oregon 10-year plan for oregon project boards and commissions briefing
TRANSCRIPT
Oregon10-Year Plan for Oregon ProjectBoards and Commissions Briefing
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1. Common Vision – Develop a common statewide vision for the state’s deliverables now and in the future.
2. Defined Outcomes – Define specific outcomes with clear accountability to Oregon’s citizens.
3. Fiscal Sustainability – Deliver programs and services efficiently within available resources.
4. Innovative Solutions – Prioritize investments in areas of change and innovation.
5. Informed Decision Making – Rely on evidence to inform policy decisions.
Guiding Principles
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10-Year Plan Framework
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Moving from… Moving toward…
2-year budgeting focused on “balancing” the budget
Budgeting inside fiscal constraints to meet long-term outcomes
Funding specific agencies Funding programs designed to achieve outcomes
Unlimited budget requests from agencies Clear limits, expectations, and criteria to focus agency budget proposals
Debating levels of funding Debating the results we want to achieve with state spending
Spending all available revenue Saving and creating fiscal sustainability
Competition for funding between agencies Agencies jointly responsible for program delivery
Disconnected agency performance indicators Success measured by outcome-indicators
Outcome-Based Budgeting Outcomes
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Reframing the 2-Year Budget Cycle
• Principles of outcome-based budgeting:
– Focus budget on achieving outcomes over 10 years through strategic spending and investments.
– Start budget process with amount available to spend.
– Separate the people who recommend budgets from the people who receive the money.
– Make budget decisions based on getting the best measureable results for the money available.
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Proposed Process for 2013–15 GRB Budget
Governor sets target allocation
for outcome areas
Agencies submit requests by
program (base and new)
Program Funding Teams evaluate
and prioritize
Governor receives recommendations
Creation of Governor’s
Recommended Budget
Legislative process ensues
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Finish the Strategic Plan (10-Year Framework)
• Develop the outcomes, indicators and strategies that will guide our work.
• Test the outcomes, indicators and strategies with citizen groups, business leaders and legislators.
• Develop baseline expenditure and revenue projections from which we can model the effects of our strategies.
• Map our current programs to the outcome areas we want to change.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct. 15, 2012
Oct. 15 – Dec. 1, 2012
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Map Programs to Outcome Areas
• Using the results of the collaborative mapping process, a summary of how the current 2011-13 program budgets translate into the new outcome areas will include:
– The names of each program by outcome area.
– The Legislatively Adopted funding level for each program.
– The total amount of resources dedicated to each outcome area in the 2011-13 Legislatively Adopted Budget.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct. 15, 2012
Oct. 15 – Dec. 1, 2012
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Interim Legislative Session
• The Legislature will adjust 2011-13 funding levels for agency programs. This will change the baseline projections for future biennia, and the amount of investment or reduction targets for 2013-15.
Legislative actions will include:
– Macro adjustments to address economic and revenue changes.
– Decisions on the 3.5 percent budget hold-back in the 2011-13 budget.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept.1 – Oct. 15, 2012
Oct. 15, 2012
Oct. 15 – Dec. 1, 2012
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Policy Level Budget Instructions by Outcome Area
• We will host meetings by outcome areas to lay out the direction the Governor wants to take in crafting agency budgets for 2013-15. Meetings will include:
– Guidance on how the outcome area agencies are to work together in developing their 2013-15 proposals.
– Direction on the format agency programs will need to use in presenting to Program Funding Teams.
– A summary of how agency staff, LFO and BAM have mapped current agency programs into the new outcome areas.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept.1 – Oct. 15, 2012
Oct.15, 2012
Oct. 15 – Dec. 1, 2012
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Finalize Budget Instructions
• BAM and agency budget staff will convert February 2012 legislative actions into agency program detail.
• BAM will work with LFO to modify the 10-year expenditure and revenue projections to match actions taken during the February 2012 session.
• Technical budget instructions will be released to agency budget staff.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct.15, 2012
Oct. 15 – Dec. 1, 2012
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Target Macro-Allocation
Education | Economy and Jobs | Healthy People
Improving Government | Healthy Environment | Safety
Target allocation amounts to outcome areas.
Start with baseline expenditure and revenue projections with macro-adjustments to bring the budget into balance.
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Budget Instructions = Request for Proposals
• The Governor will release to agencies the 2013-15 Request for Proposals. Instructions will include:
– Macro-allocations the Governor will use for each Program Funding Team.
– Criteria for how each Program Funding Team will prioritize the program purchases.
– Specific investment or transformation areas the Governor wants agencies to consider as they develop proposals.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct.15, 2012
Oct. 15 – Dec. 1, 2012
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Initial Agency Budget Proposals
• Agencies will develop Round 1 proposals for the outcome area Program Funding Teams.
• Round 1 proposals will be conceptual because final program budget detail will not be available until later in the summer.
• Agencies will work together within outcome areas and with stakeholder groups to develop proposals.
• On June 1, Round 1 proposals are due to the Program Funding Teams.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct. 15, 2012
Oct. 15 – Dec. 1, 2012
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• Ideal candidates have the following qualities:
– Expertise and experience in policies of the outcome areas
– Financial independence from the budget process (they don’t currently work for a service provider or have oversight responsibility for one)
– Inclusiveness and understanding of the diversity of Oregonians
– Willingness to commit a significant amount of time in the summer and fall of 2012 (month of June and September 1-October 15)
Membership of Program Funding Teams
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• Led by Governor’s Policy Advisor(s) and staffed by BAM Analyst(s)
• Five member teams organized by outcome area
– Education
– Healthy People
– Economy & Jobs
– Healthy Environment
– Safety
Organization of Program Funding Teams
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• Rate and rank agency programs against pre-determined criteria particularly as it relates to the priorities for accomplishing the strategies of the 10-Year Plan
• Consider funding streams for programs once rated & ranked to inform recommendations
• Make recommendations to the Governor about what should (and should not) be funded in his 2013-2015 budget
• Make other recommendations as appropriate to improve how government operates
Purpose of Program Funding Teams
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Initial Proposal Review• Program Funding Teams will review proposals and provide
feedback to agencies on necessary refinements.
– Program Funding Teams will be led by a Governor’s Policy Advisor or designee, and will include individuals not directly associated with the proposing agencies.
– Program Funding Teams will review proposals to make sure the proposal:
Provides evidence the program affects the desired outcome.
Provides measures to demonstrate performance.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct. 15, 2012
Oct. 15 – Dec. 1, 2012
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Proposal Review
Program Funding Teams$100 M
Cross-Agency, Program 1 ---- $75M RECOMMENDED TO FUND Agency A, Program 2 ---------- $15 M
Agency B, Program 1 ---------- $10 M---------------------------------------------------------------------------------------------------------------------NOT RECOMMENDED TO FUND Agency A, Program 1 ---------- $25 M
Governor’s Final Decisions
Governor’s Recommended Budget (GRB)
Agency A, Program 1$25 M
Agency A, Program 2$15 M
Agency B, Program 1$10 M
Cross-Agency, Program 1$75 M
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Program Funding Teams Feedback
• Program Funding Teams will provide initial feedback on proposals, including:
– Areas that need additional refinement or evidence to bolster the proposal.
– Guidance on connecting with state program areas that may not traditionally work together.
– Guidance on connecting with other stakeholder groups that may need to be included in the proposal.
• Program Funding Team feedback on Round 1 will be provided to all agencies no later than July 1.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct.15, 2012
Oct. 15 – Dec. 1, 2012
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Finalize Proposals
• Agencies will finalize their funding proposals.
– Agencies will revise their proposals as necessary to meet Program Funding Team expectations.
– Agency budget staff will finalize budget detail for each program within the outcome area.
– By September 1, Round 2 proposals are due to the Program Funding Teams.
– Round 2 proposals will become the Agency Request Budget for 2013-15.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct. 15, 2012
Oct. 15 – Dec. 1, 2012
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Role of Boards and Commissions in ARB
• Not Changing: – Boards and Commissions develop Agency
Request Budgets (ARB).– ARB’s are due in late August.
• What’s Changing: – Limited General and Lottery Funds requests.– Funding Teams review concepts in June, provide
advisory feedback to Boards and Commissions.
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Program Funding Team Recommendations
• Program Funding Teams will complete their analysis and make recommendations to the Governor.
– BAM analysts will provide support and analysis to the Program Funding Teams as necessary.
– Agency staff will provide analysis and insight into their proposals.
– Program Funding Teams will prioritize agency proposals based on outcome-area criteria and the long-term strategies necessary to achieve the 10-year outcomes.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct.15, 2012
Oct. 15 – Dec. 1, 2012
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Program Funding Team Recommendations
• Program Funding Teams will provide recommendations to the Governor by October 15.
– Recommendations will include what should (and should not) receive funding in the 2013-15 budget cycle.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct. 15, 2012
Oct. 15 – Dec. 1, 2012
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Governor’s Recommended Budget (GRB)
• Governor to make final budget decisions on his recommended budget taking into consideration the Program Funding Teams’ recommendations, the most recent revenue forecast and any initiatives passed by voters in November 2012.
• BAM will convert the Governor’s decisions into the Recommended Budget and agency appropriation bills.
• GRB released Dec. 1, 2012.
TimelineDecember 2011
January 2012
February 2012
March 2012
March – June 1, 2012
June 1 – July 1, 2012
July 1 – August 31, 2012
Sept. 1 – Oct. 15, 2012
Oct.15, 2012
Oct. 15 – Dec. 1, 2012
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• For more information about the 10-Year Plan for Oregon project, contact:
– Sarah Miller, Project Manager, 503-378-4336
– Steve Marks, Policy Advisor, 503-378-8652
Questions?