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Financial Fitness for Park and Recreation Agencies

Financial Fitness for Park and Recreation Agencies. Jeffrey J. Bransford, MS, MPA, CPRP Fri 20 Jan, 2012. Agenda. Flashback to the 70s T he Big Four Obstacles Revenue Review Stress Test Conclusion / Discussion. Flashback to the 70s. Government Fastest growing employment sector

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Financial Fitness for Park and Recreation Agencies

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  1. Financial Fitness for Park and Recreation Agencies Jeffrey J. Bransford, MS, MPA, CPRP Fri 20 Jan, 2012

  2. Agenda • Flashback to the 70s • The Big Four Obstacles • Revenue Review • Stress Test • Conclusion / Discussion

  3. Flashback to the 70s • Government • Fastest growing employment sector • Public spending approached 1/3 of GNP • CA state budget 12% annual growth Sources: Crompton (1999); http://futurist.typepad.com

  4. Flashback to the 70s • Tax Revolt • Frustrated taxpayers • Misconception about waste • Local governments at frontline • Property taxes were most visible • Prop 13 (CA) • 36 states reduce prop/sales/income taxes Source: Crompton (1999)

  5. The Big Four Obstacles of Entrepreneurial Managers Obstacle #1 Entrepreneurial managers seek autonomy, but autonomy often contradicts democracy Source: Crompton (1999)

  6. The Big Four Obstacles of Entrepreneurial Managers Obstacle #2 Entrepreneurial managers need privacy to build partnerships, but privacy contradicts democracy Source: Crompton (1999)

  7. The Big Four Obstacles of Entrepreneurial Managers Obstacle #3 Entrepreneurial managers have a level of vision, confidence, and knowledge that citizens and stakeholders often don’t have Source: Crompton (1999)

  8. The Big Four Obstacles of Entrepreneurial Managers Obstacle #4 Entrepreneurial managers take risks and sometimes fail in an environment that has little tolerance for failure. Source: Crompton (1999)

  9. Revenue Review • Operating (Base) Budget • Recurring • Day-to-day • Personnel, utilities, supplies • Capital (Project) Budget • Non-recurring / short-term • One-time events

  10. Revenue Review • Restricted Funds • Dedicated to one project / purpose • Narrow scope • Tied to mission, strategy, or goal • Unrestricted Funds • Discretionary • Typically overhead is dependent on it

  11. Revenue Review • Common Sources of Revenue • Taxes • Fees • Debt • Grants • Donations • Sponsorships

  12. Stress Test • Diagnostic tool to assess financial fitness • Not comprehensive cure-all • Based on research by World Bank • Three underpinnings • Fiscal Discipline • Allocation of Resources • Effectiveness of Service Delivery

  13. Stress Test • Part 1 – Fiscal Discipline • Is your fiscal situation stable? Sustainable? Predictable? • Is your financial framework sound and up to date? Grounded in strategy? • Does your framework have an appropriate level of constraint and review? • Does your framework allow for transparency and accountability?

  14. Stress Test • Part 2 – Allocation of Resources • Does your organization generate a good value for its resources? • Is there consistency between stated organizational priorities and actual services? • Are policy/program tradeoffs adequately analyzed? • Is there adequate collaboration in decision-making?

  15. Stress Test • Part 3 – Effectiveness of Service Delivery • Is your organization effective and efficient? • Is there an effective framework to ensure that spending units / programs receive the resources needed/promised? • Are spending units being responsible citizens of the organizational financial framework? • Is there mechanism to link assess performance and overall strategy?

  16. Conclusion • Questions? • Feedback on value of diagnostic tool? • Suggestions for beta version? • Format / delivery method? • Additional information: Jeffrey Bransford Eppley Institute for Parks and Public Lands jbransfo@indiana.edu www.eppley.org

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