PROGRAMMATIC PERFORMANCE MEASURE BUDGETING

1. PROGRAMMATIC PERFORMANCE MEASURE BUDGETING KICK-OFF MEETINGS: January 28, 2019 February 4, 2019

2. A New Budget Construct FY 2023 and Beyond

3. Agenda • Opening Remarks – Adam Greshin • What is PPMB & Where We Are –Sue Zeller • Next Steps– Matt Riven • Q&A – All

4. What Is PPMB?Where Are We?

5. What is Programmatic Performance-Based Budgeting? A way to allocate resources to achieve specific objectives based on program goals and measured results. Programmatic Performance-Based Budgeting specifically links the funding and expenditures of public sector organizations/units to the results they deliver and outcomes they are trying to achieve, making systematic use of performance information in the process.

7. PROGRAMMATIC PERFORMANCE MEASURE BUDGETING • Performance Management (CI) answers: How much did we do; How well did we do it; and Is anyone is better off? • Linking the budget and actual costs to the Programs and Service Domains we measure, answers what the value proposition is - per client or per type of service. • Example: Do we spend the same % of budget on Housing Stability, as other states for similar results? If not – how might we improve our results and right-size our investment? • Allow for data-driven decision making and improved results.

8. Advantages • Provide legislators with helpful background on the purposes of state-funded programs and the results they achieve. • Help explain the impact of previous legislative funding decisions. • Aid with estimating and justifying the potential consequences of new funding decisions. • Provide deeper legislative understanding of agency activities. • Have the potential to communicate what is received in return for the investment of tax dollars. • Assist agency personnel and policymakers in understanding program effectiveness. • Provide a way to look at impact beyond division or department.

9. Three Major Elements • Information on outcomes, results and performance • A program classification • A budget process designed to facilitate the use of this information in funding decisions

10. The 2014 law known as "Act 186: The Outcomes Bill” established a framework for understanding and reporting on outcome, results and measures. Accountability and Performance Measurement

11. Service Domain, Program, Activity (SPA) Inventory

12. SPA Matrix

13. Outcomes drive Strategies, Domains and Programs

14. FY20Budget Instructions

15. Critical Questions That Need to be Answered

16. Next Steps

17. Programs - Blue Team 1 Data Visualization – Red Team Budget & Accounting – Orange Team Sponsor Susan Zeller Members 6-8 Deliverables Program definition List of programs Finalize service domains and program linkages Sponsor Andrew Laing Members 6-8 Deliverables Data visualization and reporting system • Sponsor • Matt Riven • Members • 6-8 • Deliverables • Current state of Vision/Vantage • Technical details for budgeting and accounting by program and service domain Collaborative Discussions How hard is it to account by program? How might we deal with admin/overhead? What’s the implementation plan for FY21 and who’s responsible for what?

18. Questions?

19. Want to get involved? Blue Team – Programs and Service Domains Sue Zeller Agency of Administration Susan.Zeller@Vermont.gov Orange Team – Budgeting and Accounting Matt Riven Department of Finance and Management Matt.Riven@Vermont.gov Red Team – Data Visualization Andrew Laing Agency of digital Services Andrew.Laing@Vermont.gov Link to slide deck: https://spotlight.vermont.gov/sites/spotlight/files/Performance/PPMB/NewBudgetConstruct-ExpandedTeam.pdf