Presentation on theme: "Dustin Brown Deputy Assistant Director for Management"— Presentation transcript:
1OECD Conference: Sequencing and Pacing of Performance Budgeting Reforms Dustin BrownDeputy Assistant Director for ManagementOffice of Management and Budget,Executive Office of the President, USJames InderDirector, Financial Support and Training Office, Bureau of Resource Management, US State Department, United States.
2Overview Program budget classifications How are program objectives decided?Presenting performance information in budget.Government-Wide EffortsAgency-Specific EffortsProgram Assessment Rating ToolOrganizational Steps to Improve Performance BudgetingFuture Opportunities
3Program Objectives Defined By: Legislative Branch - CongressAuthorization Statute (periodic)Appropriations Committee (annual)Executive Branch – the AdministrationOffice of Management and BudgetAgenciesGrantees and Program PartnersOther Stakeholders, Public
4Programs, Organizations and Budget Structures Typically budgets are program centricAgencies, Congress and OMB are used to it.Creating budgets by Strategic Goal, Long-Term Objectives or Problems will require a cultural and policy shiftHorizontal problems with solutions by vertical programs would need this shift
5Agency Performance Planning and Reporting (Government Performance Results Act, 1993) Strategic PlansGeneral goals and objectives, including outcome- related goals and objectives, for the major agency functions for a period of not less than five yearsA description of how the goals and objectives are to be achievedAnnual Performance PlansEstablish performance indicators to be used in measuring or assessing the relevant outputs, service levels, and outcomes of each program activityShould be consistent with the agency's strategic planPerformance Budgets result from integration of budget information and agency annual performance plans.Annual Performance ReportsReview the success of achieving the performance goals of the fiscal yearEvaluate the performance plan for the current fiscal year relative to the performance achieved toward the performance goals in the fiscal year covered by the report .
7Budget and Performance Integration Agencies’ budget justifications are required to include full cost of achieving program performancePerformance’s costs are interpreted as budgetary resourcesChanging to real costs would require a cultural changeProgram’s costs can be tracked trough cost accounting or activity base costingBudgetary resources can be linked to expenditures via financial statements
8Budget and Performance Integration Agencies have developed models for determining program’s marginal costCurrent emphasis is in the use of marginal/unit cost as part of program’s target settingThrough the use of marginal, unit and full cost, budget and performance become better integratedProgram assessments are used to inform agency, OMB, and Congressional decisions on resource allocations.Programs’ performance is only one of the factors for making budget decisionsGovernment-wide budget contains little performance information
11Program AssessmentsEvaluate programs in a systematic, consistent, and transparent manner.Focus on program improvements that can include specific actions related to management, legislative or regulatory improvements, and funding.Over the past six years, agencies and OMB have completed 1,017 program assessments including 234 reassessments.In 2002, the government could not show what results were being achieved by their programs and spending.After six years of completing program assessments, the federal government now has 6,516 performance measures including 1,367 efficiency measures.This is the first time in history that we have assembled government performance measures in one database and reported them transparently on
14How to Increase Usefulness of Performance Plans and Reports? The right information for the right audienceThree tiers of performance information:Strategic Plans, Annual Performance Plans/Report ( pages)Citizen’s Report (25 pages)Snapshot (2 pages)
19Presidential Executive Order 13450 Improving Government Program Performance November 13, 2007 The EO makes it the official policy of the Federal Government to spend taxpayer dollars more effectively and efficiently each year.Established Performance Improvement Officers (PIOs) in each agencyEstablished Performance Improvement Council (PIC)
20Performance Improvement Officers Continually Improve Program GoalsHelp Develop Program Improvement PlansRegularly Assess Program PerformanceHelp Hold Managers Accountable for ResultsEffectively Communicate Agency Plans and ReportsIncrease Transparency
21Five Opportunities Active performance management Linking outcomes with operations (i.e. outcomes with outputs and strategies)Linking cost (not just budget) to performance, including marginal cost analysis.Linking organization and individual performanceFocus on rigorous program impact evaluationsDeveloping crosscutting analysisSee Community Development Ex. In BackgroundGreater transparency and accountability
39Other StakeholdersONE Campaign tracks U.S. commitments on global AIDS.
40Alternative Structure Arrange by Problems/Outcomes, not Agencies/ProgramsExample from Community and Economic Development
411. Define the Problem High Poverty Rural areas 64 non-metropolitan counties have registered poverty rates higher than 30 percent for each Census from 1960 to 2000.High Poverty Urban Areas (vs. Metro Avg.)2,886 high poverty neighborhoods in US cities with 8.4 million people living in them:Homeownership rates are 33 percent lower.Male employment rates are 19 percent lower.Share without a high school degree is 24 percent higher.Share of families headed by single females is 25 percent higher.
422. Identify Federal Programs Addressing Problem USDACommunity Facilities Direct Loan ($300M loans)Community Facilities Guaranteed Loan ($210M loan)Community Facilities Grants ($17M)Rural Business Enterprise Grants ($40M)Intermediary Relending Program ($16M)Rural EZs/ECs ($13M)CommerceEcon Devt Admin ($320M)EPABrownfield Assessment/Cleanup ($121)HHSCSBG ($495M)HUDCDBG ($4,330M)EZs ($15M)CD Loans ($7M)Brownfields ($7M)Rural Housing and ED ($25M)National CD Initiative ($30M)Indian CD Block Grant ($72M)HOME Investment ($2,084M)Native American Housing BG ($647M)Self-Help Homeownership ($65M)FHA Asset Control ProgramInteriorLand and Water Conservation Fund ($94M)Regional Economic Development AgenciesAppalachian Regional Commission ($66M)Denali Commission ($6M)Delta Regional Authority ($2M)Small Business Administration504 Loans ($4,500M in loans)New Market Venture Capital ($3M in loans)TreasuryCDFI ($43M)Bank Enterprise Award ($5M)Neighborhood Reinvestment Corp ($115M)Tax Incentives (5-year revenue loss)New Markets Tax Credit ($3,500 M)EZ/Renewal Communities ($6,800 M)Brownfield Tax Expensing ($1,000 M)Work Opportunity Tax Credit ($270M)Welfare to Work Tax Credit ($90M)TOTAL: 12 agencies; 35 programs$16 billion (approps+loans+tax)Note: funding data is from 2005.
432.a. List of Federal “Designations” Addressing Problem Renewal CommunityEmpowerment ZonesEnterprise CommunityHUD Neighborhood Revitalization Strategy AreaEDA Distressed AreaAppalachian Regional CommissionDelta Regional AuthorityDenali Commission Areas (Alaska)CDFI Investment AreaNew Market Tax Credit Low-Income CommunityBEA Distressed CommunityBrownfield Tax Incentive ZoneSBA HUBZonesFHA Revitalization AreasRural Community Facility AreasHUD Underserved Areas
44Housing & Infrastructure Individual/ Family Assistance 3. What is the purpose of the programs?Tools/CategoriesHousing & InfrastructureEconomic DevelopmentTechnical Assistance/Capacity BuildingIndividual/ Family AssistanceGrantsCommunity Development Block Grant (CDBG)Economic Development Administration (EDA)Community Services Block Grant (CSBG)HUD Rural Housing and Economic Development (RHED)HUD Empowerment Zones (EZ) GrantsUSDA Enterprise Community/EZ GrantsHHS Rural Community FacilitiesHOME Investment PartnershipsNeighborhood Reinvestment Corp. (NRC)EPA Brownfield CleanupHUD Self-Help HomeownershipHUD Native American Housing Block GrantsHUD Indian CDBGRegional CommissionsEDACDBGCSBGHUD EZ grantsRural Business Enterprise GrantsRural EZ/ECHUD BrownfieldsHHS Community and Economic Development (CED)HUD RHEDUSDA Economic Impact GrantsSBA HUB Zone (procurement preference)HUD NCDICDFIRural Business Opportunity GrantsBank Enterprise Award (BEA)CDFI Native InitiativesCDBG set-asidesNRCHHS CEDHUD EZ GrantsCDFI NativeBEALoansUSDA Community Facilities (inc. grants)USDA Intermediary Re-lendingHUD Section 108 loansSBA 504 loansTax IncentivesNew Markets Tax Credit (NMTC)Brownfields RemediationSingle-Family Homeownership (proposed in 2006)NMTCEZ/EC/RC (wage credits and other incentives)Opportunity Zones (proposed in 2006)
45Program Purpose & Design Community & Economic Development Programs 4. Where are the program strengths and weaknesses?Program Purpose & DesignStrategic PlanningProg. MgmtResultsTotalAll Federal Programs85%70%79%47%63%Community & Economic Development Programs69%82%30%52%
46Examples of Community Development Metrics 5. How do these programs measure success?GOALPerformance System/ProgramHigh Level Tracking IndicatorsProgram Outcome MeasuresProgram OutputsExamples of Community Development MetricsImprove quality of life in a distressed area to make the target community self-sustainingCDBGNoneNone (recently developed)Number of households assisted with housing assistanceNumber of jobs created or retainedEDAnonePrivate sector dollars leveragedNumber of jobs created or retained in distressed communities.Percentage of investments to areas of highest distressUSDA Community FacilityMillions of rural residents served by community facilities financed by RHSNumber of public safety, educational, and health care facilities financedSBA 504 Certified Devt. Loan ProgramEstimated number of jobs created or retainedNumber of 504 loans guaranteed
47Sample Agency Performance Management Best Practices Select limited number (20-30) of senior management measures for use in quarterly meetings (See Interior & EPA).Include field offices in some quarterly meetings (See HUD, EPA, SBA).PIOs ensure PMA Initiative Leads and other leaders (CHCOs, CAOs, CFOs, E-Gov,) meet regularly to focus on program improvement and ensure common standards across Department (See HUD, Labor, EPA).Align PART and APP goals (See DOE).Has a continuing effort to benchmark itself against other government and non-government entities on performance management processes (See NASA, SSA, DOE).Establish centralized evaluation unit (if one does not exist) and evaluation agenda (See State, USAID).Program goals are basis for senior manager appraisal goals (See EPA and OPM).Post regular updates of quarterly meetings including performance and improvement actions online and has links to performance results on its homepage (See OPM, EPA, DOE).