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Relating Levels of Funding to Performance. Dr. Richard Beck Director, Planning and Performance Management. Expectations under Budget and Performance Integration. Performance is a factor in planning:
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Relating Levels of Funding to Performance Dr. Richard Beck Director, Planning and Performance Management
Expectations under Budget and Performance Integration • Performance is a factor in planning: • performance (actual and planned) is considered when determining the funding levels requested in the budget • the performance resulting from the application of funding can be estimated and then tracked • A per unit-produced funding estimate can be calculated to describe the value of achieving a result which can be used to • estimate the potential result of adding/subtracting an increment of funding • indicate possible increases or decreases in efficiency when tracked over time • The increment of funding needed to produce an incremental change in the level of a performance measure target can be estimated to within +/- 10%
Benefits of Budget and Performance Integration • This approach can be useful for developing a broader understanding of the size and range of investments needed to conduct certain types of government programs relative to expectations • it is not meant to replace the need for detailed project or unit specific funding estimates and rationale • Calibrate or place the funding estimates for individual projects in a broader “policy” context • provide an alternate perspective by which to judge the validity of the amount of funding requested • Provides a range of funding around an “median” that can help develop a better understanding as to: • why the amount of funding requested is appropriate for a project, unit, or activity • the factors that drive two similar-looking projects or activities to require different levels of funding (e.g. different costs associated with different local factors or different aspects of the effort – for wildland fire manual vs mechanical)
End Outcome Goal (measure targets specify what is expected to be achieved by the end of the CY) End Outcome Measure Targets for BY+ ? Budget Estimates for BY (defines what funding is needed in BY) ABC/M Data for CY (updated quarterly) Budget Request for BY Includes: Funding Estimates for BY & End Outcome Measure Targets for BY & Implications for End Outcome Measure Targets > BY Start of CY (BY now becomes current CY) CY = current fiscal year BY = budget year
Example: Potential Indicators of Cost Per Unit of Performance