the people drafting process, in accordance with Law no. 17 of 2003 on StateFinance. Implementation of the people's rights in the budget can be realized in com-munity involvement in participatory planningand budgeting process. This study aimsto (1) to know legislators understanding in Batu City and its implementation to thefunction of budgeting, (2) to evaluate the performance of budgeting in Batu City.Using a qualitative approach, results of this study are: (1) Legislators' understandingin Batu City tend to function as a means of budgeting “bargain” with local govern-ment, and lack of touch on the substance to the public welfare, (2)Parliament hasused “Alat Kelengkapan Dewan” associated with the budgeting of the “BadanAnggaran”, frequently board members's budget is more than the amount of budgetapproved by the municipal government of Batu City. But this condition still happenedbecause the government afraid of the revenue and expenditure budget (APBD) notapproved by parliament.