Budgeting for Outcomes Identifying Top Priority Programs

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!