budgeting for outcomes identifying top priority programs
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Budgeting for Outcomes Identifying Top Priority Programs. From My Vantage Point…. Financial Planning Tool Legal Document Managerial-Operational Guide Communication Device-To Lots of People Public Policy-Statement of Priorities. Value Judgments. Common Types of Budgeting. - PowerPoint PPT PresentationTRANSCRIPT
Budgeting for Outcomes
Identifying Top Priority Programs
Financial Planning Tool Legal Document Managerial-Operational Guide Communication Device-To Lots of People Public Policy-Statement of Priorities
From My Vantage Point…
• Line-Item Budgeting-Lists Detailed Expenditure Categories• Program Budgeting-Focused on Program’s Objectives• Performance Budgeting-Focused on
Efficiency/Effectiveness• Zero-Based Budgeting-All Expenditures to be Justified
Each New Period
Common Types of Budgeting
•More Restrictive Financial Environment•Vulnerable to Periodic Shocks
Going Forward…
Look in the Mirror and What Do You See?
Adjusting our Focus
Previous Approach New Approach
Approach Incremental Outcome Oriented
Focus Add/Subtract Identify Outcomes and Develop Strategies
Submission Justification of needs Operating Plan with results to be achieved for a cost
Performance Focus Budget numbers and workload indicators
Organizational Effectiveness and Efficiencies
Leader’s Role Choose cuts/additions Choose Priorities/Results
Outcome Reactive Approach Proactive Approach
• Line-Item Budgeting-Lists Detailed Expenditure Categories
• Program Budgeting-Focused on Program’s Objectives• Performance Budgeting-Focused on
Efficiency/Effectiveness• Zero-Based Budgeting-All Expenditures to be Justified
Each New Period
• Priority-Based Budgeting
Common Types of Budgeting
Jeff-What’s So New About Priority Driven Budgeting?
•Possible to do Annually•Creates Structure for Linking Spending to Outcomes•Logical Method for Prioritizing Programs•Identifies “Trade-Offs”•Avoids Gimmicks (Across-the-Board Cuts)•Promotes Innovation
Two Simple Questions to Ask Ourselves…
1. What is the acceptable price of government?
2. What matters most to our citizens?
What is Acceptable
Price?
What are the Priorities?
What is Acceptable
Price?
•What is the Tax Burden?• Sales Tax• Property Tax• Overlapping
•Fees for Service• Utility Rates• User Charges
What are the Priorities?
•Goals and Objectives•Establish Outcomes•Costing of Services•Measure Effectiveness
What is Acceptable
Price?
What are the Priorities?
•Constituent Contact•Surveys•Focus Groups•Interactive Exercises
Reaching Out…
Need to Establish Some Roles
Elected Body
City Staff
What is Acceptable
Price?
What are the Priorities?
Need to Create a Marketplace
Buyers
Sellers
The Steps to Success…
•Set the Price for Government
•Determine Priorities/Results
•Identify Strategies
•Agree on Progress Measures
•Take Offers
•Allocate Resources
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FY 2012 Spending PlanKey Themes
• Economic Development
• Invest in Workforce
• Preserve Existing Assets Strengthen Our Neighborhoods
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Strengthening our Neighborhoods
Safety and Security
Maintain Standards
Focus on Local Improvements
Public Awareness
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Strengthening our Neighborhoods
Safety and Security
Maintain Standards
Focus on Local Improvements
Public Awareness
•Community Works Program-$1.0 million•Residential Street Overlay-$1.5 million•Park Playground Improvements-$500,000•Neighborhood Grant Program-$100,000
•Block Watch Program - $100,000•Community Policing - ???
•Promotion Efforts - $340,000 •Code Compliance-$450,000•N’hood Stabilization-$1.0 million•N’hood Pride Pgm-$100,000
Look in the Mirror and What Do You See?
Questions to Ask Ourselves
1. What is the acceptable price of government?
2. What matters most to our citizens?3. How do we know if we were effective?
Measure Estimate
Workload IndicatorsNumber of Police Priority Calls
33,946Number of Lane Miles Maintained 548Revenue Generated-Adult Sports Program
$420,000
City Services-Are We Effective?
Measure Estimate
Workload IndicatorsNumber of Police Priority Calls
33,946Number of Lane Miles Maintained 548Revenue Generated-Adult Sports Program
$420,000
Performance MeasuresResponse Time-Priority I Calls 7.05
MinutesCost per Lane Mile
$42,506Adult Sports Cost Recovery 55%
City Services-Are We Effective?
Peoria’s FY 2012 Budget Approach
•Be Strategic•Engage the Organization•Not All Services “Created Equal”• How Much Does it Cost?• What’s the Acceptable Service Level
•Performance Matters•Frank Fee Facts•Preserving Our Assets•Continual Updates to Leadership• Financial• CIP• Performance
Staff Being Strategic…
Ask Yourself…
What are our Priorities?
Council GoalsOrganizational Strategic
PlanCitizen Survey
Legal RequirementsGeneral/Master Plans
Financial RealityWorkforce Considerations
What is our Game Plan?
Mission/VisionAlignment with Priorities
Key FunctionsCosting of Services
Assessment of ConditionsOutcomes, Goals and
Objectives
How are we Doing?
Performance ManagementDevelop Outcome Measures
Verify and Validate DataTrack Performance
Use Data to Make Decisions
Our FY 2012 Budget Approach
•Be Strategic•Engage the Organization•Not All Services “Created Equal”• How Much Does it Cost?• What’s the Acceptable Service Level
•Performance Matters•Frank Fee Facts•Preserving Our Assets•Continual Updates to Leadership• Financial• CIP• Performance
Thank You!