Budgeting 2.0 What’s Best for Your Entity!

1. Budgeting 2.0What’s Best for Your Entity! Priority Based Budgeting Malisa Files City of Redmond, WA mfiles@redmond.gov

2. City of Redmond, WABudgeting by Priorities (BP) • Budgeting by Priorities (www.redmond.gov/bp ) • Started in Redmond in 2008 (for the 2009-2010 budget) • Just finished 3rd cycle • We do biennial budgets in Redmond • Started by new mayor with strong support from city council • Challenge was to gain support from other leaders in city (e.g. department heads) • Started in response to concerns about “black box” budgeting& • Lack of cooperation between mayor and council on budget • Includes all funds, operations and capital • It takes essentially all year to do! • Based on “The Price of Government”, Hucthinson & Osborne

3. City of Redmond, WABudgeting by Priorities (BP) • Budgeting by Priorities • City established six “broad goal” prioritiesthrough community forums. • These serve as the “north star” for budget and results focus • Cross organizational staff teams (with citizen participation) develop strategies that “move the dial” on these priorities • This responds to a “dash board” of 22 measures (developed independently) • The strategies are the basis for budget program evaluation by the staff teams • The budget proposals are ranked as to how directly they align with the strategies • Budget proposals must have results oriented measures that illustrate intended outcomes of the program • Staff teams rank each proposal and submit ranking and scale recommendations • Mayor proposes a budget that illustrates how programs achieve results that pursue the community’s priorities

4. Planning by priorities • 2013-2014 Priorities • Business Community • Clean and Green Environment • Community Building • Infrastructure and Growth • Safety • Responsible Government I want to be safe where I live, learn, work and play. (Safe City) Topics include: police, fire, emergency services, emergency preparedness, lighting, school safety, building safety and traffic/pedestrian safety.

5. Budget by priorities – strategy map See budget offer: www.redmond.gov/bp Page 270

6. Budget Offers as ranked by team See budget offer summary: www.redmond.gov/bp Page 271

7. Dashboard measure for Safety priority

8. Dashboard measure for Safety priority Performance Management and Budget

9. Department Example From Council Briefing

10. Department Example – Police Communications Budget Offer See budget offer: www.redmond.gov/bp Page 288 High Level Program Level

11. Department Example – Police Records Budget Offer See budget offer: www.redmond.gov/bp Page 310 In this example, we began tracking responsiveness to public records requests in 2011 and found that we are well below our target goal. Prompted question from councilmember – “what would it take to make progress on this measure?”

12. Benefits / Challenges with Priority Budgeting • Benefits: • Clearly focused on community issues • Organized around organization priorities • Transparent • Cross organizational • Learning • “Decision making” • Results oriented • Connected to organizational strategies to purse community priorities

13. Benefits / Challenges with Priority Budgeting • Challenges: • Time consuming • Complicated • Must be able to translate easily from priority construct to traditional construct • Transparent • Requires buy-in • From the top • From the stakeholders who might feel threatened

14. Summing Up • Priority based budgeting is about a lot more than budget • Deep connection to community • Results oriented • Organizational learning • Good conversations in non-traditional sense