Week 14: Performance Budgeting: Best Practices

1. Week 14: Performance Budgeting: Best Practices • Set BCP presentation schedule • Review performance measurement concepts • examples from memo assignments • examples from CSUS planning process • Performance budgeting -- best practices sites • In-class exercises on performance measures and links to budgets--in your agencies (time permitting)

2. Performance Measurement Concepts • Clarify the differences among: • objectives • performance measures • value for a performance measure • benchmark or goal for assessing value on perf. measure • Objective: the intended result of a program or service • Performance measure: a basis for reporting outcomes • Value on performance measure: the score or outcome • Benchmark: a standard to which to compare the score ********************************** • Policy outcome v program outcome--useful to distinguish what outcomes are within agency’s control

3. Performance Measurement Exercises: How well does the outcome measure address the objective? • Objective: recruit and hire highly qualified personnel to fill vacant positions • Measure: percentage of recruitments filled with qualified candidates • Objective: reduce recidivism among juvenile offenders • Measure: number of probation officers working directly with juveniles • Objective: reduce interagency barriers to success • Measure: level of interagency cooperation

4. Performance Measurement Exercises: How well does the outcome measure address the objective? • Objective: improve quality of life of clients in drug treatment program • Measures: • monthly visits with clients to determine quality of life • completion rates of treatment programs • Objective: reduce delays in power plant siting process • Measures: • average time to completion of application • satisfaction of applicants

5. Performance Measurement Exercises: How well does the outcome measure address the objective? • Objective: increase awareness of issue “x” and availability of services “y” • Measures: • creation of a media campaign • number and type informational materials distributed • estimated number of people reached by the campaign • Objective: reduce customer complaints for service “x” • Measures: • cost to the unit of providing the services • percentage of customers satisfied

6. Examples from CSUS Planning: old v new approach Old objective: • To provide opportunities for students to experience a variety of pedagogical methods New objective: • Provide adequate staffing and facility support for faculty who are interested in integrating instructional technology into the classroom • Measures: inventory of “smart” classrooms and instructional technology staff; faculty survey--new question on adequacy of support

7. Examples from CSUS Planning: old v new approach Old objective: • To increase opportunities for students to engage in experiential learning (e.g. service learning, internships, cooperative education, involvement in research) during their academic career at CSUS New objective: • Increase enrollment in service learning, internships, and cooperative education coursework • Measures: enrollment data; CASPER phone poll

8. Examples from CSUS Planning: old v new approach Old objective: • To assist students in becoming effective learners New objective: • Implement programs or practices aimed at helping students become more effective learners, in light of findings of continuing research on the subject of effective learning • Measures: status of research findings; implementation of new programs or practices

9. Examples from CSUS Planning: old v new approach Old objective: • To clarify, within the context of the Strategic Plan, the international aspects of the University’s mission New objective: • Develop, as appropriate, learning outcomes for globalism and increase the coverage of globalism and internationalism in the curriculum • Measures: review of assessment plans, syllabi, program reviews

10. Examples from CSUS Planning: old v new approach Old objective: • To create an environment in which all employees are supportive of University efforts to achieve a pluralistic community, are knowledgeable about University efforts, and have the skills, awareness, and motivation to support these efforts at the University, unit, and individual levels. New objective: • Reduce the perceived discrimination and insensitivity on campus with respect to race, ethnicity, culture, religion, gender, sexual orientation, and disability as reported by members of the campus community • Measures: CASPER phone survey; SNAPS; new campus climate survey

11. Examples from CSUS Planning: old v new approach Old objective: • To improve the ability of the University to serve a qualified, diverse student population while responding to changes in enrollment demand and societal needs New objectives: • Increase the portion of classes and labs that are scheduled on Fridays, evenings, and weekends to better utilize campus facilities • Measure: new report on % of sections scheduled by time period; Chancellor’s Office measure on % of FTES served by time period • Develop an integrated “evening/weekend college” approach whereby working adults can complete selected entire academic programs without attending during normal work hours • Measure: documentation of effort

12. Relating Performance Measures to Budgeting • Purpose of the budget process • To help decision makers make informed choices about the provision of goods and services and to promote stakeholder participation in the process • Good performance measures: assist government officials and citizens identify program results, evaluate past resource decisions, and improve future resource allocation • Ideal performance budget: helps decision makers understand performance consequences of budget decisions • Good performance budget: helps decision makers connect $$ to program results to try to affect outcomes

13. Performance Budgeting • Definition: Systematic incorporation of performance information into the budgetary process • Requires program structure (or at least program thinking) • “Program” -- a set of related functions that contribute to a common goal • Programs should not be defined around • organizational structure • funding source • Example of program budget at CSUS • student retention (crosses organizational units) • year round operations (crosses organizational units and involves different funding sources)

14. Elements of a Performance Budget • Reflects program planning (mission/goals/objectives) • Includes means to measure results (i.e. the measures) • Includes data on performance measures (i.e. the measurements) • Includes performance targets • Includes strategies for meeting targets • Provides cost projections for meeting strategies • Allocates funds based on cost projections

15. Prince William County • Based on strategic planning • major emphasis on community input • focused on limited set of strategic goals • considers impact of external environment • action oriented • From targets to budgets • desired community outcomes=>program outcomes • measurable program objectives to reach targets • activities to be performed to meet targets • budget for each activity

16. Prince William County (p.2) • Budget approval process • agencies report to Executive Management on prior year performance (measures against targets) • agencies meet with Executive Management to set budget year objectives, targets, activities • internal and external benchmarks used • Executive Management distributes budget instructions • agencies submit budget requests in response to agreed upon targets • review by Board of Supervisors with community input

17. Prince William County (p.3) • Accomplishments of performance budgeting • shift away from line item budgeting • reallocations toward strategic priorities • major increases: public safety, judicial administration, human services, capital improvement • major decreases: parks and library, administration, general government, planning and development • more efficient government (cost per capital declined) • increased citizen satisfaction with value of tax dollars • won several awards (helps gain citizen support)

18. Bellevue, Washington • Budget based on strategic themes • programmatic, cross-departmental approach • Department budget request includes: • goals and significant budget issues organized around city’s strategic themes • programmatic, not line-item presentation • initiatives and budget increases, by program • outcomes, activities, performance measures, all linked

19. Missouri • Budget instructions to agencies • budget requests must be based on strategic plan • budget requests must relate to “Show Me Results” • designed budget form to show “tight linkages” between planning and budgeting • “problem statement” is to relate to “Show Me Results” • form includes outcome measures • objectives that will affect outcomes • strategies and requested funds

20. Preview of Week 15 • Two readings on Ethics • Last-email discussions questions are due • Course evaluation • Begin BCP presentations • class will evaluate